United States
            Environmental Protection
            Agency
Administration And
Resources Management
(3302)
EPA 205-S-97-001
January 1997
&EFA    Summary Of The
            1998 Budget


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                     CONTENTS
                                                     PAGE

Overview of the 1998 Budget	   3

Operating Programs:

   Environmental Programs and Management
       - Air	   11
       - Water Quality	   15
       - Drinking Water	   19
       - Hazardous Waste	   21
       - Pesticides	   25
       - Radiation	   29
       - Multimedia	   31
       - Toxic Substances	   35
       - Management & Support	   39

   State, Tribal and Local Grants (STAG)	   43

   Buildings and Facilities	   47

   Science and Technology	   49

   Inspector General	   55

   Oil Spills	   57


Trust Funds:

   Superfund	   63

   LUST	   69


Water Infrastructure Financing (STAG)	   75


Appendix:  Budget Tables	   79

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NOTK: References to workyears refer to total workyears rather than only
        "permanent" workyears. Additionally, some numbers may not add
        due to independent rounding.


        Cover Photos:  John P. Scott, Victor Zambrano

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                                    OVERVIEW
       The  1998 President's  Budget for the
Environmental Protection Agency presents a clear
and compelling illustration of the Administration's
commitment to  'protect the environment while
advancing the prosperity of the American people
and people throughout the world.' The policies
and programs of the last 25 years have proven
remarkably effective. However, the problems of
the future demand new, creative and innovative
solutions.  The 1998 Budget continues building
this new era of environmental protection  and
demonstrates again  the dedication of this
Administration  to environmental protection
efforts.

       In 1998, EPA  will  strengthen  its
commitment to protect the public health and the
environment.   The Agency's focus  is on the
President's environmental commitments made
in Kalamazoo, Michigan, and other significant
priorities,  and implementation activities related
to the passage of new environmental legislation.
These efforts will address important issues such
as accelerating Superfund cleanups, expanding
brownfields redevelopment efforts, improving the
public's right to know about pollution in their
neighborhoods, assessing health risks to children,
revitalizing  our  urban areas, applying new
research tools to the state of the environment,
and ensuring the safety of the Nation's water and
food supplies.

       EPA's 1998 budget request of $7.6 billion
and 18,283 workyears encompass a wide variety
of critical programs protecting the public health
and the environment.   A clean environment
requires  attention towards the traditional
programs that continue to protect our air, land,
and water, but also programs designed to address
more vulnerable populations and more polluted
geographical locations requiring either immediate
or specified attention.
               HIGHLIGHTS

Protecting All Communities
from Toxic Pollution

       The President made a new national
commitment in Kalamazoo, Michigan, to protect
communities from toxic pollution. The Agency is
making significant contributions to carry out the
Administration's commitments in four key areas.
       First, EPA is working to accelerate toxic
waste cleanup. The Agency is requesting funds in
1998 to begin the work to clean up another 500
sites in the next four years, so that 900 (about
two-thirds) of the Nation's worst toxic waste sites
will be cleaned up through the year 2000.

       Second,  the Agency is proposing a major
expansion of the Brownfields Redevelopment
Initiative. This effort will expand EPA grants to
communities for site assessment and cleanup,
and for redevelopment planning of contaminated
and abandoned urban properties.

       Third, the Agency is requesting funds to
improve the availability  of information to  all
citizens and communities about toxic pollution.
As a part of this commitment, EPA will work with
other federal, state, and local agencies to put in
place a nationwide network to monitor  key
environmental health indicators in the air, land
and water. Americans will have access to this
timely health-related  data to make  informed
choices that directly  affect  their health.   In
addition,  the Agency is working to provide the
public with  information on toxics and possible
environmental health risks, including  cancer,
developmental, hormonal, and reproductive risks.

       Finally, the Agency is  continuing  its
commitment to get tough  on criminal polluters.
Prosecutors, police and investigators need better
tools to protect our communities from the threat
of toxic pollution.   The Agency is requesting
resources to train state and local law enforcement
officers to investigate and detect environmental
crimes.
Implementing New Environmental Laws

       Last year was a watershed year with the
enactment of two new environmental laws - the
Safe Drinking Water Act Amendments (SDWA)
of 1996 and the Food Quality Protection Act
(FQPA) of 1996. These two laws established new
approaches to improve the safety of our drinking
water and food.  In addition, they established
aggressive schedules for EPA to implement new
requirements.   In 1997, an  $40  million was
appropriated for EPA to begin implementation.
In 1998, the President requests an additional $36

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                                    OVERVIEW
million and 141 total workyears to address the
various new requirements within the statutory
time frames.

       In 1998, EPA will further implement the
new requirements of the SDWA Amendments to
ensure that every American public water system
will provide safe drinking water. To accomplish
this, EPA will improve the way drinking water
safety standards  are set  and  regulations
developed, emphasize prevention programs such
as protecting source waters, set regulatory
priorities based upon risk, and expand consumer
information about contaminants found in drinking
water.  EPA will also provide technical and
financial assistance to state and local governments
to operate small drinking water systems. Finally,
EPA is requesting $725 million in capitalization
grants for  states to issue  loans to local
municipalities to improve their drinking water
systems.

       EPA  will  also continue  in 1998  to
implement the requirements of the FQPA designed
to improve the safety of America's food  supply.
Strengthening its ability to ensure safer pesticides,
EPA will reassess existing pesticide tolerances,
streamline reviews of safer pesticides,  review
pesticide  registration for  new  health concerns
such  as endocrine  disrupters, and  accelerate
review of existing pesticides. In addition, EPA
will  develop and distribute more  useful
information to the public to inform them about
the risks posed from adverse pesticide exposures.
To help pay for these new requirements, EPA will
increase pesticide reregistration and  tolerance
fees.
Protecting Children from
Environmental Threats

       Assessing health risks to children from
environmental pollutants is a major concern for
this  Administration.  The Administrator has
announced an Agencywide  policy to ensure that
environmental health risks to children are
explicitly and consistently evaluated in our risk
assessments, risk  characterizations, and
environmental and public health standards. The
Agencyalso issued a national agenda on children's
environmental health in late 1996.  EPA will
support families  with information under the
Right-to-Know principle about possible health
threats to their children and provide more public
information and education. Enforcement efforts
will also focus on our children, with coordinated
initiatives and case development and litigation to
protect our children from the dangers of lead-based
paint. Lastly, to fulfill the commitment made by
the President and the Administration, EPA will
reassess current information and approaches to
determining risks to children  and, accordingly,
revise national standards that will provide greater
protection to our children.
Revitalizing Cities through
Urban Livability Endeavors

       EPA is committed to making cities more
livable through  environmental protection,  by
expanding the urban revitalization efforts begun
by the Superfund's  Brownfields program. The
Agency will produce guidelines for preventing
polluted runoff that threatens urban drinking
water sources  and focus efforts to improve air
quality in urban communities. In addition, support
will be provided to cities for pilot projects in waste
minimization  outreach  and  in coordinated
pollution prevention goals  in  reducing  waste
generation, energy usage, and water usage.
Applying Advanced Technology
to Environmental Management

       Technological developments in  remote
sensing,  information  systems  and computer
technologies have created new opportunities for
environmental monitoring and management. The
Advanced Measurement  Initiative (AMI)  will
guide the identification, research and application
of advanced monitoring tools and  enabling
technologies to  provide more timely,  accurate,
comprehensive  and cost-effective  monitoring
information for assessing  the status of the
environment and  the health of people  and
ecosystems.  Fundamental to AMI are effective
partnerships  both intra-agency and inter-agency
(NASA, DoD, DoE, Dol and DoC), as well as
partnerships with the community, academia and
private industry.  The Agency will leverage
partnerships, focusing  on  matching specific
environmental monitoring technology needs with
appropriate technology solutions.  The goals of

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                                    OVERVIEW
AMI include effective adoption of existing and
emerging technologies  through integrated
planning  and implementation  that  address
measurement, analysis, data management and
communication.
Regulatory Reinvention

       The Agency's commitment to regulatory
reinvention is reflected in improvements in the
current system as well as innovative alternatives
to current practices. The Agency is proposing
activities designed  to  address problems with
today's regulatory programs. For  example, EPA
is restructuring  reporting requirements under
the National Pollution Discharge Elimination
System (NPDES),  reducing reporting  from
facilities with the best compliance records, while
maintaining full reporting from  facilities with
poorer compliance records.

       EPA is continuing to seek alternatives to
the current regulatory system.  Through efforts
like ProjectXL, the Agency is forming partnerships
with businesses, states, communities, and public
interest groups to test novel  management
strategies for single facilities, industrial sectors,
or geographic areas. In addition, the Agency's
Environmental Leadership Program will continue
to work with federal and state partners to initiate
projects to test innovative  approaches to
compliance. Funding will also continue in 1998
for mechanisms to assist  small businesses,
including Small Business Assistance Centers that
help small businesses in specific industries comply
with their environmental requirements.  EPA's
compliance with the Small Business Regulatory
Enforcement Fairness Act (SBREF A) will steadily
increase the consideration and accommodation of
small business concerns in regulatory matters.
Increasing Support to State
and Tribal Partners

       EPA will continue to pursue its strategy
of building and supporting state, local, and tribal
environmental protection programs. Since most
environmental laws envision a federal/state/local/
tribal partnership to fully implement our Nation's
environmental laws, EPA will continue to support
our partner's efforts to fully implement, operate,
and enforce environmental requirements.  In
doing this, the Nation's environmental goals will
be achieved through the actions and commitments
of state, local,  and  tribal governments,
organizations, and local citizens.

       EPA  assistance  to  state  and tribal
governments will continue to be provided through
both technical and  financial  assistance.  The
Agency is requesting increased resources for the
states in the  air, water,  and multimedia
enforcement  programs to address increasing
program  requirements due to the Food Quality
Protection Act,  new clean air standards, and
review of the  quality of surface waters for Total
Maximum Daily Loads (TMDLs).  Resource
increases are also requested for the tribes in most
categorical program grants to help them continue
to develop their environmental  protection
programs.

       In addition, EPA is continuing to pursue
new approaches to provide more flexibilities to
our state  and tribal partners. EPA is attempting
to formalize  Tribal/EPA  Environmental
Agreements  with every  federally  recognized
Indian tribe.  In this way, EPA can support its
Indian partners in  a manner consistent  with
tribal priorities and  statutory requirements.
Performance Partnership Grants
and Agreements

       In 1996, Congress enacted the President's
proposal  to establish permanent authority for
EPA to enter into Performance Partnership Grants
with the states and tribes. In 1998, EPA will work
with the states and tribes to combine individual
categorical grants (for air, water, hazardous waste,
etc.) into one or more consolidated grants. These
grants help to streamline administrative burdens,
while  at the same time allowing governments to
better target their resources to the most pressing
environmental problems. In 1996, twenty states
used more flexible authority to combine grants in
an effort  to reduce administrative burdens. As
states realize the benefits of these combined
grants, we expect more states to participate. The
Performance Partnership Grants build on the
National   Environmental   Performance
Partnership System (NEPPS), where states and
EPA  can sign  agreements  for reduced  EPA

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                                    OVERVIEW
oversight in return for strong state performance.
In fiscal year 1997, we expect at least 24 states to
sign NEPPS agreements with EPA.
Enforcement and Compliance Assurance

       The Enforcement program will emphasize
a balanced approach between traditional activities
of compliance monitoring, civil enforcement and
criminal enforcement actions, as well as more
recent approaches such as compliance assistance
and compliance incentives.  The key  areas the
Enforcement  program proposes  for investment
and redirection of resources in 1998 support its
dual role to use both enforcement and compliance
tools  to ensure  adherence to  environmental
regulations,  particularly in high risk areas.
Accordingly, the  budget will redirect  resources
from  the relatively low risk  areas  such as
Hazardous Waste Enforcement into programs for
protection of  children's health from lead-based
paint and from pesticide misuse. The Enforcement
program will also provide additional resources to
protect public water systems  and address the
unique water pollution problems of concentrated
animal feedlot operations.

       EPA will reduce its request for federal
compliance assistance resources, as states assume
greater responsibility for providing assistance.
However, the Enforcement program will provide
additional resources for compliance incentives to
the regulated community. In 1998, the program
will emphasize and increase the resources devoted
to the new self-audit policy as a way of achieving
greater compliance  levels at lower cost to the
public and private sectors, as well as industry/
federal agency partnerships.
Reducing Uncertainties Through Research

       The 1998 budget supports strong science
and research which  will bolster the Agency's
understanding in areas with major environmental
uncertainties. Research priorities were developed
in the context of the ORD strategic plan using a
risk-based priority process. One such  area of
great risk and major uncertainty is Particulate
Matter (PM). PM is perhaps the largest single
contributor to adverse health effects caused by air
pollution, with estimates ranging from thousands
to tens of thousands of premature deaths per
year.  PM research will focus on mortality risks,
exposure, and the mechanisms by which particles
affect human health.  Increased  resources are
also provided in response to growing scientific
concern  about  the  unknown  effects  of
environmental exposure to substances that
interact with the endocrine system.  Research in
this  area  will  characterize  the  effects of
environmental exposure to various chemicals, in
two target  populations, humans and wildlife.
Additionally, EPA will conduct research to obtain
better understanding and  assessment of the
potential health risks and human exposures to
drinking water  disinfection by-products  and
microbial pathogens.
Climate Change Action Plan

       The  1998 President's Budget supports
the implementation of the Climate Change Action
Plan (CCAP). The actions taken under the Climate
Change Action Plan are the means by which the
U.S. is striving to meet its commitment to reduce
annual greenhouse gas emissions to 1990 levels
by the year 2000. The heart of CCAP will remain
its reliance on voluntary partnerships between
EPA and organizations or individuals that join to
save energy and/or increase  productivity while
reducing greenhouse gases. EPA currently has
on-going partnerships with entities such as states,
cities, farmers and large and  small businesses.
Summary

       EPA looks to protect all Americans from
environmental threats, whether a child or adult,
or a person living in an urban or rural community.
EPA seeks the most effective means for creating
a clean environment and protecting public health,
from providing grants to state, local, or tribal
agencies,  to  implementing Performance
Partnership Grants, and to providing innovative
and cost-effective means for governments and
industry to meet  environmental regulations.
EPA's focus on toxic pollution in 1998 paves the
way for future generations to grow up in a clean
and safe environment.  EPA also targets our
geographical areas hardest hit by pollution,
ensuring that even those living  in the  most

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                                       OVERVIEW
environmentally disadvantaged communities still
have hope for the future. By addressing these
initiatives and programs, EPA will demonstrate
that its investments are in concert with America's
highest environmental priorities.

       America's  priorities also  include a
government that works  for the people.  With
every environmental program, EPA emphasizes
achieving  results through strong science and
better research,  innovative cost-effective tools
and methods, and initiatives that aim to work
with industry, governments, and Americans as
partners.  Most importantly, EPA works for the
American people by protecting the Nation's public
health and environment.

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           In 1998, The Agency's Budget T>tals $7.6 Billion
     I Operating Programs
     I Trust Funds
     I Water Infrastructure
                                     $7,558M
$7,645 M
  $6,515 M  $6,459 M
                     $6,882 M
1991     1992      1993     1994     1995      1996     1997
                                                                     1998
Notes:  State, Local, and Tribal grants previously captured in the Operating Programs
      are accounted for in Water Infrastructure beginning in 1996
           The Agency's V\forkyear Ceiling Increases in 1998

     | Operating Programs
     Trust Funds
1M15 .17>010,
/
12,814
/
4
/
13,291
/
I
17,280
X J


s
13,575
X
4
17,106


* 	 1
13,330
_____
s
A
17,508
/ S
13 801


4
17,082


/
13,580

s
A



17,951
/ /
14,207


J
18.28
/
14,409
*
3
/

4
1991      1992      1993     1994     1995      1996     1997

                                  8
                                                                     1998

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   THE
OPERATING
PROGRAMS

     9

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10

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                                            AIR
               DOLLARS

                  +$59.8 M   $313.0 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                                     WORKYEARS

                               1,657         -74
                                                       1,583
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       The overall quality of our Nation's air
continues to improve. Emissions of the Nation's
six major air pollutants have declined almost 30
percent since passage of the Clean Air Act in
1970, and recent trends show continued declines.
For all pollutants except ozone, 1995 air quality
levels were the best in a decade. But we still have
more to do before all Americans, especially our
children, have safe, fresh air to breathe.   Air
pollution continues to be a widespread problem in
the United States, contributing to human illnesses
such as  cancer, respiratory and reproductive
problems, and mental impairment. Air pollution
also  reduces visibility,  corrodes buildings, and
damages  natural  resources and  ecosystems
through toxic accumulation and acidification of
soils and lakes.  Through November 1996, more
than 170 areas, with a combined population of
approximately 124 million residents, didnotmeet
current air quality standards for one or more of
the six common "criteria" pollutants for which
EPA has established  National Ambient Air
Quality Standards  to protect human health and
the environment. Recent studies show that some
current standards  may not be sufficient.  The
studies  recommend changes to the standards
that would increase the size of the population
living in areas designated as non-attainment.

       The primary law authorizing EPA to
control air pollution is the Clean Air Act (CAA)
which was updated in 1990 to give EPA expanded
authority to control smog, air toxics,  acid rain,
and other health threats. The CAA of 1990 also
                        gave EPA authority to develop regulations for the
                        phaseout of chemicals that destroy the earth's
                        ozone layer. EPA is also involved in the activities
                        of the  Intergovernmental Panel on  Climate
                        Change (IPCC), and EPA  programs contribute
                        significantly  to greenhouse gas emission
                        reductions   accomplished    under    the
                        Administration's Climate  Change Action Plan
                        (CCAP).  EPA also addresses issues associated
                        with indoor air environments.

                               The President's Budget requests a total of
                        $313.0 million and 1,583 workyearsin 1998 in
                        the Air media under the EPM account. The 1998
                        request for the Air media does not include $11.3
                        million and 98 workyears the Agency is requesting
                        under the S&T appropriation  in 1998, rather
                        than the EPM appropriation  as in the  past.
                        Considering the amount requested  in the S&T
                        account, funding levels increase by $71.1 million
                        from 1997,  and workyears  increase by 23.  The
                        Agency has established six program objectives for
                        1998 to help  achieve  clean air environmental
                        goals:  1)  continue to review the adequacy of
                        National  Ambient Air  Quality  Standards
                        (NAAQS) and to work with states to attain the
                        standards; 2) reduce emissions of hazardous air
                        pollutants through setting federal  standards and
                        developing an integrated urban air toxics strategy;
                        3) encourage the use of market-based approaches
                        (e.g., the highly  successful, market-based acid
                        rain emissions trading system); 4)  reduce energy
                        consumption  and prevent pollution  through
                        voluntary,  profitable measures;  5) implement
                                              11

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                                           AIR
domestic rules and United States responsibilities
under the Clean Air Act and the revised Montreal
Protocol for reducing stratospheric  ozone
depletion;  and 6) provide technical  support to
state and tribal air programs.
               HIGHLIGHTS

Improving the Nation's Air Quality

       EPA sets NAAQSs for pollutants that
endanger  public health and the environment.
The Agency is required to review the NAAQSs
every five years and revise them as necessary.
The review process includes economic, risk, health,
and benefits analyses. EPA reviewed the ozone
and particulate matter standards in 1996, and
the Agency expects to decide the need for revised
standards  in  1997.   The President's Budget
requests a total of $66.3 million and 632 workyears
in 1998 for improving air quality.  The  1998
request for this activity does not include $5.8
million and 51 workyears the Agency is requesting
under the S&T  appropriation in 1998, rather
than the  EPM appropriation as in  the  past.
Considering the amount requested  in the S&T
account, funding levels  are nearly unchanged
from 1997, and workyears increase by 13.

       After a NAAQS is set, states must develop
clean air plans that reduce pollution and protect
public health and the environment. In 1998 EPA
will continue to assist states in meeting NAAQS,
and work with affected states to address the
persistent  and widespread problem of ozone
transport.

       EPA will provide  direct assistance to
industry in 1998 by developing and refining
emission factors and providing technical guidance
on developing emission inventories. The demand
for new and refined factors is growing as sources
prepare to comply with new  operating permit
requirements.
Enhancing Urban Livability

       Continuing    EPA's    success   in
demonstrating that  economic  renewal  and
environmental protection go hand-in-hand, the
Agency will launch a new initiative in 1997 that
builds on current urban revitalization efforts while
helping cities meet  future economic and
environmental  challenges.  In 1998  EPA will
coordinate Sustainable  Development Challenge
Grants with the Urban livability initiative and
empower state and local governments to pursue
innovative approaches  to  local environmental
protection issues. The President's Budget requests
$14.3 million and 4 workyears under the EPM
appropriation to support these initiatives in the
Air media in  1998, an increase of $9.9 million and
an increase of four workyears from 1997.
Establishing a Community
Right-to-Know Network

       As part of the President's environmental
commitments made in Kalamazoo, Michigan, the
President's Budget requests $5.0 million and 13
workyears under the  EPM appropriation to
support the  establishment of a Community
Right-to-Know Network, a new program in 1998.
The  Agency  will begin  to  build  a National
Right-to-Know Network in  1998 to make real-
time air quality  information  available when
families need it to make decisions affecting their
activities and exposure to unhealthy air. Work
will begin with states to enhance air quality data
delivery systems and  to upgrade monitoring
networks,  where necessary,  for the 75 largest
metropolitan areas. The 1998 effort will focus on
designing  pilot systems for initial metropolitan
areas and  purchasing equipment and software.
Implementing National Air Toxics
Strategies and Standards

       In addition to the pollutants for which air
quality standards have been established, there
are hundreds of other hazardous air pollutants,
generally called air toxics. Over one million tons
of these air toxics are released annually to the
atmosphere from industrial facilities, automobiles,
and other sources.

       To help reduce public  exposure to  air
toxics, EPA  must  develop technology-based
standards for 189 hazardous air pollutants from
174 industries.  Under the requirements of the
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Clean Air Act, EPA must develop these Maximum
Achievable Control Techno logy (MACT) standards
on a phased schedule through the year 2000.  At
that point, EPA will determine whether the
remaining public health risk warrants additional
regulation. EPA also is developing other air toxic
rules for combustion sources and developing and
implementing strategies to reduce public health
risks  in  urban areas, as  well as  to reduce
atmospheric deposition of toxics to the Nation's
water bodies, including the Great Lakes. The
President's Budget requests a total of $41.9 million
and 218 workyears in 1998 for the Air Toxics
program. The 1998 request for this activity does
not include $4.7 million and 38 workyears the
Agency is requesting under the S&T appropriation
in 1998, rather than the EPM appropriation as in
the past.  Considering the amount requested in
the S&T account, funding levels increase by $276
thousand from 1997, and workyears increase by
four.
Controlling Acid Rain

       Acid  deposition  and  its  precursors
adversely affect human health; damage lakes,
forests, and man-made structures;  and reduce
visibility. EPA seeks to reduce sulfur deposition
by a range of 25 to 40 percent in the eastern U.S.
by the year 2005. The 1998 President's Budget
requests $12.9 million and 100 workyears under
the EPM appropriation for the Acid Rain program,
an increase of $681 thousand and an increase of
five workyears from 1997.

       EPA has begun to reduce sulfur dioxide
(SO2)  emissions by 10  million tons from 1980
levels and nitrogen oxides (NOx) emissions by two
million tons.  The Agency is achieving the SO2
emission  reductions  through  an  innovative
market-based emission allowance program that
provides affected sources  with flexibility  in
meeting required emission reductions. Successful
implementation of the allowance trading system
minimizes compliance costs, maximizes economic
efficiency, and allows for growth. The acid rain
program is seen as a model for regulatory reform
efforts both here and  abroad. In 1998 EPA will
work  with states to  develop market-based
programs to reduce NOx.
Maintaining Voluntary Partnership
Programs to Prevent Pollution

       To  stabilize  'greenhouse'  gases that
contribute  to  climate change, EPA promotes
voluntary partnership programs to prevent and
reduce  emissions  of  air pollution.   By
demonstrating the pollution prevention benefits
of energy  efficiency, the  program educates
manufacturers, designers, and consumers on the
purchase, installation and use of energy efficient
products  in  a  manner  that benefits the
environment while not imposing net increased
costs on participating organizations. The Climate
Change  Action Plan also expands cooperative,
non-regulatory programs to profitably capture
and use methane and emissions of other potent
greenhouse gases by providing technical support,
removing institutional barriers such as property
rights issues and fair pricing from utilities, and
recruiting partners for these voluntary programs.
The  1998 President's Budget requests $91.9
million  and 120 workyears under the EPM
appropriation  for maintaining voluntary
partnership programs to prevent pollution, an
increase of $42.6 million and a decrease  of one
workyear from 1997.
Reducing Stratospheric Ozone Pollution

       The President's Budget requests $25.5
million and  26 workyears under the EPM
appropriation for EPA's  Stratospheric Ozone
Depletion Program,  an increase of $9.3 million
and a decrease of one workyear from 1997. To
restore the stratospheric ozone layer and protect
public health  and the environment, EPA focuses
on four  areas:  domestic and international
phase-out of ozone depleting chemicals;
implementation of limitations on other ozone
depleters; more intensive recycling programs in
the U.S.  and abroad; and  earlier voluntary
phase-out of ozone depleting chemicals in
developing countries.

       Included in the President's Budget for the
Stratospheric Ozone program is $21.0 million to
support the Montreal Protocol Facilitation Fund.
This fund is  a treaty obligation that supports
developing countries' efforts to phaseout the use
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                                           AIR
of ozone depleting substances.  To date, the fund
has financed over 1,517 activities in 101 developing
countries.   When fully  implemented,  these
activities will result in the annual prevention of
over 30,000 tons of ozone depleting substances.
Addressing Indoor Air Environments

       EPA's primary strategy to reduce
exposure  to  unhealthy levels of indoor air
pollutants is  to use voluntary  approaches and
partnerships to educate audiences ranging from
consumers to building managers about indoor air
problems and solutions. The Agency develops
guidance about ways to reduce the health risks of
indoor contaminants such as radon, second-hand
tobacco smoke, and emissions from building and
consumer  products and works through partner
organizations to  create awareness and change
consumer and institutional behavior.   The
President's Budget requests a total of $ 18.7 million
and  113 workyears in 1998  for the Indoor
Environments program.
Implementing Strong Compliance
and Enforcement Efforts

       The  1998  President's  Budget requests
$22.2 million and 293 workyears under the EPM
appropriation for the  Stationary  Source
Enforcement program, an increase of $2.4 million
and a decrease of ten workyears from 1997. The
program monitors compliance with the attainment
and maintenance of ambient standards for Clean
Air Act criteria and toxic pollutants. The program
also ensures the  reduction of hazardous air
emissions by enforcing the stationary sources
requirements of state clean air plans, New Source
Performance Standards,  National Emission
Standards for Hazardous Air Pollutants, the Acid
Deposition Control Program and Stratospheric
Ozone Protection Program.

       In 1998, Stationary Source Compliance
Monitoring  efforts will be focused on  major
stationary sources in nonattainment areas, on
new sources, and on problem sources in attainment
areas.  The regional program  will support and
supplement  the efforts of state and  local air
pollution  control agencies.  Stationary Source
Civil Enforcement will target enforcement actions
to ensure the reduction of toxic air emissions and
implement the Title V Operating Permits program
to address hazardous air pollutants and enhance
state programs for improved urban air quality.
                                              14

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                                WATER   QUALITY
               DOLLARS
     $272.9 M    +$2.0 M    $274.9 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                                     WORKYEARS
                              1,830        -2          1,828
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       Since the passage of the Federal Water
Pollution Control Act of 1972, the United States
has had tremendous success in reducing pollution
entering our surface waters. EPA's Water Quality
program has broadened its focus over the years by
examining entire watersheds and considering all
sources of water pollution to increase program
effectiveness. This broader 'place-based' approach
considers   critical  ecosystems  affected,
stakeholders involved, strong science and data
available, and pollution prevention strategies in
developing effective solutions.  In this way, point
and nonpoint source problems -- such as  wet
weather runoff from farms, streets,  lawns  and
construction sites -- can be addressed in a coherent,
targeted strategy. This is critical since nonpoint
source pollution has become  the  Nation's most
significant remaining water quality problem.

       The Water  Quality program, mandated
by the Clean Water Act (CWA) of 1987,  has
improved water  quality management  and
enhanced the Agency's partnerships with the
states. This Act authorized the development of
new standards  and guidelines to prevent  and
control water quality pollution and authorized
new approaches to deal with nonpoint sources of
pollution.  Other  statutory  mandates of  this
program  are found in the Great Lakes Critical
Programs Act; Water Resources Development
Act;  the Marine  Protection, Research  and
Sanctuaries Act; the Shore Protection Act;  and
the Coastal Zone Reauthorization Amendments.
                               The 1998 President's Budget requests
                        $274.9 million and 1,828 workyears for the
                        Water Quality program, an increase of $2.0 million
                        and a decrease of two workyears from 1997. In
                        1998, the Agency will continue its long-standing
                        focus on common sense, place-based approaches
                        that build on  the  basic water programs; in
                        particular, revising existing water quality criteria,
                        assisting  stakeholders  in  incorporating a
                        risk-based approach,  investigating  emerging
                        priorities like air deposition pollutants into surface
                        waters, and providing increased support for tribal
                        water programs.
                                      HIGHLIGHTS

                               The Water Quality program in 1998 will
                        increase funding for various programs to enhance
                        water quality. The Water Quality program will
                        participate in  the President's Right-to-Know
                        Initiative by  providing  greater access  to
                        comprehensive water quality data and by
                        educating  the public regarding the risks from
                        contaminated water at beaches.  As part of the
                        Administration's Urban Livability Initiative, the
                        Water   Quality  program  will  establish
                        partnerships and create tools to assist local
                        communities  in  addressing  water quality
                        problems.  In addition,  the Agency is requesting
                        a significant increase in funding to support the
                        development  of  effluent guidelines and its
                        Nonpoint Source  (NFS) programs.  The Water
                                              15

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                                 WATER   QUALITY
Quality  program will  also  strengthen  its
Community-Based Environmental Protection
(CBEP) efforts. Finally, increased assistance will
be provided to states in developing watershed-level
Total Maximum Daily Loads (TMDLs) and to
allow EPA to successfully backstop state efforts if
necessary.
Increasing the Public's Right-to-Know

       In 1998, EPA is requesting $2.0 million
for the President's Right-to-Know Initiative to
increase public knowledge of the risks to human
health from exposure to contaminated water at
beaches and to provide accessible comprehensive
water quality information to the public. EPA will
work with  environmental health officials from
state, county, city, and tribal agencies, as well as
concerned interest groups, to identify and collect
information on beach health protection activities
nationwide. EPA will develop and disseminate
information materials on  the risks, particularly
to children, of exposure to waters contaminated
by disease-causing microorganisms. In addition,
investments   in  the   recently   created
Surf-Your-Watershed Internet page and  the
National Watershed Assessment Project will build
on the Agency's information-gathering  and
dissemination successes.
Revitalizing the Urban Environment

       In  1998,  to  continue to successfully
demonstrate that  economic renewal  and
environmental protection go hand-in-hand, EPA
is requesting $2.3 million for  an urban
revitalization initiative to address cities' special
environmental needs. As part of a multi-media
effort,  the  Water Quality program will apply
lessons learned in developing effluent limitation
guidelines  and wet  weather flow controls by
establishing partnerships and creating tools for
protecting and restoring polluted waterways that
hold vast potential for economic development.
Improving Effluent Guidelines

       The Agency is requesting an increase of
$3.0 million to support development,  revision,
and promulgation of effluent guidelines that have
the greatest potential for reducing risks to public
health.  EPA will also provide a larger role to
stakeholders in identifying cost-effective pollution
control technologies which do not overburden the
regulated community,  integrating  wherever
possible  a  multi-media  approach,   and
incorporating pollution prevention principles.
Strengthening Community-Based
Environmental Protection

       In 1998, the  Agency will strengthen
Community-Based  Environmental Protection
(CBEP) efforts through targeted geographic
initiatives and development of the tools our
partners need to  make  informed, effective
decisions in setting their own environmental goals.
EPA   will    support   development   and
implementation of national coastal strategies and
transfer lessons learned from established National
Estuary Programs to other  coastal areas and
water bodies. The Chesapeake Bay Program will
expand its base of partners to meet ambitious
goals  that include  reducing nutrients entering
the Bay by 40% by the year 2000.  The Gulf of
Mexico Program, through its broad network of
partners, will address critical issues in the Gulf
ecosystem like hypoxia, shellfish contamination,
and habitat  loss.  EPA's Great Lakes Program
will lead federal, state, tribal, local, and industry
efforts for Great Lakes protection and restoration.
Assisting States with Total Maximum
Daily Loads (TMDLs)

       The Clean Water Act requires each state
to identify waters, within its boundaries, that do
not  meet water quality  standards after
technology-based pointsource controls are applied.
For these waters,  states must  establish Total
Maximum Daily Loads (TMDLs) which allocate
how many pollutant loadings are allowed from all
point and nonpoint sources in a watershed to
meet their water quality standards.  In 1998, to
satisfy the national need  for better tools,  the
President is requesting an increase of $8.7 million
to enhance EPA's capabilities to directly assist
specific states  in  developing watershed level
TMDLs,  and, if  necessary, assist states by
promulgating TMDL rules.  EPA will develop
specialized TMDL templates and customized
watershed tools that  states can easily  use to
quickly develop less-complex TMDLs,  allowing
                                               16

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                                 WATER   QUALITY
states to then focus on the more complex TMDL
court requirements.  These tools will be made
available to all states to help prevent future
litigation or bolster state positions in potential
litigation. Finally, these increased resources will
also  enable EPA to  develop and promulgate
multi-state TMDLs where needed.
Addressing Nonpoint Sources

       In 1998, the Agency is requesting $5.0
million to increase its support of the President's
commitment to bolster ongoing nonpoint source
pollution control and prevention programs. The
Agency will make program improvements in 1998,
including issuing better evaluation criteria for
upgraded state programs and working to improve
federal-state consistency under NFS programs.
In addition, the Agency will accelerate its efforts
with states to upgrade their NFS management
programs. The Agency will also reinvigorate its
public-private partnership efforts designed to
encourage  the  voluntary   adoption  and
implementation of NFS measures by those owners
and managers whose day-to-day decisions and
actions can result in NFS pollution.
Ensuring Environmental Accountability
through Setter Compliance

       In  1998,   EPA  will  promote   a
comprehensive approach for  Water  Quality
compliance   to    ensure   environmental
accountability  in protection of the Nation's
waterways.   The Water Quality Compliance
Monitoring program will continue to concentrate
compliance monitoring activities in targeted high
risk sectors, ecosystems,  and populations.  In
1998, the program will convert the Concentrated
Animal Feeding Operations (CAFO) pilot initiated
in 1997 to a national program initiative.  The
program will enhance  its recently  developed
place-based targeting approach which was first
implemented  in 1996.  Regions will  work with
state,  local, and tribal  partners in identifying
stressed and threatened ecosystems in high-risk
sectors and geographic areas. The Water Quality
Civil Enforcement program will focus targeted
enforcement  activities towards  priority
watersheds, troubled  waters  and  protection
against sewer overflows.
                                              17

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18

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                                DRINKING  WATER
               DOLLARS

                  +$10.8 M   $105.3M
     $94.5 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                                    WORKYEARS

                                           +79        714
                              635
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       The  Drinking Water program  was
established to ensure  that the nation's public
water supplies are free of contaminants that may
pose unacceptable human health risks and to
protect our ground water resources.  The  Safe
Drinking Water Act (SDWA) creates nationwide
safeguards for drinking water and establishes
federal  enforcement responsibility when
necessary.  The SDWA  Amendments of 1996
increase the ability of EPA, its state regulatory
partners, water suppliers, and the public to protect
our drinking water by  emphasizing prevention,
sound science and risk-based priority setting, as
well as consumer information.

       The  1996  Amendments will bring
substantial changes that will address today's
problems and assure the sustainable availability
of safe drinking water to the 240 million Americans
who get their drinking water from public water
systems.  The Amendments focus on four major
areas of change: (1) improving the way EPA sets
drinking water safety  standards  and develops
regulations; (2)  establishing  new prevention
approaches,  including provisions for operator
certification, capacity development, and source
water protection; (3) providing better information
to consumers; and (4) expanding funding for states
and communities to upgrade their public drinking
water systems through Drinking Water State
Revolving Funds (DW-SRF).

       The 1998 President's  Budget requests
$105.3 million  and 714 workyears for  the
Agency's Drinking Water program, an increase of
                       $10.8 million and 79 workyears over 1997.  This
                       amount does not include an additional $725.0
                       million for the DW-SRF and $104.3 million for
                       state and tribal drinking water grants.
                                      HIGHLIGHTS

                              With the recent  passage  of the  1996
                       Amendments to  the Safe Drinking Water Act,
                       EPA will focus its resources on implementing the
                       new requirements of the  law.  This will entail
                       building  upon  the  earlier  drinking water
                       reinvention efforts to establish more risk-based
                       drinking water standards as well as conducting
                       source water protection efforts, implementing
                       consumer right-to-know provisions and providing
                       financial assistance to states to help  upgrade
                       drinking water systems.
                       Implementing the New Safe
                       Drinking Water Act

                              EPA is responding quickly to the new
                       direction for drinking water protection established
                       by the 1996 Amendments to the Safe Drinking
                       Water Act (SDWA).  In 1998, the President's
                       Budget requests an increase of $20.3 million and
                       70 workyears for all EPA programs to implement
                       the new law  of which  $17.9  million and  63
                       workyears will go to the Office of Water. The 1996
                       Amendments have reinvigorated the federal/state/
                       local government partnership to help ensure that
                       every American public water system will provide
                                              19

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                                DRINKING   WATER
water that is consistently safe to drink. EPA will
publish guidance in 1998 that describes ways to
help ensure that water systems have technical,
financial, and managerial capacity to comply with
drinking water regulations. The new statute also
requires EPA to publish national guidelines for
state certification programs for operators of public
water systems by February 1999. In  1998, EPA
will publish a compilation of the major drinking
water stakeholders' recommendations on operator
certification requirements. Finally, the Drinking
Water State Revolving Fund program will assist
water systems in financing the capital costs of
drinking water infrastructure improvements to
achieve or maintain  compliance  with  SDWA
requirements.

       The  1996 Amendments strengthen the
Agency's efforts to protect sources of drinking
water.  In 1998,  EPA  will be working with the
states to conduct required source  water
assessments that help determine the vulnerability
of each state's sources  of drinking water to
contamination.   The Source Water  Protection
(SWP)    program    also     emphasizes
community-based environmental protection.  In
1998, the Agency will expand its efforts with the
55,000  community public water systems that
supply drinking  water from both surface and
groundwater sources.  These programs  will be
coordinated with measures taken to protect and
enhance water quality under the Clean Water Act
and other Agency programs.

       In 1998, EPA will greatly expand
consumer awareness activities.   The 1996
Amendments direct the Agency to promulgate
regulations for an annual right-to-know program
for customers of all public water systems. The
Agency will be working with the states to ensure
that consumer confidence  reports are issued.
Protecting Human Health
from Contaminants

       In 1998, the Agency's highest priority in
the Drinking Water program is establishing
standards to protect  human  health from
microbiological contaminants and disinfectant/
disinfection byproducts (M-DBP). The Agency's
long-term endeavor of developing safety standards
and regulations that  address the risk posed by
these contaminants will continue in 1998.  EPA
will  also work  with states, water systems
(especially small  systems),  and  equipment
suppliers to expand technology choices for treating
drinking  water and  preventing  microbial
contamination.  EPA will assist systems of all
sizes  in implementing Composite Correction
Programs  (CCP)   to  improve   filtration
performance.  The Agency will continue to work
with  the  300 large  drinking water systems
implementing the Information Collection Rule
(ICR) to collect and analyze  occurrence  and
treatment data.
Regulating Underground Injection Wells

       In 1998, EPA will promulgate the final
rule for Class V underground injection wells. The
Agency is requesting an increase in funding of
$0.6 million for this activity. This rule is directed
to those  states with primary enforcement
authority (primacy) for the Underground Injection
Control (UIC) program  and by EPA in those
states without primacy or with partial primacy.
The Class V rule applies  to the 120,000 shallow,
industrial injection wells that exist nationwide.
Through its multi-partner effort, EPA will work
with local government managers of source water
protection programs to  incorporate  both the
implementation of the Class V rule as well as
management  of other Class V wells, especially
storm water and agricultural drainage wells, into
their ongoing  activities.
Providing Strong Enforcement

       EPA is committed to a strong enforcement
presence to ensure that drinking water supplies
meet SDWA requirements. The Drinking Water
Civil Enforcement program will endeavor to
protect surface  and  ground waters,  deter
underground  injection of  hazardous pollutants
into groundwater, and address the 186,000 public
water systems regulated by the SDWA. In 1998,
the Drinking Water  Compliance  Monitoring
program will develop  compliance  monitoring
strategies and train inspectors under the recently
reauthorized  Safe Drinking Water Act.  The
program will  seek to maximize compliance and
return  violators to  compliance as quickly  as
possible using a variety  of enforcement tools.
Targeted compliance monitoring and aggressive
responses to noncompliance will encourage the
regulated community to meet their obligations.
                                              20

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                              HAZARDOUS  WASTE
               DOLLARS
     $174.0 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                                    WORKYEARS
                              1,312        +8         1,320
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       The manufacturing processes of large and
small  industries,  and everyday  domestic
consumption, have resulted in an increase  in
hazardous and municipal solid wastes. Last year
the Nation generated approximately 210 million
tons  of municipal solid wastes, averaging 4.4
pounds per  person per day.  Improper waste
disposal practices can cause  environmental and
public health problems. The Hazardous Waste
program was established to meet the overall goal
of proper prevention, management and disposal
of  hazardous and  municipal solid  wastes
generated nationwide.

       The Resource Conservation and Recovery
Act (RCRA) of 1976, as amended by the Hazardous
and Solid Waste Amendments (HSWA) of 1984,
provides the legislative mandate to ensure safe
management and disposal of solid and hazardous
wastes, minimize the generation of new wastes,
and  prevent and detect  the leakage from
underground storage tanks  (UST).  Under the
RCRA program, EPA has worked with state and
local partners to establish regulations, national
policies and provide  guidance for  regulated
entities. These regulated entities include those
who generate, treat, store, or dispose of waste.
The  Emergency  Planning and Community
Right-to-Know Act, Title III of the Superfund
Amendments and  Reauthorization Act of 1986,
established guidelines to address risks posed by
hazardous chemicals in communities.
                              The  1998  President's Budget requests
                       $181.1 million and 1,320 workyears for the
                       Hazardous Waste program, an increase of $7.1
                       million and  8 workyears over  1997.  In the
                       regulatory area, the Hazardous Waste program
                       will emphasize the establishment of national
                       waste management standards that match
                       requirements more closely to risk. The program
                       will also improve the scientific basis for decisions
                       relevant to the disposal of wastes. Another Agency
                       focus  is increased and wider involvement in
                       environmental protection.  For example, the
                       Agency will  strengthen  the participation of
                       communities in the cleanup decision-making
                       process. Training and direct technical assistance
                       will help tribal governments become more active
                       in improving the safety of their waste management
                       programs.
                                      HIGHLIGHTS

                              In 1998, the Agency will continue to assist
                       states and tribal governments  in  establishing
                       and maintaining efficient and effective hazardous
                       waste programs through  an emphasis on risk
                       reduction and regulatory reinvention. The Agency
                       will develop  new environmental indicators and
                       improve public access to information through the
                       President's environmental commitment made in
                       Kalamazoo,  Michigan to the  Right-to-Know
                       Initiative.  EPA will  also provide cities with
                       solutions for reducing environmental barriers for
                       the renewal of contaminated  properties, by
                                             21

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                              HAZARDOUS   WASTE
providing support to  the Urban Livability
Initiative.
Strengthening the National RCRA Program
Through Regulatory Reinvention

       The  1998 President's Budget requests
$63.9 million and 283 workyears to support the
hazardous waste regulatory program, an increase
of $2.5 million and three workyears over 1997.
The Agency will continue to protect human health
and  the environment from  the effects of
uncontrolled exposure to hazardous and solid
wastes.

       The    President's   environmental
commitment made in the Right-to-Know Initiative
will  provide the public with better access to
environmental information. The RCRA program
efforts on this initiative will focus on informing
the public of waste-site risks. The  Agency will
also develop enhanced environmental indicators
for the public to monitor environmental impacts
as well as health  effects and integrate them into
the existing public information system.

       In 1998, the Agency will expand the Urban
Livability Initiative. This program will provide
cities with the tools and information needed to
develop community-based responses for renewing
contaminated properties. The program will also
assist communities in correcting environmental
barriers to redevelopment of these properties. In
the RCRA program, the Urban Livability Initiative
will expand successful small business pilot projects
in waste minimization outreach that coordinate
pollution prevention goals across media.

       RCRA reinvention efforts  aim  to
fundamentally change the way RCRA is managed
and implemented. Fundamental changes will be
made   by  simplifying   definitions  and
implementation procedures, and by achieving a
greater match between the level of risk and the
management standards imposed. Utilizing recent
scientific information to re-examine RCRA
program definitions will eliminate unnecessary
requirements as  well as  identify gaps  in
environmental protection. The  implementation
of recommendations  made by  the  Permit
Improvement Team (PIT) will be emphasized in
order to reduce regulatory burden and costs for
industry and  the  Agency.    These  PIT
recommendations include general permits for
lower-risk facilities and a possible electronic or
paperless permit.

       As part of the Common Sense Initiative,
the RCRA program will explore solutions and
alternatives in the metal plating and electronics
sector. By 1998, RCRA will complete a benchmark
study of metal finishing sludges which will provide
the basis for the consideration of alternatives for
optimizing recycling in the industry.
Implementing Hazardous and
Solid Waste Policy

       The  1998 President's Budget requests
$63.1 million and 546 workyears to support the
implementation of the regional RCRA program,
an increase  of $2.6 million and ten workyears
over 1997. As part of the Agency's efforts to put
decision-making in the hands of those closest to
the  problems, EPA will continue to form
partnerships  with state, local, and tribal
governments and integrate the community-based
approach   to  environmental  protection.
Permitting, corrective actions, and waste
minimization will also continue to be important
priorities of the Agency.

       The RCRA program will continue to offer
technical assistance and support to the states. To
assist in implementation, the Agency will develop
work-sharing agreements and provide site-specific
technical assistance. The Agency will also continue
assisting states in innovative customer service
pilot programs (e.g.  in one  pilot, a  group of
permitting specialists has been formed that will,
at a state's request,  assist in eliminating
permitting backlogs). In 1998, the Agency will
continue to provide valuable information to states
for implementing the RCRA program.

       The  RCRA program  will continue to
explore  other   practical  implementation
improvements  through participation in XL
projects.  These projects will  build  on  the
willingness of facilities and generators to achieve
superior environmental performance while finding
alternative,  often less  expensive, methods of
preventing hazardous releases.

       Permitting activities,  which are a key
pollution prevention method,  will continue to be
                                              22

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                              HAZARDOUS   WASTE
a high priority of the Agency. One of the significant
areas for permitting efforts will be the chemical
demilitarization program, which is a priority for
risk reduction. Through a continuing corrective
action program, the Agency will ensure cleanups
of hazardous  spills or releases at operating
facilities are conducted appropriately. The 1998
President's  request will  help to address the
corrective action backlog of high and medium risk
facilities that remains to  be addressed.  Waste
minimization efforts such as the Jobs Through
Recycling and the  WasteWi$e program will
maintain support for local ventures that improve
the market for recycled and recyclable materials.
Promoting Sound Management Practices
for Underground Storage Tanks

       The 1998 President's Budget requests a
total of $6.7 million and 57 workyears to support
the prevention, detection and correction of releases
from underground storage tanks, an increase of
$419,600from 1997. EPA will support compliance
with the 1998 deadline for upgrading, replacing
or closing tanks; support the Agency's Private
Sector Initiative to prevent another generation of
leaking tanks; and continue to work with states to
obtain state program approval, as well as tribal
and state implementation support.
Improving Local Level Accident
Prevention and Planning, and
Conducting Accident Investigations

       The 1998 President's Budget requests a
total of $ 13.8 million and 74 workyears to support
the Emergency  Planning and  Community
Right-to-Know Act (EPCRA) program.  In 1998,
the Agency will concentrate the program's efforts
in three areas: implementing  state and  local
chemical accident risk management prevention
programs;  continuing to assist industries in
meeting risk  management plan requirements;
and  conducting  joint EPA/OSHA  accident
investigations of major facility chemical accidents.

       Under the auspices of the Clean Air Act,
EPA recently completed the Risk Management
Plan (RMP) rule. In 1998, EPA will concentrate
on working with states in the implementation of
their accidental release prevention programs.  By
getting states to operate a program, they will be
prepared to receive individual risk management
plans that will be submitted by facilities in 1999.

       In 1998 the Agency will also support the
RMP effort by providing technical assistance,
guidance, outreach and training to  individual
facilities required to  develop individual risk
management  plans. EPA will also ensure that
information  on  the  RMP program is  made
available electronically, through small business
networks and the EPCRA Hotline.

       Accident  investigations of major facility
chemical accidents will be conducted by the EPA
and  the Occupational  Safety and  Health
Administration (OSHA) to determine cause and
issue recommendations to enhance chemical safety
at individual  facilities as well as industrywide.
To prevent future accidents, activities in 1998
will focus on the exchange of information between
stakeholders.  EPA and OSHA will also support
an external expert panel to review accident
investigation reports and  make  additional
recommendations for future prevention and safety
efforts.
Focusing Enforcement Activities on
Higher Risks

       The  1998 President's Budget requests
$33.1 million and 353 workyears to support the
Hazardous Waste Enforcement program,  an
increase of $1.0 million and  a decrease of four
workyears from  1997. Compliance monitoring
efforts will enhance and complement state efforts
as  the  states  increasingly assume  the
responsibility  for  the bulk  of the  mandated
inspection and enforcement work. The program
will direct its compliance monitoring activities in
1998 toward reducing risks from priority industry
sectors such as petroleum refining and primary
non-ferrous metals.

       The Hazardous Waste Civil Enforcement
program  will continue to  prevent and reduce
pollution from  high-risk hazardous wastes
through activities targeted toward combustion
facilities, fuel burners and generators  who are
out of compliance. The Agency will also implement
enforcement of  labeling  and transportation
requirements associated with the  Battery
Recycling Act to ensure proper disposal of batteries
containing heavy metals.
                                              23

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24

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                                   PESTICIDES
               DOLLARS
      $104.5 M   +$1.3 M    $105.8 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                                                          941
                                     WORKYEARS

                                           +64          1,005
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       Pesticides are  used in a remarkably
diverse array of products, such as insect repellents,
crop weed  killers, household and commercial
disinfectants, and swimming pool chemicals. They
are found and used in  nearly every home  and
business in the United States. They are designed
to be intentionally applied in the environment
rather than occurring as a byproduct of industry
or other human activity. The uses of pesticides in
the United States contribute to increased  and
diversified agricultural production and improved
public  health  through  the  control  of
disease-carrying  pests. However, acute  and
chronic human health and environmental risks
can be associated with the use of many of these
chemicals.  EPA,  therefore, is responsible  for
balancing the 'risks' to the Nation's public health
and environment with the 'benefits' posed from
the use of pesticides.

       The Pesticides program derives  its
statutory authority from the Federal Insecticide,
Fungicide and Rodenticide Act (FIFRA), Federal
Food, Drug, and Cosmetic Act (FFDCA), and the
Food Quality and Protection Act (FQPA).  These
laws prescribe the criteria for Agency decisions
on  registration of  new pesticide products or
reregistration  of  existing pesticide products.
Registration and  reregistration  decisions
prescribe permissible uses, conditions  for
application, levels of residues permissible on or in
foods, and other measures designed to ensure
that the pesticide when  used as directed will not
pose an unacceptable risk to public health and the
environment.
                               The 1998 President's Budget requests
                        $105.8 million and 1,005 workyears for the
                        Pesticides program.  This is an increase of $1.3
                        million and 64 workyears over 1997. Included in
                        this net change is a $ 10.2 million reduction for the
                        Pesticide Data program which is being funded by
                        the United States Department of Agriculture in
                        1998 and an offsetting increase for the new FQPA
                        (+$7.1 million and 58 workyears). To implement
                        the  new FQPA, EPA will reassess existing
                        pesticide tolerances, streamline reviews of safer
                        pesticides, and review pesticide registrations for
                        new health concerns such as endocrine disrupters.
                        This program will continue to reduce risks from
                        adverse exposures to pesticides on and in food and
                        the  workplace and  prevent  pollution by
                        encouraging the use of new, safer nonchemical
                        pesticides.
                                      HIGHLIGHTS

                               In 1998, the Administration will continue
                        to improve the safety of America's food supply by
                        registering new pesticides, reregistering existing
                        pesticides, setting and reviewing tolerance levels
                        for pesticide  residues found on and  in  food
                        commodities, and taking  actions  on those
                        pesticides with adverse risks. With the passage
                        of the new FQPA of 1996, EPA is investing in the
                        Pesticides program to strengthen its ability to
                        ensure safer  pesticides. Complimenting these
                        investments will be a new initiative, 'Assessing
                        Health Risks to Children,' designed to improve
                                              25

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                                   PESTICIDES
food consumption data on infants and children for
purposes of assessing and managing the risks
from pesticides. Additional resources will support
the President's Right-to-Know Initiative that
improves the amount, quality, and access to public
information on public health and environmental
risks from  pesticides.  EPA will also increase
support for state groundwater plans to protect
our Nation's groundwater from pesticide
contamination.
Focusing on New Statutory
(FQPA) Requirements

       The 1998 President's Budget requests a
total increase of $16.1 million and 71 workyears
for  all programs to implement the new  Food
Quality Protection Act (FQPA) of 1996.  Of this
total 1998 increase, $7.1 million and 58 workyears
are requested for the Office of Pesticides programs.
In 1997 an increase for all programs of $16.2
million was appropriated  and  EPA redirected
from its base a total of $2.7 million to implement
the FQPA. Increased funding in 1998 will support
the reassessment of the 9,000 pesticide tolerances
within ten years and an accelerated reregistration
of existing pesticides. EPA will also develop new
streamlined regulatory review processes and
information systems for antimicrobial pesticides.
EPA will also collect new information and develop
new tools useful to screen and evaluate pesticides
suspected of   adversely disrupting human
endocrine  systems.  EPA will streamline the
reviews of safe, less toxic pesticides and encourage
reduced usage of existing chemical pesticides.
Finally, EPA will develop and  distribute more
useful information to the public to inform them
about the risks  posed  from adverse pesticide
exposures.
Improving Data to Assess Health
Risks to Children

       In  1998,  increased  emphasis  in  the
Pesticides program will be placed on improving
the federal government's information  on  the
dietary  habits of infants  and children.  This
emphasis responds to concerns raised in the 1993
National Academy of Science report about
pesticides found  in children's diets.  The 1998
President's Budget requests a total of $ 1.5 million,
which is an increase of $1.0 million over 1997, to
evaluate current risk assessment protocols and
methods so they can take into account unique
multi-pathway exposures of children.  This new
Agency initiative called 'Assessing Health Risks
to Children' is being coordinated and carried out
with  other  Agency  offices to improve  food
consumption data on infants and children. These
risk  assessments then can be used  to assess
national public  health and  environmental
standards to ensure that they adequately address
risks to children's health.
Supporting President's Commitment
on Right-to-Know Initiative

       EPA  will  support  the  President's
commitment, made in August 1996 in Kalamazoo,
Michigan,  to communities' right-to-know  by
expanding the type and quality of information
available to the public about the  hazards and
benefits of  pesticides.  The 1998 President's
Budget requests a total of $0.7 million, which is
an increase of $0.7  million over 1997.  The
Pesticides program will expand public access to
information on health and environmental risks
from pesticides. In addition, EPA will work with
other EPA programs  and federal agencies to
improve  public  access  to pesticide  hazard
information.
Supporting State Groundwater Plans

       Groundwater is the source  of drinking
water for about half the United States population
and  because  it  flows into lakes  and rivers,
groundwater  helps  support fish and wildlife
habitats and commercial activity. EPA's pesticide
groundwater strategy is based on a cooperative
effort with the states and EPA regions to develop
State Management Plans to prevent groundwater
pollution from pesticides. Starting in 1998, states
will  develop  pesticide-specific groundwater
protection management plans.   The 1998
President's Budget requests a total of $2.1 million,
which is an increase of $0.4 million over 1997, to
provide guidance and technical assistance to the
states especially in identifying vulnerable areas
for monitoring. Mapping groundwater flows and
determining  the conditions  of groundwater
aquifers will be the focus for state management
groundwater plans in 1998.
                                              26

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                                       PESTICIDES
Focusing on Pesticide Enforcement

       The 1998 President's Budget requests
$4.7 million and 68 workyears for the
Pesticides Enforcement program. This is an
increase of $1.3 million and eight workyears
over 1997. The Pesticides Compliance
Monitoring program will seek environmental
accountability of pesticide use and help build
the capacity of states and tribal governments
to protect public health and safety from
pesticide misuse.  This program will continue to
manage the state pesticide enforcement
cooperative agreement program and continue to
encourage participation of state and tribal
governments not currently involved in the
program. This program will also  conduct
inspections in states without pesticide
enforcement cooperative agreements.  In 1998,
these inspections will include import/export
inspections to address "circle of poison"
concerns.

       The Pesticides Civil Enforcement
program will continue to protect our Nation's
children, homes and workplaces against
ineffective/unregistered pesticides and
pesticides misuse.  Enforcement efforts will
focus on ensuring compliance with pesticide
registration and efficacy requirements of
antimicrobials used in disinfection of critical
care areas,  such as hospital operating and
emergency  rooms.  About 70% of hospital
sterilants and 800 hospital disinfectants
registered by EPA have failed recent testing for
effectiveness. The Agency will also focus on
urban areas where indoor use of pesticides has
caused health concerns.   Finally, EPA will
continue to enforce Pesticide Worker Protection
Standards.
Focusing on Pesticide User Fees

       In 1998, EPA will work to implement
user fees for pesticide registration and
reregistration activities as directed by FIFRA
and FQPA. Ten years ago, Congress suspended
Pesticide Registration fees through 1997.  EPA
will work to reinstate these fees in 1998. EPA
expects to collect $18 million in Tolerance and
Pesticide Reregistration fees.
                                               27

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28

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                                   RADIATION
               DOLLARS
      $17.7 M    -$0.8 M
                             $16.9 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                                    WORKYEARS
                                126        -13
                                                                                  113
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       Radioactive materials are used or stored
at thousands of federal facilities, over 100 nuclear
reactors, and many thousands of other locations.
EPA guidance and standards for the cleanup and
management of radioactive materials will ensure
that the federal government does not spend billions
of dollars in unnecessary cleanup costs. Another
key component of the radiation program is EPA's
oversight of the Department of Energy's (DoE)
operation  of the  Waste Isolation  Pilot Plant
(WIPP), a planned radioactive waste disposal
site.

       The EPA program to address radiation
issues is derived from a number of statutes. These
include the Clean Air Act of  1990, the  Waste
Isolation Pilot Plant (WIPP) and Land Withdrawal
Act, the Energy Policy Act of  1992, the Atomic
Energy Act, the Uranium Mill Tailings Radiation
Control Act, and  the Superfund Amendments
and Reauthorization Act of 1986.

       The President's Budget requests a total of
$16.9 million and 113 workyears in 1998 in the
Radiation  media under the EPM account.  The
1998 request for the Radiation media does not
include $210 thousand  and two workyears the
Agency is requesting  under  the Science  and
Technology appropriation in 1998,  rather than
the EPM appropriation as in the past. Considering
the amount requested in the S&T account, funding
levels increase by $209 thousand from 1997, and
workyears decrease by 11. The four major program
                       objectives established for the Agency's radiation
                       programs include: reducing adverse health effects
                       from radiation exposure through a program of
                       standards and guidelines; assessing and
                       quantifying existing and emerging radiation
                       problems and their potential impacts on health
                       and the environment; responding to radiation
                       issues of serious public concern; and responding
                       to emergencies, if needed, and development and
                       testing  of  federal, state and  local plans for
                       emergency  response.
                                      HIGHLIGHTS

                       Overseeing DOE Waste Disposal at the
                       Waste Isolation Pilot Project

                              The WIPP is a disposal site in New Mexico
                       for high-level waste from the production of nuclear
                       weapons. Under the Waste Isolation Pilot Plant
                       and  Land Withdrawal Act of 1992, EPA has
                       certification and oversight  responsibilities for
                       DoE's waste disposal activities at the WIPP. EPA
                       is currently reviewing DoE's application for
                       completeness as well  as  conducting technical
                       analyses and studies.   The Agency expects to
                       complete its review in June 1997. Public hearings
                       and  stakeholder meetings are currently  being
                       held. The final certification process, which should
                       be complete by November  1997,  will include
                       technical analyses, and more public hearings and
                       stakeholder meetings.
                                             29

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                                       RADIATION
       If the Agency grants certification to the
WIPP in  1997, during 1998 EPA will continue to
conduct audits and inspections of the WIPP site
and DOE's radioactive waste generator sites to
assess implementation of procedures as waste
generator sites come on-line  and prepare to
transport waste to the WIPP. The President's
Budget requests $5.4  million  and 26  total
workyears  for the Waste Isolation Pilot Plant
program, nearly no change in requested funding
and a decrease of one workyear from 1997.
Cleaning up Federal Facilities

The President's Budget requests $4.0 million and
18 workyears for addressing radiation cleanup at
federal facilities in 1998. This is nearly no change
in requested funding levels from 1997,  and a
decrease of 3 from 1997 workyear levels.  There
are approximately 250 Federally owned sites in
the U.S. that are contaminated with radioactive
materials.  These sites include nuclear material
production  plants, bombing and gunnery ranges
contaminated  with depleted  uranium,  and
laboratories. The radioactive  contamination at
these  sites ranges from  small,   slightly
contaminated laboratory rooms to very large,
highly contaminated facilities.  A significant
challenge in cleaning up such sites is the high cost
of managing radioactive waste, due in part to the
limited number of disposal facilities for low-level
radioactive waste.
       EPA  will  also  continue  to  provide
coordination, oversight, and technical support to
ensure that radioactively contaminated Federal
facilities are cleaned up  and waste  disposed
consistent with EPA risk levels.  This effort is
composed  of  two  primary elements,  (1)
development of overall guidance that is applicable
to all Federal facility sites and (2) investigation of
alternate disposal options for low-level radioactive
waste  generated primarily  from  clean-up of
Federal facilities.
Supporting Emergency Preparedness

       As part of its emergency preparedness
efforts and the Agency environmental goal for
preventing accidental releases, EPA will continue
its classroom  and field training  programs to
maintain and improve the capabilities of the EPA
Radiological Emergency Response Team.  The
Agency will also continue to coordinate with other
Federal agencies and the international community
on   formal   agreements   dealing   with
communications, coordination of response efforts,
and  mutual  assistance  for  responding to
emergencies and the potential of terrorist events
involving radioactive materials. The President's
Budget requests $1.1 million and 12  total
workyears for the emergency preparedness efforts,
an increase of $563 thousand and seven workyears
over1997.
                                              30

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                                  MULTIMEDIA
               DOLLARS
                 +$32.6M    $307.4 M
     $274.8 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                               1,739
                                    WORKYEARS
                                           +53
                           1,792
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       Traditional single-media  responses to
environmental problems have brought the Nation
a long way from burning rivers and smog choked
skies. But today's environmental challenges are
increasingly complex and difficult to address. The
Agency  is developing multimedia approaches
which emphasize  comprehensive solutions by
targeting entire ecosystems, working across media
and  addressing whole  industrial sectors and
communities.  These multimedia activities are
carried out through the efforts of the Office of
Enforcement and  Compliance  Assurance; the
American Indian Environmental Office; the Office
of International Activities; the  Office of the
Administrator; the Office of Policy, Planning and
Evaluation;  the Office of Prevention, Pesticides
and  Toxic Substances; the Office of General
Counsel and the Executive Steering Committee
for Information Resources Management.

       The  Enforcement program balances
traditional enforcement actions targeting serious
polluters  with new multimedia  inspection
techniques, sector-based compliance assistance
efforts  to  help the regulated community
understand its responsibilities,  and compliance
incentives  such  as Project XL  and  the
Environmental Leadership Program. In addition,
Agency  activities  foster pollution  prevention
through dissemination of information and support
of state and local prevention efforts, and instill an
environmental ethic in youth, educators, activists
and  decision-makers through environmental
                       education. The Agency provides  technical
                       assistance and grants to Tribes and continues to
                       address environmental issues facing communities
                       along the US-Mexico Border.

                              In 1998, EPA requests a total of $307.4
                       million and  1,792 workyearsfor Multimedia
                       programs. This represents an increase of $32.6
                       million and 53 workyears from 1997.
                                      HIGHLIGHTS

                       Improving Environmental Protection
                       in Tribal Lands

                              In 1998, EPA will continue to develop
                       government-to-government relations with tribes
                       in fulfillment  of the  Federal government's
                       statutory and trust responsibilities and expand
                       program support to assist tribal governments in
                       developing their own environment programs.
                       EPA's American Indian Environmental Office
                       (AIEO) will assist over 500 tribal governments to
                       identify and address areas of greatest risk and
                       priority to public health and the environment in
                       Indian Country. The AIEO will continue to assist
                       tribes in addressing multimedia environmental
                       issues through the following activities:  1)
                       developing  Tribal/EPA   Environmental
                       Agreements (TEAs) to  assess environmental
                       conditions  and identify long and  short-term
                       priorities for environmental management on tribal
                                             31

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                                  MULTIMEDIA
lands; and 2) providing outreach, training and
education to better assist tribes in developing
their    environmental  assessment  and
management capabilities.
Balancing Effective Enforcement Actions
with Compliance Assistance and Incentives

       The  1998  President's  Budget requests
$124.9 million and 1,093 workyears under the
EPM   appropriation  for  the  Multimedia
Enforcement program, an increase of $7.6 million
and 48 workyears over 1997.   The program will
balance traditional activities such as compliance
monitoring, civil enforcement and  criminal
enforcement actions with compliance assistance
and compliance incentives.

       In 1998, the Multimedia Enforcement
program will increase funding by $3.2 million and
21 workyears for additional criminal investigators
mandated by the Pollution Prosecution Act. The
program  will  also   increase  funds  for
implementation of the Agency's self-audit policy
as a way of achieving greater compliance levels at
lower cost to the public and private sectors. The
Multimedia Enforcement program will continue
important reinvention projects such as CSI,
Project XL, and the Environmental  Leadership
Program (ELP), with additional resources targeted
for XL and ELP.

       In addition, the Agency is requesting $1.0
million in 1998 for the President's commitment
on Environmental Crimes and Enforcement made
in Kalamazoo.  These resources will support the
urgent need expressed  by state, local, and tribal
officials for additional Federal training in the
investigation of environmental crimes.

       The  Multimedia Enforcement program
will work with other Federal agencies to improve
their   compliance   with   environmental
requirements.  The Agency will work with other
Federal   agencies   to   achieve   national
environmental goals  and increase pollution
prevention by identifying and either eliminating
or mitigating the potential adverse environmental
impacts of proposed actions. The Agency will also
target efforts to strengthen policies and reviews
relevant to the protection of ecological resources.
Resolving Environmental Problems
at the Community Level

       The  1998  President's  Budget requests
$25.4 million and  23 workyears for multimedia
program  activities in the   Office of the
Administrator. This is a decrease of $ 1.6 million
and 6 workyears from 1997.  The 1998 Budget
includes  $12.9  million  for the  Regional
Multi-Media Program.   Under this program,
funding will be provided for projects that are
identified as high priority by EPA Regions, states,
and  localities, pose high human health  or
ecosystem risks, and have significant potential
for risk reduction.  The problems addressed  by
this program are multimedia in nature and the
initiatives showcase innovative multimedia
solutions to resolve them.

       Additionally, the Agency's environmental
education  program  fosters   educational
partnerships  among government,  business,
academic institutions, and community groups to
both improve basic science literacy and inform
the general public about the environmental
consequences of their individual and collective
actions.  The 1998 budget requests $6.2 million
and  9.7  workyears  for this effort.   These
investments demonstrates the Administration's
commitment to help local governments and public
citizens resolve environmental problems in their
communities.

Protecting U.S. Interests and
Upholding International Agreements

       The  1998  President's  Budget requests
$2.7  million  and 13 workyears for multimedia
activities of the Office of International Activities
(OIA). This represents an increase of $0.1 million
and one workyear over 1997. In 1998, OIA efforts
will  focus on  implementing the Border  XXI
Program. The Border XXI Program is designed to
resolve the complex, multi-media environmental
problems facing communities along  the
U.S.-Mexican  border.   This  program funds
community   grants,   emphasizes  public
participation, and  promotes  sustainable
development. These efforts will be supported  by
the operation of two border offices in the cities of
San Diego, California and El Paso, Texas. Both
                                             32

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                                  MULTIMEDIA
offices play important roles in coordinating EPA
activities with the International Boundary and
Water Commission, the Pan American Health
Organization, the Border  Environmental
Cooperation Commission, and the North American
Development Bank.
Promoting Multimedia Policy Development,
Economics, and Program Implementation

       The  1998 President's  Budget requests
$64.9 million and 228 workyears for multimedia
programs managed by the  Office  of Policy,
Planning and Evaluation.  This represents an
increase of $14.7 million and a decrease of 3
workyears from 1997.

       In 1998, the budget provides OPPE $35.3
million and 33 workyears  to continue the
implementation of the President's Climate Change
Action Plan (CCAP). This represents an increase
of $14.8 million over 1997, with no  change in
workyears  and demonstrates a continued
commitment to address the buildup of greenhouse
gases in the atmosphere. Funds requested in the
1998 budget will allow OPPE to continue to
implement  partnership and  capacity building
programs. The Climate Wise, Waste Wi$e and
Transportation Partners program work directly
with industry  to identify  and  implement
cost-effective emissions reductions. Funding of
other CCAP activities positions OPPE to develop
low-cost  emissions reduction opportunities
internationally.  The Country Studies program
will expand assistance to ten additional developing
countries in implementing their  international
commitments under the Framework Convention
on Climate Change. The U.S.  Initiative on Joint
Implementation  will continue to support high
quality projects with U.S.  companies and
developing countries while increasing the diversity
of sectors, technologies, and world regions covered.
The State and Local Outreach program will work
with additional states  and cities in conducting
greenhouse gas emissions inventories, developing
outreach  programs,  and   implementing
demonstration programs.

       In 1998, OPPE is also  provided $4.2
million and 38 workyears for Project XL. Project
XL is  a  centerpiece of the  Administration's
commitment to  reinvent  environmental
regulation. Project XL resources will  support
technical  analysis for project  selection, the
management  of  the XL selection  process,
participation in the XL selection process, and
independent evaluation of the program.  This
program is an integral step in EPA's attempts to
craft new approaches to environmental protection
for the 21st century.

       OPPE will continue to focus on sprawl
and development issues, implementing the Smart
Growth Network  in  1998.   The network will
concentrate on transportation and development
sectors and create coalitions at the national,
regional,  and  local  levels to encourage  more
environmentally responsible  land  use,
transportation  investment, regional growth and
development.  In 1998,  $1.3 million  and  12
workyears are allocated to this effort to address
sprawl and development, an increase of $0.2
million and one workyear  over 1997. OPPE will
also continue support of other EPA regulatory
reinvention efforts.   Through  its regulatory
management activities, OPPE will continue to
improve  the  Agency's rulemaking  process,
promoting compliance with Executive Order 12866
that adequate risk and benefit/cost analysis lie
behind the Agency's most significant regulatory
actions. Finally, three additional workyears are
provided  in 1998 for  implementation activities
associated with the Small Business Regulatory
Enforcement Fairness Act.
Investing in Strategic Information
Resources Management

       The 1998 President's Budget requests a
total of $34.6 million and 10 workyears for the
Executive Steering Committee for Information
Resources Management (ESC). This is an increase
of $5.0 million and 2 workyears from  1997.  In
1998 the ESC will provide the overall leadership
and  coordination  needed  to implement  the
President's environmental commitment that was
made in  Kalamazoo, Michigan,  on America's
Right-to-Know.   The ESC will provide  the
framework for making right-to-know information
available to families and communities.  It will
develop the infrastructure and foundation that
brings together the data, information, and
applications that help families in assessing and
avoiding  unique environmental health risks to
                                             33

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                                      MULTIMEDIA
children from products and chemicals. The ESC,
working with the Agency's other program efforts,
will develop applications to use and display and
create products with the data and information.

       The ESC will also redirect $2.0 million of
its base resources to implement computer system
modifications designed to address issues
associated with the upcoming date change to the
Year 2000.  This supplements other resources
being  devoted  to the Year  2000  problem.
Additionally, the ESC will  continue  with its
community-based environmental protection effort
that provides easy access  to environmental
information for state and local governments  to
allow them to act on local issues  and protect
ecosystems.
Increasing Legal Support Services

       The  1998 President's Budget requests
$29.7 million and 299 workyears  under the
multimedia program to provide legal advice and
assistance to both Headquarters and Regional
managers. This is an increase of $2.9 million and
17 workyears over 1997. In 1998 the General
Counsel will  focus new resources on providing
legal support and assistance to the Agency in its
implementation of the  amended Safe Drinking
Water Act and the Food Quality Protection Act.
In addition, the General Counsel will provide
additional legal support and advice in a number
of program areas with complex legal and factual
issues. These include programs involving Tribal
environmental programs, programs designed to
improve  urban air quality, and programs  to
develop total  maximum daily loads (TMDLs) for
pollutants in waters that do not meet water quality
standards.
Promoting Pollution Prevention

       The Agency requests a total  of $17.5
million and 84 workyears for the multimedia
Pollution Prevention program. This is an increase
of $6.6 million and 2 workers from 1997.  With the
principle of pollution prevention institutionalized
within the Agency since the Pollution Prevention
Act of 1990, EPA is  expanding its efforts  to
establish pollution prevention as the strategy of
first choice in  addressing human health  and
environmental concerns. Working cooperatively
with the industry to build the principle of pollution
prevention into their design of chemicals and
products, EPA's will expand its 'Design for the
Environment' program by $4 million. Recognizing
that  pollution  disproportionally affects
communities, EPA will also increase by $2 million
its Pollution Prevention/Environmental Justice
Grants designed  to assist local  communities
address their unique environmental  problems.
Finally, EPA is expanding its support with the
private  sector through Pollution Prevention
Partnerships.  Under these Partnerships, EPA
will help companies identify and  capitalize on
pollution prevention opportunities within their
businesses.

       In 1998, the Pollution Prevention program
will continue to promote pollution prevention
within the public and private sectors.  Within
EPA,  the program  will continue to  integrate
pollution prevention options into key air, water,
and  solid waste  rulemakings.   For  small
businesses, states, and local governments, EPA
will continue to provide technical assistance and
support  pollution  prevention demonstration
projects. The Agency will continue to work with
industry in the Voluntary  Industrial Toxics
Reduction program. The effort builds on the
successful 33/50 Program with a new program to
encourage further voluntary reductions  in the
production, emission, and use of toxic chemicals.
Finally, EPA will help industry identify incentives
and barriers to pollution prevention practices.
Ensuring Environmental Justice

       The  1998 President's Budget  requests
$3.5 million and 11 workyears for the  National
Environmental Justice program, an increase of
$0.1 million over 1997. The National program,
distinct from the environmental justice activities
in each EPA office, will continue to coordinate the
Agency's environmental justice programs.  The
program will support the National Environmental
Justice Advisory  Council which advises the
Administrator on environmental problems in low
income and minority communities. The program
will also fund grants to community groups and
universities to address environmental justice
issues.
                                              34

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                              Toxic  SUBSTANCES
     $78.9 M
               DOLLARS
                 +$7.5M     $86.4 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                                    WORKYEARS
                              589
                                                                                  610
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       Americans and our environment are
exposed each year to many chemical substances
and  mixtures.  The United States chemical
industry manufactures or imports more than
50,000 commercial chemicals annually.  Each
year the chemical industry adds approximately
2,200 new  chemicals  to this  list of existing
chemicals.   Some of these  chemicals in
manufacture,  use, or disposal may present an
unreasonable risk of injury to public health or the
environment. Accordingly, Congress has charged
EPA  with protecting the  public and the
environment from unreasonable  risks associated
with the manufacture, use, and disposal of all
commercial toxic chemicals.

       The Toxic Substances  Program is
governed by five major statutes  that emphasize
the prevention or elimination of unreasonable
risks to public health and the environment from
exposures to toxic chemicals. The statutes are the
Toxic Substances Control Act (TSCA), Asbestos
School Hazard Abatement Act, Asbestos Hazard
Emergency  Response   Act,  Emergency
Preparedness and Community Right-to-Know Act
(EPCRA), and the Residential Lead-based Paint
Hazard Reduction Act.

       The 1998  President's Budget  requests
$86.4 million and 610 workyearsfor the Toxic
Substances program. This is an increase of $7.5
million and 21 workyears from 1997. The Toxic
Substances program in 1998 proposes investments
to protect our Nation's children from chemicals of
                       national concern, such as lead and PCBs. It will
                       also expand public access to information about
                       toxic  chemicals  through new  investments
                       including  the President's  Right-to-Know
                       Initiative.
                                      HIGHLIGHTS

                               In 1998, the Toxic Substances Program
                       proposes investments to increase every American's
                       right-to-know access to information about toxic
                       chemical pollution in their communities. Other
                       investments will build partnerships between
                       government and industry by sharing information,
                       knowledge, and tools and to provide incentives for
                       industry to protect the environment. This program
                       will further EPA's commitment to improve the
                       quality of science by investing in testing chemicals
                       for endocrine disrupters, a new area  of human
                       health concern.  This program will also reform
                       PCB regulations and save billions of dollars in
                       PCB disposal costs while maintaining the current
                       level of environmental protection.  EPA will also
                       continue to provide its technical expertise and
                       financial support to local communities, states,
                       and tribal governments.
                       Expanding Communities' Right-to-Know

                              The  1998  President's Budget requests
                       $27.4  million  and  120 workyears for the
                       Community Right-to-Know program.   This
                                             35

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                              Toxic   SUBSTANCES
includes the President's Right-to-Know Initiative,
announced in Kalamazoo, Michigan last year, to
improve the quality and access of information to
the public about toxic  chemicals.  This is an
increase of $2.3 million  and 6  workyears from
1997. The Toxics Release Inventory (TRI) Program
will  continue to  expand the list  of chemicals
reported for the TRI to include groups of chemicals
such as persistent bioaccumulators. It will also
continue  expanding theindustrial groups  and
facilities  that EPA requires to report  about
chemical  releases.   EPA is also investigating
whether the types of data  collected should be
expanded  to include chemical use data. Under
the President's Right-to-Know Initiative, EPA
will increase the amount of useful information on
toxic chemicals and provide guidance to Americans
on common  practices to reduce or  prevent
unnecessary exposures. Also major upgrades in
information technology  will expand  the
capabilities of the Agency's electronic systems to
provide one-stop public access to information.
Protecting Citizens from Lead Poisoning

       The  1998 President's Budget requests
$16.6 million and 116 workyears for the Lead
Abatement Program. This is an increase of $0.4
million and 21 workyears from 1997. EPA regional
offices will play an increased role in implementing
regulations with states to ensure that individuals
engaged in lead-based paint abatement activities
are properly trained, that training programs are
accredited, and that contractors are certified.
EPA will  also work with the Department of
Housing and Urban Development to implement
rules requiring disclosure  to the public on
lead-based paint hazards in housing constructed
before 1978 which are offered for sale or lease. An
important component of EPA's lead strategy is
communicating  the risks of lead exposure to
citizens, health  professionals,  and lead-based
paint abatement workers so they may take action
to protect themselves from  potential lead
poisoning.  EPA will also improve  and  expand
outreach of materials and information on lead
poisoning  and risk reduction measures such as
through its lead hotline and lead clearinghouse.
Addressing Toxic Chemical Risks

       The  1998 President's Budget requests
$31.8 million and 261 workyears for the Agenda
for Toxics. This is an increase of $ 1.4 million and
a decrease of 11 workyears from 1997.   These
programs include chemical testing, the review of
new chemicals and biotechnology products, and
the management of risks  posed by existing
chemicals. In 1998, the Chemical Testing Program
will continue to concentrate on chemicals of
concern identified by the TSCA Interagency
Testing Committee.  The  New Chemicals /
Biotechnology Program will  review more than
2,200 new chemical and biotechnology products
submitted to the Agency for human health and
environmental concerns. The Existing Chemicals
Program will continue to identify risks,  assess
alternatives, and identify pollution prevention
opportunities for chemicals  currently sold and
used in the  United States.   Risk management
resources will be redirected to place more emphasis
on voluntary, non-regulatory strategies reserving
regulatory approaches to those cases  clearly
requiring regulatory  controls.  Also the  Green
Chemistry Program will continue to challenge
industry  to   develop   and   substitute
environmentally safe chemicals. Since PCBs and
asbestos are chemicals of national concern that
create harmful human health effects, the PCB
Program will continue to develop  coordinated
action  plans for the  manufacture,  processing,
distribution, use, and environmentally  sound
disposal of PCBs.  The Asbestos Program will
continue many activities, including operating a
central  directory of  asbestos training  course
providers and approved courses.
Enforcing Toxic Substances Laws

       President's Budget requests $7.9 million
and  90 workyears  for the Toxic  Substances
Enforcement program. This is an increase of $2.2
million and 4 workyears from 1997. The Toxic
Substances Compliance Monitoring Program will
conduct inspections addressing sections 5 and 8 of
TSCA with particular emphasis in 1998 on worker
protection, pre-manufacturing notification, and
                                              36

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                              Toxic  SUBSTANCES
environmental effects reporting requirements.
In those states without cooperative enforcement
agreements, this program will continue to conduct
risk-based compliance inspections for toxic
chemical requirements, including inspections for
the high-risk chemicals such as PCB and asbestos
in public/commercial buildings programs. Civil
enforcement will focus on implementation of the
lead-based paint regulations to protect the health
of as many as three million children from lead
poisoning.  Enforcement of high-risk chemical
manufacturing  and  reporting requirements.
Finally, EPA's regions will conduct inspections to
monitor compliance with the Good Laboratory
Practices regulations at laboratories that perform
toxics substances testing.
       The 1998 President's Budget also requests
$2.6 million and 23 workyears for the EPCRA
Enforcement program. This is an increase of $ 1.3
million and 3 workyears from 1997. The EPCRA
Enforcement Compliance Monitoring Program
will continue to conduct compliance inspections
of chemical facilities that manufacture, use, or
process potentially harmful chemicals and  are
required to report under EPCRA.  In 1998, data
obtained from these inspections will inform the
public  and the Agency of toxic  chemicals at
manufacturing facilities and document the release
of toxic chemicals  into  the local  environment.
Regions will continue to utilize this information
to develop TRI inspections.  EPCRA Civil
Enforcement activities will continue to address
reporting violations of hazardous  chemical
releases to ensure adequate emergency planning,
release notification, and  reliable  community
right-to-know data are maintained  to keep  the
public and the Agency informed of toxic chemicals
being manufactured or released into the local
environment.
                                             37

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38

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                        MANAGEMENT   &  SUPPORT
               DOLLARS

      $481.7 M  +$15.2 M   $496.9 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                                    WORKYEARS

                               2,650        -19        2,631
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       The Management and Support program
provides leadership, executive direction and policy
oversight for all Agency programs, as well as
those administrative and support services that
are not assigned to a specific program.  These
programs  are designed  to  meet the Agency's
growing demand for  sophisticated  technology,
analytical  expertise,  comprehensive matrix
management and efficient sup port services. These
activities are carried out primarily through the
efforts of the Office of the  Administrator; the
Office of Policy, Planning and Evaluation; the
Office of International Activities; the Office of the
Chief  Financial  Officer;  and  the Office of
Administration and Resources Management.

       Primary activities  include  planning,
budgeting,  accountability,  executive direction,
legislative  analysis,  Congressional relations,
financial  management, health and safety,
intergovernmental  and international relations,
information and human resources management,
and security.  Key statutes being addressed in
1998 include the Government Performance and
Results Act  (GPRA),  the  Federal Managers'
Financial  Integrity Act, the  Chief Financial
Officers' Act, and Executive Orders on Customer
Service and Labor-Management Partnerships.

       The  1998 President's Budget requests
$496.9 million and 2,631 workyearsunder the
EPM account for the Management and Support
program. This is an increase of $ 15.2 million and
a decrease of 19 workyears from 1997.
                                      HIGHLIGHTS
                       Providing Leadership and Direction
                       for the Agency

                              The  1998 President's Budget requests
                       $51.2 million and 511 workyears for activities of
                       the  Office of the  Administrator (OA).   This
                       represents an increase of $3.6 million  and 8
                       workyears over 1997.  In 1998, OA will provide
                       oversight and coordination for two  significant
                       Agency initiatives.  First, OA will provide overall
                       coordination and public outreach efforts for the
                       Agency's initiative on Assessing Health Risks to
                       Children. Under this initiative, EPA will evaluate
                       current risk assessment protocols and methods to
                       ensure they  take  into  account the unique
                       multi-pathway exposure for children, and update
                       and  disseminate information specifically about
                       children's exposure to pollution threats. Second,
                       OA will coordinate support and public outreach
                       efforts in support of the Right-to-Know Initiative
                       announced by the President in Kalamazoo,
                       Michigan. This initiative is designed to improve
                       and  expand  the quality and availability of
                       information for families and the public regarding
                       toxics in their communities.

                              The President's Budget also includes $1.0
                       million in 1998 to support the GLOBE program,
                       an interagency effort designed to bring  school
                       children,  educators, and scientists together to
                       observe and monitor environmental conditions
                                              39

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                        MANAGEMENT   &   SUPPORT
worldwide.  Other OA resources in 1998 will
provide for a wide variety of activities intended to
ensure strong  and effective leadership and
direction at the Agency. This includes the Agency's
Science Advisory Board, the  Environmental
Appeals Board,  and the Administrative Law
Judges. Resources will also support civil rights
compliance efforts, Congressional and legislative
analysis, assistance to small and disadvantaged
businesses, and outreach to states, localities and
the public.
Protecting U.S. Interests
Through International Efforts

       The  1998 President's Budget requests
$13.6 million and 69 workyears for the Office of
International Activities  (OIA) to protect U.S.
interests in the global environment.  This is an
increase of $0.9  million  and 5 workyears over
1997. In 1998, the Agency requests $2.0 million
to launch a new Environmental Security Initiative
(ESI) to  respond to emerging environmental
threats to the health and safety of U.S. citizens,
the foreign policy interests of the United States,
and the environmental problems associated with
the legacy of the Cold War. The goal of the ESI is
to identify, prioritize, and manage international
environmental threats before they pose a risk to
national security. OIA will also continue to focus
on coordinating the international efforts of EPA
with an eye towards reducing  the cost of
environmental  protection;  strengthening
environmental protection  overseas; removing
trade barriers for  U.S.  companies;  promoting
U.S. technologies  and  services abroad; and
protecting citizens  from  environmental threats
along U.S. borders.
Achieving Agency Objectives
Through Innovative Policies

       The  1998 President's Budget requests
$14.2 million and 143 workyears for activities of
the Office of Policy,  Planning and Evaluation
(OPPE).  This represents an increase of $1.0
million and  13 workyears over 1997.  In 1998,
OPPE will continue to play an important role in
the management of Agency efforts to develop
alternative  policy approaches to achieve  the
Agency's strategic objectives in ways that are
consistent with  economic and  environmental
trends and advance cross-media efforts.  OPPE
efforts will focus on improving the quality of the
Agency's statistical data and public access to
information, and continuing efforts to reengineer
the Agency's regulatory process.
Streamlining Management Services
and Information Systems

       The  1998 President's Budget  requests
$96.4  million  and  1,293 workyears  for
management  activities  of the  Office  of
Administration and Resources Management. This
represents an increase of $1.5 million  and a
decrease of 33 workyears from the 1997 level.
OARM will  continue  to focus its  efforts and
resources on providing management  services,
infrastructure, operations, and workforce support
for the environmental programs and priorities of
EPA.

       In 1998, OARM will direct additional
resources to address vulnerabilities in the Agency's
management of grants and contracts. Particular
focus will be placed on improving the  Agency's
post-award grant management practices,
including timely closeout of grants. In the area of
information  systems and services,  OARM will
work to improve access to EPA information by
states, local governments, and the public.  In
addition, OARM will implement computer system
modifications designed  to address issues
associated with the upcoming date change in the
year 2000.   OARM  will also  provide technical
assistance on  financial issues associated with
state and tribal implementation of Performance
Partnership  grants.  OARM will continue work
begun in 1997 to streamline and automate the
Agency's administrative systems with a particular
emphasis on human resources systems.
Ensuring Health and Safety

       The  1998 President's Budget requests
$249.7 million and 14 workyears under the EPM
account to address essential infrastructure needs
of the Agency. This represents an increase of $7.2
million over 1997. This includes providing for the
Agency's national support costs, such as rent
payments; direct leases; utility costs; move and
                                              40

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                        MANAGEMENT   &  SUPPORT
related costs associated with space consolidation;
and national health and safety support. In 1998,
resources will be directed at additional building
security and guard services to ensure the safety of
the public and EPA employees as outlined in the
President's Executive Order regarding upgrading
security at federal buildings.
Integrating Strategic Planning, Budgeting,
Financial Management, and Accountability

       The 1998  President's  Budget requests
$41.5 million and 362 workyears for activities of
the Office of the Chief Financial Officer (OCFO).
This represents an increase of $1.0 million and a
decrease of 8 workyears from 1997. The Agency
is committed to making better use of scientific
information in setting priorities; improving the
link between long-term environmental planning
and resource management; and implementing a
new  accountability   system   to  assess
accomplishments and improve feedback for future
decision-making. In close coordination with other
EPA offices, the OCFO will lead the effort  to
establish  and  manage this new  Agencywide
planning,  budgeting,  financial management,
analysis and accountability system. In 1998, the
OCFO will continue to focus on the development
of Agency  goals and program  objectives for all
Agency programs, the Agencywide strategic plan,
and development of program performance plans,
measures  and  reporting mechanisms required
under GPRA. The OCFO will continue to develop
and implement the management processes and
information systems needed to improve EPA's
ability to manage for results. The OCFO will also
continue to provide  the core budget, financial,
and resource management services essential to
the Agency's management and operation.
Improving Efficiency Through A
Working Capital Fund

       The Working Capital Fund (WCF) begins
its second year of operation in FY 1998.  EPA's
WCF is a revolving fund to finance operations
where the costs for goods or services provided are
charged to the users. With the creation of the
WCF, funding and management of administrative
services has been decentralized, thereby giving
customers a strong voice in determining the
amount and type of services they receive. EPA's
WCF will ensure increased efficiency of resource
utilization  through  reliance on market force
mechanisms and will also increase accountability
through audited financial statements.

       The Agency will provide two services in
1998   under   the   WCF:  computer   and
telecommunication services at the National Data
Processing Division (NDPD), Research Triangle
Park, NC, and postage services. These services
are provided to all EPA offices. While the WCF is
administered through  the Management  and
Support program, the resources are requested in
the individual offices participating in the WCF.
Under the 1998 President's Budget, the WCF will
provide $101.0 million in services, a decrease of
$500 thousand from 1997.  NDPD operations are
funded at $95.9 million and Postage at $5.2 million.
There  are also  66  workyears associated with
these activities.
Strengthening Executive Direction
Through Matrix Management

       The  1998 President's Budget requests
$30.4 million and 239 workyears for this activity,
which  includes executive direction,  policy
development,  program  development  and
oversight, planning,  budgeting,  financial
management, human resource management, and
information resources management for each of
the Agency's major offices.  These include the
Offices of Air and Radiation, Water, Enforcement
and Compliance Assurance, International
Activities, General Counsel, Solid Waste and
Emergency Response, Prevention, Pesticides and
Toxic Substances,  and Policy, Planning and
Evaluation. These core services are essential for
the overall  management,  coordination, and
direction of these offices.
                                             41

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42

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                   STATE,  LOCAL,  & TRIBAL GRANTS
                                                                           $715 M
$491 M
/

/
/
$468 M
/

s
/
$548 M
/

/
/
$643 M
/

/
/
$665 M
/

/
/
$645 M
/

s
/
JJB/4 M
/

/
/
/

/
/

          1991
1992
1993
1994
1995
1996
1997
1998
       In 1998, EPA will continue to give more
flexibility to state  and tribal governments to
manage their environmental programs as well as
provide technical and financial assistance. Two
specific efforts in 1998 demonstrate this flexibility.
First EPA has, with the states, established a
National  Environmental  Performance
Partnership System (NEPPS) which recognizes
the states' growing capacity to operate their own
environmental protection programs.  In return,
states  will  measure  and report progress in
achieving environmental  results  within their
state. Second, Performance Partnership Grants
(PPGs) allow states and tribes  flexibility to
combine two or more "categorical" program grants
(e.g., Air, Water) into one or more multimedia
grants used to address the  environmental
priorities of their state or  tribe.  Performance
Partnership Grants  (PPGs) will be encouraged
and utilized by  state and tribal government in
1998 as they were in 1996 and 1997. In 1996, 20
states have signed PPGs for 1996 funding and at
least 24 states have signed PPGs in 1997.  As
more states recognize the  benefits, we  expect
most, if not all, states will participate.

       In 1998, the President's Budget requests
a total of $ 715.3 million for 17 'categorical' program
grants  for state and tribal governments. This is
an increase of $41.0 million  (6%)  over 1997.
These  grants are  part of   EPA's Operating
Programs even  though they are funded in the
State and Tribal  Assistance  Grant (STAG)
                               appropriation account.   EPA will continue  to
                               pursue its strategy of building and supporting
                               state, local, and tribal capacity to implement,
                               operate, and enforce the Nation's environmental
                               laws.   Most environmental laws envision
                               establishment of a decentralized nationwide
                               structure to  protect public  health  and the
                               environment.  In this way, environmental goals
                               will ultimately be achieved through the actions,
                               programs, and commitments of state and local
                               tribal governments, organizations, and citizens.
                                              HIGHLIGHTS

                               Fostering State and Tribal Programs

                                      EPA state and tribal grants help  these
                               governments  develop  and  implement the
                               technical, managerial and enforcement capacity
                               to manage and operate their own environmental
                               protection programs. This includes helping them
                               address air pollution requirements, implement
                               water quality standards, develop and maintain
                               drinking water  systems, promote and monitor
                               the safe use of  pesticides and toxic substances
                               (e.g., lead), regulate hazardous waste treatment
                               and disposal, and assure compliance with federal
                               environmental laws  and regulations.  Funding
                               also is  provided to  assist states  and tribal
                               government address multi-media pollution
                               problems.
                                             43

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                   STATE,  LOCAL, &  TRIBAL  GRANTS
       The emphasis in 1998 will be to increase
Federal financial assistance to meet increased
environmental program requirements and to help
tribal  governments  better  establish their
environmental protection programs. Increases in
1998 for the states will be in the Air, Water
Quality, and Multimedia Enforcement programs.
For tribal governments, increases in 1998 will be
in the Air,  Water  Quality, Drinking  Water,
Pesticides, Toxic Substances, Hazardous Waste,
Multimedia Enforcement,  and Multimedia
General Assistance  Program (GAP) programs.
These changes are described below.
Air and Radiation Program Grants

       Air and Radiation Program grants help
state and tribal governments address air and
radiation program requirements.  In  1998, the
President's Budget requests a total  of $175.5
million for three Air and Radiation Program
grants. This is an increase of $8.3 million from
1997. Priority in 1998 will be on funding programs
which meet clean air standards, particularly those
for ozone ('smog') and particulate matter ('soot').
Increases of $4 million will assist state, local and
tribal governments deploy  new monitoring
equipment to obtain background information on
the nature and origin of fine particles. EPA will
provide technical and financial support to
multi-state organizations  and implement
recommendations resulting from their joint efforts,
including a nitrogen oxides  allowance trading
system.  EPA will join with states in the 'MACT
Partnership' program designed to develop MACT
standards for  sources  or  toxics  of  particular
concern to participating states. In addition, EPA
will target $750 thousand for Alaskan Native
Villages to assess the  effect  of nuclear waste
disposal by the Former Soviet Union and the
disposition of  any radioactive pollutants from
nuclear  accidents in other countries.  Radon
Program grants will be maintained at the 1997
level ($8.2 million).
Water Quality Program Grants

       Water Quality Program grants help states
and tribes implement their water pollution control
programs. In 1998, the President Budget requests
a total of $230.5 million for four Water Program
grants.  This is a total increase of $14.8 million
from 1997 all of which is in the Water Pollution
Control (section 106) grants. Of this total increase,
$5.0 million will be directed to help states develop
Total Maximum Daily Loads (TMDLs) which
consider  point, nonpoint source, and natural
background pollution in addressing complex water
quality problems.  The other $9.8 million will be
to assist tribal governments establish and
maintain adequate water pollution control
programs on tribal lands. Grants to help states
and tribal governments address non-point source
pollution problems  ($100 million), implement
protections for wetlands ($15 million), and address
water permit program concerns - especially wet
weather- ($20 million) will be maintained at 1997
levels .
Drinking Water Program Grants

       Drinking Water Program grants help
states and  tribes  operate Drinking Water
programs to ensure water systems meet national
drinking water standards especially now with
enactment of the 1996 Amendments to the Safe
Drinking Water Act. In 1998, the President Budget
requests a total of $104.3  million for the two
Drinking Water grants.  This is an increase of
$3.8 million from 1997 for tribes.  The emphasis
in 1998 will be to support tribal governments as
they develop a  capacity to build and maintain
their  own Public Water Systems Supervision
(PWSS) Program. The biggest single deterrent to
tribes assuming primacy for the Drinking Water
Program is their lack of capacity.  EPA  will
endeavor  to  help tribal  governments  build
sufficient capacity to  assume 'primacy' of the
Drinking  Water  Program.   For states,  the
emphasis  in  1998 will be to  implement the
requirements of the 1996 Amendments to the
Safe Drinking Water Act.  Funding to support
state activities related  to the PWSS  and
Underground Injection Program (UIC)  will
continue at 1997 levels.
Pesticides and Toxic Substances
Program Grants

       Pesticides and Toxic Substances Program
grants help state and tribes develop and manage
programs to ensure they comply with pesticide
use and lead program requirements. In 1998, the
President requests a total of $26.8 million for two
                                              44

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                  STATE,  LOCAL, &  TRIBAL  GRANTS
grants in this program area. This is an increase
of $1.5 million from 1997. The emphasis in 1998
(+$0.3 million) will be to help tribal governments
develop programs to manage pesticide use, such
as the training and certification of commercial
pesticide applicators on tribal lands and develop
their  own lead poisoning prevention programs
(+$1.2 million).    Support to  states  will be
maintained at the 1997 levels of $24.7 million.
Hazardous Waste Program Grants

       The  Hazardous Waste  Program will
continue to support state and tribal government
hazardous waste programs to issue permits,
conduct compliance monitoring inspections, and
initiate enforcement  actions.   In  1998, the
President requests a total of $109.1 million for
two Hazardous Waste Program grants. This is an
increase of $0.3 million from 1997. The increases
will assist tribal governments to develop their
capacity to  implement the Hazardous Waste
program.  Emphasis with the states will be on
further streamlining the permit process and on
identifying and implementing measures to reduce
the spread of contamination of hazardous wastes
at high-risk facilities. Underground Storage Tank
Program grants, at a stable funding from 1997 of
$10.5 million, will focus on encouraging and
enforcing compliance with the 1998 deadline for
upgrading, replacing,  or closing underground
storage tanks.
Pollution Prevention Program Grants

       EPA will also continue to support
programs that address  multiple  sources  of
pollution. In 1998, the President Budget requests
a total of $6.0 million for Pollution Prevention
state grants, the same level as in 1997. These
grants   support   pollution    prevention
demonstration projects by local communities to
help them identify and deal with  multiple
environmental pollution concerns
Enforcement Program Grants

       In 1998, financial assistance will continue
to sup port state and tribal enforcement programs.
A total of $24.4 million is requested for Pesticides
and Toxic Substances Enforcement grants, an
increase of $1.8 million from 1997.  With the
recent enactment of the Food Quality Protection
Act of 1996, an additional $ 1.0 million is requested
specifically for increased state enforcement since
states are the primary enforcement component of
the Pesticide Program. Increased support will
also help tribal governments develop capabilities
to  operate  and manage their tribal pesticide
enforcement  capabilities.   For the Toxic
Substances  Enforcement  program, the 1998
emphasis will be on developing partnerships with
the states and tribes to establish comprehensive
toxic substances enforcement authorities.
Indian General Assistance Program Grants

       For the Indian Environmental General
Assistance Program (GAP), the  Agency  is
requesting a total of $38.6 million for these GAP
grants.  This is  an increase  of $10.6 million
(+40%) from 1997. This increase is requested to
help tribal governments establish  Tribal/EPA
Environmental Agreements (TE As) which identify
environmental management needs, establish
program priorities, and build tribal environmental
programs.  EPA believes that supporting the
development of tribal environmental programs is
the most effective way to protect public health
and the environment on tribal lands.
                                             45

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                STATE,  LOCAL, & TRIBAL GRANTS
                             (DOLLARS IN THOUSANDS)
                                  1997
                                CURRENT
                               ESTIMATE*

AIR
  STATE AND LOCAL ASSISTANCE  $153,190.0
  TRIBAL ASSISTANCE              5,882.2
  INDOOR ENVIRONMENTS/RADON   8,158.0
                     1998
                 PRESIDENT'S
                   BUDGET
                  $157,190.0
                    10,168.8
                    8,158.0
                    1998-1997
                  DIFFERENCE
                   +$4,000.0
                    +4,286.6
                        0.0
WATER QUALITY
  POLL. CONTROL (SECTION 106)      80,700.0
  NONPOINT SOURCE              100,000.0
  WETLANDS PROGRAM             15,000.0
  WATER QUALITY
   COOPERATIVE AGRMTS          20,000.0

DRINKING WATER
  PUBLIC WATER SYSTEM
   SUPERVISION                   90,000.0
  UNDERGROUND INJECTION
   CONTROL                      10,500.0

HAZARDOUS WASTE
  HAZ.WASTE FINANCIAL
   ASSISTANCE                    98,298.2
  UNDERGROUND STORAGE
   TANKS                         10,544.7

PESTICIDES
  PESTICIDES PROGRAM
   IMPLEMENTATION              12,814.6

TOXIC SUBSTANCES
  LEAD GRANTS                    12,500.0

MULTIMEDIA
  POLLUTION PREVENTION           5,999.5
  PESTICIDES ENFORCEMENT        16,133.6
  TOXIC SUBST. ENFORCEMENT       6,486.2
  TRIBAL GENERAL ASSISTANCE     28,000.0
  PERFORMANCE PARTNERSHIPS II      0.0
                   95,529.3
                   100,000.0
                   15,000.0

                   20,000.0
                   93,780.5

                   10,500.0



                   98,598.2

                   10,544.7



                   13,114.6


                   13,712.2
                    5,999.5
                    17,511.6
                    6,864.2
                    38,585.4
                        0.0
                   + 14,829.3
                        0.0
                        0.0

                        0.0
                    +3,780.5

                        0.0



                      +300.0

                        0.0



                      +300.0


                    +  1,212.2
                        0.0
                    + 1,378.0
                     +378.0
                   + 10,585.4
                        0.0
   TOTAL
$674,207.0
$715,257.0
+ $41,050.0
*  Current Estimate does not include 1996 carryover resources.
II  Funding for Performance Partnership Grants is unknown at this time. Finds will be
   reprogrammed from 17 categorical grants above during 1997 and 1998.

                                        46

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                         BUILDINGS  AND FACILITIES
       The  Buildings and  Facilities  (B&F)
account funds the design, construction,  repair,
and improvement of buildings occupied by EPA.
The Agency  currently has ten Regional offices
with associated Regional laboratories, two large
research and development laboratory complexes,
a number of field stations with laboratory facilities
and a Headquarters operation in nine locations in
the Washington, D.C. area.

       This program provides a safe and healthy
work environment for EPA employees by providing
for renovation and repair or replacement of our
facilities. Through its facilities master plan, the
Agency will continue to implement intermediate
and  long-range plans that assess alternative
housing options  for EPA operations and also
continue a repair  program  that  protects  the
Agency's investment in EPA  real  property
holdings. EPA is modifying current facilities to
more adequately and efficiently  address  the
Agency's  changing  programs  as well as
implementing cost-effective energy and water
conservation measures  at EPA-occupied,
federally-owned  buildings.   The  Agency will
continue to emphasize environmental compliance
and health and safety efforts in EPA facilities by
removing asbestos and PCBs,  upgrading fire and
life safety systems,  and upgrading heating,
ventilation and air conditioning systems to meet
the most current ventilation  and CFC removal
standards.

       The 1998 B&F program continues major
initiatives to correct deficiencies in the Agency's
facilities'  infrastructure.    Ongoing  new
construction will be managed through the design
and construction phases.  Included in these plans
is  the build-out  of a  new government-owned
Headquarters facility in  the  newly constructed
Ronald  Reagan  Building and the Ariel  Rios
Building,  continued construction of the
Consolidated  Laboratory at Research Triangle
Park, North Carolina.

       The Agency is requesting a total of $ 141.4
million for  1998  in  the  B&F appropriation
account. This is an increase of $54.2 million over
1997.
              +$54.2 M   $141.4 M
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
               HIGHLIGHTS

Investing in New Facilities

       The Agency is requesting $125.0 million
in 1998 for New Facilities, an increase of $52.2
million over 1997. The  investment  in New
Facilities will dramatically impact the Agency's
ability to address the complex environmental
issues of the 1990's and beyond.

       The Agency is requesting $122.0 million
for the construction of a consolidated laboratory
and office complex at Research Triangle Park,
NC. This facility will integrate several spaces
that EPA currently leases. The Agency is also
requesting $3 million to renovate and occupy its
new  Headquarters facility in  downtown
Washington, D.C.  The new facility is responsive
to the needs of EPA's employees and reflective of
the Agency's environmental mission.
Repairing and Improving
Existing Facilities

       The Agency requests $ 16.4 million in 1998
for the Repairs and Improvements program, an
increase of $2.0 million over 1997. The increase
funds modifications to the Alternative  Fuels
                                              47

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                        BUILDINGS AND  FACILITIES
Dispensing System at the Agency's Ann Arbor,
Michigan laboratory. Other activities within this
program are engineering studies, design, and
construction related  to  the repair  and
improvement of buildings occupied by EPA.

       Funding in  1998 will address critical
repairs related to employee  health and safety;
ensuring EPA facilities are in compliance with
environmental statutes; energy  and water
conservation improvements;  and  alterations
related to moves and program required changes
as well as emergency repairs and maintenance
for laboratory facilities.
                                           48

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                        SCIENCE AND  TECHNOLOGY
               DOLLARS
                 +$62.3 M   $614.3 M
    $552
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                              2,327
                                    WORKYEARS
                                           +88        2,415
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       The  Science  and  Technology  (S&T)
account, created in 1996, funds the operating
programs of  the Office of Research and
Development  (ORD), the Office  of Air and
Radiation's (OAR) Office of Mobile Sources, and
the Program Office laboratories.  These
organizations provide significant scientific and
technical expertise in meeting the Agency's broad
array of environmental goals. ORD scientists and
engineers,  as well as universities and the
extramural   research   and   development
community, seek to increase our understanding
of the risks to human health of the American
public and  our nation's  ecosystems.   OAR
contributes to the goal of clean air by controlling
air  pollutants such as particulate matter,
implementing the Clean Air Act's vehicle, engine
and fuels requirements and by reducing emissions
from in-use vehicles through state programs. The
program laboratories directly sup port the Agency's
regulatory    programs,   including    the
implementation of drinking water regulations,
and are the primary source of multimedia technical
expertise for civil and criminal enforcement.

       As a result of the  Agency's risk-based
science planning process, a number of new and
critical areas with significant uncertainties and
great  opportunities will be funded in the S&T
account in 1998:  Assessing Health Risks to
Children, the President's Commitment made in
Kalamazoo on Americans'  Right-to-Know, the
Advanced   Measurement  Initiative  and
implementation of the Safe Drinking Water Act
                       Amendments of 1996 and  the  Food Quality
                       Protection Act of 1996. The Agency's support in
                       these areas underscores our national leadership
                       in addressing emerging environmental issues and
                       in advancing the science and technology of risk
                       assessment and risk management.

                              The 1998 President's Budget requests
                       $614.3 million and 2,415 workyears for the
                       Science and Technology appropriation account,
                       an increase of  $62.3 million and 88 workyears
                       over 1997.  In addition to this amount, $39.8
                       million will be transferred from the Hazardous
                       Substance Superfund appropriation.

                              The S&T account also includes resources
                       for cross-program research that pertains to two or
                       more distinct media, and infrastructure needs
                       such as operating  expenses and the working
                       capital fund. The S&T account also requests $ 115
                       million to continue support for the Science to
                       Achieve Results (STAR) program. This includes
                       $ 15 million for  academic fellowships.
                       Reducing Air Pollution through Research

                              The 1998 President's Budget requests
                       $91.1  million and 411 workyears for the Air
                       Research program,  an increase of $9.1  million
                       and a decrease of 15 workyears from 1997.
                       Research and development will be conducted in
                       many different areas of air pollution.
                                             49

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                         SCIENCE  AND TECHNOLOGY
       Air Toxics research investigates  and
assesses the risks posed by toxic air pollutants in
urban and  indoor environments and those
generated as a result of mobile sources. In 1998,
the Agency will significantly increase efforts in
the  urban  toxics  research area to better
understand the health impacts of exposure to air
toxics in the urban setting, where most risks are
anticipated to occur. Research in this area includes
support for the development of health assessments
from chronic and acute exposures and cancer risk
determinations.

       The  Criteria  Air Pollution  research
program supports EPA in its mandatory review of
the National Ambient Air Quality Standards for
ambient  exposures to certain widespread  air
pollutants. The program will increase efforts on
understanding the  risks associated with
particulate matter (PM), a significant Agency
initiative, which may be  the  largest single
contributor to adverse  effects caused by ambient
air pollution. Researchers will continue to identify
the mechanisms by which particles affect human
health. Tropospheric ozone resources will support
ajoint public/private effort to improve the scientific
basis for both future ozone attainment strategies
and health and ecological effects research.

       The Global Change research program will
focus on integrated assessments of the potential
ecological risks of climate  change on  coastal,
freshwater,  and  terrestrial ecosystems from
different regions throughout the U.S., and extend
the analysis to include the implications for human
health.  In addition, EPA will consider future
regional vulnerabilities for coastal ecosystems by
developing a conceptual model to (1) identify the
principal driversof change in selected U.S. Atlantic
watersheds and  estuaries and (2)  evaluate
ecological risks that  may  be associated with
climate change in the context of other future
coastal zone  precursors,  such as  resource
exploitation and coastal zone build-out.
Strengthening Air Standards
and Regulations

       The  1998 President's Budget  requests
$87.5 million and 424 workyears for OAR's Office
of Mobile Sources (OMS) and Radiation Program
Laboratories, an increase of $22.9 million and 98
workyears  over 1997.   The  1998  request
consolidates all resources for OMS in the S&T
appropriation.  Previously, the resources were
split with the EPM appropriation.

       The  Ozone/Carbon Monoxide/Nitrogen
Oxides program will conduct a wide range  of
activities designed to reduce these pollutants
from vehicles, engines and fuels. These activities
include promulgating mobile source rules under
the Clean Air Act, involving industry in numerous
cooperative  emission reduction or  process
streamlining initiatives, and providing support
to states. Rulemaking activities include finalizing
the highway heavy-duty engine, locomotive, and
evaporative test procedure rules, and proposing
rules for reengineering vehicle  compliance,
motorcycle weight limits and nonroad diesels.

       The   Particulate Matter/Visibility/
Regional Haze/Lead program supports engine
standards  development  and PM  emissions
inventory and modeling.  Reducing  the mobile
source PM emissions will contribute to attainment
of the PM ambient air quality standard.  By
reducing these  emissions, these initiatives will
provide  added protection for children and other
sensitive populations from respiratory illness and
premature death. In the area of fuels, the Agency
will  implement low sulfur diesel regulations,
including the Alaska  waiver request  and the
anticipated bio-diesel waiver request.

       The Climate Change Action Plan (CCAP)
directly supports the goal of stabilizing U.S.
greenhouse gas emissions, such as carbon dioxide,
at 1990 levels by the year 2000.   One element
funded through CCAP is the Clean Car program,
which represents  EPA's  contribution to the
Partnership  for a New Generation  of Vehicles, a
Presidential initiative.  Under this program, the
Federal government will work closely with the
domestic automobile  industry to  develop
technology which  will triple automotive fuel
economy and reduce carbon dioxide emissions by
67 percent, while maintaining vehicle performance
and affordability. EPA will also work to provide
information  to the public on  ways in which
transportation alternatives can be used to reduce
air pollution and to decrease emissions of gases
that contribute  to global warming.
                                              50

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                         SCIENCE  AND TECHNOLOGY
       Two  program laboratories support  the
Radiation and Indoor Environments programs by
carrying out a broad range of policy,regulatory,
and compliance functions. The National Air and
Radiation Environmental Laboratory and  the
Radiation and Indoor Air National Laboratory
both provide technical support and guidance to
assist the Agency in carrying out its responsibility
to protect public health and  the environment
from adverse effects of radiation exposure and to
reduce human exposure to harmful levels of indoor
pollution.
Mitigating Health and Environmental
Problems Through Waste/Site/Risk
Characterization Research

       The  1998  President's Budget requests
$14.0 million and 68 workyears for the Waste/
Site/Risk Characterization research program, an
increase of $3.2 million and a decrease  of 10
workyears from 1997.  The goal of the program is
to provide the regions, states and localities with
data, methods, and models to assess the potential
human and environmental health risks associated
with exposures to  contaminants encountered at
Superfund sites.

       In  1998,  Waste/Site/Risk   Characteri-
zation research  will include  the  Superfund
Innovative  Technology Evaluation (SITE)
program, which will continue to demonstrate the
backlog of commercially available characterization
technologies, and the Resource Conservation and
Recovery Act (RCRA) program, which will focus
on reducing uncertainties in exposure estimates
and developing more sensitive analytical methods
for  RCRA waste  constituents. Superfund site
characterization research will  focus  on
technologies  and methods that  are  more
field-oriented.
Providing Strong Scientific and Technical
Support Through Waste Management and
Site Remediation Research

       The  1998  President's Budget requests
$27.2  million and 95 workyears for the Waste
Management and  Site Remediation  research
program, an increase of $4.0 million and a decrease
of seven workyears from 1997.  The goal of the
program is to improve EPA's understanding of
the science controlling the fate of contaminants in
soils and groundwater through risk management
research which focuses on the remediation of
surface and  subsurface  contaminated  soils,
sludges,  sediments, buildings, debris, and
groundwater.

       In 1998, the Waste Management and Site
Remediation research program will support major
activities in groundwater research and the SITE
program.  In the  groundwater area, EPA will
expand its field evaluation of innovative extraction
technologies for contaminants. The SITE program
will continue to focus  on identifying solutions
where remediation problems indicate the need
for more cost-effective cleanup technologies.
Strengthening the Scientific Basis for
Drinking Water Regulations and Standards

       The  1998  President's  Budget requests
$35.9 million and 184 workyears for the Drinking
Water research program, a decrease of $3.5 million
and 9 workyears from 1997. The research under
this program seeks to increase our understanding
of the health effects, exposure, assessment, and
risk management issues associated  with
contaminants in drinking water from a public
health basis. EPA's drinking water research also
focuses on the potential health risks and human
exposures to microbial pathogens and disinfection
by-products (DBFs).

       In 1998, the Drinking Water research
program will provide the scientific data necessary
to provide a sound basis for promulgation of
necessary regulation.  This research will expand
our understanding of  the impacts of drinking
water contamination on sensitive subpopulations,
adverse reproductive effects of drinking water
contaminants, mechanistic research on selected
DBFs and arsenic, and waterborne disease
occurrence  studies, as well as treatment and
distribution system development.

       The  1998  President's  Budget requests
$1.7 million and 21 workyears for EPA's Drinking
Water  Technical  Support  Center (TSC), an
increase of $65 thousand over 1997.  TSC will
continue to implement drinking water regulations,
particularly the information collection rule that
                                             51

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                         SCIENCE AND  TECHNOLOGY
was promulgated in May 1996. This rule requires
about 300 large public water systems to collect
occurrence and treatment data on disinfectants,
disinfection by-products,  and microorganisms.
TSC also has lead responsibility in implementing
the composite correction program, which assists
large, medium, and small systems in improving
filtration performance.
Focusing On Ecosystem Protection Research

       The  1998 President's Budget requests
$105.5  million  and 490  workyears  for  the
Ecosystem  Protection  research  program,  a
decrease of  $1.7 million and an increase of 1
workyear over 1997. In  addition to addressing
several National Environmental goals, such as
clean air, clean waters,  healthy terrestrial
ecosystems and  reducing  global and regional
environmental risks, this program will investigate
three Agency objectives: the scientific basis of
environmental indicators of stressors; the risk
assessment links between ecosystem and human
health; and integration of  information through
risk management models.

       Ecosystems Protection research will focus
on exposure and effects measurements, long-term
monitoring, and  regional surveys,  development
of tools and methods to enable assessment and
management of the greatest threats, and intensive
research in selected ecoregions of national interest
and concern, such as the Pacific Northwest. The
impact of chemical stressors (e.g., nutrients, toxic
metals) and non-chemical stressors (e.g., climate
change,  regional vulnerability) on threatened
ecosystems is a primary area for investigation.
EPA's Environmental Monitoring and Assessment
Program (EMAP), for example, is used as a vehicle
for  understanding ecosystem integrity and
sustainability.

       EPA will continue a major program in the
development of ecological indicators and our work
with  the National Park  Service to upgrade
monitoring sites  in 13 National Parks to assess
the impacts of environmental stressors, including
toxic chemicals and metals.  In addition, research
will expand on Contaminated Sediments to better
understand the cause and effect relationships of
persistent chemicals that exist in our Nation's
waterways.   EPA will  explore  cost-effective
approaches  to  mitigate contamination of
sediments in the Nation's waterways.
Reducing Exposure Through Human
Health Protection Research

       The  1998 President's Budget requests
$53.6 million and 251 workyears for the Human
Health Protection research program, an increase
of $ 11.1 million and a decrease of 1 workyear from
1997. People are exposed to avariety of potentially
harmful agents in the air they breathe, the food
they eat, the liquids they drink, the products they
use, and the surfaces they touch.  The Human
Health Protection research program's goal is to
identify, reduce and prevent exposures and risks
from environmental contaminants that contribute
to increased rates of disease,  disability and
premature death.

       In 1998,  the Human  Health Protection
research  program will support  studies  on the
health  effects  and exposure of sensitive
subpopulations exposed to pesticides  and toxic
substances. Research will be expanded to support
implementation of the Food Quality Protection
Act of 1996 to better address the health of infants
and children, including re-evaluation of pesticide
chemical tolerances for children.

       The  Agency will also reassess current
information and approaches to determining risks
specifically to children. This is in direct support
of EPA's initiative of Assessing Health Risks to
Children and its strategic goal  of determining
how individuals vary in their responses to toxic
insults.
Understanding and Evaluating Emerging
Special Environmental Hazards

       The  1998 President's Budget requests
$15.9 million and 71 workyears for the Special
Environmental Hazards research program,  an
increase of $3.8 million and four workyears over
1997. This program primarily supports research
on endocrine disrupters, where a great deal of
                                              52

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                         SCIENCE  AND TECHNOLOGY
uncertainty exists. This research will investigate
the effects of environmental exposure to various
chemicals, focusing on health effects and exposure
assessment in humans and ecosystems.  The
results of these efforts support the implementation
of the Federal  Insecticide,  Fungicide,  and
Rodenticide Act (FIFRA), the Toxic Substances
Control  Act (TSCA), and the  recently  enacted
Food Quality Protection Act  (FQPA) and Safe
Drinking Water Act (SD WA) amendments of 1996.

       In addition, the 1998 President's Budget
requests $3.4 million and 35 workyears for the
Office of Pesticides Program Laboratory, an
increase of $200 thousand over 1997.   The
laboratory performs testing and other activities
in support of EPA's Safe Food environmental
goal.
Using New Tools and Technology to
Prevent Pollution

       The 1998  President's Budget requests
$58.0 million and 147 workyears for the New
Technology and Pollution Prevention research
program, an increase of $21.6  million and 22
workyears over 1997. The goal of the program is
to research and develop new tools and methods,
techniques and approaches to be used to prevent
pollution and to set environmental standards and
regulations.

       In 1998, the major activities of the New
Technology and Pollution Prevention Research
program will include the President's Commitment
made in Kalamazoo to Americans' Right-To-Know
and the Advanced Measurement Initiative (AMI).
The Right-To-Know commitment will provide the
75 largest metropolitan areas in the  U.S. with
access  to  information on local environmental
quality and tools to  interpret and evaluate
potential impacts and risks. Through AMI, EPA
will  identify new ways to apply advanced
technologies  to  current   and  emerging
environmental needs  in air, land, and water
pollution. The initiative will  also enhance
environmental measurement and monitoring
capabilities by accelerating the application  of
advanced technologies.  In addition, the Agency
will  support the  Environmental Technology
Verification  program and the Common Sense
Initiative.
Developing Credible Evidence
for Enforcement Actions

       The  1998 President's Budget requests
$8.9 million and 79 workyears for the National
Enforcement Investigations Center (NEIC), an
increase of $100 thousand and a decrease of 4
workyears from 1997.  The Civil and Criminal
Enforcement programs will continue to develop
defensible, legal evidence for  successful  case
prosecution. The scientific and technical staff will
collect evidence,  perform lab  analysis, detect
environmental data fraud through  computer
forensics, and develop graphics and re port services
to communicate environmental findings in the
courtroom. NEIC will assist in case development
and support by providing technical input to
enforcement actions including:  Consent decree
development,   negotiations,   affidavits,
Supplemental  Environmental   Projects,
interrogatories, and support for litigation actions.
Additionally, the Center will be conducting several
compliance monitoring activities.
                                             53

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54

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                 OFFICE  OF  THE  INSPECTOR GENERAL
               DOLLARS

     $28.5 M    $0.0 M     $28.5 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                                    WORKYEARS
                               297         -3          294
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       The Office of the Inspector General (OIG)
is  responsible for conducting and  supervising
independent audits and investigations of EPA's
programs and administrative and  financial
activities to ensure that the Agency's  programs
are delivered in  an effective, efficient, and
economical manner and in compliance with  all
applicable laws and regulations.  OIG audits and
investigations assist the Agency in identifying
areas  of  potential  risk  and  necessary
improvements that can significantly contribute
to  EPA fulfilling its complex mission.  The OIG
will also provide consultative services, working in
partnership with Agency management, to find
cleaner, cheaper, and smarter solutions for solving
environmental problems.

       The   1998  request  for the  OIG
appropriation  is  $28.5 million  and 294
workyears. In addition to this amount, $11.6
million and 103 workyears will be transferred
from the Hazardous Substance  Superfund
appropriation. The total requested for the OIG is
therefore $40.1 million and 397 workyears, an
increase of $0.1 million  and a  decrease of  11
workyears from 1997. A portion of this funding
($4.1  million) is assigned to the  Office  of
Administration and Resources Management to
provide appropriate support services.

       Operations of the OIG are funded through
two appropriations:  Inspector General and
Hazardous Substance Superfund. The Inspector
General account is appropriated from General
                       Revenue funds and covers the activities of the
                       Agency's operating and construction grants
                       programs. The Superfund portion is appropriated
                       from the Hazardous Substance Trust Fund and is
                       for  OIG activities related specifically to the
                       Superfund program. The Agency is not requesting
                       that any dollars or workyears be transferred from
                       the LUST appropriation due to a decreased LUST
                       program workload.  Any remaining or future
                       LUST audits and investigations will be funded
                       from the Inspector  General appropriation.
                       Additionally, in 1998,EPAisrequestingatwo-year
                       appropriation for the OIG.
                                     HIGHLIGHTS

                       Inspector General

                              In 1998,  the General  Revenue  fund
                       request for the Inspector General is $28.5 million
                       and 294 workyears, of which $25.8 million is for
                       the program and $2.7 million is for support costs.
                       This represents a decrease of 3 workyears from
                       1997.  The OIG will continue to concentrate its
                       workyears on areas  that provide the greatest
                       performance results to the Agency.

                              The OIG will continue its audits of Agency
                       procurement practices and contracts performed
                       by the Defense Contract Audit Agency (DCAA) to
                       ensure that EPA's contract dollars are used most
                       effectively and efficiently and expand its audits of
                       major assistance programs such as Performance
                                             55

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                 OFFICE  OF THE  INSPECTOR GENERAL
Partnership Grants and State Revolving Funds.
This will provide a balanced and sustained audit
presence in conducting performance audits in all
major programs, strengthening internal controls,
improving operational efficiency and effectiveness,
and ensuring the integrity of Agency procurement
to achieve the maximum environmental benefit
with available resources. The OIG will continue
to invest in procurement and program integrity
investigations to prevent and detect the possible
loss of EPA resources from fraud, abuse, and
other violations. In addition, the OIG will provide
resources to  implement  a  consolidated OIG
information system  addressing the Year 2000
data problem. The OIG will also provide financial
audit work supporting the Chief Financial Officers
(CFO) Act of 1990 to ensure that the accounting
systems and financial reports are accurate and
reliable.

       The OIG will continue its audits of EPA's
construction grants program to assist the Agency
in meeting its goal of substantially closing out
this program.  In addition, the OIG will focus its
resources on improving the integrity of scientific
data, research, and analysis crucial to EPA. The
OIG will emphasize investigations of procurement
fraud and continue aggressively pursuing fraud
in Agency funded research.  The OIG will also
continue its  efforts in fraud prevention by
publicizing its activities, helping EPA employees
identify areas sensitive to fraud, and developing
and applying new fraud detection tools  and
methods.
Superfund

       In  1998, the  Hazardous Substance
Superfund request for the OIG is $11.6 million
and 103 workyears, of which $10.2 million is for
the program and $1.4 million is assigned to OARM
to provide  support costs.  This  represents an
increase  of $0.6  million and a  decrease of 3
workyears from 1997.   The increase will fund
additional  audit coverage of  Superfund
cooperative agreements and fund pre-award,
interim, and final audits of Superfund contracts
by the DCAA. The OIG will continue to focus its
resources on financial  and performance audits
and investigations  of the Superfund program,
particularly in the area of procurement and
acquisition management.  The  OIG will also
comply with the audit requirements of the CFO
Act and the Superfund  Amendments  and
Reauthorization Act to  ensure that Superfund
programs are operated as efficiently as possible
and that the risk of financial loss is minimized.
                                             56

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                                   OIL      SPILLS
               DOLLARS

      $15.0 M      $0.0 M     $15.0 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                                     WORKYEARS

                               104         0            104
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       Oil spills pose a constant threat to public
health and the environment.  The federal
government receives reports on more than 20,000
oil spills each year. These reports can range from
minor discharges to major catastrophes.  More
than 100 spills reported in 1996 were over 10,000
gallons and another dozen spills exceeded 100,000
gallons. These accidental discharges impact the
Nation in a variety of ways. Oil spills contaminate
drinking water and food supply, expose families
to toxic emissions, kill marine and wildlife, and
devastate local economies dependent on natural
resources.   Environmental damage from these
spills can be long term and,  in some cases,
irreversible.  The Oil Spill Program  has been
established to prevent, prepare for, and rapidly
respond to this threat.

       The Oil Spill Program is authorized under
Section 311 of the Clean Water Act (CWA),  as
amended by the Oil Protection Act (OPA) of 1990.
OPA strengthened the  Federal  government's
prevention,  preparedness,  and  response
capabilities.  The Agency responds to oil spills
that affect or threaten the inland waterways of
the United States and regulates a wide range of
onshore facilities,  from hospitals to large tank
farms.  An interagency agreement between the
Agency and United States Coast Guard (USCG)
is used to  coordinate joint responses along the
coastal zone and Great Lakes, where warranted.
The USCG manages the Oil Spill Liability Trust
Fund which provides direct funding for response
                        activities and is financed through a five cents per
                        barrel tax on domestic crude and imported oil.
                        The goal of the Agency's Oil Spill Program is to
                        reduce or eliminate accidental releases of oil that
                        endanger our communities  or wildlife, and to
                        ensure that releases that do occur cause negligible
                        harm to people, local  economies, and  the
                        environment.

                               The President's Budget requests $15.0
                        million  and  104 workyears to  meet  the
                        environmental goals of the Oil program; this is no
                        change from the Agency's 1997 levels.  The Oil
                        program will continue to meet OPA requirements
                        by implementing the Spill, Prevention, Control,
                        and Countermeasures (SPCC) program and
                        reviewing facility response  plans (FRPs) for
                        specified high risk facilities to ensure they have
                        the capability to address a worst case  discharge.
                        In 1996, EPA began cleanup at an estimated 69
                        oil spill sites with reimbursement from the Oil
                        Spill Liability Trust Fund  and monitored  130
                        responsible party cleanups. The Oil program will
                        also support many of the Nation's priorities, i.e.,
                        Clean Waters, Healthy Terrestrial Ecosystems,
                        Safe Drinking Water, and Safe Homes,  Schools
                        and Workplaces by preventing releases of harmful
                        substances into the environment and  protecting
                        the environment for our children and our children's
                        children.
                                              57

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                                       OIL  SPILLS
               HIGHLIGHTS

       In 1998, the Oil program will concentrate
on prevention and  preparedness, and  rapid
response to an accidental release.  The Agency
will  maintain and  reinforce the emergency
response infrastructure to include revising area
contingency plans, continued work on the Oil
Spill Program Information  System (OPIS) that
electronically tracks  a  facility's  history,
development of a geographic information system
(GIS), thereby highlighting the  facility's most
sensitive areas,  and conducting emergency
response exercises.  These activities will better
prepare high risk facilities and regions for a worst
case scenario.
Preventing and Preparing
for Accidental Discharges

       In 1998, the President's Budget requests
$7.7 million and 56 workyears for prevention and
preparedness activities. This will be accomplished
in three areas: implementing the SPCC program;
reviewing FRPs; and  executing the National
Preparedness for Response Exercise Program
(PREP). The Agency performs SPCC inspections
to ensure that specified oil storage facilities can
properly control and prevent accidental spills.
Currently, the Agency regulates about  435,000
facilities with approximately  500  SPCC
inspections targeted for review  in 1998. Above
ground oil storage facilities are subject to further
prevention measures in order to be in compliance
with the statute.  The SPCC inspections and
compliance measures have been  effective  in
reducing the number and scope of accidental oil
discharges.

       The second key activity for prevention
and preparedness is reviewing FRPs. The Agency
is responsible for the periodic review and approval
of FRPs at 5,000 high risk facilities. In 1998, EPA
will conduct an estimated 500 FRP inspections.
An FRP review requires evaluating each plan for
completeness  and accuracy,  inspecting the
facility's response equipment, verifying data in
the response plan, and validating the facility's
capability to effectively respond to a worst case
discharge.
        The Agency will continue working with
state and local government officials to develop
area contingency plans and coordinate with other
Federal  authorities  to  implement the PREP.
PREP drills entail testing response procedures
and the performance of facilities.  In 1998, the
Agency will lead one inland area PREP exercise
and plans to participate in several exercises led
by the Coast Guard, other Federal agencies, and
industry.
Responding Rapidly to
Accidental Discharges

        The President's Budget requests a total
of $4.1 million and 30 workyears to conduct and
monitor rapid responses to significant oil spills,
and to provide specialized site support through
the Environmental Response Team (ERT). This
team consists of scientists and engineers that are
available to provide technical expertise 24 hours
a day to On-scene Coordinators, Remedial Project
Managers, state and local res ponders, and foreign
countries  during the time of  an environmental
crisis. The program will also continue to maintain
the current Emergency Response Notification
System (ERNS) so that release information on an
oil spill is  available for state, local, industry, and
Federal authorities to quickly access. The Agency
will direct or oversee response actions for incidents
involving  onshore  facilities where the spill or
threat of a spill represents a substantial threat to
public health or welfare of the environment, and
continue to provide technical and response support
to the  USCG on  oil spills  outside  of EPA's
jurisdiction.
 Taking Action Against
Non-Complying Facilities

        The 1998  President's  Budget requests
$1.6 million and 16 workyears under the Oil Spill
appropriation  for the Oil Spill Enforcement
program; this is no change from 1997. The Agency
will bring  administrative actions and judicial
referrals against facilities for failure to comply
with oil pollution  spill prevention control  and
countermeasures regulations and response plan
regulations, including final facility response plan
regulations. The program will enforce cleanups of
                                               58

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                                     OIL SPILLS
spills by responsible parties. These resources will
also allow the Agency to coordinate enforcement
activities  with other  Federal  and  state
governmental agencies.
Encouraging Innovative Research

       The 1998 President's Budget requests $1
million and 1 workyear for the Oil Spill Trust
Fund, an increase of $5 thousand and a decrease
of 1 workyear from 1997.  The program develops
and evaluates the applicability of remediation
options to spills of crude oils and fuels. In 1998,
the objective of the Agency's research program
will be to determine the risk management option
that  most  appropriately addresses spill
remediation.  The Agency will apply the best
science available to focus our research efforts on
the use of bioremediation  and chemical
countermeasures.
                                             59

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60

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TRUST FUNDS
      61

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62

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                                  SUPERFUND
               DOLLARS

                +$700.0 M   $2,094.2 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                              3,650
                                     WORKYEARS
                                           +138       3,788
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       Soil that is unsafe to live, work or play on;
water that is unfit to drink;  and air that  is
dangerous to breathe are the result of improper
disposal of hazardous waste. This contamination
often migrates, threatening a growing number of
people, communities, and sensitive ecosystems.
The Comprehensive Environmental Response,
Compensation and Liability Act (CERCLA) or
Superfund was enacted in 1980 to address public
health and environmental threats from abandoned
toxic waste dumps and releases of hazardous
substances. The Superfund program is unique in
that it provides the first Federal cleanup authority
to address the problem of uncontrolled hazardous
waste sites. CERCLA also requires EPA to step
beyond its traditional regulatory role and pursue
potentially responsible parties (PRPs) to ensure
that they contribute their equitable share toward
cleaning up Superfund hazardous waste sites.

       CERCLA   and   the    Superfund
Amendments and Reauthorization Act (SARA) of
1986 have given  EPA authority to pursue those
responsible for cleanups and to recover costs
incurred  if   the  Agency  cleans  up  the
contamination.  Where negotiations with PRPs
fail, the Agency will take enforcement actions to
require cleanup or use Federal dollars, from the
Hazardous Substance Trust Fund,  to  clean up
sites until these costs can be recovered from the
polluter. The Trust Fund was established to pay
for  cleanups where  PRPs cannot be found or
cannot or will not pay for the cleanup and has
                        been supported through excise taxes on  the
                        chemical  and petroleum  industries  and  a
                        broad-based corporate environmental tax. This
                        has provided a stable source of funding which
                        allows the Agency to move forward to protect the
                        public and the  environment while PRP
                        responsibility is worked out.

                               The Superfund program continues to use
                        the Trust  Fund and enforcement authority to
                        make strides in addressing the risks posed by
                        contaminated sites. To date, EPA and the public
                        have identified over 40,000 potential hazardous
                        waste  sites across the Nation.  Over 35,000 of
                        these sites have been assessed with approximately
                        28,000  being  removed  from EPA's inventory,
                        requiring no further action.  EPA has developed
                        its capability to respond to emergencies such as
                        train derailments, natural disasters  and other
                        accidents involving chemical spills. Removal of
                        these and other emergency threats has resulted
                        in  over 4,000  completed removal  actions at
                        approximately 3,100 sites.

                               Once identified,  the Superfund program
                        studies and assesses sites to determine if they
                        merit inclusion on the  National Priorities List
                        (NPL) -- the Nation's worst sites. The Superfund
                        assessment program  has placed  almost 1,400
                        sites on the NPL.   Ninety-five percent of these
                        sites have been investigated to determine  the
                        extent of contamination. Construction is underway
                        at nearly 500 sites with an additional 410 NPL
                                              63

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                                   SUPERFUND
sites being 'construction complete' as of the end of
1996.  EPA's enforcement program has achieved
an average PRP participation of greater than 70%
for the past few years at construction cleanups
saving Trust Fund resources that can be used to
support other response actions.

       In addition to cleanup and enforcement
activities, EPA is linking environmental protection
with economic redevelopment and community
revitalization, commonly referred to as the
Brownfields  Initiative.  Brownfields are
abandoned, contaminated and/or underused land
that is often found in the inner city, but occurs in
rural communities as well.  It is estimated that
there are up to 500,000 brownfields sites in the
United States,  affecting virtually  every
community in the Nation.  The President has
committed  to help redevelop  brownfields sites
and has requested additional funds in the 1998
Budget for grants to cities, states and Federally
recognized  Indian tribes for assessment and
capitalization  of revolving funds.   Cleveland,
Detroit and  Pittsburgh are among  the 76
communities that are  currently  cleaning up
brownfields sites  as  a strategy for revitalizing
their local  economies.   By targeting economic
redevelopment in  otherwise wasted brownfields
areas, these  cities are  hoping to  create jobs,
generate tax revenue, and improve environmental
quality for their citizens.

       The 1998  President's Budget requests
$2,094.2 million and  3,788  workyears, an
increase of $700 million and 138 workyears over
1997.  Of the total budget request, $39.8 million
and 126 workyears will be transferred to the
Science and Technology account for research and
development efforts and $11.6 million and 103
workyears will be transferred to the Inspector
General for audit activities.  The  1998 Budget
also includes extensions of the Superfund excise
and corporate environmental taxes and proposes
mandatory spending  for costs  allocated  to
identifiable, but financially nonviable parties
(known as orphan shares). Funding orphan shares
will increase fairness as PRPs are  compensated
for a portion of the orphan share contribution to
site cleanup.  Since the orphan share funding is
mandatory and  would  be sought  as  part  of
comprehensive  Superfund  reauthorization
legislation, it is not included in the program and
Agency request for discretionary funding.
       The President's Budget request includes
$700.0 million to implement his environment
initiative announced in Kalamazoo, Michigan.
This initiative includes $650.0 million to accelerate
Superfund cleanups, the first  installment of a
total of $ 1,300.0 million. This funding will enable
cleanup of an additional 250 NPL sites through
the year 2000, in order to achieve the overall goal
of 900 cleanups  (or two-thirds of all currently
listed sites).   The  President's initiative  also
includes $50 million to expand the Brownfields
Economic Redevelopment Initiative to help
cleanup and  redevelop contaminated, former
industrial sites.
               HIGHLIGHTS

       The President's Budget requests $1,594.7
million and 1,586 workyears for Superfund's
cleanup program, an increase of 77% and 104
workyears over 1997.   To implement the
President's environmental commitment to protect
communities from toxic pollution, the 1998 Budget
provides  additional resources to accelerate the
number  of Superfund  cleanups and promote
cleanup and redevelopment of brownfields sites.
Funds will also be provided to continue program
priorities such as state and  tribal government
support,  and community outreach. In addition,
the Budget provides  148 workyears, which are
funded through a reimbursable agreement with
the Department of Defense,  to assist with the
cleanup  and restoration of federally owned
facilities and bases as part of the Base Realignment
and Closure Act of 1990.  In 1998, Superfund's
Federal facility  program will also respond  to
requests to facilitate and assist with the transfer
of Federal properties for use and redevelopment.
Strengthening Cleanups
through Partnerships

       As part of the President's environmental
initiative, the 1998 Budget requests an additional
$641.2 million and 67 workyears which will go to
Superfund's  Response  program to  begin
construction at an  additional  150 National
Priorities List (NPL)  cleanups  in  1998.  This
further supports completion of an additional 250
sites to achieve the overall goal of 900 NPL
cleanups through theyear 2000. The 1998 increase
                                              64

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                                   SUPERFUND
represents the first of two installments designed
to strengthen the Agency's commitment to address
contaminated sites and put them back into
economic use. By cleaning up contaminated sites,
the threat to human health and the environment
will be reduced and contaminated land will be put
back  into economic use  at approximately
two-thirds of all sites on the  NPL through the
year 2000. Addressing sites earlier in the process
reduces overall health risks of individuals living
near these sites as well as construction costs
because the Agency is able to begin construction
before circumstances at sites deteriorate.

       The  President's  Budget requests $86.4
million and 57 workyears to implement and
expand the  Brownfields Initiative.   Economic
redevelopment at contaminated sites will remain
a high priority for the Superfund Response
program  and the 1998 Budget requests an
additional $50.0 million for brownfields as part of
the President's environmental initiative. In 1998,
the Agency will provide assessment grants to 75
cities  and capitalization of  revolving loan fund
grants for cleanup in 106  cities. In addition,
funds will be used to  support expansion of job
training  and  workforce activities  related  to
brownfields; to perform targeted site assessments;
and to  expand, enhance  and  develop state
voluntary cleanup programs. EPA is committed
to help revitalize brownfields as a way to breathe
new economic life into communities across the
Nation.

       The Agency recognizes that communities,
states and Federally recognized Indian tribes are
major stakeholders in the assessment, cleanup
and redevelopment of contaminated land. Public
involvement in the Superfund program is a natural
outcome of our democratic system and from our
belief that without stakeholder support and
understanding, no project will satisfy the needs of
the community it is designed to help. Soliciting
early stakeholder input on land use, reasonable
exposure pathways, characteristics of affected
populations, remedy selection, and risk helps
develop cleanup options tailored to communities'
unique requirements. The 1998 Budget requests
$21.7 million and  31 workyears  to perform
community relations activities. These funds will
be used to continue promoting early, meaningful
public involvement in the  Superfund cleanup
process.  The President's Budget also requests
funds for states and Federally recognized Indian
tribes to help implement hazardous waste cleanup
programs. In 1998, $29.2 million and ISworkyears
will be requested to support the development and
enhancement of state and tribal governments'
hazardous waste programs.
Making Polluters Pay While
Emphasizing Fairness

       The  1998 President's Budget requests
$174.6 million and  1,239  workyears for the
Superfund Enforcement program, an increase of
$3.4 million and 23 workyears. The Agency will
continue its efforts to obtain PRP response actions
to ensure that responsible parties cooperatively
contribute their equitable share toward cleaning
up Superfund hazardous waste sites. Where PRP
negotiations fail, the Agency will  either take
enforcement actions to compel PRP cleanup  or
use Trust Fund dollars to remediate sites.

       The Civil Enforcement program will assist
in CERCLA  case  development by  providing
support for litigation actions including affidavits
and depositions.  The program will also apply
legally  defensible scientific procedures  and
technical  and financial analysis  to support
Superfund enforcement cases.

       The Cost Recovery program will recoup
moneys 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 clean up  sites, the
program takes actions against PRPs to recover
past expenditures. Recovered funds are returned
to the Trust Fund so they can be available to clean
up other contaminated sites. The program will
achieve cost  recovery through administrative
settlements, CERCLA section 107 case referrals
to the  Department of Justice, and alternative
dispute resolutions  to  improve  early case
resolution.

       In 1998, the Enforcement program will
devote $2.8 million and 33 workyears to support
the President's environmental initiative  to
accelerate the number of cleanups at the worst
hazardous waste sites. These resources will be
used  to  achieve fair share  settlements  at
                                              65

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                                      SUPERFUND
pre-remedial design and pre-construction sites,
and for assuring compliance of PRPs conducting
cleanups.

       The Agency will also implement various
Superfund pilot reforms to increase fairness and
reduce transaction costs in  1998.  The program
will make orphan share determinations, expedite
settlements to  facilitate  early de minimis
agreements, arrange settlements with parties
with limited ability to pay, and compensate PRPs
for a portion of the orphan share contribution for
remedial design/remedial action settlements.

       The Agency will ensure PRP compliance
with orders and consent decrees at non-Federal
and  Federal facilities  through the Compliance
Assurance program. The program will monitor
PRP  compliance  with orders  for  remedial
investigation/feasibility studies and removals and
with remedial design/remedial actions undertaken
by PRPs. The Agency will continue negotiations
with Federal Facilities to reach CERCLA Section
120 agreements for NPL cleanups.  The Agency
also expects to revise  many  of the existing
agreements in 1998 due to decisions of the Federal
Facilities Environmental Restoration Dialogue
Committee and changes in cleanup  goals at
Federal facilities. The Agency will assist federal
agencies and sites in controlling costs and in
obtaining regulatory flexibility.

       The  strongest possible  sanctions  for
egregious violations of Superfund will be brought
to bear through the criminal enforcement program.
The Agency's criminal investigators will pursue
investigative leads of CERCLA violations, develop
information to support grand jury inquiries and
decisions, and refer leads to other agencies or
pursue joint investigations as appropriate.  The
program will refer cases to  the U.S. Attorney's
Offices  or the Department of Justice  for
prosecution.
Integrating Other Federal Agency Partners

       The Agency works with several Federal
agencies to perform essential services in areas
where the Agency does not possess the specialized
expertise.  The 1998 President's Budget requests
$152.1 million for our Federal Agency Partners.
The Agency for Toxic Substances and Disease
Registry (ATSDR),  the  National  Institute  for
Environmental Health Sciences (NIEHS), and
the Department of Justice receive 93% of
Superfund resources allocated to other Federal
Agencies.

       The President's  Budget requests  $64.0
million  for ATSDR  to  conduct public health
assessments at NPL and non-NPL sites; maintain
toxicology databases for chemicals found at sites;
and provide health  education  to health care
providers, local and national health organizations,
and state and local health  departments.   The
Agency anticipates that an  additional 150
construction starts  in 1998 will heighten the
awareness of the citizenry surrounding Superfund
sites on potential health effects. The 1998 Budget
requests as part of the President's environmental
initiative, $6.0 million for  ATSDR to address
community  concerns  regarding how the
implementation of cleanup  designs associated
with the additional construction starts affects
their health and the surrounding environment.

        The President's Budget requests  $48.5
million for NIEHS to manage a worker training
grants program which trains workers who are, or
may be, working with hazardous waste.  NIEHS
will also continue to fund  a  maturing  basic
research program which focuses on assessing the
impacts of complex chemical mixtures on humans;
however, the 1998 Budget provides for a modest
decrease in the basic research program at NIEHS
in recognition of this maturing program.

       The President's  Budget requests  $29.7
million for the Department of Justice (DOJ). DOJ
plays a critical role in Superfund's 'Enforcement
First'  strategy. In 1998, DOJ  will continue to
litigate and settle cleanup agreements and cost
recovery cases and seek civil penalties if necessary.
The remaining Federal  agencies that support
Superfund activities are the United States Coast
Guard, the National Oceanic and Atmospheric
Administration, the  Department of Interior, the
Federal Emergency Management Agency and the
Occupational Safety and  Health Administration.
Providing Support Services

       The  1998 President's Budget requests
$86.5 million and 289 workyears for management
                                              66

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                                  SUPERFUND
and support services essential to the operation of
the Superfund program, an increase of $5.6 million
and five workyears  over 1997.  Major Agency
management activities  include Facilities
Management,    Contracts   and   Grants
Management, Information Systems and Services,
and Human  Resources Management.  Major
Agency  infrastructure  activities include
nationwide services to  maintain and enhance
agency facilities (rent and utilities), and provide
office, building,  and  maintenance services
(security, printing, equipment maintenance).

       The Agency's  priority  is  to  provide
management services, infrastructure, operations,
and workforce support.  Specifically, the Agency
will focus on its highest priorities: reinventing
EPA management; supporting strong science and
data;  fostering   effective  partnerships;
strengthening our stewardship and fiscal integrity
of the Agency's contracting  and grant assistance
resources;   and   maintaining   essential
infrastructure support.
Providing Core Financial Services

       The Agency requests  a total of $25.5
million and 238 workyears to perform Agency-wide
resource management and control functions
including budget development, budget utilization,
financial accounting and  fiscal operations.
Resources will also support  the development of
Agency-wide resource management policies and
national guidance and operation and maintenance
of the Integrated Financial Management System.
In addition, resources will enable the Agency to
provide assistance to the Superfund cost recovery
program.   Further, the Agency will provide
leadership for the development of performance
based management tools consistent  with the
National Performance Review, the Government
Performance and Results Act, the Government
Management Reform Act, and the Chief Financial
Officers' Act; devote resources  to  EPA's own
streamlining and administrative  reform
initiatives; and continue to develop and implement
the management processes  and information
systems needed to  improve  EPA's ability to
manage for results.
                                              67

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68

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                                        LUST
               DOLLARS
                  +$11.2 M    $71.2 M
      $60.0 M
       1997
    CURRENT
    ESTIMATE
    1998
PRESIDENT'S
  BUDGET
                                     WORKYEARS

                                 94          -8
   1997
CURRENT
ESTIMATE
    1998
PRESIDENT'S
  BUDGET
       Leaks of petroleum and other products
from underground storage tanks can pose a serious
threat to human health and the environment.
These leaks can cause fires and/or explosions and
contaminate the public's groundwater supplies.
Underground storage tanks are found at gas and
service stations, convenience stores, bus depots
and federal facilities.

         States have reported that leaking
underground storage tanks (LUSTs)  are the
leading  source  of groundwater pollution,  and
petroleum is the most prevalent contaminant.
Over two million underground storage tanks are
regulated by EPA, and approximately 317,000
confirmed releases have been discovered since
1990.  Of the cumulative number of confirmed
releases, over  150,000 cleanups  have been
completed,  leaving over 160,000 cleanups that
need to  be  initiated. As owners and operators
comply with the December 31, 1998 deadline for
upgrading, replacing or closing tanks, the Agency
estimates an additional 100,000 releases may be
discovered.

       The  LUST program operates under the
authority of Subtitle I of the Hazardous and Solid
Waste Amendments of 1984, as amended by the
Superfund Amendments and Reauthorization Act
(SARA) of 1986. The LUST Trust Fund excise tax,
a one-tenth of one cent per gallon tax on motor
fuels, was authorized by SARA and reauthorized
by the Omnibus Budget and Reconciliation Act of
                        1990. The excise tax expired in December of 1995.
                        The Administration is proposing to reinstate the
                        LUST tax effective upon enactment.

                               The LUST program was established  to
                        provide resources  for the  oversight and
                        enforcement of cleanup of releases  from
                        underground storage tanks.  Resources can also
                        be used to pay for cleanups where the owner/
                        operator is unknown or is unable to conduct the
                        cleanup.  The goal of the  LUST program is  to
                        ensure rapid and effective responses to releases
                        from underground storage tanks and to restore
                        contaminated sites to their beneficial use.  The
                        vast majority (85%) of the  program's federal
                        resources are given  directly to the states and
                        tribes. States use this money to provide technical
                        oversight of responsible party-lead cleanups,
                        address emergency response actions, and perform
                        state-lead cleanups.  The LUST funding will  be
                        used to support cleanups in all 50 states and six
                        territories. (Florida, for the first time, will apply
                        for funding in  1997).   EPA  will  work  in
                        partnerships with  state,  local,  and  tribal
                        governments to develop the capacity to implement
                        the LUST  program,  develop  alternative
                        approaches to increasing regulatory compliance,
                        and increase enforcement capabilities.

                               The 1998 President's Budget requests a
                        total of $71.2 million and 86 workyears for the
                        Leaking Underground  Storage  Tank (LUST)
                        Appropriation, an increase of $ 11.2 million (nearly
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                                        LUST
19%) from 1997.  In 1998 there are no dollars or
workyears transferred to the Inspector General
Account for audit support activities as a result of
a reduced LUST workload. Eighty-five percent of
the funding will go directly to state and tribal
governments to  assist in cleanup, oversight,
state-lead cleanups and release  identification.
The remaining funding is used by the Agency to
provide  State LUST technical  assistance
programs, to sustain a strong Agency enforcement
program, to promote further innovative technology
research, and to  provide central Agency
administrative support.

       The Administration is proposing to expand
the uses of the  LUST Trust Fund to  include
several  related EPA programs,  including the
Underground Storage Tank Program,  the
Underground Injection Control Program and the
Groundwater  Protection  Program.    The
Administration  believes that these  existing
programs should be funded from the LUST Trust
Fund because they also address groundwater
protection  from  underground sources of
contamination.  The $53 million  needed to
implement these programs in 1998 would continue
to  be requested through  the Environmental
Programs and Management and State and Tribal
Assistance Grants  appropriations accounts.
However, the General Fund will be reimbursed
for the cost of these programs through a $53
million payment from the LUST Trust Fund.
Authorizing and appropriations language will be
required.
               HIGHLIGHTS

         Investing  in  State  Cooperative
Agreements in 1998 will allow states and Indian
tribes to initiate 27,000 cleanups and to complete
22,000 cleanups. The funding increment reflects
the Agency's anticipation that the number  of
confirmed releases will increase in 1998 as owners
and operators comply with the December 31,
1998 deadline for upgrading, replacing or closing
tanks.
Supporting State Assistance

       The  1998 President's Budget requests a
total  of $67.2  million and 65 workyears to
implement the LUST response program,  an
increase of over $11 million (nearly 20%) from
1997.  The grounds for this  investment  is
underscored by the Agency's anticipation that an
additional 100,000 releases will be discovered as
owners and operators comply with the December
31, 1998 deadline for upgrading, replacing, or
closing tanks.  In  addition, the State of Florida,
which has a large  regulated universe of
underground storage tanks but had not previously
requested funding, will now receive funding from
the LUST Program.

        Eighty-five percent of LUST resources
are provided directly to states and tribes in order
to support  implementation of strong corrective
action programs.  A priority in  1998 will be to
provide national program direction,  policy
interpretations, technical cleanup assistance and
outreach support to state and tribal governments.
The states will identify leaking tanks, encourage
and compel owners and operators to respond to
the leaks and take response actions where owners
and operators are  unknown, unable or unwilling
to respond.

       The Agency will continue to assist states
in redesigning their corrective action processes to
incorporate  risk-based decision making.
Risk-based  corrective action processes help state,
local and tribal governments focus cleanup and
oversight activities on the highest risk sites.  The
Agency will continue to provide technical support
to the states and  seed money to the American
Society  of  Testing  and  Materials  for
comprehensive training and implementation
support to  state  and tribal  governments. In
addition, continued outreach by the states will be
provided to  tribal governments through Regional
technical assistance. Specific projects will include
the development and  implementation of a
risked-based corrective action process along with
corrective action training and support.

        In an effort to further privatize the LUST
program, EPA will continue to involve the private
sector more directly in major functions  at the
federal and state level. This will be conducted by
developing private sector incentives for good tank
management  as  well as timely, cost-effective
cleanups.   The Agency will continue to assist
states in developing  licensed site professional
programs to review and approve corrective action
plans and  analyze site  assessment reports at
lower risk LUST sites. This will  enable states to
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                                          LUST
increase the number of cleanups  completed
without increases in their  own staffing.  For
further support to the states, EPA will work with
the real estate, banking and insurance industries
to inform customers and clients about the UST
requirements when they buy or sell property or
apply for loans or insurance.
Encouraging Voluntary Compliance
through Enforcement

       In 1998, the LUST enforcement program
will  continue to target  responsible parties to
finance or conduct corrective actions.  The 1998
President's Budget requests $0.5 million and a
total of six workyears for LUST enforcement, an
increase of more than $ 186 thousand over 1997 in
enforcement funding.  The Agency will provide
technical assistance for  state site enforcement
with minimal Federal oversight and involvement.
Evaluating New Technologies

       The Agency requests a total of $ 0.7 million
and  two workyears for  LUST  research  and
development, an increase of $27 thousand over
1997. EPA will continue engineering cost analysis
of corrective action options to allow for a sounder
evaluation of costs in making corrective action
decisions. In addition, the Agency's Leak Detection
and Prevention Research Program will continue
research on a variety of leak detection methods
with particular emphasis on aboveground tanks
and large pipelines.
Providing Fundamental
Support Services

       The  1998 President's Budget requests
$1.3 million and three workyears for management
and support services essential to the operation of
the trust fund program, an increase of $0.2 million
over 1997.  Resources will ensure that Agency
facilities are maintained, modified and/or built to
an environmentally efficient, safe and healthy
standard.  In addition, resources will provide at
least six Project Officer (PO) Training classes to
certify program staff responsible for monitoring
and technical oversight of assistance agreements.
The Agency will perform at least two regional/
recipient oversight visits  to ensure fiscally
responsive  management of EPA's assistance
agreements.
Providing Core Financial Services

       The Agency requests a total of$0.7million
and ten workyears, an increase of $0.3 million
over 1997, to perform Agency-wide resource
management and control functions including
budget development, budget utilization, financial
accounting and fiscal  operation, in addition to
Agency  priorities such as reinvention of EPA
management and administrative processes. Major
activities include annual planning and budgeting,
financial management, as well as support for a
full range of accounting and  fiscal services to
program offices including time and attendance,
travel and commercial  payments. Core financial
services are also provided  and include all EPA
payroll  processing and accounting,  contracts,
interagency agreements,  program assistance
agreements,  and  working  capital   fund
agreements.
                                              71

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72

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     WATER
INFRASTRUCTURE
   FINANCING
        73

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74

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                 WATER INFRASTRUCTURE  FINANCING
$2,236.0 M -$158.0M













/

$625.0 Clean
Water SRF
1,275.0 Drinking
Water SRF

150.0 Mexican
Border

186.0 Needy
Communities

/










/

/ A
$2,078.0 M
\ V / s

1998
DECREASE










$1,075.0 Clean
Water SRF

725.0 Drinking
Water SRF

150.0 Mexican
Border

128.0 Needy
Communities










/












1997 1998
CURRENT PRESIDENT'S
ESTIMATE BUDGET
       With  approximately  $137 billion  in
documented needs over the next 20 years for
wastewater infrastructure alone, the Nation's
cities are faced with an enormous price tag for
keeping our rivers, streams, and beaches free
from untreated  sewage.   Vast quantities  of
pollution contaminate residential areas and
wildlife habitats along our border with Mexico.  In
Alaska native villages, more than 20,000 people
lack even the most rudimentary 20th century
sanitation facilities and technology.

       In hundreds of cities and  towns, the
systems for ensuring  safe drinking water lag
behind modern demands. In some cases, the costs
associated with meeting national standards for
drinking water quality ('maximum contaminant
levels')  have outstripped  a community's
investment in drinking  water treatment and
distributions systems.  In other cases, aging and
deteriorated systems need to be restored to ensure
continued protection of public health.

       The State and Tribal Assistance Grants
(STAG)  Appropriation  provides financial
assistance to  states, municipalities and  tribal
governments to fund a variety of drinking water,
water,  and  wastewater infrastructure projects.
These funds are  essential to fulfill the federal
government's commitment to help our state, tribal
and local partners obtain adequate funding  to
construct the facilities required to  comply with
federal environmental requirements. States and
localities rely on  a variety of revenue sources to
finance their environmental programs and to pay
for the facilities needed to keep the water clean
and safe from harmful contaminants.

       Providing STAG funds through State
Revolving Fund (SRF) programs, EPA works in
partnership with the states to provide low-cost
financial assistance  to municipalities  for
infrastructure construction.  SRF funds are also
provided as grants to tribal governments to help
them address their water, drinking water, and
wastewater needs.  Special Needs projects also
provide focused wastewater grant assistance to
local areas facing extraordinary needs.

       EPA's U.S./Mexico  Border  program
provides funds to support the planning, design
and construction of high  priority  water and
wastewater treatment projects along the U.S./
Mexico Border and for wastewater projects in the
U.S. colonias  (principally in the state of Texas).
The goal of this program is to reduce the incidence
of waterborne diseases and enhance water quality
along the Mexico border and in the U.S. colonias.

       The President's Budget requests a total of
$2,078.0 million  in 1998  for EPA's  Water
Infrastructure programs, a  decrease of $158.0
million from 1997. This decrease is the net result
of a $ 100.0 million reduction in the SRF program,
a $85.0 million reduction in  1997 Congressional
earmarks, and a $27.0 million increase for Special
Needs projects.
                                             75

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                 WATER  INFRASTRUCTURE FINANCING
               HIGHLIGHTS

       The President's Budget provides a total of
$1.8 billion for State Revolving Funds (SRFs)
within the State and Tribal Assistance Grants
Appropriation, a decrease of $100.0 million from
1997. These programs provide Federal financial
assistance to states,  localities, and tribal
governments  to protect the  nation's water
resources by providing funds for the construction
of drinking water  and wastewater  treatment
facilities.  The SRFs are two  of the Agency's
premier tools for building the financial capacity of
our partners.
Capitalizing Clean Water State
Revolving Funds (CW-SRF)

       As part of the President's environmental
initiatives, the Administration will continue to
capitalize the Clean Water State Revolving Funds
(CW-SRF) which have over $20 billion in assets
and are in place in all 50 states and Puerto Rico.
The  Administration's  goal is to continue to
capitalize the SRF so that it will be able to provide
approximately $2.0 billion annually in assistance
to communities to help fund critical water quality
projects.  The $100.0 million decrease in this
program will not have a significant effect on
meeting the $2.0 billion  revolving goal.  Because
of the revolving nature of the SRF program, every
dollar invested will result in four dollars' worth of
financing available for environmental protection
over the next 20 years.

       The Clean Water State Revolving Fund
program is a true partnership between states,
localities, and the federal government.  In 1998,
the President is requesting $1,075.0 million for
the CW-SRF. The federal government provides
financial  assistance for wastewater  and other
water  projects,  including nonpoint sources,
estuaries, stormwater, and  combined sewer
overflows.  Water infrastructure projects
contribute to direct ecosystem  improvements
through reduced loadings of nutrients and toxic
pollutants in all types of surface waters.
Capitalizing Drinking Water State
Revolving Funds (DW-SRF)

       In 1998, the President is requesting $ 72 5.0
million for the DW-SRF. Through the Drinking
Water State Revolving Fund program, states will
provide  loans  to finance improvements  to
community water systems and to restructure
small systems so that they can achieve compliance
with the mandates of the new Safe Drinking
Water Act (SDWA).  Some non-state  recipients,
such as the District of Columbia and  Indian
tribes, will receive their DW-SRF allocations in
the form of  grants.   The DW-SRFs  will  be
self-sustaining in the long run and will directly
help offset the rising costs of ensuring safe drinking
water supplies and assist small communities in
meeting their  responsibilities.    With the
authorization of the DW-SRF in the 1996 SDWA
Amendments, the Agency has  undertaken the
development of  interim guidance for the
administration of  this loan program.  A Needs
Survey to determine the full extent of drinking
water improvements required nationwide will be
released in early  1997 and will be used in the
development of the 1998 state allocation formula.
Continuing Mexico Border Efforts

       The President's Budget requests a total of
$150.0 million for water infrastructure projects
along the U.S./Mexico Border. The communities
along both sides of the Border are facing unusual
human health and environmental threats because
of the lack of adequate wastewater and drinking
water facilities.  The President requests $100.0
million for drinking  water and wastewater
treatment projects reviewed and approved by the
Border Environment Cooperation Commission
(BECC).  Funding at the level of $50.0 million is
being requested to bring wastewater treatment
to the U.S. colonias settlements along the Border
in Texas.   These funds will be matched by an
equal amount of state funds.
                                              76

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                WATER INFRASTRUCTURE FINANCING
Supporting Alaskan Native Villages

      The  President's Budget requests $15.0
million for Alaska rural and native villages for
the construction of wastewater and drinking water
facilities  to address very  serious  sanitation
problems. EPA will continue to work with the
Department of Health and Human Services'
Indian Health Service, the State of Alaska, and
local communities to provide needed financial
and technical assistance.
Assisting Needy Communities

      The President's Budget requests $113.0
million for  the  construction of wastewater
treatment facilities for Boston Harbor, MA, Bristol
County, MA, and New Orleans, LA.  Funds are
targeted to these  areas because  of special
circumstances including financial hardship and
unique sewer system problems.
                                          77

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78

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   APPENDIX:
BUDGET TABLES

       79

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                ENVIRONMENTAL PROTECTION AGENCY
                    SUMMARY OF AGENCY RESOURCES

                                 (DOLLARS IN THOUSANDS)
  PROGRAM

Environmental Programs and Management
 -Air
 - Water Quality
 - Drinking Water
 - Hazardous Waste
 - Pesticides
 - Radiation
 - Multimedia
 - Toxic Substances
   Support
   Management
 - Subtotal Management & Support

State, Local, and Tribal Grants (STAG)

Buildings and Facilities

Science and Technology

Office of the Inspector General (OIG)

Oil Spills

  SUBTOTAL OPERATING PROGRAMS
Hazardous Substance Response
   Trust Fund (Superfund)
OIG Superfund
Superfund Research

   SUBTOTAL SUPERFUND
Leaking Underground Storage
  Tank Trust Fund (LUST)
OIG LUST

   SUBTOTAL LUST
Water Infrastructure Financing (STAG)
GRAND TOTAL
1997
CURRENT
ESTIMATE
$253,206.4
272,847.4
94,512.9
174,007.3
104,526.1
17,689.2
274,818.7
78,892.8
[242,540.0]
[239,180.2]
481,720.2
$674,207.0
$87,220.0
$552,000.0
28,500.0
15,000.0
$3,109,148.0
$1,348,245.0
11,000.0
35,000.0
$1,394,245.0
$59,423.0
577.0
$60,000.0
$2,236,000.0
$6,799,393.0
80
1998
PRESIDENT'S
BUDGET
$312,980.3
274,865.4
105,317.9
181,061.2
105,824.5
16,846.5
307,425.1
86,397.0
[249,663.9]
[247,209.1]
496,873.0
$715,257.0
$141,420.0
$614,269.4
28,500.0
15,000.0
$3,402,037.3
$2,042,847.8
11,641.3
39,755.9
$2,094,245.0
$71,210.7
0.0
$71,210.7
$2,078,000.0
$7,645,493.0

1998-1997
DIFFERENCE
TOTAL
DOLLARS
+$59,773.9
+2,018.0
+ 10,805.0
+7,053.9
+ 1,298.4
-842.7
+32,606.4
+7,504.2
[+7,123.9]
[+8,028.9]
+ 15,152.8
+$41,050.0
+$54,200.0
+$62,269.4
0.0
0.0
+$292,889.3
+$694,602.8
+641.3
+4,755.9
+$700,000.0
+$11,787.7
-577.0
+$11,210.7
-$158,000.0
+$846,100.0


-------
                ENVIRONMENTAL PROTECTION AGENCY
                    SUMMARY OF AGENCY RESOURCES

                                      (WORKYEARS)
  PROGRAM

Environmental Programs and Management
 -Air
 - Water Quality
 - Drinking Water
 - Hazardous Waste
 - Pesticides
 - Radiation
 - Multimedia
 - Toxic Substances
 - Management
Science and Technology

Office of the Inspector General (OIG)

Oil Spills

  SUBTOTAL OPERATING PROGRAMS
Hazardous Substance Response
   Trust Fund (Superfund)
OIG Superfund
Superfund Research

   SUBTOTAL SUPERFUND
Leaking Underground Storage
  Tank Trust Fund (LUST)
OIG LUST

   SUBTOTAL LUST

1997
CURRENT
ESTIMATE
1,657
1,830
635
1,312
941
126
1,739
589
2,650
2,327
297
104
14,207
3,417
106
127
3,650
88
6
94

1998
PRESIDENT'S
BUDGET
1,583
1,828
714
1,320
1,005
113
1,792
610
2,631
2,415
294
104
14,409
3,559
103
126
3,788
86
0
86
1998-1997
DIFFERENCE
TOTAL
FTE
-74
-2
+79
+8
+64
-13
+53
+21
-19
+88
-3
0
+202
+ 142
-3
-1
+ 138
-2
-6
-8
GRAND TOTAL
17,951
18,283
+332
                                        81

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