United Statu
     Environmental       Science Advisory        EPA-SAB-EEC-9B-OM
     Protection Agency	Board (1400F)	May 1336
5-EPA AN SAB REPORT: FUTURE ISSUES IN
     ENVIRONMENTAL ENGINEERING
     REPORT ON FUTURE ISSUES AND
     CHALLENGES IN ENVIRONMENTAL
     ENGINEERING AND TECHNOLOGY BY
     THE ENVIRONMENTAL
     ENGINEERING COMMITTEE

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               UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                             WASHINGTON, D.C. 20460
                                   May 25, 1995                 OFFICE OF THEADMNSTRATOR
                                                                   SCIENCE ADVISORY BOARD
EPA-SAB-EEC-95-004
Honorable Carol M. Browner
Administrator
U.S. Environmental Protection Agency
401 M Street, SW
Washington DC 20460

       Re:  Environmental Engineering Futures Report

Dear Ms. Browner:

       In July 1992, the Science Advisory Board (SAB) began an initiative, termed the
Environmental Futures Project, to  advise the Agency on ways to identify future
environmental problems and provide the SAB's perspective on emerging environmental
issues.  The SAB Executive Committee accepted the request and formed the Environmental
Futures Committee (EFC)  to direct the effort   The EFC in turn requested the standing
committees of the SAB to  address  the charge for areas of their particular expertise and
interest, and to produce separate reports which  would supplement the overall report on
Environmental Futures to be written by the EFC.

       The Environmental  Engineering Committee (EEC), in response to the opportunity
provided by the EFC, chose four issues related to engineering that may emerge in the
future.  The EEC developed the drivers,  scenarios,  consequences and recommendations for
Agency actions related to each issue.  The EEC also developed an approach by which
EPA could regularly scan the horizon for future issues.  This approach  was used in part
by the EEC to conduct a supplemental search for potential emerging issues.
                                                                   Rocycted/RecycJabie
                                                                   prfnledwtlhSoy/CWMta h* on paper that

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The four issues developed in detail are:

a)     Issuei How can EPA actions foster environmental quality protection and
       improvements while helping to assure sustained industrial development in an
       increasingly competitive manufacturing economy?

       Rgcommenjlition!  Agency decisions concerning clean production technologies
       should be carefully constructed and balanced so that there are benefits both to
       the environment and to U.S. industrial competitiveness.  Flexibility in
       achieving the desired risk reduction at a facility could promote deployment of
       cleaner technologies to replace end-of-pipe control technologies,

b)     |pie: How can EPA best respond to increasing societal pressures for the
       redevelopment of urban industrial sites and remediated land while serving
       urban needs for environmental protection?

       Recommendation:  The Agency should ensure that appropriate technology is
       available and/or deployed to redevelop urban contaminated industrial sites and
       remediated  land; this should be done in a manner  that avoids significant
       environmental exposures and meets inteacity needs for development, commerce
       and conservation.

c)     Issue! How can the Agency prepare to address threats posed to human health
       and natural  resources by transient phenomena of natural origin in the face of
       increasing population and land-use pressures?

       Recommendation: The Agency should strengthen its capability and readiness to
       address potential environmental consequences of natural disasters associated
       with transient phenomena such as riverine floods considering trends in
       population growth and inappropriate land use.  Associated planning and
       preparedness can help minimize the potential adverse impacts  on natural
       resources and human health.

d)     Issue: How can the Agency address insufficiency in the core  technical
       competencies needed to address both existing and  future environmental
       challenges?  Core competencies can be defined as  the essential and distinct
       scientific and technical capabilities that enable the EPA to fulfill its current and
       future missions.

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             Rgcoflimendation: The Agency should systematically identify and examine the
             essential and distinct scientific and engineering capabilities (core competencies)
             needed to address technical aspects of its present and expected future mission
             and strengthen them where needed.

       This report describes these issues, their drivers, and their adverse consequences that
could follow without implementation of its recommendations or other mitigating actions.

       Based on its experience, the Committee developed a suggested methodology which it
believes EPA should seriously consider, when it seeks to identify and analyze futures issues.
The methodology should consist of the following elements:

       a)     EPA should establish "lookout" panels involving experts within and outside the
             Agency,

       b)     Panelists should routinely scan  their fields to provide observations about new
             or intensifying issues and their  consequences.

       c)     EPA staff should collect these observations then refer them back to the other
             panelists for comment.

       d)     Staff and panelists should select candidate issues using agreed upon criteria.

       e)     EPA should analyze the selected issues in terms of any existing scenarios and
             EPA goal statements.

       f)     EPA, with input from  panelists, should recommend near-term actions based on
             projected futures.

       The Committee also identified eight possible additional representative technological
concerns regarding  the future that warrant EPA attention;

       a)     Fossil fuel depletion;

       b)     Major industrial accidents and/or terrorist activities;

       c)     Accelerating deterioration of urban infrastructure (e.g., pipelines for
             water, sewage, and fuels);

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       d)     Extremely high cost-benefit ratios of some environmental management
             strategies;

       e)     Recognition that environmentally contaminated reservoirs, such as
             contaminated sediments, may pose greater risk than existing point
             discharges;

       f)     Recognition that available technology for the control of some newly
             recognized pathogens in drinking water may be inadequate;

       g)     Recognition that electromagnetic radiation from new sources may be a
             health threat;

       h)     Recognition that inappropriately deployed industrial-ecology concepts can lead
             to increased human and ecosystem exposures.
       The SAB EEC appreciates the opportunity to scan the environmental future related to
engineering and looks forward to your reply to the resulting recommen-dations.

                          Sincerely,
                                 levieve M. Matanoski, Chair
                          Executive Committee
                            r. Isnwar P. Muiarka, Chair
                          Environmental Engineering Committee
                                        futures Committee

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                                ABSTRACT

      In a July 16, 1993 memorandum, EPA asked the Science Advisory Board
(SAB) to develop a procedure for conducting a periodic scan of the future horizon;
to identify some important possible future developments; and to carry out in-depth
examination of environmental impacts.  This report is the response of the
Environmental Engineering Committee (EEC) to that request.

      In addition to making methodological suggestions, the EEC has
recommendations  for four issues examined in depth. First, Agency policy options
concerning clean technologies need to be carefully constructed and balanced to
benefit both the environment and U.S. industrial competitiveness.  Second, EPA
should ensure development and use of appropriate technology to enable the
redevelopment of urban contaminated industrial sites and remediated land.  Third,
EPA should strengthen its capability and readiness to address potential
environmental consequences  of natural disasters associated with transient events
such as riverine floods in the face of trends in population growth and land use.
Fourth, EPA should systematically identify and examine the essential and distinct
scientific and engineering capabilities (core competencies) needed to address
technical aspects of its present and expected future mission and strengthen them
where needed.
Keywords:  lookout panels, sustainability, disasters, redevelopment of urban land,
core competencies

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                 U.S. Environmental Protection Agency

                                 NOTICE

      This report has been written as part of the activities of the Science
Advisory Board, a public advisory group providing extramural scientific
information and advice to the Administrator and other officials of the
Environmental Protection Agency,   The Board is structured to provide balanced,
expert assessment of scientific matters related to problems facing the Agency.
This report has not been reviewed for approval by the Agency and, hence, the
contents of this report do not necessarily represent the views and policies of the
Environmental Protection Agency,  nor of other agencies in the Executive Branch
of the Federal government, nor does mention of trade names or commercial
products constitute a recommendation for use,

      Seven reports were produced from the Environmental Futures Project of the
SAB.  The titles are listed below:

a)    Environmental Futures Committee               EPA-SAB-EC-95-007
      [Title: "Beyond the Horizon:  Protecting the Future with Foresight,"
      Prepared by the Environmental Futures Committee of the  Science Advisory
      Board's Executive Committee.]

b)    Environmental Futures Committee               EPA-SAB-EC-95-Q07A
      [Title:  Futures Methods and Issues, Technical Annex to the Report entitled
      "Beyond the Horizon: Protecting the Future with Foresight," Prepared by
      the Environmental Futures Committee of the Science Advisory Board's
      Executive Committee.]

c)    Drinking Water Committee                      EPA-SAB-DWC-95-Q02
      [Title: " Safe Drinking Water: Future Trends and Challenges," Prepared by
      the Drinking Water Committee, Science Advisory Board.]

d)    Ecological Processes and Effects Committee       EPA-SAB-EPEC-95-003
      [Title: "Ecosystem Management: Imperative for a Dynamic World,"
      Prepared by the Ecological Processes and Effects Committee, Science
      Advisory Board.]

e)    Environmental Engineering  Committee           EPA-SAB-EEC-95-004
      [Title: "Review of Environmental Engineering Futures Issues," Prepared by
      the Environmental Engineering Committee, Science Advisory Board,]
                                     11

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f)     Indoor Air and Total Human Exposure Committee EPA-SAB-IAQ-95-005
      [Title; "Human Exposure Assessment: A Guide to Risk Banking, Risk
      Reduction and Research Planning," Prepared by the Indoor Air and Total
      Human Exposure Committee, Science Advisory Board,]

g)     Radiation Advisory Committee                   EPA-SAB-RAC-95-006
      [Title; "Report on Future Issues and Challenges in the Study of
      Environmental Radiation, with a Focus Toward Future Institutional
      Readiness by the Environmental Protection Agency," Prepared by the
      Radiation Environmental Futures Subcommittee of the Radiation Advisory
      Committee, Science Advisory Board.]

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              U.S, ENVffiONMEINTAL PROTECTION AGENCY
                           Science Advisory Board
                    Environmental Engineering Committee
                          Members and Consultants
CHAIRMAN
Dr. Ishwar P. Murarka, Business Development Manager, Environmental and Vital
Issues Business Unit, Electric Power Research Institute, 3412 Hillview Avenue,
Palo Alto, CA
Dr. Linda M. Abriola, Associate Professor, Dept. of Civil and Environmental
Engineering, University of Michigan, Ann Arbor, MI

Mr, Richard A. Conway, Senior Corporate Fellow Union Carbide Corporation, So,
Charleston, WV

Dr, James H, Johnson, Jr., Professor and Chairman, Dept. of Civil Engineering,
Howard University, Washington, DC

Dr. Wayne M, Kachel, Director, Martin Marietta Corporation, Oak Ridge, TN

Dr. Jo Ann Lighty, Associate Professor, Department of Chemicals and Fuels
Engineering, University of Utah, Salt Lake City, UT

Dr. James W. Mercer, President, GeoTrans, Inc., Sterling, VA

Dr. Frederick G. Pohland ^  Weidlein Chair of Environmental Engineering
Department of Civil and Environmental Engineering, University of Pittsburgh,
Pittsburgh, PA

Dr. Robert B. Pojasek, Corporate Vice  President/Environmental Programs, GEI
Consultants, Inc., Winchester, MA

Dr. Wm. Randall Seeker, ^ Senior Vice President, Energy & Environmental
Research Corp., Irvine, CA

Dr. Walter M. Shaub, (c) President, CQRRE, Inc., Reston, VA


CONSULTANTS


Mr. Theodore J. Gordon, (d) Retired, 23 SaUfish Road, Vero Beach, FL
                                    IV

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Dr. Hilary I. Inyang,   President, Geoenvironmental Design Research, Inc.,
Fairfax, VA

Mrs, Judith. M. Mullins, Environmental and Energy Staff, General Motel's
Corporation, Detroit, MI

Ms. Lynne Preslo, R.G., Vice President, ICF Kaiser Engineer, Oakland, CA

Dr. C, Herb Ward, Foyt Family Chair of Engineering and Director, Energy &
Environmental Systems Institute, Rice University, Houston, TX
DESIGNATED FEDERAL OFFICER

Mrs. Kathleen W. Conway, U.S. EPA, Science Advisory Board, 401 M Street S.W.,
Washington, D.C,

STAFF SECRETARY

Mrs, Dorothy M. Clark, U.S, EPA, Science Advisory Board, 401 M Street S.W.,
Washington, D.C.
      c) author of Appendix 1:

      e) author of Appendk 2;

      a) author of Appendix 3:

      b) author of Appendix 4:

      d) author of Appendk 5:
Manufacturing SustainabiUty

Redevelopment of Industrial Sites and Remediated Land

Transient Phenomena

Core Competency

Futures Methodology

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                       TABLE OF CONTENTS

1.  EXECUTIVE SUMMARY	,	.......   1
      1.1 Background	   1
           1.1.1 Belevant Activities	   1
           1.1.2 The  Process Used ,,...,...	   1
      1,2 Summary of Findings for the Four Developed Issues  	, .   2
           1.2,1 How can EPA actions foster environmental quality  	   3
           1.2.2 How can EPA best respond to increasing societal
                pressures for the redevelopment of urban industrial sites
                and  remediated land while serving urban needs for
                environmental protection?	   3
           1.2.3 How can the Agency prepare to address threats posed to
                human health and natural resources by transient
                phenomena of natural origin in the face of increasing
                population and land use pressures?	   4
           1.2.4 How can the Agency address insufficiency in the core
                technical competencies needed to address both existing
                and  future environmental challenges?  Core competencies
                can be defined as the essential and distinct scientific and
                technical capabilities that enable the EPA to fulfill its
                current and future missions	   5
      1.3 Other Possible Scenarios	   5
      1.4 Lessons Learned on Methodology	   6

2.  INTRODUCTION ....		   7
      2.1 The Charge	   7
      2.2 Committee Process	   7
      2.3 Coordination	   8

3.  OUTPUT OF THE PEOCESS	   9
      3.1 Methodology	   9
           3.1.1 "Expert panel" Approach and "Brainstormmg"  ,	   9
           3.1.2 Narrowing the List of Issues	   9
           3.1,3 Trends, drivers, scenarios, consequences and mitigation
                analyses	   10
           3.1.4 Guidance	   12
      3.2 Eesults	   13
           3.2.1 Issue #1:  Environmental protection and manufacturing
                sustainabilitgr	,,,,,.	   13
           3,2,2 Issue 2:  Redevelopment of industrial sites  and
                remediated land	   16
           3.2.3 Issue 3:  Transient Events	   19
           3.2.4 Issue 4:  Core competencies ...,,,,	   21
      3.3.  A Futures Methodology Approach	....,,,..,,,,.   23
           3.3,1 Bramstorming and Criteria-based Selections	   24

                                   vi

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           3.3,2  Selecting an Approach	  26
           3.3.3  A Candidate Futures Issues Analysis Approach  ........  27
           3.3.4  Pilot Test of Issue Identification	  27

4.  SUMMARY AND RECOMMENDATIONS		.  29
     4.1 Remarks specific to issues analyzed  , , , , ,	  29
     4.2 Other findings		  29
     4.3 General Remarks	  30

5.  REFERENCES	............... R-l
                                 vn

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                               SCUTIVE SUMMARY

1.1 Background

   1.1.1  Relevant Activities

      In a July 16,  1993 memo to Administrator Browner, Mr. David Gardiner,
Assistant Administrator, Office of Policy Planning and Evaluation (OPPE),
requested that the Science Advisory Board (SAB) assist in the continued
development of EPA's capacity to anticipate environmental problems, issues and
opportunities.  The SAB accepted this request and established an SAB Committee,
the Environmental Futures Committee (EFC), to undertake this effort.  The EFC
was responsible for producing an overall report.  Each of the SAB standing
committees were invited to contribute in their areas of concern. The
Environmental Engineering Committee (EEC) of the SAB accepted this assignment
and undertook the following charge:

      a)     develop a procedure for conducting scans of possible future
            developments that will affect environmental quality and the nation's
            ability to protect the environment;

      b)     identify important possible future developments;

      c)     select a limited number of possible future developments for in-depth
            examination;

      d)     draw implications for EPA and recommend actions for addressing
            them.

      This is an EEC consensus report.  To stimulate ideas for the report,
individual authors prepared background papers on each major issue discussed in
the consensus portion of the EEC report.  The EEC incorporated some, but not
all, material from the appendices in this report.

   1.1.2 The Process Used

      The EEC used a multi-step process, including:

      a)     Brainstorming by EEC members and consultants to identify about 30
            environmental issues related to technology development that could
            become increasingly important in the next 5-30 years.

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      b)    Selection of four important future environmental issues for further
            discussion and writing:

            1)    the impact of EPA striving to balance environmental protection
                  and sustainable manufacturing

            2)    societal pressures for the redevelopment of urban industrial
                  sites and remediated land;

            3)    threats posed to human health and natural resources by
                  transient phenomena of natural origin; e.g., riverine floods; and

            4)    EPA core technical (scientific and engineering, inclusive of
                  research) competencies.

      c)    Examination  of each of the four issues in terms of;

            1)    the current situation;

            2)    driving influences or trends;

            3)    future  scenarios;

            4)    key findings, by scenario analyses; and

            5)    opportunities to mitigate consequences of adverse scenario
                  outcomes and encourage positive outcomes.

The degree of analysis and assessment needed to rank the issues was  considered
to be beyond the scope of this Committee effort. However, the four issues selected
were of sufficient merit to meet the project objectives,

      Concomitant]y» the  EEC  developed an approach by which EPA could
regularly scan the horizon for similar emerging issues. It then conducted a
supplemental search for emerging scenarios and identified several more examples.

1.2 Summary of Findings for the Four Developed Issues

      The following major findings for each of the four selected issues are the
basis for the Committee's  recommendations to EPA.

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   1.2,1 How can EPA actions foster environmental quality protection and
Improvements while assuring sustained industrial development in an Increasingly
competitive manufacturing economy?
     OECD (Organization for Economic Cooperation and Development) member
  nations increasingly employ a negotiated compliance style of regulation that
  establishes environmental targets and enables flexibility in how they will be
  achieved, (Government Policy Options to Encourage Cleaner Production and
  Products in the 1990s (OECD, 1992)).  This approach may also promote
  opportunities for source reduction in the U.S., encourage development of
  cleaner technologies, and may improve industrial competitiveness. Therefore,
  the EEC recommends that EPA consider this approach in developing policy
  options concerning clean technologies; options need to  be carefully constructed
  and balanced to benefit both the environment and  U.S. industrial
  competitiveness.
      Increase in industrial production can increase wastes.  Continued heavy
reliance upon command and control, end-of-pipe or specified regulatory compliance
requirements on a single-medium, single-point source basis can adversely impact
the development and deployment of the cleaner technologies.  One instance in
which this can occur is when a facility wishes to completely eliminate a point-
source air emission by installing a new process, but receives no emission credit for
use elsewhere in the facility for reducing emissions well below standards required
by regulations.  Cleaner technologies are expected to play a crucial role in
achieving reductions in pollution sources.  Small- and medium-sized enterprises
find it difficult to compete, comply with regulatory requirements, and invest in the
development of cleaner technologies,

   1.2.2 How can EPA best respond to increasing societal pressures for the
redevelopment of urban industrial sites and remediated land while serving urban
needs for envkonniental protection?
       The scarcity and high cost of land in urban areas, coupled with
 increasing urbanization of the U.S. population, will increase the pressure to
 redevelop abandoned industrial sites and remediated land. Therefore, the EEC
 recommends EPA consider policies that encourage efficient and timely
 redevelopment of such sites in an environmentally responsible manner that
 prevent adverse exposures. Such policies nave the potential to improve the
 quality of the urban environment, promote commerce, and postpone or reduce
 development of other land resources.

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      Many of the abandoned industrial sites and remediated land, which are not
used currently, will need to be redeveloped for use by the growing population in
metropolitan areas. Due to perceived and/or real risks in using these lands,
redevelopment of these sites is not currently occurring at a pace appropriate for
future needs.  There is a need to examine both the technical and the policy issues
so that redevelopment of these lands can be achieved without adverse exposures to
contaminants. EPA has the opportunity to make a concerted effort to formulate
policies and develop technical support schemes for integrating site  redevelopment
issues into current and future regulatory actions.

   1.2.3  How can the Agency prepare to address threats posed to human health
and natural resources by transient phenomena of natural origin in the face of
increasing population and land use pressures?
       Transient phenomena, such as riverine floods, can adversely affect the
  environment and public health much more than do steady state situations.
  Changes in demography likely will increase the number of people affected by
  such phenomena. Associated planning can prepare and minimize the potential
  adverse impacts on natural resources and human health.  Therefore, the EEC
  recommends that EPA strengthen Its capability and readiness to address
  potential environmental consequences of natural disasters associated with such
  transient phenomena and assume a participatory role with other responsible
  agencies.
      In the absence of significant global climate change, there is no evidence that
the frequency of natural disasters will differ significantly in the future from that
of past occurrences.  However, population growth, capital investment, and
increased intensity of land use and management in affected areas have led to
significantly increased potential for damage caused by natural disasters.

      Recent events, for example, hurricane damage and extreme cold weather in
the eastern seaboard states,* earthquakes, wild-fires and mudslides in western
coastal regions; and unprecedented flooding in central and southeastern regions of
the country, all severely impacted human health and the environment. Given
increasing intensity of land use and population growth in susceptible areas,
potential consequences could be severe unless means to anticipate, prevent or
mitigate the environmental consequences of natural disasters are established. In
its review, the EEC found little evidence that the environmental aspects of natural
disaster events are being comprehensively addressed in a prospective and
coordinated manner.

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   1.2.4 How can the Agency address insufficiency in the core technical
competencies needed to address both existing and future environmental challenges?
Core competencies can be defined as the essential and distinct scientific and
technical capabilities that enable the EPA to fulfill its current and future missions.
      Core competencies are the essential and distinct scientific and technical
  capabilities that enable an organization to fulfill its current and future
  missions. In the future, the Agency will he under increasing pressure to
  address more efficiently multi-media pollutants from all sources.  The Agency
  also will be required to respond faster and effectively to broader enviromnental
  issues with limited total resources. Therefore, the EEC recommends EPA
  systematically identify its essential core competencies to do this work and
  strengthen, them where needed.
      Responding to legislative mandates is necessary, but will become
increasingly difficult if maintenance and improvement of the underlying in-house
core competencies are neglected.  Regarding future challenges, EPA should
examine present technical core competencies in light of its understanding of future
needs and, as warranted, modify and/or augment present capabilities so that EPA
will have the necessary internal expertise to address future needs,

1,3 Other Possible Scenarios

      Using part of the Lookout Panel approach described in Section 3.3.3 below,
the Committee  identified eight additional concerns about the future to which EPA
should give serious attention. These are:

      a)    Will fossil  fuel depletion lead to use of resources having a
            greater potential for environmental contamination and habitat
            loss?

      b)    Will major industrial accidents and/or terrorist activities
            impacting the environment become major problems for the
            Agency to address?

      c)    Will deterioration of urban infrastructure (pipelines for water,
            sewage, and fuels) increase the potential for serious
            environmental incidents?

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      d)     Will recognition of the high cost-benefit ratio of some
            environmental management strategies lead to challenges of
            EPA's programs?

      e)     Will environmental contaminant sinks, such as contaminated
            sediments, be recognized as posing greater risk than existing
            point-discharges?

      f)     Will conventional technology for the control of newly
            recognized pathogens in drinking water be found to be
            inadequate?

      g)     Will electromagnetic radiation become widely recognized as a
            major health threat as new technologies increase sources and
            exposure, and/or if evidence for adverse effects accumulates?

      h)     Will industrial-ecology concepts lead to misuse of wastes by
            industrial/commercial sectors that cause more exposure
            problems than solutions?

1.4 Lessons Learned on  Methodology

      The EEC became acquainted with various futures methodologies  as it
developed this report. Based on this experience, the EEC recommends  to EPA a
candidate future issues analysis approach that could be used to conduct continual
scans of the environmental horizon. The EPA should set up "Lookout Panels" in
areas of health, ecology, socioeconomics, and technology. Panelists would
periodically provide observations about new or intensifying issues. After
interaction and analysis,  recommendations for near-term EPA actions would be
developed.

      In this regard, EEC and EEC consultants served as principals in a test
exercise for the approach.  Section 3.3 identifies screening elements  for the
suggested futures approach that emerged from the test exercise.

      Because many future developments pose environmental threats, the EEC
encourages EPA to further develop and implement methods for systematically
scanning the environmental horizon.   Such methods wiU help EPA  identify
important challenges at the earliest possible time, and could improve EPA
readiness both with regard to its ability to anticipate problematic issues and, as
necessary, to adopt appropriate strategies aimed at preventing or mitigating
possible adverse consequences.

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                           2* INTRODUCTION

2.1 The Charge

      A July 16, 1993 memo from Mr, David Gardiner, Assistant Administrator
for the Office of Policy, Planning and Evaluation (OPPE) to EPA Administrator
Carol Browner requested that the Science Advisory Board (SAB) assist in the
continued development of EPA*s capacity to anticipate environmental problems,
issues and opportunities.

      The SAB accepted the request, and formed an Environmental Futures
Committee (EFC) to lead the effort. The Futures Project appeared to be a logical
extension of the SAB's 1990 report, Reducing Risk (EPA, 1990), which stressed
the importance  of identifying future potential risks to human health and the
environment.

      The Environmental Futures Committee asked all the SAB Standing
Committees to assist with this effort by developing their own approaches, using
scientific and technical expertise to:

      a)    evaluate baseline information and trends, identifying issues  that may
            be  expected fa  the future to have increasing impacts on human health
            and the environment;

      b)    focus on one or more relevant issues; and

      c)     suggest a procedure by which future environmental concerns can be
            recognized at an early stage.

2.2 Committee Process

      At its October 28-29, 1993 meeting, as described in Section 3, the  EEC first
conducted a brainstorming session and then narrowed their deliberations to three
technical issues. A fourth, cross-cutting issue was added later, as was a
commentary on methodology.  Initial writing assignments and schedules  related to
completion of a draft report were established.  Designated authors prepared
reports which addressed drivers, scenarios, consequences of scenarios, and
mitigation of potential impacts.  Initially a subset of the EEC, the Environmental
Futures Writing Subcommittee (EFWS), was responsible for drafting the report.
However, as interactions with the EFC progressed, the report changed to an
extent that it became a product of the entire EEC.

      The EEC then held three publicly announced conference calls followed by
public meetings in February and March,  1994.  At these meetings the EEC
identified elements for the composite report, summarizing the process, outcomes,

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and recommendations,  (The EEC members and involved consultants are shown in
the roster at the front of this report.)  The EEC approved the assembled report
and submitted it to the EFC for review and vetting on behalf of the SAB
Executive Committee.

2.3 Coordination

      Close coordination with the EPC was achieved by participation of the initial
writing-group chair and vice-chair in EFC meetings where they interacted with
invited "futurists" and other experts.  Coordination with OPPE was achieved by
inviting representatives to attend EEC meetings and participate in conference
calls.
                                      8

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                     3. OUTPUT OF THE PROCESS

S.I Methodology

      After considering a number of options, the EEC settled on an approach to
its Futures Project which led to relatively rapid issue  selection and a period for
preparing and discussing reports on the selected issues. The remainder of Section
3,1 discusses the EEC's initial approach.

   3.1.1 "Expert panel" Approach and ^rainstormiag"

      On October 28, 1993, the EEC identified future challenges with as-yet
unanticipated consequences.  The discussions were free ranging, i.e., not restricted
to specific committee expertise. On October 29, 1993, after an opportunity for
reflection and further thought, the EEC re-visited the initial brainstorm list.
Using the collective expertise of the EEC, members developed an unprioritized
listing of issues that could  present future challenges with possible surprises to the
Agency,

      Subsequently, and with the help of a consultant more familiar with futures
work, the EEC ultimately arrived at—and recommends to others—a related, but
methodologically more formal, approach for issues selection, the elements of which
are discussed in Section 3,3 of this report.

   3.1.2 Narrowing the List of Issues

      Recognizing practical limits of time, expertise and resources, the EEC
developed the following "filtering" criteria to establish a set of issues to address via
subtask writing assignments:

      a)     Is this a new issue? (i.e., likely to necessitate new actions or changes
             in what EPA is now doing)

      b)     Is the issue credible?

      c)     Does the issue focus on science/technology that can be effectively
             addressed by expertise of the EEC?

      d)    Are there critical uncertainties that should be addressed?

      e)     Is the impact of the issue potentially large?

      f)    Are potential consequences understood?

      g)     Is the current infrastructure of environmental protection adequate to
             address the issue?

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      h)    Is the issue redundant to others on the list, or can common issues be
            categorized into one topical issue that includes the original issues?

By aggregating common issues under broader subject categories, applying screening
criteria, and further discussion, the EEC narrowed the original brainstormed list
to three. A fourth was added at the time of the first Subcommittee conference
call.

      a)    Issue #1: EPA's actions  that could foster environmental quality
            protection and improvements while assuring the sustained industrial
            development in a competitive manufacturing economy.
      b)    Issue j£2: EPA's best response to increasing societal pressures for the
            redevelopment of urban industrial sites and remediated land while
            serving urban needs for environmental protection.

      c)    Issue #3; EPA's preparedness to address threats posed to human
            health and natural resources by transient phenomena of natural
            origin;

      d)    Issue #A: EPA's need to regularly evaluate core technical
            competencies to address both existing and future environmental
            challenges.  Core competencies are defined as "the essential and
            distinct scientific and technical capabilities that enable the EPA to
            fulfill its current  and future missions",

      The BBC did not attribute an over-arching, prioritized importance to the
four selected issues to the exclusion of other potentially significant environmental
issues related to engineering and technology.  Hence, the  EEC recognized that
there no doubt are other issues of considerable importance to the Agency which
could have been addressed.  Indeed, in the latter stages of its work, the  EEC
identified eight additional future scenarios related to technology which should be
of concern to EPA (Table 4).  A more comprehensive analysis and assessment by
EPA, beyond the scope of this effort,  would be necessary to establish national
prioritization of these and other possible technological issues.

   3.1.3  Trends, drivers, scenarios, consequences and mitigation analyses

      A single  author, at times using some material supplied by others,  prepared
background reports for each issue.  In developing the reports, authors relied on
their own expertise, consultations  (with Agency staff, other  SAB committee
members, and committee consultants), literature resources, Agency assistance
(material resources), and other resources.
                                      10

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      Attached as appendices are the individually authored background papers on
each major issue discussed in this consensus portion of the BBC report. This
material was moat useful in providing a starting point and stimulating ideas. The
EEC incorporated part, but not all of the concepts presented in the appendices in
this consensus report.

Appendix  1: Manufacturing Sustainability by Dr. Walter Shaub

Appendix  2: Eedevelopment of Industrial Sites and Remediated Land by Dr. Hilary
            I. Inyang and Lynne Preslo

Appendix  3; Transient Phenomena by Dr. Frederick G. Pohland

Appendix  4: Core Competency by Dr. Wm. Randall Seeker

Appendix  5: Futures Methodology by Mr. Theodore J, Gordon

      The efforts of these authors are very much appreciated.

      The authors examined the issues in terms of drivers and trends associated
with drivers, (Information about drivers and trends specific to each issue can be
found in the appended individual reports.)  Authors used these drivers and trends
to construct futures scenarios, expose consequences, and suggest methods of
mitigation,

      a)    Drivers.: identification of drivers (e.g., rate of waste generation) that
            lead to potentially adverse human health  and environmental impacts.
            The authors  identified drivers for each of the issues,

      b)    Trends: an analysis of current trends in activities that relate
            ultimately to impacts to human health and the environment.  The
            analysis of each issue included an examination of current trends, and,
            via scenario development, an examination of possible future trends.

      c)    Scenarios; models of plausible "futures" (e.g.,  what if current waste
            generation rates continue unabated?) and possible impacts that can
            arise due to the influence of drivers. Because the construction of
            highly detailed scenarios that fully incorporate all possible drivers is
            an extremely complex,  subjective and time-consuming undertaking,
            authors abstracted scenarios from literature resources or constructed
            more simplified scenarios that were exemplary of possible drivers.

      d)    Consequences: consequences that arise due to potential impacts (e.g.,
            unchecked contamination of land by generated wastes). To the extent
            time and effort permitted, EEC authors carried out consequence
            analysis, suggesting possible outcomes of various scenarios.
                                      11

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      e)     Mtigatiojg.: analysis of potential impacts in order to identify means to
            mitigate undesired consequences (e.g., means to prevent waste
            generation). For mitigation analysis, BBC authors drew both on the
            expertise of EEC members and consultants, as well as literature
            resources.

  3.1.4 Guidance

      The authors configured and analyzed scenarios using the following EEC
guidelines.

      a)     Develop/utilize scenarios "possible" in a 5- or 30-year time frame and
            for which Agency management preparation, if desirable, is a
            reasonable expectation.  For example, in the case of "transient
            phenomena" there is no point  in evaluating a scenario that envisages
            the EPA having to deal with environmental consequences of a large
            asteroid impact upon earth, as the consequences cannot be reasonably
            addressed by EPA.

      b)     Scenarios should be "new", ie., they should be representative of
            circumstances that could lead to environmental challenges that the
            Agency has not yet adequately addressed or would not likely consider
            at this time.

      c)     There should be logical reasons for constructing one scenario and not
            another.   The basis upon which the  scenarios have been constructed
            should be described and defensible.  For example, examination of
            currently available information concerning various driving variables
            may be the basis for constructing scenarios.

            An alternative approach may involve use of heuristic reasoning,
            "scientific intuition" or some other plausible basis,

      d)     For each scenario constructed and evaluated, possible impacts  that
            could pose hazards to human health and the environment should be
            identified.  These impacts should be examined to understand possible
            consequences that may  arise when and if the impacts occur.

      e)     Ultimately, through construction and evaluation, scenarios should be
            able to reveal the readiness, now and/or in the future, of the Agency
            to implement desirable management practices that can mitigate or
            reduce adverse consequences or produce benefits associated with the
            selected scenarios.
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3.2 Results

      The discussion below summarizes tlie issues studies.

   3.2,1 Issue #1:  Environmental protection and manufacturing sustainabiliiy

      In its analysis, the EEC addressed both "sustainable development" that does
not lead to degradation of environmental quality and environmental protection
that does  not lead to industrial uncompetitiveness. Governments at regional,
national and international levels—and the private sector—are responding to the
challenge  of sustainability by looking for ways to address increasing threats to
environmental quality and industrial competitiveness-bath in the near- and long-
term.

   3.2.1.1  Scenarios and drivers.

      For this analysis, the background paper used by the EEC relied heavily on
Government Policy Options to Encourage Cleaner Production and Products in the
1990sf particularly the following text, which identifies key measures of
attainability (OECD, 1992).

      "...the goals of industrial policy can be achieved while at the same
      time improving (or at least maintaining) environmental quality and
      respecting the finite nature of the resource base as a function of time.
      In a national context, key measures of sustainability would appear to
      be as follows:

             o    GDP per capita in constant currency units to increase over
                  time;

             o    ratio of GDP per capita to the quantity of a contaminant of
                  interest (e.g., NOx in the air, generation of organic liquid
                  wastes, inorganic heavy metals in water or products, pesticides
                  in soils, etc.) to increase over time at a greater rate than GDP
                  per capita over time, and the contaminants  of interest should
                  decrease in absolute terms;

             o    the use of various raw materials  (e.g., wood, water, iron ore,
                  oil, coal,  etc.) to be such that their depletion over time is
                  reduced to  an environmentally justifiable minimum,;

            o     output of marketable goods and services per employee (labor
                  productivity) to increase as a function of time;

            o     total job  creation to increase over time; and
                                      13

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            o     industry to be able to retain or improve its eompetitivity with
                  time if and when all of the foregoing conditions are met"

      Appendix 1 examines the current situation, trends based on the current
situation, future scenarios based on possible future trends, the concept of
sustainability, and issues and challenges faced by the manufacturing sector of
industry and regulations. To explore future possible environmental problems that
pose challenges to realizing sustainable development, the author examined three
scenarios by comparing output data that described hazardous waste generation
over a period of several decades.  One scenario assumed constant hazardous waste
intensities, a second assumed a high peak and fall off to a constant level, and a
third had a lower peak due to the poorest countries employing the cleanest of
existing technologies.  Appendix 1 contains details.
        A key finding was that to benefit both the environment and U.S.
  industrial competitiveness in the global marketplace, Agency decisions
  concerning clean technologies need to be carefully constructed and balanced.
  One option found to be successful within the OECD is negotiated compliance.
  In the U.S., this could include consideration of risk-reduction goals based on a
  multi-media, entire-facility basis.  Carefully conceived EPA efforts to conserve
  resources and protect human health and the environment, and at the same
  time promote clean technologies, production processes, and products, could meet
  both desirable regulatory objectives and enhance U.S. industrial
  competitiveness.
   3.2.1.2  Discussion.

      The EEC subscribes to the findings and recommendations of Reducing Bisk
(EPA, 1990). Its recommendations here should be read in the context of a desire
to foster risk reduction through pollution prevention, which includes cleaner
technologies.

      Assuring environmental protection solely by the management of wastes
generated in the future poses significant problems for the Nation; mitigation
requires the development and deployment of cleaner technologies.  The U.S. reEes
heavily  upon command and control, end-of-pipe, specified compliance oriented
regulations.  For reducing current emissions, continuation of this practice can lead
to expending more resources to achieve the same  degree of protection then would
be needed if waste generation were reduced through the use of cleaner
technologies. Implementation of clean technologies should be encouraged by
specific  incentives.

      In the global marketplace, the U.S. share of end-of-pipe environmental
control  technology is increasing.  Data are not available to determine whether the
U.S. is having analogous success promoting cleaner technologies and production
processes (OTA, 1992).  However, small- and medium-sized businesses, which form

                                      14

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a substantial segment of the manufacturing industry, are experiencing growing
difficulties competing in the international marketplace.

      EPA could adopt a strategy for environmental protection that emphasizes
the primacy of risk reduction, appropriate regulatory flexibility, willingness to
negotiate expectations among all stakeholders, and opportunities to improve
competitive positioning of American manufacturing industry in the global
marketplace. EPA might choose to negotiate more fully on how an industry will
meet risk-based levels, recognizing that an  industry ought to have maximal
expertise about its own processes. For UJS, industries, the outcome  of such a
strategy could be improved market share, strengthened ability to mitigate future
environmental threats, and promotion of source reduction.  Ultimately,
environmental policy should recognize that the nation's environmental and
economic health are interrelated.

     In all three scenarios analyzed by the author of Appendix  1, the quantities of
waste generated increased and it was difficult to achieve sustainability because;

      a)    The complexity, diffuseness and uncertainty of risks associated with
            manufacturing technology, production processes and products are
            increasing and the marketplace has globalized; and

      b)    Present trends in regulatory activity (e.g., single-media, "brightline"
            standards for each source) could place U.S. industry in a less
            competitive position in the future, with concurrent loss of jobs and
            ability to renew capital stock needed to acquire cleaner technologies
            and production processes  (OECD, 1992; OTA, 1993; EPA, 1992).

      EPA should consider establishing a vision of sustainability and adopt a
creative approach that both demands  appropriate environmental performance and
promotes cleaner technologies.

   3,2.1.3 Possible Agency Actions

      To establish such a vision of sustainability, EPA could consider some of the
ideas for policy options discussed  in the documents used in preparation of
Appendix 1:

      a)    Government Policy options to  S$p(?urage Olganer. Production and
            Products in  the 1990S). Organization for Economic Cooperation and
            Development, Paris, 1992

      b)    ImprovingLl!e_cJhnQlpgy..Diffusion for Environmental Protection.
            NACEPT, EPA, Washington, DC, 1992

      c)    Industry, Technologyand theJEnvironment - Competitive Challenges
            and Business Opr^jcturjj.tie.8.  OTA, Washington, DC, 1993.

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  3.2.2 Issue 2;  Redevelopment of industrial sites and remediated land.

      The potential exposure of each segment of the U.S. population to
undesirable environmental stressors is location-specific. Therefore the rate of
growth and spatial distribution of population, within a given region have indirect
influences on environmental exposures to various sources of pollutants.  Present
trends in urban land use restrictions will increase pressure  to use abandoned
industrial and remediated sites.  The prospect of human activity and occupancy at
such sites raises environmental and human health concerns.

      Appendix 2 examines the current situation regarding abandoned  industrial
sites and remediated land use, Agency regulatory policies and practices, trends in
redevelopment, future scenarios based on possible future population trends, issues
and challenges faced by urban planners in addressing land use requirements, and
the nature of and means to encourage appropriate redevelopment.

  3.2,2,1  Scenarios and Drivers

      Two scenarios were investigated.  The major driving  factors for/against land
redevelopment are population increase, socio-economic trade-offs, legal liability,
risk acceptability, and advances in technology.

      In Scenario 1, inner city dwellers migrate to suburban areas and greener
sites.   The driving factors are infrastructure decay in inner city areas, increase in
crime rates that may be influenced by higher unemployment rates in densely
populated centers, and greater availability of white-collar employment
opportunities in suburbs. This scenario assumes that the middle class will flee
inner city areas to greener outskirts.

      In Scenario 2 the population of inner cities increases much more rapidly,
while the suburbs experience only moderate population increases.  The driving
factors are high levels of immigration and high birth rates for population segments
in the low income bracket.  New residents will initially prefer to settle in large
urban areas, where unskilled labor is still in high demand relative to rural and
suburban areas.  Despite the expected increase in inner city population, the
mobility of residents to the suburbs could be impeded by their lack of white-collar
skills and financial resources.

      The two scenarios each promote the redevelopment of abandoned industrial
sites and other sites that  are classified as being contaminated.  However, the
interactions among the  driving factors are different.  It is possible to construct
other scenarios, including ones which are more optimistic about the quality of
American urban life, but these two were the  only ones addressed by the EEC.
                                       16

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       A key finding was that the Agency should ensure that appropriate
 technology is available and/or deployed to redevelop urban contaminated
 industrial Bites and remediated land; this should be done in a manner that
 avoids problem environmental exposures and meets intracity needs for
 development, commerce, and conservation.
  3.2.2.2  Discussion

      This section briefly discusses the major driving factors for land
redevelopment: population increase, socio-economic trade-offs, legal liability, risk
and advances in technology.  More detail is found in Appendix 2.

      The Census Bureau's lowest series estimate of TJ.S, population for the year
2030, the  time frame which corresponds reasonably to the Futures Project analysis
period, is  287 million.  United Nations estimates show that the percentage of
global population residing in cities of 4 million or greater is expected to grow from
15,8 per cent in 1985 to 24.5 in 2025. Similarly,  the Census Bureau, indicates that
in 1990 roughly one-third of Americans lived in central  cities, one-third in suburbs,
and one-third in rural areas. It appears that a moderate influx of new residents
into metropolitan areas and high birth rates among urban residents could cause
acute scarcity of space in the cities.

      Market forces will play a significant role in land redevelopment  in urban
areas. Redevelopment activities usually revitalize industries such as construction,
insurance, hardware sales, and road construction.  Such revitalization leads
municipal governments  to cherish increases in construction because it reduces
unemployment rates. Therefore, municipal governments sometimes use incentives
such as tax breaks to retain companies and attract new ones.  When municipal
governments consider urban infrastructure improvement projects, "enterprise
zones", and the assessment of options for promoting sustainable reuse  of
abandoned industrial sites, closed military bases, and other government property,
they also  consider policy options involving changes in zoning codes and
regulations,  lending and insurance practices, and future liability responsibility.

      Currently, liability concerns discourage potential developers from purchasing
contaminated land for subsequent redevelopment.  Some recent state and federal
legislative proposals  and judicial decisions indicate that  liability concerns, which
currently  impede the transfer and redevelopment of former industrial sites and
other types of contaminated land, may wane within the next 30 years.

      At the present time, "health-based" cleanup standards have not been
achieved in a cost effective manner for soil and groundwater at many
contaminated sites.  Most types of technology and techniques employed are
relatively  new, and uncertainties remain,   The EEC's position is that  the risks to
workers in redeveloped  facilities and to residents using remediated land should noi
be increased by the push for redevelopment, rather, that cost-effective  technology

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be applied/developed to reduce exposure and thereby achieve the desired low-risk
levels. Exposure can be reduced by clean-up, barriers, and use restrictions.

      The Agency needs to review and revise, as needed, current exposure and
risk assessment methods for adaptation to redevelopment scenarios.  Regulatory
agencies also should recognize that there may be different and possibly fewer
pathways  of exposure and risk at redeveloped inner-city and industrial sites.  For
instance, since a public water supply is reliably provided, the ground-water
pathway may not be of concern  at such sites.

  3.2.2.3  Possible Agency Actions

      Appendix 2 makes recommendations about data needs on site inventory and
spatial distribution, site redevelopment and city/regional planning, exposure
assessment and site cleanup levels, engineering mitigation schemes for structures,
education, research, and in-house expertise. Information gaps are presented in
Table 1.
                Table 1: Urban Redevelopment Information Gaps

  a)    Availability of data on population and spatial growth patterns of U.S,
       cities.
  b)    Availability of data on the number and distribution of both closed
       industrial sites and remediated land relative to large population centers.
  c)    Availability of centralized information resources on liability laws and
       trends relevant to site redevelopment.
  d)    Existence of comprehensive schemes for integrating site redevelopment
       into city and regional plans,
  e)    Existence of federal policies with adequate latitude for local jurisdictional
       controls on redevelopment,
  f)    Availability of technical  schemes and research data for addressing issues
       such as  residual contaminant migration, exposure and risk assessments
       for site redevelopment, relevant cleanup standards, foundation systems in
       residually contaminated land, occupational health and safety, and
       environmental equity.
  g)    Availability of expertise  within the EPA to address these issues.
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  3.2.3 Issue 3;  Transient Events

      Whether of meteorological or geological origin, natural disasters cause
damage to the environment with the extent of damage being directly linked to
population, land use practices and structures.  A transient phenomenon (e.g.,
earthquake, wildfire, volcanic eruption, landslide, flood, hurricane, rain storm,
tornado, heavy snowfall, etc.) may convert a hazard into an ecological or health
and safety catastrophe.

      The magnitude and intensity of disaster events are often measured to terms
of human health and welfare, as well as environmental perturbations, a domain
shared by EPA with other agencies.  Appendix 3 addresses issues related to
Agency responsibilities and preparedness, primarily in response to anticipated
environmental threats posed to human health and natural resources by transient
phenomena, yjg-a-yis analysis of a selected subordinate - challenges  posed by
riverine floods,

  3.2,3,1  Scenarios and Drivers

      Two scenarios were investigated.  Scenario 1 assumed that a riverine flood
of significant magnitude posed serious environmental threats to a large (or
smaller, but intensively utilized or high population density) area occurs under
circumstances in which  governmental units have not effectively established
necessary capability (preparedness) to address the problems and potential
consequences. Threats  considered in a natural hazards sequence include
landslides, debris impacts, erosion, impacts to power supplies, damage to
underground utilities, disrupted water supplies, chemical and other  contamination,
and sewage  releases.

      The second scenario was essentially the same as the first, except that some
level of preparedness at the national level by EPA was presumed.  The choice of
scenarios was intended  to bring out a sense of the nature and potential severity of
consequences.

      Appendix 3 uses a natural hazards sequence tree to relate disaster events,
e.g., intense thunderstorm, to subsequent natural disaster phenomena, e,g,, riverine
flood, and to ensuing adverse environmental impacts, e.g,, contamination of water
resources. This analysis was coupled with a detailed  examination of pertinent
literature  concerning actual and potential opportunities to establish and implement
appropriate  strategies to prevent or mitigate impacts of natural disasters.
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       A key finding was that environmental consequences of natural disasters,
  such as riverine floods, are mot being adequately addressed by established
  response protocols and definition of interageney responsibilities.  EPA should
  consider analyzing the serious environmental challenges posed by natural
  disasters, clearly identify its responsibilities in this area, and proactively
  develop a program that can, anticipate, prevent or mitigate threats to human.
  health and the environment far implementation by collaboration with
  appropriate agencies.
  3.2.3.2  Discussion

      Although taken as a whole, there is no evidence that the frequency of
natural disasters will differ significantly in the future from that of past
occurrences, population growth, capital investment, and increased intensity of land
use and management in vulnerable areas have led to significantly increased
potential for damage caused by natural disasters.  Indeed, steady stressors, such as
leachate from a waste disposal site, have received more attention than have the
consequences of such natural incidents, largely because they frequently have
recognizable and manageable spatial and temporal dimensions.

      Recent events, for example, hurricane damage and extreme cold weather in
the eastern seaboard states; earthquakes, fires and mudslides in western coastal
regions; and unprecedented flooding in central and southeastern regions of the
country severely affect human health and the environment.  Given increasing
intensity of land use and population growth in susceptible areas, potential
consequences to the health and environment could be severe, unless means to
protect these areas from natural disasters are established.

      A National Research Council Report (NEC,  1991) proposed a
multidisciplinary program for the government without explicitly defining a role for
EPA (There was no EPA representation in the report's development). The EEC
finds that hi the area of protection of natural resources, research to improve
prediction of hydrologic hazards and impacts on human and natural resources, and
coordination and standardization of data collection stand out as potential
initiatives related to the mission of EPA.

      The  EEC recommends that EPA consider proactively addressing the
environmental threats posed by natural disasters. Benefits that should be sought
include: reduction, in life and property losses; marginal land rehabilitation, zoning
and conversion; safeguards against transient outcomes, e.g,, flood-derived
contamination and its micro* and macro-scale effects;  provisions for developing
hazard»specific data bases and guidance to the public and private sectors; catalysis
of research and development for innovative remedial and preventive technologies;
and improvement and use of EPA's capabilities as an important contributor to
reducing adverse health and environmental impacts of natural disasters and
promoting protection for at-risk natural and human populations.

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  3.2.3.3  Possible Agency Actions

      To strengthen its overall state of readiness, EPA could adopt some or all of
the options discussed in Appendix 3.  Table 2 presents some example options.
          Table 2:  Example Agency Actions Related to Transient Events

  a)     Establish an overall vision of a proactive program aimed at addressing
        environmental threats posed by natural disasters.
  b)     Obtain data for analyses that address environmental and  human health
        and welfare aspects of hazards. Such data should support risk
        assessments, mitigation and prevention, emergency response, prediction
        and warning.   Data acquisition, validation, education and technology
        transfer could be established at EPA,
  c)     Undertake an internal Agency-wide evaluation of current  capabilities
        related to policies and associated programmatic efforts aimed at
        mitigating environmental threats posed by natural disasters,
  d)     Analyze programs external to the Agency and identify relevant
        programmatic aspects of external programs that can interface,
        complement or supplement internal agency efforts,
  e)     Catalyze environmental disaster prevention and preparedness strategy
        among government agencies.  As necessary, expand Agency capabilities
        and activities where current  capabilities prove inadequate.
  3,2.4 Issue 4:  Core competencies

      An  important cross-cutting issue that emerged is the Agency's readiness to
address technically  foreseeable events that fall within the mission of the Agency.
Specifically, the concept of "core competency" emerged, as defined below:

      The core competencies are the essential and distinct scientific and
      technical capabilities that enable EPA to fulfill its  current and future
      missions.  Having core competencies supports EPA's ability to
      approach, regulations in an integrated, efficient, cost-effective and
      harmonized manner and to address multi-pollutant and multi-media
      problems with the limited resources that will likely be available to the
      Agency.

      Appendix 4 provides commentary concerning the need, in the context of
environmental futures, for the Agency to systematically identify, examine and
appraise core technical competencies.   Core EPA engineering examples might be
competency for; the improved design and  operation of water and wastewater
treatment facilities  or hazardous waste incinerators and better modeling of
pollution transport  through groundwater,  surface waters, air, or the food-chain.
                                      21

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More complete listings can be found in the SAB document Future...Risk (EPA,
1988).
       A key finding is that EPA should systematically identify its core
  competencies and strengthen them where needed.
  3 J.4.1  Scenarios and Drivers

      EEC did not use scenario and driver analyses for this issue, rather it drew
on the experience of its previous activities.

  3.2.4,2  Discussion

      In the course of many reviews, the EEC has observed the excessive reliance
of EPA staff on contractors in areas of science and technology that seem to be in
areas of core competency.   The need to attend to increasingly complex, lengthy,
and heavily compliance-oriented legislation may have placed a heavy burden upon
the Agency.  Agency attention is, therefore, focused on the development and
implementation of regulations at the expense of maintenance and improvement of
in-house core competencies.

      There are advantages-regarding both present and future environmental
issues-to attending to both regulatory activities and underlying technical
requirements. With regard to future challenges, the Agency could undertake a
careful examination of technical core competencies and, as warranted, modify
and/or augment present capabilities, leveraging across other governmental and
private sector activities where appropriate.


  3.2.4.3  Possible Agency Actions

      To enhance core competence  for present and future needs, EPA could
consider adoption of some or all of  the policy options discussed in Appendix 4 and
summarized in Table 8. In general, EEC considers it advisable for the Agency to
systematically identify and examine its technical core competencies and make a
determination regarding the adequacy of present resources judged against those
competencies needed to address both existing and future environmental issues.
                                      22

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              Table 3; Example Issues Related to EPA Core Competency

  a)     As the lead government regulatory agency responsible for protection of the
        environment, the EPA must, at a minimum, be able to comprehensively address
        technical aspects of complex environmental issues through strength in core
        competencies and ensure the technical merits of regulatory activities.

  b)     EPA should identify and assess for gaps the adequacy of those technical core
        competency components already in place within the Agency in relation to
        strategic direction and guidance, as well as emerging issues,

  c)     A critical element of core competencies is Agency research programs.  Emphasis
        should be placed upon those activities which enable the Agency to: (1) identify
        key environmental indicators; (2) obtain sound scientific and engineering data;
        (3) ensure the  availability of critically needed, monitoring capabilities; and (4)
        promote the development and deployment of cleaner technologies, production
        processes and products.

  d)     The realization of sound, technical core competencies can enable the Agency to
        catalyze innovation. Moreover, the realization and identification of core
        competencies can uncover partnership opportunities with other  agencies,
        industry and aeademta.

  e)     Technical core research programs should be integrated by striving to; (1)
        provide  the impetus for development and deployment of innovative cleaner
        technologies; (2) provide sound technical support regarding regulatory activities
        of the Agency; and (3) seek to anticipate, identify and productively respond to
        future environmental threats.

  D     EPA needs to work to ensure the  optimum (cost-effective, efficient, dependable,
        and timely) realization of EPA technical core competency requirements
        necessitated by Agency missions and strategic  direction and guidance, taking
        into account available opportunities to interface, supplement or complement
        internal technical core competencies with technical competencies that are
        external to the Agency.

  g)     The exercise in competency development is not limited to analyzing capabilities
        and responding to future needs. Rather, it helps to choose investments in
        future programs wherein there is a higher potential of being successful.
        Simply put, the exercise provides another dimension for making decisions,  Le.,
        opportunity.
3.3.  A Futures Methodology Approach

       The EEC learned by doing and in so doing found other approaches that
could be usefully incorporated in future undertakings of this nature.  The EEC
arrived at and recommends the following future issues analysis  approach for
consideration for use by EPA.
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  3.3.1 Bramstonning and Criteria-based Selections

      The EEC brainstormed to form an initial list of possible environments!
engineering issues that might be addressed in the futures study. EEC used
criteria to shorten the list to a few significant, representative issues for a more in-
depth study.  The EEC experience showed:

      a)     An expert committee process can identify potentially important future
            issues, but absent some constraining criteria, the list may include
            items of different levels of generality (e,g., domains of issues, generic
            issues, specific issues) that are difficult to compare,

      b)     Many of the items initially suggested for inclusion in the
            brainstormed list were, strictly speaking, not issues.  They were,
            rather, domains  within which any of a number of issues might be
            found. This led to a number of attempts to group issues and
            subsume others under more general headings,

      c)     The  development of a formalized approach to score or weight issues is
            a challenging undertaking and should be pursued both with attention
            to all stakeholders and in respect to a need  to harmonize the process.

      Based on these findings, the EEC recommends:

      a)     Experts involved in brainstorming and/or scanning sessions should be
            carefully selected and should represent  as comprehensive a range of
            experience as practicable.  Expert participants in a brainstorming
            exercise, are in a sense, the eyes and ears of a "lookout" enterprise.

      b)     Participants should know the priority-setting criteria before they
            suggest future issues. Modifications to the proposed criteria set
            should be pursued until the set is harmonized.  The following criteria
            could be used as an initial basis for development of a harmonised
            criteria set:

            Scope: If the issue develops, might it affect many people or a few?
            All other things  being equal, one issue may be more important than
            another if it affects more people.

            Bevejdtyj If the issue develops, might its effects be severe  (the most
            severe effect being death or a species loss)?

            Novelty: Is the issue new, or has it already received considerable
            attention?
                                      24

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      Plausibility/probabilitv/certainty: How might the issue develop? What
      axe its chances of developing?

      Uncertainty: Are there crucial uncertainties that make an issue
      important?

      Irreversibility: If the issue is not addressed, might its consequence be
      (largely) irreversible?

      Imminence: Is the issue imminent? All other things being equal, a
      near-term problem is more important than a longer-term one,

      Visibility: Is the issue in the public eye? What are the ramifications
      for addressing the issue?

q)     Possibly, in some negotiated and agreed-upon manner, criteria can be
      weighted,  This weighting should be  discussed before the actual
      nomination of issues. As there is considerable disharmony regarding
      the merits of weighting schemes, it is essential to eliminate or at least
      minimize subjectivity in weighting decisions to the maximal extent
      practicable,

d)     An alternative approach contemplates that items in the issues list be
      categorized more loosely, e.g., as high, medium or low priority.

e)     To improve the efficiency of the process, when an  expert  (or
      stakeholder) panel is asked to nominate issues, the usual rules for
      brainstorming should be adjusted; rather than opening up the
      discussion  for whatever anyone has to say in any form, the group
      should be given, some structural (not content) guidance. For example,
      the instruction:

      "Please suggest important future issues for EPA.  Limit your response
      to your _o_wJft experience and background in making these suggestions.
      Consider the criteria (listed).  Please frame your input in  the form of
      an issue rather than a domain, and include a principal consequence in
      your statement."

f)     To mitigate influences of one individual upon another, to the extent
      possible, suggestions and discussions concerning candidate issues
      should allow for anonymity.  However, some process should be
      established to resolve ambiguities concerning the meaning or
      ramifications of individual statements concerning issues,

g)     As challenges to the Agency have a dynamic character (new
      observations and knowledge gives rise to new imperatives), the
                                25

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            process of issue development should be repeated at intervals of six
            months, a year, or some other practical time frame.

  3.3.2 Selecting an Approach

      If EPA undertakes futures analyses, it may wish to consider the following:

      a)    To realize their full potential, scenarios, particularly quantitative
            scenarios, involve great complexity and much time-consuming effort to
            construct.  [NB;  Such an undertaking was beyond the scope of the
            present initiative.]  Scanning the environmental horizon by "look out"
            panels may be a more practical way to get a quick start.

      b)    In an Agency-wide undertaking, EPA can use scenarios, for example:
            to trace chains of causality leading to the present; to explore unique
            future developments and their consequences; to examine the
            implications of action or inaction and the ranges of possible outcomes;
            to explore the roles of all stakeholders; and, perhaps most
            importantly, to further stimulate imagination.

      c)    The  "natural hazard sequence" diagram included in the transient
            phenomena appendix illustrates an approach to scenarios that has the
            benefits of displaying the full array of impacts flowing from a  single
            cause, visually presenting the decision "branch points" at which policy
            intervention may be possible.

      d)    The  methodology used in the present exercise, although placing less
            emphasis on scenario utility, can be viewed as a prototype for  an
            Agency "expert lookout panel," i,e., in which experts are asked,
            systematically, to identify important future issues, to select those that
            appear to be most important through succinct  and well-defined
            screening criteria, and to study those  of high priority.  Based on the
            present exercise  and retrospective examinations of the process, the
            Subcommittee recommends a framework for a  second generation
            approach which the Agency might implement as a possible future
            issues analysis paradigm.

      As outlined below, the Agency can design and implement a "lookout" system
for detecting and analyzing incipient future developments that might threaten the
environment or provide new policy opportunities for the Agency,  The
Subcommittee suggests that the system, at a minimum, have the following
characteristics;

      a)    draw input from a wide range of sources, considering diversity;

      b)    operate in  a continuous rather than a "one-shot" mode;
                                      26

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      c)    have a memory, so that suggestions that are set aside today for lack
            of data or interest can be reassessed in the future;

      d)    be quantitative, wherever possible;

      e)    be subject to scrutiny by people outside of the process;

      f)    have explicit goals; and

      g)    recognize that many futures are possible,

  3.3.3 A Candidate Futures Issues Analysis Approach

      One approach would be for EPA to set up "Lookout Panels"  in areas of
health,  ecology, socioeconomics, and technology.  Each panel would have some
cross-discipline representation. In addition,

      a)    The process would be conducted by EPA staff,  but involve experts
            within and outside the Agency,

      b)    Panelists would be contacted periodically to scan their fields and
            provide observations about new or  intensifying issues  and their
            consequences.

      c)    These observations would be collected and fed back to the other
            panelists for comment.

      d)    Candidate issues  would be screened against agreed-to criteria.
            Surviving issues would be analyzed versus any existing scenarios and
            EPA goal statements.

      e)    Recommended near-term actions for EPA based on project futures
            then would be developed.

  3.3.4 Pilot Test of Issue  Identification

      The EEC conducted a test run of the early steps in the above Look-Out
Panel Methodology and identified the issues listed in Table  4 for further
evaluation "by EPA.
                                      27

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          Table 4:  Additional Technology and Environment Concerns

a)    Will fossil fuel depletion lead to use of resources having a greater
      potential for environmental contamination and habitat loss?
b)    Will major industrial accidents and/or terrorist activities impacting
      the environment reach crisis proportions and become a major focus
      for the Agency?
c)    Will accelerating deterioration of urban infrastructure (e.g., water,
      sewerage, fuels) increase the potential for serious environmental
      incidents?
d)    Will the high cost-benefit ratio of some environmental management
      strategies become recognized by the public leading to challenges to
      EPA's programs?  The costs of environmental mismanagement or
      nonmanagement could become more recognized by the public,
      thereby either increasing the demand for traditional command and
      control responses,  possibly  at the expense of new and innovative
      pollution reduction and elimination strategies, or decreasing
      already proven effective strategies.
e)    Will environmentally contaminated reservoirs, such as
      contaminated sediments, be recognized as posing greater risk than
      existing point-discharges?
f)    Will conventional technology for the control of newly recognized
      pathogens in drinking water be found to be  inadequate?
g)    Will electromagnetic radiation becomes widely recognized as a
      major health threat as new technologies increase sources and
      exposure, and evidence for  adverse effects accumulates?
h)    Will industrial-ecology concepts lead to use of wastes by
      industrial/commercial sectors that cause more problems lihan
      solutions?
                                     28

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              4.  SUMMARY AND RECOMMENDATIONS

4.1 Remarks specific to issues analyzed

      For the four issues examined, the EEC developed the following serious
concerns that need to be addressed by the Agency:

      a)    Agency decision! concerning clean production technologies need to be
            carefully constructed and balanced, so that there are benefits both to
            the environment and to U.S. industrial competitiveness.  Flexibility in
            achieving the desired risk reduction at a facility could promote
            deployment of cleaner technologies to replace end~of-pipe control
            technologies,

      b)    The Agency needs to ensure appropriate technology is available and/or
            deployed to redevelop urban contaminated industrial sites and
            remediated land; this needs to be done in such a way that avoids
            significant exposures and meets intraeity needs for development,
            commerce, and conservation.

      c)    The Agency needs to strengthen its capability and readiness to
            address potential environmental  consequences of natural disasters
            associated with, transient phenomena sueh as riverine floods
            considering trends in population growth and inappropriate land use.
            Associated planning and preparedness can help minimize the potential
            adverse impacts on natural resources and human health.

      d)    The Agency needs to systematically identify and  examine  the essential
            and distinct scientific and engineering capabilities (core competencies)
            needed to address technical aspects of its present and expected future
            mission and strengthen them where needed.

4.2 Other findingB

      a)    "Lookout Panels" are recommended to EPA in areas of health,
            ecology, socioeconomics, and technology.  Panelists would periodically
            provide observations about new or intensifying issues. After
            interaction and analysis, recommendations for near-term EPA actions
            would be developed.  The EEC encourages EPA to improve further
            means for identifying issues of concern and establishing some agreed-
            upon criteria for assessing the relative urgency and consequential
            importance of action to address these issues.
                                      29

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      b)     The EEC, in its dry run of a portion of the Lookout Panel paradigm,
            identified another eight scenarios which may benefit from further
            analysis by others. They appear in Table 4 and should be evaluated
            by EPA in terms of likelihood, importance, and, if appropriate,
            mitigation.

4.3 General Remarks

      The Agency is commended for its foresight in undertaking this initiative.  It
provided an opportunity to scan the future and attempt to anticipate potential
environmental threats which may pose significant challenges to the Agency to
address problems as they arise. Moreover, the members of the EEC thank the
SAB and Agency Offices staff for assistance, resources and time commitments that
have been useful in the conduct of this initiative.

      The SAB/EEC initiative as carried out can serve as a pilot element for the
development of a productive process for the Agency in future undertakings of this
nature.  Although members of the EEC found that scanning of possible futures
was challenging, it was only tractable  under circumstances in which  its focus was
limited to just a few issues.  The downside of this limitation of the SAB's  futures
project is the prospect  that some issues of importance have been inadvertently
overlooked.

      Should the exercise be taken up again by SAB, it would be helpful if SAB
Standing Committees would interact more at the onset with all of the other  SAB
Standing Committees to enable cross-comparison of issues, criteria, approach,
expertise, and resources.  In this manner a more comprehensive integration of
ideas, inclusion of areas of importance, and more efficient use of and access to
resources, may be realized.

      While the committee found forecasting to be a useful exercise in addressing
specific issues, a concomitant detailed  examination and analysis of current
knowledge and historical and current trends is absolutely essential in order to
arrive at a comprehensive view of environmental challenges and implications for
Agency stance regarding both readiness and  action options,

      Regarding the issues it addressed, the EEC is encouraged by the prospect
that the  information generated may provide  useful advice to the Agency.  The
EEC believes that progress aimed at addressing even a limited set of these options
can enable the Agency to move towards an enhanced state of readiness and
anticipatory posture with regard to future developments.
                                      30

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                           5.  REFERENCES

EPA.  1988.  U.S, Environmental Protection Agency, Science Advisory Board,
      Future Risk.  EPA-SAB-EC-88-040,

EPA.  1990,  U.S. Environmental Protection Agency, Science Advisory Board,
      Reducing Risk:  Setting Priorities and Strategies for Environmental
      Protection, EPA-SAB-EC-90-021.

EPA.  1992.  U.S. Environmental Protection Agency, NACEPT Improving
      Technology Diffusion for Environmental Protection.

NEC.  1991, Mational Research Council (NEC), "A Safer Future - Reducing &e
      Impacts of Natural Disaster"', National Academy Press, WashiTigtQn, DC,
      pp.67, ISBN Q-3Q9-Q4546-Q.

OECD.  1992,  Organization for Economic Cooperation and Development's
      Government Policy Options to Encourage Cleaner Production and Products
      in the 1990s.

OTA.  1993. U.S, Office of Technology Assessments Industry, Technology and the
      Environment-Competitive Challenges and Business Opportunities.
                                   R-l

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                          DISTRIBUTION LIST

Administrator
Deputy Administrator
Regional Administrators, Regions 1-10
Assistant Administrators
Director, Office of Environmental Engineering and Technology
Demonstration
Director, Office of Pollution. Prevention and Toxics
EPA Headquarters Library
National Technical Information Service
Congressional Research Service
Library  of Congress

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Appendix 1;  Manufacturing Sustainability

                  by
     Dr. Walter M, Shaub, President
     COREE, Inc., Reston, VA

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                          Prepared for               ;
                                                   i
               tJ.S,  Er.vircniaent&i  Protection Agency
                Environmental  Engineering Committee
                   Futures  Writing Subcommittee

                         March 14,  1994
             IMPACT  OF  S*gRiyiNG TO ACHIEVE  SUSTAIN ABILITY
                     OH A MANUyACTTIRIHG  ETHIC
                         A. Introduction

     The global  community has begun to take  the view in regard to
sustainable  development    [1,2]  that    economic  growth  "should
progress under circumstances that do not   lead to  degradation of
environmental quality.   In  response to   the challenge tc  strive
towards  sustainable   development,   governments   at  regional,
national  and  international  levels  and the private sector have
begun to look both, in the near- and long-term for  ways to  attack
increasing threats to environmental 
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         the contaminants of  interest should  ideally decrease  in
         absolute terms;
       o the use of various raw materials  (e.g., wood, water,  iron
         ore, oil, ccal,  etc.) to be such  that their depletion
         over time is reduced to an environmentally justifiable
         minimum;                         ','"
       o output of marketable goods and services per' employee
         (labour productivity) to increase as a function of time;
       o total job creation to increase over  time? and
       o industry to be able  to retain or  improve its
         competltivity with time if and when  all of the foregoing
         conditions are metrt

      In  the   long  term   efforts  aimed  at,  development  and
utilization'of  cleaner  technologies  in  order  to assure cleaner
production processes and cleaner products are seen as  a means to
improve the prospect that environmental quality can be maintained
or  improved [3],  For the manufacturing sector  of U.S* industry,
the challenge  of striving   to achieve sustainability in the  long
term  should  lead  towards  the  development  and  deployment of
cleaner technologies, if while  doing so, mechanisms are created
to  ensure that firms can remain competitive.  In other  words, in
concert  with  an  evolutionary  shift in industrial posture, the
U.S.  EPA must adjust its regulatory stance in  order to encourage
cleaner   production  and   products   and   to  facilitate  the
introduction of cleaner  technology in the manufacturing sector in
a manner  that does  not harm  U.S. industry competitivity in the
global  narketplace.

      In the context of this  report,  cleaner technologies  are to
be   understood  as  those technologies   that  can enable cleaner
production and products.   Cleaner  production  is  aeant  [3] to
reduce   energy   and  natural  resource   dependent  raw  material
utilization per unit of  manufactured product output while  at the
same  time,   production,  marketing  and  disposal  of  (cleaner)
products  takes place  under  circumstances   in, which undesirable
environmental perturbations  (for example, releases of potentially
harmful contaminants)  are held as low as  practicable.

      Factors  that influence the  development  and  utilization of
cleaner  technologies    include  [3,4];  government  signals  and
actions;   raw  material,  energy,  transport  and  waste disposal
prices?   attitudes  of   management  and labor, and public demand.
Although  market penetration at present has • not been substantial,
cleaner technologies  are available,  and efforts are underway to
promote- innovative  development and  subsequent implementation of
newer generations  of cleaner  technologies  [2-5].   Ideally,  in a
sustainable   world  economy,   it  is  Important  [4]   that  these
innovations should  not  be  economically disruptive,  e.g.,  do not
impair  the competitive position of those  industries  that perform
in an environmentally responsible manner.
                        Stiaub

                         -2-

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           B.  The existing situation and current trends

      As an  indication of the complexity of potential industrial
 impacts,  it is reported [5]  that:
                                           f
      - about 7 million chemical substances are known-
      - about 100,000 are available on the market
      - these products and other substances (chromium, cadmium,
        etc.)  are used' in a growing number of consumption or
        production sectors: pigments for paints, lubricants,
        fertilizers,  food additives, stabilizers, cleaning or
        anti-corrosion agents, solvents, medicines, etc,
      - The CJS EPA lists some 500 substances as hazardous, but in
        practice scarcely more than 100 are covered by•standards
        [KB the EEC list is about 30 items].

      It is reported [5] that among developed nations, in spite of
measures   taken,   not  only  the  quantity, but also the toxicity
and/or the complexity of wastes being generated have continued to
increase,   and  its   processing  still  places  a heavy financial-
burden  on  the  economy.    Taken  as  a  whole,  the increasing
worldwide   inventory  of  harmful  or potentially harmful [solid,
liquid,  gaseous]  wastes  [2(a)]  poses  an  increasing  threat to
environmental  quality.  •  This  circumstance severely challenges
attempts to  establish sustainable development.

      The present costs of controlling pollution outputs generated
can be enormous.   A  recent U.S. EPA cost assessment study reports
[6] that total direct  costs of  pollution control  in the United
States were    nearly  2.1%  of  the  GNP  or,  with,  investments
annualized at 7%,  ca  $115  billion.    Moreover,  mast;  of these
expenditures  were made in  the private  sector, with the largest
expenditures  in the  chemical, petroleum, primary metals, food and
paper industries.    In addition, [4] a recent U.S. study suggests
that   about   3%  of   GDP  will  be  required  to  attain  ambient
environmental goals  by the year 2005.

      It  is   evident  that past  practices have lead to enormous
costs to society,  application  of  react  and  control practices,
i.e.,   largely   end-of-pipe   management,  and  are  likely  to
increasingly   cost  society  a  significant  portion  of national
wealth.    A   recent  study  [5]  states that prevention of waste
formation  or  "reduction of waste produced11  must become  a major
thrust.

                       C.  Driving variables

      It  is   reported  [5]  -that  if  present  trends  in organic
chemical and   metals  processing  industries continue,_  50% of the
products   anticipated  to  be  used  in 15 year's time, do not yet
exist!   The   rate  of  new  product  generation  with, increasing
                       Shaub

                        -3-

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 diversity  and   complexity   that  acccapany  a  reduction   in  the
 overall consumption  of  natural resources, gives rise to doubts as
 to   whether  there   can  ever  be  systematic  control  of   their
 toxicity.  Additionally,  the recent  phase  of industrialization
 has  been  characterized by   marked differentiation  of risks [5]:
 now  less probable, but  potentially more serious, sore diffuse  and
 varied, and  more international.  It is unlikely that they  can be
 effectively  managed without  a  radical  change  in traditional
 patterns of industrial  action.

      In sura, in  regard-  to the manufacturing sector, major drivers
 of concerns for  actual  and  potential  impacts upon  human  health
 and  the environment  are the  amount of wastes and especially their
 hazardous' character,  that are  being generated  and that,  absent
 actions  to   t\e  contrary,' apparently  will  be  generated   in
 increasing amounts in the future.-


                 D.  Scenarios of 'future impacts

     A recent  investigation of  future  scenarios  of hazardous
 waste generation has been reported [2].  In view of the foregoing
 discussions, it is relevant  to environmental  challenges posed by
 activities within manufacturing sectors.

     The futures  scenario that  was exercised, modeled hazardous
waste generation (WH2)  as  a function  of time  calculated  as  the
product of [2] :

     WHz = WHz/W x W/GNP K GNP/capita sc Population

     Above,   WHz/W   represents   the   ratio,  hazardous  waste
generated/material throughput of  the  economy?  W/GNP represents
the ratio,  material throughput of the economy /GHP; and GNP/capita
represents  the ratio, GHP/capita «   [NB  an additional expression,
"hazardous  waste  intensity" was  defined as  the ratio of annual
generation  of hazardous  waste to
     A description of the  three  futures  scenarios investigated
are  presented  below,  while  a  more  complete  description and
discussion of the model  and outcome  of the  exercise are  to be
found in the cited reference [2']:

   Scenario  1 s   In  this  base-case scenario it was assumed that;
   global population trends continue such that  global population
   reaches  8.5   billion  by  2025,   10 billion by 2050, and then
   stabilizes thereafter due  to  improved  standards  of living,
   better education, and birth control; recent medium-term trends
   in per capita growth of GNP are assuued to continue throughout
   the next  century; and current hazardous waste intensities are
   assuemed to remain constant over ttie scenario period.
                      Shaub

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    Scenario  2;   In  this  scenario,   it  is   assumed   that  the
    developing  world  industrializes   fast over  the  next fifty
    years; it assumes the same population growth  as scenario 1;  it
    is assumed  that per  capita levels of, GNP  reach $ 20,000 on a
    global basis by the  year 2040;  and that   thereafter,  GNP. per
    capita grows   at ca  2% per annum;  hazardous  waste intensities
    are assumed'to peak at around 10 kg/$K at GNP levels of around
    $  4000  per  capita.    Following   this peak,  hazardous waste
   • intensities are assumed to fall away towards  a   constant level
    of 5  Icg/$K by  the time  per capita  GNP reaches $  15,000 per
    annum.  This  scenario  is  considered  reasonably conservative
    with respect to "present" trends in development.

    Scenario 3; (cleaner Growth) In this scenario,  economic growth
    is assumed to be much slower than in the previous scenario; a
    global  per  capita  GNP  of  $  25,000 is  assumed attained?
    development is assumed to  occur over  the  longer period of a
    century*    A  peak  value of. for hazardous • waste intensity of 5
    kg/$K is realized,•implying that the poorest  countries  develop
    by  employing;  the  cleanest of   existing  technologies  and
    processes;  following this  peak,  hazardous  waste intensities
    are assumed to fall away towards a  constant level of Q.S  kg/$K
    (implies more  than  90%  reductions  over  existing hazardous
    waste  intensities    -  a  major  technological  and economic
    challenge).


      The outcome of these future scenarios,  modeled according  to
various inputs  [2], indicated  that global  development based  on
use  of  existing  technologies,  processes,   and  standards and
consumption  patterns   of  the  industrialized  world can  lead  to
considerable increases in hazardous  waste generation.   Even the
stringent  assumptions  of  a- "Cleaner Growth11 scenario predicted
cumulative,  increasing  hazardous  waste  generation  and  implied
increased environmental  burdens over   the next  century.   In sum,
regardless what  scenario was considered,  a uniform view emerged;
•sustainability will require formidable efforts to  achieve.


                          E.  Consequences

      As a precautionary note,  the output of the' model should only
be  viewed as illustrative of passible  outcomes and  should not be
considered to  be a predictor of  actual outcomes.  Given the  great
uncertainties  associated  with  data   availability  and quality,
simplifying assumptions,  and other considerations, the model  only
has  a qualitative  value.    Nonetheless,   it has  the potential to
serve as one  possible  means to evaluate need for redirection of
manufacturing  ethic focus in  regard   to   sustainable development
objectives.


                           Shaub

                            -5-

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     Overt consequences  of realization of the scenarios examined
are that absent measures to the  contrary, the  cumulative anount
of.  generated  hazardous  waste  is  anticipated  to  continue to
increase far into the future.  In other words:

   The worldwide generation of wastes will*' increase in  a manner
   that will prove extremely difficult to manage.

   Adverse  environmental  impacts  of manufactured' products will
   not be reduced to a justifiable minimum.

   Natural resource usage will be .less than optimum.

     However, of perhaps greater concern, is the observation that
all 'of the model scenarios exercised predict cumulative increases
in amounts  of hazardous  wastes generated  in the  future.  This
outcome implies that in order to achieve sustainability, policies
aimed at preventing generation  of  wastes  in  the manufacturing
sector,  especially  hazardous  wastes,  likely must, be extremely
carefully thoughtL_out and optimized.

     Absent carefully thought out  actions taken  to ensure waste
prevention  and  at  the  same  time enable economic growth in an
environmentally sustainable  fashion, the  above discussions also
suggest the following possible additional implied consequences:

   The competitive position of U.S. firms in a global marketplace
   could   bci   eroded   with   consequent  loss  of  marketplace
   penetration opportunities, lost employment, etc*; for example,
   regulatory • policies   may 'be  inappropriate:  attacking  the
   problem of wastes generated via mandatory end-of-pipe controls
   may  prevent  the  renewal  of capital stock needed to acquire
   cleaner technologies.

   Improvement of standards of  living  could  suffer"  due  to
   otherwise  avoidable  generation  of wastes and expenditure of
   more resources than absolutely  necessary per  unit of actions
 •  taken to achieve a desired level of environmental protection.

   Absent  a  strong  and  predictable  regulatory program that
   encourages movement  towards development  and deployment  of
   cleaner technologies,   industry nay  continue to  opt for more
   predictable end-of-pipe controls.

   Data and information needed to  ensure  that  environmental
   targets are being met will not be available*
                         Shaub

                          -6-

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             Analysis of issues and mitigating


                      F. Manufacturing Ethic:

      In reaction  to concerns  about, the 'present situation and in
 consideration of consequences that  could arise  in the  event of
 occurrence of  scenarios described  above/ an ethic that has seen
 growing support is that [5] a desired way  to manage  waste is to
• prevent  its   generation  and  avoid  unnecessary  depletion  of
 resources and raw materials while reducing the potential for harm
 to  human  health  and  the  environment  to  the  maximum extent
 practicable,    Waste  prevention  can  mitigate  'inadequacies of
 treatment, storage and disposal facilities.

      For  the  manufacturing  sector,  this  weans  evolution and
 innovation in  respect  to  the  development  and  utilisation of
 cleaner  technologies  and  production  processes.    At 'present,
 environmental technology  marJtets  are  dominated  by end-of-pipe
 control technologies [5],   It is evident that-significant changes
 in the environmental technology market will have to take place in
 order to ' shift from a pollution control strategy to a preventive
 strategy.    However,  the  translation  of  this  ethic  into  a
 practical  management   strategy  and  actual  implementation  of
 measures  that  can  bring  about  evolutionary .  changes  (i.e.,
 implementation of  cleaner technolgies  and production processes)
 in the manufacturing sector  of industry  has been  slow, despite
 signals of costs and of potential inpacts associated with present
 waste generation practices.  Response  to  a  growing  demand for
 integrated cleaner  technologies and cleaner production processes
 depends to a large extent  on the renewal of capital stock.

     .This situation prevails at the present time,  despite growing
 evidence [3,4,5]  that pollution abatement and less costly use of
 resources are feasible and that clean industry and clean products
 can  have  distinct  competitive advantages I" regional, national
 and   international   marketplaces.      Moreover,  technological
 evolution and innovation are considered [3,4] the Icey engines for
"job creation  and  maintenance  or  improvement  of  standards of
 living, and economic growth in general.   The competitive position
 of individual firms depends increasingly on  technological  change
 and adaptation  [3].   In turn,  these technological changes  affect
 environmental quality and  the natural resource base*

      The following issues  [2-4] must  be  addressed  in  order to
 develop.   a   sense   of   the  impact  of  sustainability  on  a
 manufacturing ethic:

      c A vision of sustainability must be established,*
      o A basis to achieve  sustainability is needed;
      o A means to Measure  accomplishment of objectives  aimed  at
        achieving sustainability is needed;


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     o Enforceable policy instruments are'needed;
     o Costs of achieving sustainability.must be allocated in an
       agreed upon manner;
     o Economic characteristics of the private sector must be
       addressed,; and
     o Temporal aspects of. sustainability roust be addressed.


                  G, A Vision of Sustainability

     Analogous' to the efforts of other countries [3,4],  the U.S.
EPA  needs  tp  develop  a  vision  of sustainability in order to
promote clean production.   Of necessity,  it must  'take the lead
and  negotiate,  publish,  administer,  implement and adhere to a
workable plan of what a sustainable economy is meant to be within
specified timeframes.

     Absent  a   vision  of  sustainability,  the  U.S.  EPA  may
encounter difficulties both within the Agency  and externally, in
regard  to  prospects  for  implementation  of  measures aimed at
accomplishing  objectives   that  can   enable  progress  towards
achieving sustainable development.

     Iu anticipation  that the strategic plan underlying a vision
of sustainability will be based  upon  the  outcomes  of detailed
negotiation, it  will be  necessary for the Agency to organize to
act efficiently in ways  that reward  integrated staff  work, and
address a crucial need, regarding clean technology and production
for  negotiated  policy  stances   based  upon •interdisciplinary
foundations.    Further  study  is  recommended  concerning  plan
development  and'   its  relationship   to  technology  evolution,
corapetitivity, and sustainability.


          H. Issues, Challenges and Cleaner Technology

     The  issues  raised  and  that  should  be addressed must be
viewed in the context  of:  challenges  raised  against achieving
sustainability; how  actions mounted may impact ;tne manufacturing1
ethic of the nation's industry; and how in  turn, any redirection
of the  manufacturing ethic may affect industrial competitiveness
in a global marketplace economy.  «. hantonious outcome is clearly
desirable.  It is evident that industry, the U*S« EPA, and others
will be challenged  to  negotiate^  among  themselves agreed-upon,
worKable  and  timely  arrangements  which  lead  to demonstrable
progress towards achieving sustainable  development  and  that at
the  same   time  can   ensure  a   competitive  marketplace  for
environmentally responsible firms.

     In view of challenges posed to the manufacturing  sector, it
has  been   concluded  that  [3,4]  the  utilization  of  cleaner
technologies which  generate marketable  products with concurrent
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                          -8-

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reduction of  environmental  impacts   and natural  resource use to
justifiable minima  are   of   prime  importance.    The  concept of
prevention  of  waste  through   the   use of cleaner technology is
considered  to  signal   [5]   minimization   of   waste   a,t  the
manufacturing  stage  by introducing _ improvements or changes in
manufacturing processes  and  manufacturing technology ._

                    I. Industrial  Strategies

     The trend [5]  to  date  towards   inclusion  of environmental
considerations  in  industrial   strategies:  has- been selective,
mainly  involving end-of-pipe controls  (driven  by inappropriate
regulations and incentives or risk aversion or competitiveness of
industries) ; is installation-size  and  iage  dependent  (with more
progress   a1.   newer    facilities);   is  sensitive  to  economic
conditions in the marketplace; '  lias little  effect on  exports to
developing  countries;   and is  influenced  by  the  regulatory
environment  -   regulatory  uncertainty   drives  risk  aversion
regarding use of new "unproven"  technologies.
         role  of clean production  in enhancing, reducing, or not
affecting competition is important:  policies  for  promotion and
deployment  of  cleaner  products   are  neither  conceivable  nor
practical unless closely coordinated  with  industrial  policy in
its entire  form [3,4];  the process by which firms invest in new
technologies is of key importance.   in brief,  the prime  aim of
current  industrial   policy  seems   to  'be   [3,4]  to  promote
performance, improve labor productivity,  and increase  the value
added  (wages  paid plus  profit before interest and depreciation)
of as  many  enterprises  as  possible,  i.e./  to  improve their
overall competitiveness .

     Process  changes  by  a  firm  usually  demand major capital
investments • and cannot be undertaken "abruptly11! they are instead
undertaken, only  after carefully  considering whether investment,
installation , and exploitation of new technoloov will improve +-he
competitivity of  the firm  in -^.^  marketplace.  In consequence!
such changes  are evolutionary ,  and there  is doubt  [3,4] as to
whether process  changes can  or should be mandated by regulatory
means .

     In  regard  to  marketplace  competitiveness  [7] successful
implementation . of  pollution  prevention,  measures is critically
related to  industrial  profitability  -  firms  are  unlikely to
pursue preventive measures if profits are not demonstrable at the
level of investment and industrial management decisions.


               J, Life Cycle Management Strategies

     The  impact  of  striving  to  achieve  sustainability  on a
manufacturing  ethic  will  be  realised  through  private sector


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 initiatives  and  those  of  International,  nation  and regional
 governments.    With  respect  to  the U.S. EPA this may mean the
 adoption of policies that  move  the  manufacturing  sector  in a.
 direction  that  supports  the  goal of achieving sustainability.
 Given the increasing globalization  of the  marketplace, it would
 not be surprising if in the long term, many of the policy options
 ultimately adopted by the Agency are  in fact  sertewhat global in
 aspect.   In view  of the commonality of long-term sustainability
 objectives,  this  has  lead  to  proposals  [2-4]  that consumer
 products should be fabricated and placed on the market subject to
 an integrated life-cycle  approach  justified 'by environmentally
 sound and efficient management principles.

      In order  to address these proposals a need exists for [3,4]
 consumer products to be fabricated  and  placed  onto  the market
 subject to an integrated life-cycle management approach that aims
 toj
      o minimize energy use/(unit of output)
      o optimize efficiency of natural resources use
      o avoid, minimize,  remove, or replace inherently toxic,
        corrosive, flammable and/or otherwise potentially harmful
        components
      o ensure that in an environmentally sound manner,  discarded
        final products can be reused,  reclaimed,  recycled or
        subjected to resource recovery.

      Measures aimed at understanding the potential use of cleaner
 technologies for  preventing waste generation throughout the  life
 cycle of a product, inclusive of the manufacturing  processt  have
 been  and  are  being  encouraged  [2-4/5,8].   However,  consensus
 concerning procedure for life cycle analysis,  has not been firmly
 established.    More  data  are  needed  in  order  to understand
 possible cost benefits of use of cleaner technologies.


                    K.  Materials Considerations

      Opportunities for employment  of  cleaner  technologies  that
•can lead  to cleaner  production process night be examined within
 the context of.  materials  used  in  production   processes.'   The
 choice of  materials used in manufacturing activities is strongly-
 influenced [2]  by commodity prices or  ease of  transformation in
 manufacturing.

      The need  for engineering  research aimed at development and
 use of cleaner technologies,   processes  and  materials   has  been
 advocated £9]  with the encouragement  that general principles  must
 guide the search for  substitutes for  materials with potentially
 important environmental  effects*   Historic examples  suggest clear
 benefits  of   striving   for   cleaner  technologies,  production
 processes  and   materials*     It  has  been  estimated   that  if
 substitution of lead by  polyethylene  for cable sheathing ftad not
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 taken  place, consumption of lead by AT&T alone might have reached
 a  billion pounds per year [10],


                      L. Regulatory Issues
                                        «
     It has been suggested that in  the private  sector [4], that
 (if  less  than required, by current regulation) the lowest release
 levels attained by the most progressive  firms should  become the
 new  standard for all firms in that sector after some "'reasonable'
 period.    It  is  argued  that   this  approach   can  encourage
 innovation,  sines  firms  seeking  to  %sefc  the  standard'  and
 increase their competitivity would  invest in  cleaner production
 processes to  achieve this goal - environmental performance would
 be directly related  to  competition  (competition-based standard
 setting)  just  as  price, quality, performance, reputatijn, etc*
 are.

     Sectors of the industrial community that  Bdght otherwise be
 regulated, may  voluntarily act  to achieve desired environmental
 goals.  Voluntary agreements are driven,  for example,   fay public
 and    political   pressure,   actions  taken  by  competitors  in
 international markets, or threat of tough  and enforced  laws and
 regulations.    Voluntary  industry agreements or initiatives can
 have a measurable effect on potential environmental impacts.
     Development [5] of the world Market for clean technology
pollution  abatement  eg^iipment • over  the  past  decade has been
largely driven by strong  regulations.   Countries with  the most
stringent environmental  legislation have  taken an early lead in
the  development  of  environmental  technology  and  are leading
exporters [2-5].

     Despite  the  potential  benefits  of  cleaner  technologies
relative to end-of-pipe treatment, their use  has been relatively
limited  due  to  both  market  and regulatory failures! existing
markets for clean technologies  are  perceived  to  be relatively
small;  the  availability  'of  cleaner technologies is limited in
some areas; higher initial capital  costs  may  be  an inhibiting
factor,*  risks  and  uncertainties  are  associated  with cleaner
technologies; manufacturers of  end-of-pipe  control technologies
present  obstacles   to  marketplace   entry;  and  inappropriate
regulations encourage use of end-of-pipe treatment systems [2-5].
           ^
     As  regulatory  stance  can  impact  costs  of  implementing
cleaner  technologies,   this  too  is  an  issue  that  must  be
addressed.  Currently,  two  forms  of  regulatory  style towards
industrial  sector   pollution  sources  predominate  [3,4];  (1)
1 specified' compliance, which,  relies  on  literally interpreted,
formal  precise  and  specific -rules,  tends  towards regulatory
uniformity,  and  often  is  perceived  as   adversarial  by  the
regulated  community?   and  (b)   ^negotiated*  compliance  which
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 emphasizes    reliance   upon  ' general,  "   flexible   guidelines,
 bargaining,   allowance   for    situational  non-uniformities   in
 application of regulations, and  an  accomodative stance toward  the
 regulated community.

      The  specified  compliance   style   is-  reported  [3,4] to be
 fairly  efficient for  implementing   regulations   and establishing
 rapid maximization  of compliance,   but  antagonizes the regulated
 community (which  favors  flexibility  in   a manner  that offers
 advantages over  competitors) and leads  to high compliance costs.
 This  style  favors end-of-pipe   control  technologies  in order to
 meet  standards  and  in  the long  term  is counterproductive;  the
 purchase . .of  end-of"p_lpja_	technolo.gles	depletes  capital  that
 otherwise..cauld  be coauaited fpr,_cleaner production technologies.
 Further progress involving implementation  of cleaner technologies
 may   require  an  alternative  regulatory  * negotiated compliance'
 approach  inclusive  of  credible  environmental  quality targets
 which are specific, raonitorable  and verifiable.

      It  appears  , that   future  progress  aimed  at  achieving
 sustainability  depends  on  utilization  of cleaner  production
 technology and  development of cleaner products [2-5] implemented
 in part through  regulations  based upon   negotiated compliance.
 The development and use of a negotiated  compliance model would be
 through a  systematic consultative   and  decision-Baking procedure
 [4],  involving  all  parties  of  interest  and  would emphasise
 protection of all environmental media through accomplishment of a
 negotiated set  of environmental  objectives, which  if phased in
 over  an period of time might allow  capital  stock  investments with
 long  lifetimes to be made rationally [3,4].

      The  negotiated  compliance  model  is   seen as  a means  to
 encourage industry to move toward C 314 3 *

      o in-process recycling,  re-use, or  recovery
      o changing segments of the productive process itself
     o substituting inputs,  e.g., water-based paints instead of
       solvent-based
     o alteration of the end product itself, e.g., reduction of
       mercury in batteries while still  meeting electrochemical
       requirements


                  M.  Risk and Liability  issues

     The  emergence  of   new   materials,   increased  materials
complexity,  and  an increased  extent of dispersion and diffusion
of many different products gives rise  to increased uncertainties
regarding the  nature of risks and of consequent liability.   Risk
impacts generally  are becoming  more complex,  more diffused and
pore uncertain.
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      It Is  reported [3,4]   that there  is a growing  trend toward
 imposition of  strict liability  for damage  due to environmental
 auses  and   that  uncertainties   in  the  long-term  concerning
 liability limits for products   and  waste  may  catalyze industry
 action  toward  adoption and   deployment, of cleaner  technologies
 with'their attendant advantages, e.g., less  hazardous  emissions,
 less  toxic  components,  etc,     in ' other words, concerns about
 liability may prove to be a strong motivator for clean  production
 owing to risk aversion of investors towards firms whose practices
 may create unwanted or avoidable liabilities.  On the  other hand
 [3,4], small- or. medium  sized  firms may see clean technologies  as
 riskier investments (not ^proven'  technology) and opt for end-o£-
 pipe technology in strict liability situations.


                      N.  Economic Instruments

      Economic instruments can  be used [3,4] to:

      o correct imbalances that distort marketst  e.g., proper
        scarcity pricing  of  natural resources
      o correct failures, e.g.,  use of the environment as a %free'
        dumping ground
      o ensure that public structural projects,  such as  road
        building,  pay their  full environmental costs*
                                         %

      Without  comment concerning   their  desirability,   numerous
 economic instruments can be applied towards accomplishing cleaner
 technology  objectives,   e.g.,  taxes,    subsidies,  user  fees,
 tradeable use rights,  and time.  In some  instances,  an  issue  to
 be  further addressed [e.g.,  through careful examination,  testing,
 and evaluation]  is uncertainty   concerning the  actual  efficiency
 of   various  economic instruments  in  the marketplace.   It has,
 however,   been  reported [2-5-]    that   subsidies    or  perverse
 incentives (e.g.,   depletion allowances,  agricultural production,
 and  cheap  water)   have  markedly  resulted  in environmentally
 damaging  practices.     Sole dependence  upon econumic instruments
 may not go far in  achieving sustainability goals owing  largely  to
-the volatility  of demand   and  the elasticity of demand to prices
 in  differing sectors' [3,4].

      Although time will be  needed  before  the results can be fully
 evaluated,   success  using   economic incentives  has depended upon
 the discounted cash,  flow   cost of  correcting   an environmental
 problem  being  lower over '   time  than  proposed  'charges for
 continuing undesired behavior  [3,4].


                   0.  Competitive Equity Issues

      The ability'  of   an  individual   company  to  deploy cleaner-
 production technologies is  seen  to  depend on

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      o nature of the firm's industrial process
      o size and structure of the firm
      o attitudes and opinions affecting operation of the firm
      o information available to the firm
      o assests available for cleaner production technologies
      o current regulations and their enforcement

      Complaints, have  been  voiced  [3,4] that monetary costs of
 environmental requirements are not  uniform .for  certain sectors,
 small- or medium-sized enterprises, or even for some countries as
 compared to others -  certain  firms  argue  that  their inherent
 competitivity is harmed by means of actions beyond their control,

      One recommendation  is  that,  [3]:    "To  achieve  a "level
 playing field  would reqmre  governments to perform very precise
 studies of the average cost differentials and to fashion policies
 aimed at  cutting any  imbalances while  at the same time tilting
 towards cleaner  production technologies.   In  other words, once
 such  policies  were  in  force,  fay  choosing cleaner production
 technologies, a firm could act to achieve a  level playing field,
 by  not  choosing  such  technologies,  a  firm  might  be.  at  a
 disadvantage, i.e., not receive tax relief, suffer surcharges, or
 whatever  other   financial  incentives   or  disincentives  were
 associated with "the policy*™


           P. Data,•Indicators and Information Transfer

      The Agency must evaluate  its readiness  to provide adequate
 funding over  time in  order to  encourage clean .production.  It
 will be essential that research efforts should be monitorable and
 monitored continuously, with corrective adjustments as needed.

      The U.S.  EPA must  recognize that the public, to the extent
 provided with reliable information  concerning benefits  of clean
 production technologies,  may become a more proactive advocate of
 their siting, deployment, and use.  For comparison purposes, this
.-information base  can be supplemented with information pertaining
 to emissions inventories of existing technologies.

      A recant report [3] indicates that; "Requirements for public
 disclosure  of  industry  information about pollutants generated,
 especially  toxic' chemical  emissions,  have  been  cited  as an
 effective stimulus  to industry waste reduction programmes, often
 involving identification anci use of cleaner • production*   In the
 United States, for example, public reporting of releases of toxic
 contaminants  as  required  by  law  resulted  in  several  major
 companies  announcing  drastic  toxic  waste reduction programmes
 entailing a  variety  of  measures.  including  cleaner production
 technologies."

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      Information transfer  and training  assistance are considered
to be worthwhile undertakings  In response  to business concerns
and   the  desire  to  foster  utilization  of  cleaner production
technologies.
                                           f
      While  industry leaders consider product quality 'issues to be
a driving   force in use of cleaner technologies, producers do not
evidently hold a widespread belief that  eco-labelling of products
significantly  influences  the  development  and  use  of cleaner
production  technologies [3,4].

      There  seems  to  be  general  agreement  that  in  order to
evaluate  progress  towards  achieving sustainability, measurable
indicators  roust be developed.

      An approach  that has  been [3,4]   recoitoiended is  use of an
environmental  auditing  statement-  based  on % generally accepted
environmental   auditing   procedures'   (GAEAP),   analogous  to
% generally  accepted   accounting  procedures'   (GMP)  used  by
auditors in construction of financial statements  found in annual
reports of  corporations.   while, policy could require report of
feedstock use, energy  consumption ,  various  types  of releases,
etc.  in  terms of product sent to market, uniformity of reporting
of certain  outcomes of a firm's auditing process should be [3]:

   "...balanced  against  the  need  to  allow  a  firm's capital
   investment decisions  to rely on its  auditing process in order
   to help  make confidential  business  choices  leading to clean
   production.11

      The overall objective of information management should be to
foster good environmental  performance  and  encourage  firms to
[3,4];

      o invest in production, facilties which minimise, to the
       extent practicable, the energy, raw materials, and
      • releases per unit of output sent  to market
      o maintain these facilities properly
      o compete to improve these production facilities in order to
       impove the state of the art for clean production of
       whatever outputs are to be marketed
      o minimise the use of inherently hazardous substances in
       marketable outputs or as intermediates

      Undoubtedly,  additional  discussions,  study,  and  testing
concerning  a variety  of  issues  (e.g.,   disclosure  required of
industry  and  its  costs  and  benefits) are needed in regard to
CAEAP.  it has been recommended that main categories of a "GAEAP"
auditing  process  in  a  manufacturing sector firm could include
£3,4]:
                              -IS-

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     o environmental expertise and awareness
     o corporate environmental policy and procedures
     o knowledge of applicable laws, regulations, and government
       inspection and enforcement approaches
     o internal good housekeeping audits..
     o compliance check audits (compliance with existing rules)
     o community outreach and awareness and preparedness for
       emergencies at local level
     o release reduction/minimisation per unit of product sent to
       market and recovery of these assets
     o training of managers and internal auditors
     o involvement of the labour force as an active participant
     o assessment of opportunities to implement technologies to
       cut materials, energy, and releases per unit of product
       sent to market  .
     o assessment of products sent to narket for their potential
       effect on man and/or the environment
     o reporting to corporate officers
     o reporting to stockholders and/or the public


                Q. Encouraging Cleaner Production

     In  its  report,  Smterjoiaent  Policy  Options  to  Encourage
Cleaner  Production   and  Products   j,n  the   1990s,  the  OECD
recommended  propositions  for  encouraging  the  development and
deployment of clean production [3]:

   "countries  should  move  toward  developing  a complex policy
   approach [plan] that should include"an agreed and reproducible
   means  to  measure  the  state  of the environment and natural
   resources  base,   identify  potential  and  real   sources  of
   degradation,  and monitor these parameters regularly.

   Information obtained  from monitoring  and auditing activities
   of a firm can encourage clean production.

   The negotiated compliance model of regulations is likely to be
   better at  promoting cleaner  production than  is the enforced
   compliance model.

   Environmental goals could be implemented such that the time to
   achieve them is negotiated with the regulatory community*

   There  needs   to  be  an  agreed upon and stable mechanism for
   measuring  and  reviewing  the   efforts  of   the  regulatory
   approaches'since   regulatory design is neither perfect nor can
   regulations adjust themselves to new events and situations.

   In order to promote clean production,   direct tax concessions,
   accelerated   depreciation,   and  subsidies  for  end-of-pipe
   controls should be phased out fairly rapidly.


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    When cleaner production technologies and methods  are proposed
    as  part  of  a  siting  or  licensing procedure, the time for
    granting  or  denying  approval  should  be  limited  to  soise
    reasonable value. •
                                           t
    Careful application   of economic  tools can  fee used to  * level
    the playing' field.

    Imposition of strict  and  joint  liability  for environmental
    damage can be a very strong motivator for clean production.

    In addition  to funds  directed at manufacturing sectors,  more
    funds should be directed  at how  cleaner technologies  can be
    implement'^ in the agricultural and transport sectors*

    A  steady  campaign'  to  transfer  information  indicating the
    virtues of preventive environmental  management to  the  public
    (via schools,  news  media,  industry circulars, etc.) should be
    established,

    It  is  desirable   to   establish   'hot-lines'   to provide
    information regarding cleaner production technologies.

    Information about environmental and  natural resources  issues
    should . be  introduced  into  the  curricula   of  educational
    establishments at all levels from elementary to university.

    Governments   should   examine   procurement   practices   and
    requirements to ensure that  unintended  impediments  to clean
    production  are  eliminated  and that purchasing decisions and
    requirements are designed ' to  encourage  cleaner technologies
    and products."

      Based  on  the  above  discussions,  and  in  a  manner that
 complements actions  proposed elsewhere,  tne EPA  chould seefc to
 foster any  or all  of  the follc  .ng recently t-iconmended apti<~.is
 that support development  and  deployment,  of  cleaner production
•technologies [3,4];

    Whatever negotiated  vision, of sustainability is established,
    it must be measurable according to some agreed upon basis  and
    applied to clearly identified environmental indicators of
    progress.

    The Agency should cooperate to ensure that near- and long-tern
    plans for the economy should incorporate reasonable time—"
    frames and goals for achieving sustainability,

    Means should be available to identify any *new* environmental
    problems that may emerge.

                                     s
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 Milestones and a time-table for achieving sustainablity are
 needed.

 A regulatory mechanism could be delayed that favors cleaner
 production technologies over end-of-pipe solutions.

 Existing economic incentives that favor end~Gf-pipe solutions
 over cleaner production technologies could be eliminated and
 those that promote development and deployment of cleaner-
 production technologies could be established and implemented.

 The Agency could seek to foster the development and promote
 adoption of generally accepted environmental auditing
 procedures that both allow firms to retain some auditing
 information as confidential and maximize chances of firias
 choosing cleaner production technologies in investment
 decisions.

 In sotne specific instances, the 'Agency could seek to cooperate
. with other governments in development of consensus approaches
 to cost effectively attack problems.

 Mechanisms are needed to engage both the regulated community
 and other * stakeholders' in negotiating approaches aimed at
 specific problems*

 voluntary agreements could be encouraged where feasible.

 Encourage most of the regulated community to perform better
 than required, since %best performance' might eventually be
 taken as a general standard -thus giving the firm -that
 achieves it first a competitive boost.

 Specialised approaches aimed at meeting the needs of small-
 and medium sized enterprises may be advisable.

 Usa of a regular -sans to monitor progress and report results
 to the public,

 Enforcement of liability laws for environmental damage.

 A strong,  stable mechanism for regulatory review and,  when
 needed,  to initiated regulatory reform.

 Regular use of information mechanisms to inform tne public
 about environmental risks and promote favorable public
 opinion concerning cleaner production technologies.

 Incorporation  of cleaner production technology  concepts  into
 educational programs at all levels of education.

 Employment of  means to favor demand for cleaner products to

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   the extent practicable.

   Judicious use of economic instruments to achieve a llevel
   playing field'.

   Proactive research and development concerning cleaner
   production technologies.

   If possible, promotion of life-cycle costing for all capital
   cost allocations*

   Removal of government impediments to development and
   deployment of cleaner production technologies.

   Government procurement initiatives that promote cleaner
   production technologies and products.

   Support for technology transfer mechanisms to stimulate
   utilization of cleaner production technologies in the U.S.
   and abroad.
                          R. References
                               *

[1]  World Commission on Environment and Development, 0_ur,
     Coittmon Future (Oxford University Press, Oxford, 1987).

[2]  T,  Jackson (Editor) CjLean Productip_n_Strateg:ies
     iprefage^l, Stockholm Environnent Institute, Lewis
     Publishers, London (1993); (a) [Chapter 6] Hazardous
     Futures.

[3]  QECD, Government Policy Options to Encourage Cleaner
     Production and Products in the 1990s. QCDE/GE(92)127,
     Organization for Economic Cooperation' and Development,
     2 rue Andre Pascal, 75775 Paris CEDEX IS, France (1992).

[4]  H.  Yakowitz and R. Hanaer, "Policy Options - Encouraging
     Cleaner Production in the 1990s," Im T, Jackson (Editor)
     Clean Production Strategies.  Stockholm Environment
     Institute, Lewis Publishers,  London (1993).

[5]  OECD, The State of the EnvirQittBeni;t OECO (Paris, 1991).

[6]  U.S.  EPA, Environmental Investments: The Cost: of a Clean
     Environment., Washington, D,C. (1990).

     H.  Dorfman, A. White,  M, Becker and T. Jackson,
     ^Profiting from Pollution Prevention, In; T. Jackson
     (Editor) Clean production _Strategiesf Stockholm
     Environment Institute, Lewis  Publishers, London (1993).

                              Shaub

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[8]  L. Baas, H. Hoffman, D. Huisingh, J, Huisingh, P. Koppert
     and F. Neumann, Prjafces-tion of.tne___North Sea' Time for
     Clean Production. Erasmus Centre for Environmental
     Studies, Erasmus University, Rotterdam (1990).

[9]  Sheldon K. Friedlander, "Environmental Issues:
     Implications for Engineering Design and Education," In:
     Technology and Environment. J, Ausubel and H. Sladovich
     (Editors), National Academy Press, Washington, D.C.
     (1989).

[10] J.H. Ausubel, "Regularities in Technological Development:
     An Environmental View,,1* In: Technology and Environment,
     J. Ausubel and H, Sladovich (Editors), National Academy
     Press, Washington, D.C. (1989), p. 70,
                               Shaub

                               -20-

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               SOCIETAL  PRESSURES FOR THE REDEVELOPMENT
                OF  INDUSTRIAL SITES AND  REMEDIATED LAND
                             Prepared for
               Futures Project Report  by  the  Environmental
           Engineering  Committee  (EEC)  of  the  Science  Advisory
            Board  (SAB),  U.S.  Environmental Protection  Agency
A-    GLOBAL GO AX

       The U,S, Environmental Protection Agency  (U.S. EPA) is primarily responsible
for developing technical and regulatory schemes for protecting human health and
the environment.  During the past fifteen years, the Agency has orchestrated efforts
to identify and mitigate both environmental and human health risks. With all other
factors held constant, the potential for environmental and human health damages is
directly proportional to the level of exposure to suessors.  Consequently, the Agency
has justifiably considered  exposure assessment  as  an  important element of  risk
assessment.
      The potential exposure of each segment of  the U.S. population to undesirable
environmental stressors is  location-specific.   Therefore, the  rate of growth  and
spatial distribution of population within a given region have indirect but profound
influences  on. human and environmental exposure to various sources of pollutants,
The rate of change and distribution pattern 01 ^upulation depeaa ^n a host of socio-
economic  factors, the interactions of which change dynamically with time.  A deep
appreciation of the relationships between socio-economic factors and environmental
stress factors, the probable  future bounds for the variability of these relationships,
and the trend of evolution  of environmental control technologies will enable the
Agency to develop appropriate schemes for mitigating risk*
      The  scarcity and high cost of land in urban areas, coupled with increasing
urbanization of  the U.S.  population, will increase the pressure to redevelop
abandoned industrial sites and remediated land. Within the next thirty years, one of
the following scenarios is likely to develop in metropolitan areas.
                              Inyang and Preslo

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        •   Increase in the population density of suburban, centers and greener sites at
           the expense of the proximal inner city areas.
        *   Retention of large  populations by  inner city areas with, only moderate
           increases in the population of suburban areas.

       The occurrence of any  of these two scenarios will result in the scarcity of land
 within and/or near metropolitan centers.  Consequently, many of the abandoned
 industrial sites  and remediated  land which are presently fallow due to real or
 perceived risks and liability will likely be developed. The interactions of the driving
 factors for site redevelopment in both scenarios are largely different although there
 are some  common elements.  The driving factors  include  prospective increase in
 profits to site developers, advances in  site  remediation technology, population
 increase,  socio-economic trade-offs, and increase in the magnitude of liability risk
 acceptable to developers and ouyers as land scarcity drives up housing costs. The U.S.
 EPA needs to develop proactive schemes to address both the policy  and technical
 issues that will attend this category of land recycling.
B,     &ACKGRQUND OM SITE  INVENTORY

       There is an exceedingly large number of contaminated sites in the United
States,  GAO (1993a) estimates that 3,400 facilities out of about 4,300 in the RCRA
universe may  be releasing waste into the environment. The Department of Defense
(DOD) controls about 10,924 active hazardous waste sites at more than 1,800 domestic
military installations in the United States (Sidel, 1993).  Table 1 (Chu et a!., 1992)
shows the  distribution  of 7,150 former military sites _by state of location.   A
component of the  comprehensive plan of the DOD Installation Restoration Program
(IRP)  is the  redevelopment of remediated sites, GAO (1993b) reports that  the U.S.
Department of Energy (UJ. DOE)  estimates that it may close about 1,700 facilities
within the next 30 years.  Presently, the US DOE has approximately 4,000 sites to
remediate, and it is also estimated that more than 250,000 underground storage tank
sites presently need to be cleaned up (HMCRl, 1993). Briefing statements released by
U.S. EPA (1991b) indicated tliat its Superfund Program has evaluated 31,000 sites out of
a total universe that could exceed 50,000. Between 250 and 300 of these sites require
remedial actions each year,

                               Iflyang and Preslo
                                     -2-

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       In addition  to the sites mentioned above, several former industrial sites are
 located in metropolitan areas.  In many cases, the businesses that once occupied them
 have left for other regions that may have better economic prospects. In some cases,
 these businesses operated outdated industrial plants and could not meet pollutant
 emission requirements of sensitive, highly populated areas (e.g.,  the  Los  Angeles
 Basin).
       Adequate data collection on the proximity of abandoned and remediated sites to
 metropolitan areas has not been conducted by appropriate agencies. Nevertheless, ii
 is generally observed that most industrial cities in the northern  region of the United
 States and some  southern and western  cities have very high concentrations of
 abandoned sites.  These cities include Chicago, Boston,  Detroit, Philadelphia,
 Washington, D.C.,  Pittsburgh,  New Orleans, Miami, Los Angeles, and smaller cities
 such  as Omaha, Fargo and Des Moines,  It is a fair assumption that more than 9096 of
 the leaking underground storage tank sites that will be remediated are located within
 metropolitan  areas.   There is  a  high probability that the redevelopment of a
 significant proportion of the different categories of sites discussed above will become
 very  attractive within the next thirty years.  Among the structures that will be built
 on such sites are  residential houses, parking garages, warehouses, tunnels, roadways,
 monuments and office buildings.
C.    SCENARIOS

      In Scenario 1, inner city dwellers will migrate to suburban areas and greener
sites.--The driving factors for  this scenario are infrastructure decay in inner city
areas, increase in crime rate that may correspond with higher unemployment rates
in city centers, and greater availability of white-collar employment opportunities in
city suburbs.  In  essence,  this scenario hinges on the justifiable assumption that the
middle class, which, has the luxury of means, wiU flee the inner city areas to greener
pastures.  The capability to flee undesirable conditions will determine the population
zonation pattern  envisaged in Scenario 1,  The most probable consequences of this
scenario are itemfeed below.

      *  EquiEbration of  population densities over large regional areas.
      *  Decrease in the tax base of inner cities as they retain residents that  are
         mostly within, the low income bracket.
                                        aad  Preslo
                                      -3-

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                   L                                J
Table 1.  Inventory of formerly used defense sites (Cfau et al. 1992).
NUMBER OF
STATE SITES STATE
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
ndiana
owa
Cansas
Kentucky
Louisiana
vfaine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri

130
547
182
91
847
97
35
29
m
518
101
378
66
72
69
35
119
24
73
97
74
233
138
63
132
85

Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Territories
TOTAL
NUMBER OF
SITES
106
105
43
26
122
226
268
94
67
82
87
123
no
56
100
92
S3
323
34
13
172
284
- 23
67
70
139
7,150 sites
                        layang and Preslo
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        •  Attraction of coitage industries to inner cities will  occur due  to  new
          incentives that will be provided by city administrators.  These industries
          will need  space for facilities and, consequently, fcinner industrial sites and
          remediated land will become prime redevelopment targets.
        *  Land will also  become scarce and  expensive  iii  suburban areas,  in
          consistence with increased demand that wUl result from the influx of new
          residents.

       In Scenario 2, the population of inner cities will increase excessively while
 the suburbs experience only moderate population increases.  The driving forces for
 this scenario are high levels  of immigration and high birth  rate  of population
 segments in the low income bracket.  These new residents  will initially prefer to
 settle  in large  urban centers, where unskilled labor is still in high demand relative
 to rural and suburban areas-  Also, it is generally believed that ethnic ties to earlier
 immigrants to  U.S. cities promote the congregation of new immigrants in the inner
 cities.  Despite  the expected increase in the population of inner cities, the mobility of
 residents to the suburbs in reasonably large numbers could be impeded by their lack
 of white-collar  skill? and financial resources.  This scenario is likely  to produce the
 following consequences within the next 30 years.

       « A population imbalance in favor of inner city areas in large metropolitan
         areas.
       • Socio-economic and environmental pressures will force  city planning
         units  of metropolitan governments to seek novel ways of maximizing the
         use of central urban space, including former industrial sites.
       •  Developers will capitalize on the exceedingly high demand for housing
         business centers, and perhaps light industrial facilities in central  urban
         areas  by  purchasing and redeveloping  former  industrial  sites  and
         remediated/contaminated land.
       »  Increased  utilization  of underground space in areas of high population
         density,

      The two  scenarios that are discussed in the preceding paragraphs will each
promote the redevelopment of abandoned industrial sites and other sites that are
presently classified  as being contaminated.  However, the  interactions among the
significant  driving 'factors  discussed  in Section D are  largely different.  An
                                 Inyang and Preslo
                                     -5-

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 appreciation  of these factors is a requirement for the development of adequate
 schemes to respond to policy and technological needs.
 D.    MAJOR  DRIVING FACTORS FOR 4ANp  1EDEVJLQPMENT

       The major driving factors for  land redevelopment are population increase,
 socio-economic trade-offs,  legal liability and risk acceptability, and advances  in
 technology,
 1*     Pogui^Qg Increase
       The total population of the United States, as of August 1, 1993, is estimated by
 the Census Bureau (1993a) at 258,479,000. This population represents a 3.7 percent
 increase over the 1980 estimate by the same Bureau,  The middle series projection
 (Census Bureau, 1993b) indicates that the U.S. population will increase by 50 percent
 from about 255 million in 1992 to 383 million by the year  2050.  This is based on
 assumptions of 2,1  births per woman,  an average  life expectancy of 82,1 years by
 2050, and an annual net immigration of 880,000.  The lowest series estimate for the
 year 2030,  the time frame which corresponds reasonably  to the  Futures Project
 analysis period, is 287 million. This is based on assumptions of 1.8 births per woman,
 an average life expectancy of 75.3 years, and an annual net immigration of 350,000.
      Estimates by the United Nations (1985) show that in 1980, only 15.8 percent of
 the global population resided in cities  of 4 million and above. By the year 2025,  about
 24.5 percent of the global population will reside in megtcities.   Ithin  our context,
 each megacity comprises  the inner city and the suburbs.  Population  distribution
 data (Census Bureau, 1993c) indicate  that out of a total U.S. population of about  249
 million in 1990, 78.8 million and 79.4 million resided in central urban and urban
 fringes (comparable to suburbs),  respectively.  Although future urbanization rates
 are expected to be higher in the developing countries than in the United States, even
 moderate influx of new residents  into metropolitan areas and high birth rates of
 people who reside in those areas are  likely to cause acute scarcity of urban space in
most cities. •
      It should be noted that the  population wiE not necessarily increase in all U.S.
 cities.  Furthermore, the spatial distribution of population within each metropolitan
 area (conglomerated cities and suburbs)  is  a more relevant parameter than  the
 population itself, to  the two scenarios  outlined above. In Table 2. data for some very
                               Inyang and  Preslo
                                     -6-

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 large  U.S. cities indicate average annual population growth rates that range from
 0,2% for Pittsburgh, Pennsylvania to 3,33% for Phoenix, Arizona.  In Scenario 1, it is
 envisaged that for most U.S. cities, large segments of the city" 'population will move to
 suburbs and other lower density areas within the metropolitan areas,
       The resulting spatial zonation pattern of population will vary from pockets of
 affluence dispersed within urban blight to concentric rings in which  the segments
 with longer radii are inhabited by residents  with  better economic resources*  New
 York represents the former, and Minneapolis exemplifies the latter. Essentially,  the
 suburbs and  cleaner enclaves within metropolitan areas will need land for both
 residential and business real estate, a situation that will increase the scarcity and cost
 of land.   A  direct consequence will be an increase in the  pressure for the
 redevelopment  of  the increasing number of brown sites in the suburbs.   Also,
 Scenario t will eventually lead to the redevelopment of abandoned and remediated
 sites even in the inner city areas that may experience significant population flight,
      In Scenario 2, the  inner, cities will retain larger segments of the projected
 increases in population.  This  situation could be promoted by improvements in the
 implementation of  socio-economic schemes  such as  affordable housing,
 environmental sanitation, crime control and underground space development. The
 enhancement of the desirability  of  residing in city  core areas will  increase the
 demand for, and costs of real estate dramatically. Even in the absence of this factor,
 new immigrants are likely to  be trapped in  inner city areas (for example, South
Central and East Los Angeles) for a number of years for socio-economic reasons. The
immigration rate to which reference  is made above, will sustain high population
densities  in  city cores  thereby  building pressure  for the redevelopment  of
abandoned sites.  In the scenario, the lower density of population in the suburbs may
increase the attractiveness of the latter sites for new industrial plants, as exemplified
by present-day Oklahoma City  and Milwaukee.  In Scenario 2, this  spatial model will
become more ubiquitous.

                     T*rade-;pjfs
      Market forces will play* a significant  role in land redevelopment in urban
areas.  Construction and industrial activities often effect immediate impacts on
employment rates.  City planners may be inclined to weigh employment goals against
potential environmental  concerns.   For private developers, zoning  and  tax
concessions,  which  could  be  the  instruments of enticement,  could make  the
redevelopment of former industrial sites attractive. The high rates of housing and
                                   Inyang and Preslo
                                     -7-

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 real estate development in U.S. cities relative to available space will promote this type
 of land recycling. Data presented in Table 2 show 1992 housing and population data
 compiled from information gathered by UI1 (1993) for sojme major U.S. cities. The
 number of new housing units built in 1992 exceeded 20,000 in some U.S.' cities.  While
 these data do not show housing imbalance in favor of inner cities, it is fair to assume
 that  increase  in housing and real estate development will translate to the
 development of brown sites in most parts of cities owing to the finite number  of
 regular sites available.
       Redevelopment  activities usually revitalize industries  such  as those  in
 construction, insurance, hardware sales, and  road construction.   Construction
 activities are generally  labor-intensive and thus can provide employment for a large
 number  of laborers.  Municipal  governments will continue to cherish increases  in
 construction  activities  because  the  latter can reduce unemployment  rates.
 Interestingly,  Table 1  shows that California has the highest number of reclamable
 military  sites.   California also has  very  high unemployment rates.  The expected
 translation of this situation to  many regional cities of the United States will constrain
 municipal governments to provide incentives to developers in schemes constructed
 to reduce unemployment in inner city areas.  Incentives will most likely be highest
 for the development of abandoned industrial sites.  This is particularly likely in
 Scenario I which involves the flight of manufacturers and economically buoyant
 persons to the suburbs  or richer city enclaves.  Tax breaks constitute an example of
 an incentive which tiunkipal governments wiE use to arrest the flight of companies
 and attract new companies and residents.  These schemes imply  that  space will
 become scarce again, leading to the dev-lopm*1*^ of most availabH  spaces.
    -  Incidentally, most major cities in  the United States are currently initiating
 urban infrastructure improvement projects.  One of the important elements of these
plans is the attraction  of manufacturing companies, most of which  usually need
considerable space for plants and offices.  One of such cities is Detroit, Michigan.  In
addition, the  current U.S. Administration plans to develop "enterprise zones" in inner
city areas.   The President's Council on  Sustainable Development (SCTF, 1993) is
currently assessing options for promoting sustainable reuse of abandoned industrial
sites, dosed military bases and other government property. These options include
changes in zoning codes and regulations, lending and insurance practices, and
 future liability responsibility.
      Economic  considerations have already made California's Abandoned Site
Project management team consider contaminated site redevelopment as a viable
                                 Inyang and Preslo
                                     -8-

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 option in cases that incorporate appropriate schemes to mitigate human health risks.
 Anderson and Hatayama (1988) describe plans  to  redevelop  a Bethlehem  Steel
 Company site in South San  Francisco,  and  a Hercules Powder Company Site in
 Hercules, both in California,  A number of other case-histories in the United States
 are described by U.S.  EPA (1986).   The locations,  characteristics  and  post-
 redevelopment ianduse of some of these sites are presented in Table 3.  Within the
 next thirty years, this practice will become widespread  in  the United States, In
 conformity with the trend in European countries (particularly, Britain),  where  land
 is very scarce in metropolitan areas,

 3,     Legal liability apd Risjc .Acceptability
       Currently,  liability concerns discourage potential developers from  purchasing
 contaminated land for subsequent redevelopment.  Zimmerman (1992) reports  that
 numerous court decisions have supported laws that hold purchasers of contaminated
 property liable  for incidents of contamination  regardless of whether  or  not
 environmental problems stem from prior use of such properties by previous owners.
 Potential developers are currently cautious about acquiring contaminated property
 because  commercial general liability (CGL) insurance  policies  which  they hold,
 contain exclusion clauses  for damage from such pollution incidents.  Some states
 have enacted legislation (Greenthal  and Millspaugh,  1988), exemplified by New
 Jersey's  Environmental  Cleanup Responsibility Act  (ECRA), which  outlaws  the
 transfer  of contaminated property.  In  most other  states, developers can purchase
 contaminated property and assume the associated liability risks.  In  a discussion of
 this issae, M:Gregor (1988) note- that potential developers could   onsider deducting
cleanup costs from the sale price of properties during the  negotiation  stage.
      The liability concerns  which  currently  impede  the  transfer  and
 redevelopment of former industrial sites and other types of contaminated land, may
wane significantly within the next thirty years.  There are  some indicators that
 changes  in regulatory climate will favor  land redevelopment. As reported in the
 Inside EPA (1993), some Congressional members have contemplated the developement
of a Superfund Reauthorization bill  that will include regulatory support for  the
redevelopment  of  urban industrial sites.  The U.S.  Supreme  Court  sided recently
(Schulte,  1993) with a South Carolina businessman against  the State of South Carolina
in an  environment-related litigation over  his right to  determine  the  beneficial
Ianduse for bis property.
                                 Inyatig and Preslo
                                    -9-

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Table 2,     Population and housing data for 1992 for some major U.S. cities.
             (compiled from UU, 1993),
        crnr
 Atlanta, GA
 Chicago, IL
 Columbus, OH
 Detroit, MI
 Jacksonville, Fl_
 Miami, FL
 Nashville, TN
 New York, NY
 Philadelphia, PA
 Pittsburgh,  PA
 Washington, DC
 Dallas/Ft Worth, TX
 Houston, TX
 Los Angeies, CA
 3hoenix, AZ
St, Louis, MO
San Francisco, CA
Seattle, WA
POPULATION



1992
(Thousands)
2,932.0
7,400.0
1,418.2
4,361, Z
935.0
1,993.8
1,028.0
7,388.5
4,91 S.6
2,322.2
4.0T4.0
4.04Z.6
3,900.0
9,087.0
2,236.0
2,452.0
3,786.0
2,888.4
Average
Annual
Growth
1980-92
(Percent)
2.70
0.30
1,10
0.20
2.20
1.72
1.60
0.40
0,30
0.20
1.90
2.72
1,70
1.60
3J3
0.26
1.30
Z.1Q
199Z HOUSING DATA
Number
of Units
(Thousands^
1,216.0
-
577.3
1,725.4
3S6.5
790,7
233.2
2,986,3
1,939.4
960.0
1,597.0
1,686.6
1,546.7
3,221.2
836.4
1,025.2
1,546.1
1,194.4
New Units
in 1992
(Thousands)
36.0
24. 2
8.4
14.7
5,8
8.0
1.9
2.4
12.3
5.4
2,1.9
20.8
18.8
11.3
17.7
5.3
8.9
26.4
                               Inyang and Preslo
                                      -10-

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   Table 3:   Characteristics of some redeveloped sites in the United States.
      Site Owner (or Name)
           and Location
                                   Residual or Original
                                     Contamination
       Principal Exposure
      Reduction  Measure
      Post-Development
          Land Use
                                                                                                                                       References
   Boucher Landfill site
   Huntington ieach, California
   U.SA.
                              etroteum refinery wastes
                              benzene, tutuene. etc,)
Excavation of highly
contaminated material, prior
 o buildnflconstruction
 iestdentW building (ZS8
unit*)
Andermon and Hatayarrm
 368
    letKlehem
    ite, South Sim Francisco
   California, U.S.A.
                             Heavy metals (zinc and
                             chromium,), acids and PCS.
Excavation, ttewatering, and a
 -foot toil cover.
 2-story office
Anderson and Hat ay Mia
1988
   Hercules Powder Company
      , Hercules, California,
   U.&A.
                             Heavy met al> (Lead and zinc)
                              nd organic *xplo»ivpa
          of the primary
source
 eaiduum,
Single-family houses, park>,
  iodi, and pltcyflround* on
an extensive area
Anderson and Hatayama
19B&
B.
H*
O
 .dlog Terrace, Gfdler
Development Company,
Yorba Unda, California, US, A.
                                 Lead, artenlc and aliphatic and
                                 aromatic hydrocarbon*.
Excavation prior to
construction.
 iesidentiat condominium*
(224 unit*)
U.S. EPA, 1936.
   Annapolis Road sites,
   Baltimore. Maryland, U.S.A.
                              Organic advents, zirconium,
                              corrosive Ii<|uids, and catirrtiurn.
 Removal of drums, pumping of
waste liquids and oroundwat<*,
and excavation of debris prior to
construction
Office building that houses
the Maryland Department of
Health and a neighborhood park
U.S.EPA.  1986
   Miami Drum sil«,
   Miami, Florida. U.S.A.
                              Spilli containing phenols, heavy
                              metal) t oik and grease, and
                              pestteldea.
Excavation of Nghfy contaminated
debrti, in situ treatment of
groundwater, and non-removal
of marginally contaminated geo-
matefiah.
Maintenance faaiity for the
Dade County Transit
Authority
U.S.EPA.  198$
    Gas Works Park, Seattle,
    Seattle, Washington, US A.
                                                  porycydic
                              aromatlcs 
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       Recently, the State House of Pennsylvania passed two bills aimed at promoting
 the redevelopment of abandoned sites.  In one of the bills," legislators seek to limit
 liability for purchasers  of former  industrial sites.  The  .second bill would  limit
 environmental liability for development agencies that provide loans to developers of
 abandoned properties.   The Pennsylvania Senate is considering other bills which
 would  exempt candidate sites from stringent cleanup specifications and provide
 grants  for clean  up of industrial sites, respectively.  In general, the legal liability
 climate is changing in favor of site redevelopment.
 4.     Advance^ in Jechnojogy
       It has not been  possible to attain desirable  cleanup standards in a cost-
 effective manner  at many contaminated sites.  For sites  at which groundwater is
 contaminated, pump-and-treat schemes  are most  often used  in  remediation.
 Unfortunately, there is  a limitation on the level to which  a site can be cleaned up
 using technologies that  are based on the removal of contaminants by hydraulic
 pressure differential  Other cleanup technologies such as  electrokinetics,  steam
 flushing and surfactant-enhanced soil washing have been proven to be adequate
 only in bench-scale studies and controlled field experiments. Federal regulations for
 site remediation tend to promote the implementation of "best available technology",
 most of which are very new.  Residual  concentrations  which  may remain at
 prospective sites for redevelopment are still of concern to developers and potential
 owners, • Long-term exposure of housing residents to residual contaminants is still a
 major concern even if such a concern is not supported by exposure assessments and
 toxicqlogical evidence.   Given the current  regulatory  climate and  available
 technology,  perfect  cleanup is not achievable,  thus  a  combination of  risk
 management and  remedial technology  management should  be employed in the
 redevelopment land for beneficial uses.
      Contaminant cleanup technologies are evolving at a rapid enough pace to lay
 credence on the assumption that within  the next thirty years, it wiE be possible to
 remove residual concentrations of contaminants cost-effectively. This implies that at
 a large number of sites,  the post-cleanup  risk assessments wiE indicate  potential
 human  exposures  that are low enough to support the redevelopment of the sites
concerned.  It is reasonable  to expect  that in thirty years, the fear  factor will
dissipate substantially,  in response to improvements in public education  and
 awareness on environmental issues.
                                 Inyang  and  Preslo
                                    -12-

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       Urban cores and suburbs will be linked by high  speed transportation within
 the next few decades.  This situation will follow the trend set by Japan in response to
 high urban population. It will be possible for residents of inriipr city areas to work in
 far-flung places and vice-versa.  This development is likely to favor Scenario 2. A
 large segment of the city  population will prefer to reside where  social services are
 plentiful but commute to work in the suburbs and beyond. A plausible argument can
 be made to support the contrary:  in  the sense that computer information systems
 will advance to the  extent that wherever one lives, social services will be available.
 However, the affordability factor and  the desirability of ethnic community support
 systems will  place  constraints on deviations from Scenario 2,  Essentially,  the
 expected  implementation  of  large-scale mass  transit technologies exemplified by
 high speed magnetically levitated trains  (MAGLEV), will  indirectly enhance  the
 conditions that characterize Scenario 2.
E.    DESIRABLE SITUATIO   ATD
      The occurrence of either of the two scenarios discussed above will result in
increased pressure for the  redevelopment of former industrial sites and remediated
land. It is desirable that schemes be developed for monitoring the evolution of socio-
economic and technological conditions, and developing  programs  to forestall
environmental auad human health problems that may arise.
      The redevelopment of  brown  sites has  both  economic  and indirect
environmental benefits.  In the proceeding sections, the  driving  factors which
include socio-economic advantages from the  perspectives  of the state and  local
agencies, and developers have been discussed.  In environmental protection terms, it
is worthy  to note that the development of remediated sites (brown fields) implies the
conservation of dean sites (green fields), a situation that is desirable with respect to
overall public interest.  It is within U.S.  EPA's mission to ensure that redevelopment
is implemented with safeguards against  environmental and human health damage.
Toward this end, the existence of the following situations within the next thirty years
is desirable.

      •  Availability of data on population and spatial growth patterns of U.S. cities.
      *  Availability of data on the number and distribution of both abandoned and
         operating industrial sites relative to large population centers*
                                      and  Preslo
                                    -13-

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       •  Availability of centralized information resources on liability laws and
          trends relevant to site redevelopment.
       •  Existence of comprehensive schemes  for integrating  site redevelopment
          into city and regional plans.
       *  Existence of federal policies with adequate latitude for local jurisdictional
          controls on redevelopment,
       *  Availability of technical schemes and  research data for addressing issues
          such as residual contaminant migration, exposure and risk assessments for
          site redevelopment,  relevant cleanup standards, foundation systems in
          residually  contaminated  land,  occupational  health and safety,  and
          environmental equity.
       •  Availability  of expertise within U.S. EPA to address these issues.

       Unfortunately,  these  desirable situations  will not evolve  unless the leading
 environmental control agency, the U.S.  EPA takes the initiative to develop internal
 programs and form appropriate partnerships for addressing the  issues discussed in
 the next section.
 F,   ASSpgSMEN'L OF JO.S. EPA^S  REAOfNESS.  AKDRECOMMENDATIONS

      Some elements of U.S.  EPA's  programs are adaptable to schemes  that can
 address some aspects of the issue of industrial and contaminated site development.
 However, in general,  available schemes  are  inadequate for  i  * \eving the  goals
 outlined M Section £,  U.S. EPA's readiness in key policy and technical areas are
 briefly  discussed  below.   Recommendations are also  made on  approaches  to
 developing and implementing schemes to address relevant issues.
1.     Para ^feeds on Siye Inventory and gpatia| Distribution
      U.S. EPA (1986) documented some case-histories involving site redevelopment
in the United  States.  Subsequently, this issue has gone forward without adequate
tracking by the Agency.  In addition, information on important  parameters such as
the total number of industrial sites in cities and their spatial distribution within such
cities is lacking.  Some military sites which are candidate sites for redevelopment
may currently be exempt from U,S. EPA regulations. Nevertheless, information needs
                              Inyang and Freslo

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 to be collected because a central repository for this information, is needed.  With
 respect to data collection, the recommendations outlined below are made to improve
 U.S. EPA's readiness.
                                                       ?

      *  Establishment of alliance with municipal  governments to  acquire and
         analyze location and site characterization data on abandoned industrial and
         closed military sites on a continuing basis.
      *  Use of Geographic Information Systems  (GIS)  to reference  the location of
         remediated and industrial sites relative to large population centers.
      •  Compilation and storage of data on site-specific problems, risk management
         decisions and liability laws that are relevant to the redevelopment of sites.
         Collaboration with the States and local authorities is essential.
2*    Site RedeyeJogmern: and City/Regional Planning
      The U.S, EPA has hitherto played no role in providing guidance to local
governments and the states in the area of planning although those plans, when
implemented, have significant bearing on environmental pollution  and  hence,
human health.  At a minimum, an advisory role by the Agency on City Planning and
Zoning activities may enhance the implementation of reasonably uniform policies
on site redevelopment across the country.  This participation would also indirectly
benefit other aspects of the  Agency's  budding programs for local communities,
exemplified by  Environmental  Equity,   In  this  regard,  the   following
recommendations are made,

      *  Development of schemes  to  help local agencies in  the  formulation  of
         zoning regulations  to  protect  environmentally sensitive  sites from
         excessive redevelopment.
      *  Involvement of the Agency in sustainable development forums that address
         the interrelationships among site redevelopment, urban renewal, legal
         liability,  risk  management,  employment and transportation system
         efficiency.
                            Inyang  and Preslo
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 3.     ExpQsure_Assgssment and Site Cleanup Lgyets
        Currently, cleanup  levels for contaminated sites vary from  one state to
 another.  The issue of "how clean is clean?" has still not bete settled yet.  Existing
 cleanup standards  have been  largely developed without consideration of future
 landuse and  risk  management.   The  expected increase  in  remediated  land
 redevelopment is a compeEing  argument for the integration of future landuse into
 contaminant cleanup standards for  land.  For sites that are candidates for future
 development, such cleanup standards should be credibly tied to the numerical regime
 of the  risk of  expo'-r* of future residents  or workers  to residual  levels  of
 contaminants.  Since the risk level depends partly on the design conservatism of yet-
 to-be-determined structural configurations, exact apriori analyses are not attainable.
 Nevertheless, information on the numerical regime of health risk will suffice as the
 basis for specifying relevant cleanup standards.
       Both deterministic and probabilistic methods of risk  assessment have  been
 advocated for  inclusion in U.S.  EPA's risk management strategy  for contaminated
 sites.   Equation  1 represents the general configuration of  the  current  U.S.  EPA
 exposure assessment numerical relationship.  It is herein used only for illustrating
 the relationship  between exposure and facility design.  There are several  other
 exposure equations.

       IN- [
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 the time of occupancy,  respectively, of the facility constructed on  the site.  The
 residual concentration  and transport  characteristics  of contaminants across  the
 structural components  into inhabited  spaces affect exposure indirectly through
 direct effects on parameter C Exposure is also affected by the type of structure. Over
 a reasonable time period (e.g., 1 year), people spend more time in residential housing
 than in warehouses and parking ramps.  Equation 1 illustrates that this  situation
 affects the exposure frequency.  These factors  should be considered by the U.S. EPA
 in the development of cleanup standards  for  contaminated  sites slated  for
 redevelopment.  In general, the following recommendations are made,

       *  Review of current exposure and risk assessment methods to assess  their
          adaptability to site redevelopment schemes.
       *  Development of numerical regimes of human health and environmental
          risks for redevelopment to provide developers with general data (with a
          caution that site-specific assessments are necessary).
       •  Assessment of  the occupational health and environmental  equity issues
          that are associated with site redevelopment.
       *  Specification of cleanup standards based on potential site reuse.
4       lagineeriag    Mffigatton Schemes for Structures
      A  preliminary  analysis of the geoenvironmental engineering  aspects- of
contaminated  site development was.  made  by U.S. EPA (1993).   However,
comprehensive geotechnical fhemes have neither .been, developed yet by  the
Agency nor implemented widely by industry. During the past decade, die U.S. EPA in
collaboration with local and other federal agencies, has developed geostmctural
systems  for  controlling human exposure to radon  and its  decay products at
problematic sites. The conceptual configuration of one of these  systems is shown, in
Figure 1.  Other configurations and techniques are illustrated and discussed- by U.S,
EPA (1991W and Murane (1993). Although some of these- schemes may be adaptable
with modifications, to mitigating residual contaminant transport in the vapor phase
from soils into inhabited space, additional schemes need to be developed by the IJLS,
EPA.
      Residual  contaminants can migrate in the vapor, liquid and solid phases at
contaminated sites under  suitable geohydrotogical  and  other environmental
conditions. The geotechnlcal design of the structural foundation system is also one of
                             Inyang and Preslo

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 the determinants of contaminant migration potential.  Realizations at gas stations
 above  leaking tanks  indicate that flaws  in buildings can serve  as conduits for
 contaminant entry.   The development of such flaws in the-'.long-terra in structures
                                                        t
 can be enhanced by the structural instability of foundation site soils. Unfortunately,
 contaminated soil strength which will be an important parameter with respect to the
 stability of structural foundations in reclaimed industrial and contaminated sites,  is
 not of significant concern in current U.S. EPA site assessment schemes.
       The  recommendations for improving the  Agency's  readiness in  the
 geoenvtroomental area are as  follow:

       *  Development of general schemes for  relating the design of geotechnical
          foundation schemes to exposure parameters,
       *  Integration of foundation stability assessments into contaminated site
          characterization schemes.
      *  Collaboration with the  external geotechnical community to develop and
          evaluate protective  foundation  schemes for structures on  reclaimed
          industrial sites as  a  natural follow-up to the issues discussed in U.S. EPA
          (1993).
5.    EducaQon.Research and In-house Expertise
      In some cases where the potential  exposure levels will  be proven  to  be
insignificant, some prospective residents of houses built on remediated land will still
be fearful of residing  in  such houses.   Community  education  schemes  are
recommended to minimize the fear factor where risks have been successfully
mitigated.
      The  high prospects for large-scale land redevelopment in the U.S. requires
that  research be  conducted  on several  relevant  topics among  which are  the
following.

      *  Contaminant attenuation characteristics of building materials*
      •  Effects of residual contaminants on soil strength.
      *  Barrier and sealants for controlling contaminant entry into structures.
      *  Identification  and  assessment  of  exposure scenarios relevant  to
         contaminated site development.
      *  Interactions of socio-economic factors in contaminated site  development.
                               Inyaag and Preslo
                                    -18-

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       •  Comparative economics and environmental benefits of green versus brown
                                                                    i
          sites development,
       »  Automatic sensing systems for contaminants in inhabited spaces.
                                                        i,
       The implementation of the recommendations made in this section will require
 the retention of a critical  mass of in-house expertise by  the Agency in relevant
 disciplinary areas.  Unfortunately, most of the relevant issues need to be integrated
 directly into  U.S. EPA's programs  and, hence,  cannot be  effectively managed  by
 external contractors on a continuous basis.  In  addition, some of the issues involve
 the creation of policies which have significant technical components.
       The Agency's laboratory personnel,  technical analysts and work program
 managers are unlikely to cover all the technical grounds necessary to develop
 effective policies and technical schemes to address the  issue of site redevelopment.
 These issues  involve  contaminant migration  modeling, geotechnical  reliability
 analysis, socio-economic  theory,  spatial  data  analysis, toxicology,  soil  and
 groundwater reclamation science, and geohydrology as major disciplinary areas.
 While the Agency retains expertise at the program management level in these areas,
 hands-on analysts with expertise on the issues described above are very few at the
 Agency,  In particular, geotechnical expertise is almost non-existent in the entire
 Agency, perhaps due to the  fact that relevant issues have traditionally been treated
 marginally within  the general framework of environmental engineering.   An
 improvement  in  in-house expertise is recommended.  The Agency also needs to
 improve its collaborative  efforts with other  federal agencies such  as the National
 Science Foundation and the National Institute  of Health.
G.    qQHS^gQirefrKf^5 Qf DELAYED  ACTTOEf

      The U.S. EPA needs  to formulate policies and develop technical support
schemes for integrating site redevelopment  issues into its  current and future
regulatory  and  technical support programs.   The undesirable consequences  of
delaying action until the occurrence of any of the two scenarios discussed above are
outlined below.
                                Inyang and Preslo
                                    -19-

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            Radon
                                                         Radon Gas Rushing Tub*
      N«flv*S6l ' A  .    T-    f"-^   "'A- "'i1  '!   "     ''" V' S*C .f,
     '». .  -  '/'"«f-.j«u;'*r  '- f*"-« '  V,~^c-w'-'^'h^'*»--'Vi#?;-'^>*/«..;'%s'•' - "'-^f
    : /^;?  h'^^fc^ipM^f S^^^'iti^*^
-,,^f ' .r,^, .<•„ ,.•
       -«;^,^v^v



Figure 1.   A conceptual scheme for controlling radon entry into a residential
            structure.
                               Inyaiig axxd Preslo
                                        -20-

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          The Agency will be forced to develop remedial rather than  preventive
                                                                            \
          schemes for mitigating potential harzards from reuse of  abandoned arid
          remediated industrial sites and installations.
          Liability concerns may force developers to target greener sites, which can
          be spared instead of abandoned industrial sites and remediated laud which
          can be beneficially utilized.
          It would take several years to appreciate the relevant occupational health
          hazards subsequent to uncontrolled redevelopment activities.           I
          The Agency would miss an opportunity to contribute to urban  renewal
          projects  which will  eventually  influence  its  programs  such  as
          Environmental Equity and Risk Assessment.
          Employment  opportunities  which  would  be created  by urban site
          redevelopment projects would be missed.
 H.   CONCLUSIONS
      Redevelopment of former  industrial sites and other sites  that may not fee
entirely clean will become more prevalent witMn the next thirty years.  Changes!in
regulatory climate,  socio-economic factors,  risk acceptability and  technological
advances wiU serve as catalysts for this category of land recycling.  Currently, the
U.S. EPA does not have adequate policy and technical schemes to address the issues
that will emerge.  Considering that proactive  schemes are generally  more cast-
effective than remedial schemes, the U.S. EPA has unique opportunities to develop
schemes apriori to support and control the aspects of this issue that will fajl within
its  mandate of protecting human health and the environment.  Such  schemes! if
implemented  wisely,  can serve the interest of the U.S. public without stifling
economic  growth.  This objective  is relevant to the overall concept of  sustainable
development.
I.    REFERENCES                                                      }
      •*^•^•••••i'                                                      ,
Anderson, J.K. and Hatayama, H.K. 1988. Beneficial reuses of hazardous waste sites in
      California,  Monograph Series.  Hazardous Materials Control  Resources
      Institute, Greenbelt, Maryland, pp. 28-32.                               1
                              Inyang and Preslo
                                    -21-

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 Ceasus Bureau,  1993a,  Estimates of die population of the United States to August 1,
       1993. P25-HG7.  Bureau of the Census, United States Department of Commerce,
       Washington, DC.

 Census Bureau.  1993b.  How we are  changing:  demographic state of the nation.
       Series P-23, No, 184,  Current Population Reports, Special Studies, Bureau of the
       Census, United States Department of Commerce, Washington, DC.


 Census Bureau.  1993c.   1990 census  of housing;  general housing characteristics-
       urbanized areas, 1990 Ch-l-lC,  Bureau of the Census, United States Department
       of Commerce, Washington, DC.


 Chu, T.J., Wash, T.J, and Fellows, M,H.  1992.  Etivfronmental restoration at formerly
       used defense sites.  Proc, 13th Annual National (HMC/Superftind) Conference,
       Washington, D.C., pp. 258-261.

 GAO.  1993a,  Hazardous waste: much work remains to accelerate facility cleanups.
       Report to Congressiotw1 Requesters.  GAO/RCED-93-15. US General Accounting
       Office, Washington, DC.

 GAO.  1993b.  Cleaning  up inactive facilities will be difficult.  GAO/RCED-93-149.
       Report  to the Chairman, Subcommittee on Investigations and  Oversight,
       Committee on Science, Space,  and Technology, House of Representatives.  US
       General Accounting Office.

 Greenthal,  J.L. and  Millspaugh, M.P.  1988.  Implications of dealing with real estate-
       based cleanup statutes and recommended measures for avoiding economic and
       operational  disruption.   Proc.  9th  National  (Superfund)  Conference,
       Washington, DC,, pp.60-64


HMCRI,  1993   EPA report offers shopping list for cleanup technologies. Hazardous
       Materials Control Resources Institute. Focus, Vol. 9, No. 7, pp.2.

Inside EPA,  1993.  House member prepares first Superfund Bill:  will stress reuse of
      sites. Inside EPA, August* pp. 15.

McGregor, G.I. 1992. Buying and setting dirty real estate. Proc. 13th Annual National
      (HMC/Superfund) Conference, Washington, DC, pp. 31-33.

Murane, D.M.  1993.   Radon mitigation and prevention standards,   ASTM
      Standardkadon News, December,  ASTM,  Philadelphia, Pennsylvania, pp. 40-43.


Schulte, B.  1993. Developer is gaining  ground in national fight for property rights.
      The Washington Post, Friday, December 31, pp.A4.


Sidel, V,W,   1993.  Cleaning up: risk and risk reduction at military sites. U.S. Water
      News, August, pp.7.


                                 Inyang and  Preslo
                                     -22-

-------
 SCTF.  1993, Sustainable development.  Draft Report, Sustainable Communities Task
       Force, President's Council on Sustainable Development, Washington, D.C,

 UU  1993. Market profiles; Vol. I and II. Urban Land Institute, Washington, DC,

 United Nations,  1985,  Estimates and projections of urban, rural and city populations,
       1950-2025;' the 1982 assessment. Department of International Economic and
       Social Affairs, United Nations, New York*


 U.S.  EPA,  1993,  Geotechnkal systems for structures on contaminated sites. EPA 530-
       R-93-002:  PB93-209 419. A Technical Guidance Document. Office of Solid Waste
       and Emergency Response, U.S. Environmental Protection Agency, Washington,
       DC


 U.S.  EPA,  199la. Superfund.  Briefing Materials Presented to the Administrator, by
       the Superfund Program, U.S. Environmental Protection Agency,  Washington,
       DC

 U.S,  EPA  I991b,  Radon-resistant construction techniques for  new  residential
       construction. EPA/625/2-91/032, Technical Guidance Document. Office of
       Research  and  Development,  U.S.  Environmental  Protection  Agency,
      Washington, DC,


U.S. EPA.  1986.  Reclamation and redevelopment of contaminated land" Vol. 1 U.S. case
      studies. EPA/6QQ/2-S6/066.  Hazardous Waste Engineering  Laboratory, U.S.
      Environmental Protection Agency,  Cincinnati, Ohio


Zimmerman, M.D, 1992,  On shaky ground;  property owner's options for managing
      pollution liability. Hazmat World, March, pp* 45-46.
                                Inyang  and-
                                    -23-

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Appendix 3: Transient Phenomena

               by
  Dr. Frederick G. Pohland
  Weidlein Chair of Environmental Engineering
  Department of Civil and Environmental Engineering
  University of Pittsburgh,
  Pittsburgh, PA

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                        Final Draft of SAB EEC Futures -Project
                           Report on Transient Phenomena

                       Sub-Task Group Member: F. G. Ponland
                                  March 1, 1994
 Global Goal

       With  prime responsibility for safeguarding  and enhancing  the quality of the

 environment and protecting  human  health,  the U.S. Environmental Protection Agency

 (EPA) must develop a state of readiness to respond to any natural or anthropogenic

 threats, however engendered. Those threats that are posed on a continuum have received

 more attention from both prevention and remediation perspectives, largely because they

 frequently have recognizable and manageable spatial and temporal dimensions.- On the

 other hand, less predictable transient phenomena, whose consequences may be shorter

 lived but much more severe  and devastating, are often only considered in passing and

 unfortunately then only  in a reactionary mode after the fact. This latter dilemma is

 exacerbated by the frequent division of responsibility and authority when disaster strikes,

 and the ability of available resources to  take responsive action.



       Since environment and human health are inextricably linked, with one affecting the

 other directly and indirectly in cause/effect relationships, the imposition of a transient

 phenomena as a driver may  convert a hazard into a catastrophe.  The magnitude and

 intensity of these events are often measured in terms of human health and welfare, as

• well as environmental perturbations, a. domain often shared by EPA with other agencies.

 Yet EPA has not been an active player or led the pertinent agenda for natural hazard pre-
                        **
 paredness and/or mitigation, and if is currently not positioned to participate effectively

 either in developing policy or providing assessment and technological guidance.
                                   Pohland
                                     -1-

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 Issus
       The issues involved with transient phenomena include-those elements of natural

                                                      #
 hazards that manifest themselves in threats to the environment and to public health and

 welfare. Although these phenomena encompass a broad array of events, including those

 triggered or driven by hydrological phenomena, e.g., river and coastal floods or tropical

 cyclones, and those consequenced by geological phenomena, e.g., earthquakes, volcanic


 eruptions or landslides, the selected subordinate  issue and its plausible and important


 scenarios will deal specifically with the former, vis-a-vis riverine floods, and vulnerabilities


 expressed in terms of risks to populations and the environment as well as approaches to

 their mitigation.'




 Background




       There are many compelling reasons to consider transient  phenomena, such as


 floods, as a new and important area for EPA to embrace,  and in that role help avert the


 consequences that often transform such hazards into disasters, indeed, beyond  the direct


 impacts on lives and property, there remain many indirect consequences that are often too

"obscure or subtle to receive adequate attention, whether driven by accidental releases of


 contaminants into the environment or malicious and/or  opportunistic  dumping.  The


 implications of such scenarios are far-reaching and cannot be attended to properly in the


 disorder associated with the flood event, which  often obliterates facts and  disallows


 reasoned and reliable accounting.
                                    Pohlatid

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       Each year natural disasters kill thousands of people and imlict billions of dollars in


economic loss,  in 1987, the United Nations  Genera! Assembly adopted a  resolution


declaring the 1990s the International Decade for Natural Disaster Reduction {IDNRDK The

                                                    j
U.S. Congress endorsed the concept in resolutions passed the following year, and a U.S.


National Committee was formed to  develop a  program for the nation*  In a National


Research Council report (NRC, 1991), the Committee proposed a muttidlsciplinary program


that Integrates  hazard  and  risk assessments;  awareness and education;  mitigation;


preparedness for emergency response, recovery  and  reconstruction;  prediction and


warning; strategies for learning from disasters;  and International cooperation. Nowhere


in this report was a role for EPA explicitly defined, and visible EPA representation in its


development and presentation was absent.  Yet the area of mitigating and reducing the


impacts of natural disasters,  i.e., protection of natural resources, research  to improve


prediction of hydrologic hazards and impacts on natural resources, and coordination and


standardization of data collection, stands out as initiatives within the mission of EPA.





       A disaster is said to occur when an extreme event coincides with a vulnerable


situation - surpassing society's ability to control or survive the consequences (The World


Bank,  1991).  Not  every crisis is £ potential disaster, but accelerated  changes  in


demography and economic trends cftsn disturb the balance, thereby increasing risks.


Moreover, natural disasters are often caused at least partly by man-made changes in the


natural settings adjacent to a vulnerable environmental compartment, e.g.* a river, and


there is evidence that worldwide  incidence of deaths from extreme  weather events


(typhoons, hurricanes, floods and draughts) has increased by 50 percent on average each


decade between 1900 and 1390, accelerating significantly since 1950 (OFDA, 1990).




                                   Pohland

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 Likewise, the damage caused  by such events has escalated  - increasing faster than


 population growth - with economic costs per decade increasing exponentially. Hence,


 there appears to be an apparent correlation between the  frequency and severity of a

                                                    ?
 natural disaster and environmental degradation, whether  expressed in  destruction of


 vegetative cover or in  terms of landless  squatters who concentrate in fragile, often


 marginal and orphaned areas, including those prone to flooding.





       Floodplains particularly are at risk from riverine flooding and although they occupy


 only a small fraction of most  urbanized areas, they tend to  be proportionately more


 developed.  For example, only 9.4% of the Boston urbanized area is in the floodplain, but


 this area accounts for 19.1 % of the total developed area (Palm, 1990), This is compared


.to Denver where 50.5% is in the floodpiain but contains 62.2% of the total developed


 area, and to Phoenix with 18,4% in the floodplain, but accounting for 89.2% of the


 developed area. Hence, urbanization in flood-prone areas has predictable consequences,


 whether manifested in accelerated runoff from rainfall events or water quality deterioration


 due to translation of pollutants from urban sources. These and other ramifications can


 be anticipated and often translate in terms of adverse impacts on human  health and the


 environment as depicted by the hazard  sequence tree for thunderstorms in Figure  1.





       Accounts of the consequences of flooding in the U.S. and throughout the world.


 as exemplified by the recent floods .along the Mississippi River  where property damage


 exceeded $ 10 billion and large portions of the nine contiguous states were declared federal


 disaster  areas (National JSeographic, 1994), and the recent  flooding along  the Rhine,


 Danube and smaller rivers  in Germany, Francs, Belgium and the Netherlands {Reuters
                                    lohland

                                     -4-

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News Service, 1993S, underscore the urgency of attention to floods as a representative
new horizon of EPA concern. The challenges of safeguarding populations from hazardous
materials swept away by flooding along the Mississippi,  monitoring pollutants  from
unidentified  sources, and restoring the integrity and dependability of -wastewater and
drinking water services constitute only a few issues on an agenda for action that involves
short-term  and long-term implications for both policy and  technological  decisions.
Congress has mandated attention to such natural hazards, and EPA has a vital role to play
in its evolution.
Goals
      To effectively contribute to an action plan for assessing and providing potential
remediation of the consequences of natural hazards in the area of floods, and  to act
consonant with  its mission as the lead  environmental  agency of the nation and  in
accordance with the NRC Report recommendations, EPA win need to expand its current
activities and develop appropriate policies and strategies to address environmental and
health/welfare aspects of:
      *     Hazards and Risk Assessments
      *     Mitigation and Prevention
     . *     Emergency Response
      *•     Prediction and Warning
      *     Data Acquisition and Validation
      *     Education and Technology Transfer
      Whereas floods can serve as a representative example, the effort should embrace
                                   Pohland
                                    -5-

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the entire range of those natural disasters creating environmental ri$k$.



Objectives
                                                       *


       Whereas the consequences of flooding {or other hazards) are evident, as is the
  \
often lack of coordinated planning for or reacting to a given scenario, the benefits derived

from a proactive program in accordance with the indicated goals could include:



       »     Reduction in  life and property losses

       *     Marginal land rehabilitation, zoning and conversion

       •     Safeguards against flood-derived contamination  and its microscate  and

             mesoscale effects on human and natural resources

       *     Provisions  for developing flood-specific data bases and guidance to the

             public and  private sectors

       •     Catalysts of  research  and  development  for innovative preventive  and

             remedial technologies,

       »     Beneficiation of EPA's image as important  contributor to reducing impacts

             of natural disasters and promoting a safer future for impacted populations.



Strategies and Methodologies



       To effectively  address  the assessment and  ability  to respond to  transient

phenomena  such as natural disasters, it is considered  prudent for EPA to recognize the

breadth and  depth of cause/effect relationships inherent in particular driver events. This

                                    Pohland
                                       -6-

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requires not only a sufficient understanding of the event, but how !t manifests itself within




the arena of impact. Therefore, an environmental impact assessment could be the primary




focus, allowing ancillary issues to play out as a particular scenario unfolds.
                                                     -4

                                                     *





       There is already considerable understanding  of the phenomena that may create




natural disasters, and a wide array of published literature is available. Likewise, there is




guidance  for policy makers and planners to better understand and mitigate natural




disasters (United Nations, 1991). These sources not only deal with floods, but with the




array of possibilities either aione or in combination. In addition, there are detailed reports




of various natural disasters that provide retrospective opportunities to learn from related




experiences,  whether  a Valdez  grounding, infrastructure collapse,  a  Bophal industrial




disaster, or a terrorist action.  Each such disaster  tends to provide new insights and




horizons not  otherwise recognized; in the case of  the Mississippi  floods,  subsequent




assessments revealed both microscale  and macroscale impacts, including, for instance,




the unknown consequences of excessive fresh water discharges on saline environments




from the Gulf of Mexico, around the tip of Florida, and up the Northeast Coast and the

                                       *


nearly million metric tons of nitrate were transported  in the process (USGS, 1993} .




Moreover, in  all such circumstances, a range of scenarios can evolve between a state of




preparedness to one of non preparedness at the opposite extreme.  Hence, it would be




instructive to develop  cause/effect matrices  within these two  bounds,  identifying the




drivers  creating  the  potential  hazard,  and  evaluating  the  environmental  impacts




accordingly.




                        #A




       The natural hazards sequence tree approach previously introduced (Figure 1) could




                                   Pohland

                                      •-7-  •

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be used to reveal direct and indirect causal factors thai could trigger possible adverss

impacts. Then by using a network analysis (Westman, 1984) incorporating the vulnerable

environmental compartments (e.g., water supplies, aquatic ecosystems, etc.),  the initial

and final effects, controlling mechanisms, and possible corrective action, adjusted in terms

of magnitude, importance and probability of occurrence as dictated  by the  particular

selected preparedness scenario, the most drastic output would be determined for the case

of non preparedness, while the others would be some increment thereof and  lessening

with degree of preparedness.




      The product of such a network analysis could be articulated in the form of a hazard

summary  directed  at  the  environmental  compartment of focus, arrayed  in  terms of

magnitude, importance and estimated  probability, and fortified by pertinent descriptive

comments drawn from antecedent knowledge  and  experiences.  If extended to other

disasters besides floods, it could take the form of a disaster effects matrix showing likely

damage, loss, shortage, etc. consequenced by the respective disasters on various system

components, as "what if" scenarios are imposed. Such an approach has been advqcated
                                      h
for water utilities (Shimoda, 1994) to establish protocols and action  plans for emergency

preparedness and response (Table 1).




      Since environmental impact assessment  involves crossdisciplinary expertise and

focus on health and natural resources often within the domain of the missions of other

federal and state agencies, responsibility for developing and implementing strategies and

methodologies should  be, shared,  but EPA should assume a leadership role on issues

involving assessment of environmental consequences of the various transient phenomena.
                                   Pohland

                                     -8-

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Such coordination is vital so that the established FEMA, NQAA, and Corps of Engineers

programs for emergency response, prediction and warning, and mitigation, respectively,

can be broadened to embrace a responsibility to acknowledge, prevent or mitigate also the

environmental consequences of transient phenomena.



References
Mairson,  A., "The Great Flood of '93", National Geographic. Vol. 185, No. 1, 42-81
      January 1994.

National Research Council INRQ, "A Safer Future - Reducing the Impacts of Natural
      Disaster", National Academy Press, Washington, DC, pp. 67, ISBN 0-309-04546-0,
      1991.

"Managing  Natural  Disasters and the Environment",  Keimer, A. and Monasinghe,  M.
      [Eds.l, The Worid Bank, Washington, DC, pp, 216, 1991.

OFDA {USAiD Office of Foreign Disaster Assistance), Washington, DC, 1990.

Palm, R. I., "Natural Hazards: An Integrative Framework for Research and Planning", The
      John Hopkins University Press, Baltimore, MD, pp. 184, ISBN 0-8018-3866-5,
      1990.

Reuters News Service, "Holiday Floods Keep Families from Homes", The Pittsburgh Press,
      December 25, 1993.

United Nations, "Mitigating Natural Disasters - Phenomena, Effects and Options", United
      Nations Publications, New York, NY, pp, 164, ISBN 92-1-132019-4, 1990.

United States Geological Survey, "Occurrence and Transport of Agricultural Chemicals In
      the Mississippi River Basin, July through August  1993,"1 U.S. Geological Survey
      Circular 1120-C, Denver Federal Center, Denver,  CO, pp. 22, 1993.

Shimoda, T. A., "Emergency Preparedness and Response"", JoumaLAWWA. Vol, 86, No.
      1, 84-92, January 1994.

Westman, W. E., "Ecology, Impact Assessment, and Environmental Planning", John Wiley
      & Sons, New York, NY, pp. 532. ISSN 0-471 -80885-4, 1985.
                                 Pohland

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                           Figure 1

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      Appendix 4;  Core Competency

                   by
Dr, Wm, Randall Seeker, Senior Vice President
Energy & Environmental Research Corp,, Irvine, CA

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                                 Core Competency
                    Prepared for the SAB/EEC  Futures Project
Introduction
The purpose of the EPA SAB Environmental Futures Project is to assist in the continued
development  of  EPA's capacity  to  anticipate  environmental  problems,  issues,  and
opportunities.    The  Environmental  Engineering  Committee  has  foeussed  on  three
scenarios that  might occur in the future, analyzed the consequences of these scenarios  if
EPA continued on their current course of action, and has made some recommendations on
how EPA could  more  appropriately respond to these future issues resulting from  the
scenarios.   These scenarios  are clearly  not the  only scenarios that could happen in the
future.    Nonetheless,  it is  crucial for the  EPA  to  be ready for  any foreseeable  or
unforeseeable event that falls  within the mission  of  the  agency.    Since no scientific
method exists to  truly  predict what scenario will occur, a solid foundation of underlying
skills,  knowledge, technology,  and science which enable Agency to deliver the products
and services  suitable to respond to any plausible scenario, is needed.

The concept of core competency has been  developed  and  used by  industry and  other
agencies to represent those necessary underlying skills,  knowledge, technology and science
to carry out their mission (see attachment).  The definition of core competencies  adopted
here is  as follows:

        "the essential and discinct scientific and technical capabilities that enable
        the EPA to fulfill  it's current and future missions."

This  paper will  focus on  the  need  to systematically  analyze  and  define  those  core
scientific and technical  competencies needed by the Agency to respond to problems, issues,
and opportunities in the future, and to define a process to continue the study,

Drivers

Reduced  resources  will  likely  be  available  to the  EPA  in  the  future to  address
environmental issues.  At the same time there will be significant pressure on the Agency
to approach regulations from a holistic approach i.e., address multimedia pollutants from
all  sources using  not just end of pipe  control but true pollution prevantion.  Hence with
less resources the EPA will  have to marshall  multi-disciplinary teams to address multi-
pollutant problems.     In  addition, there is  a  need for even  more  rapid  response  to
environmental  problems associated with  transient phenomenon such as natural disasters

                                          Seeker
                                            -1-

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and terrorism, since in these instances, there  is little time to conduct studies arid develop
expertise after the transients occur.  Thus in the future,  the  Agency must be able to
respond faster to broader environmental issues but with less resources.

There  will  be a  significant  need to  extract information  from ongoing, activities  and
advances taking place outside of the Agency due  to the availability  of less  resources at
the EPA to address broader issues.  It is important to  determine what other agencies are
doing in the environmental field in order to avoid duplication of effort and to determine
if the EPA should develop its own core competency in  certain areas or rely  on others.
The  concept of virtual companies could be applied to  government agencies. i.e., the EPA
could serve  the role as a "learinghouse and coordinator of all environmental  activities for
all other agencies.   Nonetheless, the Agency  will need to have the skilled expertise to be
able  to recognize and to  use these external resources  and advances.  In  addition, an
infrastructure will be needed to allow the use of information generated by other agencies
and to use the core competencies of other agencies particularly with less overall funds,

Scenarios

The  scenario  that  arises from  these drivers  is  that  in  the future,  EPA  will  have  less
resources  with which, to deal  with broader multimedia  pollutant issues and  must  deal
with some of them  in a more rapid  fashion due to their transient nature.  The Agency
will  lose  core competency  that  is needed  to  address these new  problems.   Other
government agencies will  play  a  much more  significant role in environmental research
and development,

Consequences

The consequence  of this  continued loss of competencies will be the following;

1. Loss  of capability to serve customers.  Understandably, "technology alone  cannot solve
environmental problems", as suggested in the Environmental Futures Project joint WRI
and EPA study.  On the other hand, another issue that  emerged from the same study is
"despite the potential of  innovative technologies to  improve environmental  quality  in
many instances, this potential may not be fully realized."  Unless critical expertise  and
technologies are defined and nurtured, the EPA will not have  the capability to respond
effectively, regardless of the legislation and regulations  that exist.

                                     Seeker
                                       "—,4""

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 The  EPA's  products  and  services  are  typically  regulations,  procedures,  scientific
 knowledge, technologies, and  deployment services.  The level  of  competence needed  to
 deliver such products is built  over many years.  It is not equivalent to building widgets,
 nor is it equivalent to simply responding to customer requests.   Customers include those
 who  pay  for, use,  and/or  benefit  from products and services.   Therefore,  the EPA
 customers  are  many,  including  Congress, taxpayers, industry,  academia,  and  most
 importantly, the public at large.  The very nature of the work requires that the Agency
 develop  a strategic vision,  and prepare itself now for the types of products,  services,
 research and development needed to  assure a healthy nation.  It is  equally important that
 the Agency not overlook, or simply take for granted current competencies required for the
 future.   Only  through  careful  study and analysis  will  the  critical  competencies  be
 identified and developed.

 2. Inadequate basis for decision-making.  If evidence exists that current competencies are
 not being adequately funded, the EPA will not "be in a position  to fully carry out  its
 responsibilities.  The  possibility exists that the competence will be lost in Congressional
 budget debates.  Particular emphasis should be placed on those competencies which cut
 across national programs  and their  applications.  For  example, DOB Defense Programs
 identified materials as critical  to both defense and non-defense applications.  They believe
 that they must stay on the cutting-edge of materials science to fully address civilian and
 economic competitiveness as  well as  weapon stockpile problems.  Of course,  not  all
 technical capabilities can be equally  funded, especially with declining budgets and tighter
 resources.  Nor should they be.  This type of approach to defining those  competencies
 which are .critical  to EPA's future  provides a  basis  for  decision-making and  priority-
 setting,  elements  which are essential  to  the current  management" approach within the
 EPA.
                                                              *

 3. Short-t6rm_approaches and solutions.   Prahalad and Hammel  suggest that, "If core
 competencies  are  not recognized, individual units will pursue  only those innovation
 opportunities  that are  close at hand-- marginal product-line  extensions or geographic
 expansions."  Related to  the EPA, unless  competencies  are  identified  and developed,
 programs may pursue only those solutions that are  relative to the specific problem  at
 hand, perhaps overlooking a more global, future need that could be addressed with a shift
 in  program  definition  and  priority,  and   thereby  simultaneously  building  future
 competencies. It is this type of comprehensive view of Agency-wide competencies that will
.sustain the Agency as the respected leader.  According to the final Megatrends report,

                                           Seeker

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"Comprehensive,  multi-disciplinary, and integrated  solutions will be necessary  to  solve
future environmental problems."

4.  Lack of science transferred to__technology.  The Megatrends report also identified seven
critical challenges the Agency will face in the  future. Challenge #5 outlined in the report
states,' "To create a world-class scientific capacity within EPA in ordtr to give the Agency
the ability to develop and utilize new knowledge and to serve as a catalyst for technology
innovation critical to achieving the nation's  environmental objectives."   The authors  of
this  report have recognized  the need to identify and  maintain the scientific knowledge
base and technologies to carry out the EPA mission,

 Mitigating Actions

L__Jden_tify critical, core competencies.   The EPA's primary mission is to  protect the
environment  and the health and safety of all  Americans.   Over the years, EPA-sponsored
programs and activities have been able  to respond to key developments and events  to
assure environmental health  and safety, However, it is simply not enough to assume that
the future quality of EPA response will equal those of the past,  In  fact, one premise is
that unless critical competencies which are needed to  anticipate significant impacts and
carry out future programs are defined  and nurtured, the  opposite will occur.  Objectives
should be developed for building competencies in line with strategic directions and vision,
and  investments must  continue to be  made to ensure the Agency's viability  in  these
critical areas,

As a regulatory agency, the EPA is responsible to the  public to implement Congressional
legislation. As a result, the programs are structured according to the legislative acts, and
in the last five to ten years, the focus of the work has shifted from ensuring a  scientific
base  for  environmental  protection  to  developing,  implementing,   and  monitoring
regulations.  The agency's effort to strengthen and even maintain current competencies
has  gotten pushed  to  the "back burner"  as Congress foisted  more regulatory activity
related burdens onto an increasingly over stretched EPA.  The question now is to  what
extent wjll the Agency  be  able to respond to future events and uncertainties when most
of its focus has turned to regulation development and its enforcement?  What  scientific
and technical expertise, knowledge, and capabilities  are being lost or ignored in  the  quest
to simply regulate?
                                        Seeker
                                         -5-

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2.  Identify  critical  core  research.    One  critical  component  of  maintaining  core
competencies is to maintain critical core research programs.  The Agency must provide a
leadership role  by formulating and executing a  core research program that help solve
environmental problems associated with all types of industrial, commercial, and municipal
operations well  into the next century.  As the scenarios  defiried in this study have shown
the future holds potentially new problems  that are yet to unfold for both the U.S and the
world.    New  technologies and manufacturing processes will be required to respond to
these problems.   The' developed countries cannot solve global environmental  problems
alone.  Environmentally acceptable control measures and technologies must be developed
and deployed  in  a cost  effective manner by the  developing nations to  prevent  the
continued deterioration  of the  global environment.  However, these new problems  will
also generate a new  opportunity for U.S.  industry.   The national  and international
market for environmentally acceptable technologies  will  grow rapidly in the  next decade,
For example,  reduced imports  of petroleum  products and the export  of environmental
technologies could help to  reduce this country's trade deficit.

The EPA has a  unique mission to  protect the environment and  must establish core
research  programs in several  key areas.     This core  research roust  be crosscutting.
Basic processes that  are  common  to numerous emissions  issues should  be addressed
concerning  all-gaseous,  liquid  and solid effluent and wastes.   For example, research on
the formation and destruction of a particular by-product  can be  applicable to a wide range
of processes.  The application  of  knowledge  generated by a  basic research program  will
identify and facilitate the solution of environmental problems  of the next twenty years,

The EPA should maintain a solid core research program with the  following objectives: I)
dilve pollutant reduction technology to the limit of technical  and economic feasibility;  2)
develop the capability to  predict the amount of all  pollutants present in  the effluent
streams of all sources;   3) promote  pollution prevention  and the  development of  low
pollutant  technology for existing  and new advanced systems;  4) provide a science  and
technology base for regulations.

The EPA  is the only Agency with  the  authority to regulate  all industrial, commercial,  and
municipal systems that have the potential to emit pollutants in harmful concentrations,
Also, the  Agency has  the  unique mission  to protect human health and welfare and to
conserve the environment.  In  certain areas the EPA is  cooperating  with other countries
to control pollutants that transcend national  boundaries, A  core research program must
                                            Seeker

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be started by  the Agency to generate basic information that" will: 1) provide the impetus
to develop new technologies; 2) help the development of future regulation by providing a
sound scientific base, and 3) help to identify and solve environmental problems created by
future developments.
                                                           t
The EPA  core research  program should  be  foeussed  on prevention,  and  must  be
distinguished  from  the  efforts of other  agencies.  More  importantly, the  plan must
                                •^
concentrate  upon   preventing  pollutant  formation  thereby  avoiding  the  additional
complexity and expense of downstream controls.  In addition, the results of the research
must be quantifiable.  The plan should be closely coupled with real world  problems  and
be applicable  to all  industrial  operations and pollutants.  It should generate identifiable
products in both  the near and the  long  term.   These products may be  procedures,
solutions to problems or prototype  pollution control systems and therefore,  the results of
the research plan will be readily quantified.

The core research program should  be  based upon two  components, cornerstones (applied
system  specific development  projects) and  a  keystone  (broadly based fundamental
research). Cornerstones  are vertically  integrated development projects targeted at specific
problems  with  outputs  including  new  systems;  retrofit  technologies,  and  design
procedures.   The  keystone is  the  heart of the plan.  It  includes  basic  and engineering
research programs that have long-term  applicability to a wide range  of problems,

3. Adopt management approaches which use the core areas.   Simply the identification of
these critical  areas  will  not suffice.   Only if  the  Agency uses the  information when
making  management  decisions. such  as establishing  strategic  directions  and plans,
investments and  disinvestments,  alliances  and partnerships,  and  identifying process
reductions  and organizational  streamlining,  will the information be of value.  Programs
which add to the scientific base in at least one of these critical areas should become high-
priority. Additionally, the  critical  areas can be exploited to identify new programs  and
applications to respond faster to broader issues.

Metrics should be implemented to  determine the accuracy of the identified areas and to
provide  management with facts to  consider  when making decisions.  A  critical metric is
the extent  to  which the results of the research areas are transferred  to others who can
use the  information  to develop proprietary products and procedures.  Industry must take
                                        Seeker
                                         -7-

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partj but the EPA provides an impartial role ensuring that the benefits of this important
core research program are readily available.

The EPA must assume  a corresponding leadership role with the  participation of industry
and other  societal factors.  There must be  a  balance  between in-house  and extramural
activities, depending on where the core competency lies.  The technical leadership resides
within the EPA  laboratories, and the EPA  must  make a  long-term  commitment  to
research  to attract and retain  top flight researchers to assume this leadership role.
Recommendation

In order to more rapidly respond_to multimedia emissions with less resources, the agency
must fully define and invest in the Agency's core  and research competencies.   To  fully
define the critical core and  research competencies for the future, the following process is
recommended:

1) Analyze Current Programs and Future Scenarios for Competency Components

This step provides the analysis required to understand technical capabilities, technologies,
and  other expertise required  to  successfully  address both current  programs and future
scenarios  within the Agency. Once all the components are defined, they are aggregated to
identify clusters and similarities so that higher-order groupings can be  defined.  These
groupings become one input to defining critical competencies for the Agency (Set A),

2) Generate Strategic Directions

Strategic planning should run parallel to  the  step above.  However, since the information
from  this process should be  considered  in  planning, this step refers only to strategic
guidance and directions.  Needed here are upper management and planners views of the
futures with the most probable potential,  issues  that will face the Agency,  arid  their
vision  of the Agency's new mission and management principles,  A  second input data set
is generated (Set B),
                                       Seeket
                                        -8-

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3) Benchmark Industry, Other Agencies and Academic, Competencies

In this  step the Agency compares the critical competencies from step one to those  that
industry, other government agencies and academia believe to. be  important.  Naturally» a
                                                         f
federal Agency should not duplicate their  competencies.  Instead, duplications should be
identified, questioned, and appropriately assigned,  Critical gaps  should be identified and
discussed, and new slants on older technologies should be investigated.  This provides the
third set of input data (Set C).

4) Reconcile Input Data to Determine EPA Core Competencies

Bring the three data sets together to define  the EPA Core Competencies,   Contrasts and
comparisons should be made across  data  sets to  identify critical areas.   This step,  in
particular,  should be conducted with a number of customer  representatives to achieve
consensus on  the  areas.  This  process is similar to the one successfully implemented by
Sandia National Laboratories,  More  recently, DOE is  applying similar concepts in their
decision-making processes.
                                             Seeker
                                              -10-

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                                     Attachment

Definitions
Business  Core  Competency—Definition.    According to  Prahalad  and  Hammel,  "Core
competencies are the collective learning in the organization, especially how to-coordinate
diverse production  skills  and  integrate  multiple  streams  of  technologies."   (Harvard
Business Review, May-June 1990).  Core competencies are not only technical capabilities,
but  are  the unique  combination of several components (e.g.,  capabilities,  technologies,
facilities,  communication  streams,  skills,  expertise,  systems,  etc.)   that enable  an
organization's products and  services to surpass others.   They  create the differentiating
edge needed to create and capture a market.

DOE's Core. Competency Definition.  In a report dated January 15, 1993, from the DOE
Assistant Secretary  of Defense  to the Secretary of Energy  entitled, "Core Competencies
Required  to Fulfill the Strategic Vision  of the Defense Laboratories",  core  competencies
are defined  as, "the  essential  and distinct scientific and technical  capabilities that enable
the Defense Laboratories to fulfill  their defense-related DOE mission responsibilities,"

EPA'A-Core Competency Definition.   Prahalad and Hammel's definition is  applicable to
industry and  the  marketplace,  the DOE definition applies  to  government  agencies  and
their need to remain  the  central repository of scientific  intelligence in support  of their
mission, and therefore more applicable to our task.  Also,  this project has an emphasis on
the future.   Therefore, the definition of core competencies adopted here is as follows:

       "the essential and distinct scientific and technical capabilities that enable
       the EPA to fulfill  it's current and future missions."
                                      Seeker
                                       -11-

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            Appendix 5:  Futures Methodology

  Recommended Issue Identification and Assessment System
Possible Structure and Operation of an EPA "Look-Out" Panel

                           by

              Mr. Theodore J. Gordon, Retired
              23  Sailfish Road, Vero Beach, FL

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      Prepared  for the EEC  Futures Project


      Recommsnd&d Issue Identification and Assessment System


       Considering the lessons learned by ihe EEC Futures Writing Committee,
 we recommend that the Environmental Protection Agency aacletneat a system for
 detecting and anai^ag incipient Sicare issues. The system should have the
 following characteristics; it should;       [

       draw input from a, wide range of sources.

       cerate in a continuous rather than a "one-shot" mode,

       have a memory, so that suggestions that are set isid* :cday for lack of data
       or Interest can be reassessed in the .future.

       be quantitative, wherever possible,

       be subject *o scrutiny by people outside of the process,

       maks goals explicit.

       recognize that many futures ITS possible.
      One such system h ilhiatrated and described below. We envision this
system being ma by EPA staff and involving experts both :rom within and outside
               A Systefrr ForAntiapating: and
                                Environment^ /ssues
                            Gordoii

-------
 the agency.

        The central purpose of the panel illustrated in Task I is to identify issues,
 trends and developments that could have a significant impact on the nation's
 environment or EPA's mission, strategics, or objectives,   "f'*

        The panelists would be contacted on-line, through the mail, or by fax to
 scan their fields and provide observations about new or intensifying issues that
 might face EPA. They are also asked for judgments about plausible goals for the
 Agency and the environment and possible .means for achieving these goals, (1)

        Because the number of respondents is usually small, a "took out" panel
 will not produce statistically significant results; in other words, the results
 provided by the panel will not predict the response of a larger population or even
 the findings of a. different panel. They represent the synthesis of opinion of the
 particular group, no more or less.

        Th« results produced by an EPA "look out" panel will depend an the
 knowledge and cooperation of the panelists; for this reason, it is essential to
 include persons who are likely to contribute valuable ideas. In a statistically based
 study such as a public opinion poll, participants are assumed to be representative
 of a larger population; id panels of this sort, non~reptssen£ative, knowledgeable
 persons are needed. The EPA laboratory directors, division chiefs, state
 environmental personnel, representatives of environmental action gtoaps might
 be invited to participate.

       The screening step, Task 2, would employ criteria of th« sort tiw EEC has
 found useful in assessing the priority of issues, such as;
              scope (Let the number of people affected)
              severity                 :
              novelty                 f
              pkusifaiHty/probabiHty/csrtaaty
              uncertainty              '
              irrevcrsMfy
              v&biiity/pubUcitY'
(1) Some of the material describing, the panel is drawn front letter from T, I.
Gordon to Dr. Ray Leohr of the SAB.    .
                                Gordon.

                                 -2- :

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        The issues of Task 1 would be screened according to such criteria and :he
 top rated set fed back to the panel In Task 3; Here the panelists would be asked to
 comment on issues suggested earlier by others on the panel.

        Those issues surviving scrutiny would flow to T^sk 6, Analysis. This
 quantitative assessment work would be accomplished by stai£ appropriate
 Scientific Advisory Committees and outside consultants. It would be, at this stage,
 an early evaluation of the extent of the problem and. result in recommendations
 about the need for future data collection, study, and policies.

        The analysis would be conducted against the backdrop of the reference
 scenarios developed In Task 4 and goals and vision of the future environment
 developed in Task 5.        -      ,      ;

        Task 4, Scenarios, involves the production and maintenance of a set of
 scenarios that capture the evolution of drivers and Environmental prospects in the
 United States and other countries; it also is the home of quantitative environmental
 models and monitored environmental variables that can be used in. analyses of
 future issues. It would be accomplished by staff.

       The goals and vision statements of Task 5 represent the  desired future state
 of the environment Again,  these visions would, to the extent possible be in
 quantitative form and maintained by staff, i

       Policies suggest by the Task 5 analysis would tested analytically and
submitted to the panel for qualitative judgment in Task T. Tksse policies that are
found to bring the expected future state closer to the desked goals and visions
would be recommended, {for action-
                             Gordon

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               Prepared for  the EEC Futut&s Project


                   Possible Structure and Operation
                     of an EPA "Look-Out" Panel
       The central purpose of an EPA "look-one" panel would be to identify
 trends and developments that could have a significant impact on the nation's
 environment or SPA's mission, strategies, or objectives, (1)

       Picture the panel in operation Participants seldom meet face to face;
 rather they are asfed on-line, through me mail, or by fax co provide several idnds
 of judgments:
       They are asked to scan their fields and provide observations about
       de nova or jmensifying issues that might face EPA*

       They are asked for judgments about plausible goals for the Agency and
       the environment aad possible means for achieving these goals.

       They are asked to comment on the observations about issues, goals and
       policies made by others on the panel.

       In some instances they ate asked to provide data, if available,  to back up
       their positions,
       From a substantive standpoint the issues -addressed by the panel are
associated with the environment or EPA's policies and regulations, Tne issues can
rbcus on essentially my topic; for example Mgnly technical discussions about risk
and dosage to discussions about the future poiirical force of a "environmental
justice" movement. The geographic scope of the panel's activity concentrates on
the US but world issues are fair game if, in the end the US might be affected.

       The time horizon is flexible. On the one hand the panel doesn't move 30
far out that die discussion becomes esoteric; on the other hand the panel includes
issues- no maror what their timing* that could be mitigated by immediate action.
Tae rule of thumb is thai "we go out in time as far as is necessary to identify
problems that could or should trigger action tomorrow."

With this imazc in mind some daunting questions arise*.

       Just how can the pamcipants be chosen? wist snouid be their range of
       expertise? Should they be specialists or generalise? Should mere be a fair
       sampling and representation of various view points in the make-up of tie
                                Gordon

                                 -5-'

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       panel? Should all panelists be scientifically or technically oriented?, Ho--/
       can the public participate? -

       If the panel is large, how can the right question be asked of the right
       person to avoid burdening every one with the chore of reviewing every
       question? What questions should be asked?

       What media should be employed? E- mail communications are preferred,
       not only because of the low cost of transmission but because electronic
       responses are much easier to collate, But requiring communications by e-
       mail will effectively deny access to many people who might have great
       deal to contribute.

       The Millennium Project Feasibility Study (conducted by the United
 Nations University under contract to the US EPA) defined three kinds of
 questions might be asted of participants in a panel of this sort (2):
       forecasts of the occurrence offiiture development Forecasts of furore
       developments call for answers about when an event is expected to occur or
       about the future value of some trend or parameier. We include here
       observations about some worsening aspect of the environment and
       speculation about its possible consequences.

       As desirability  of some future state. Questions dealing with desirability
       ask for judgments about whether an event wight to occur, and the basis
       for the recommendation.
       the means for achieving or avoiding ajviurestaiA. Questions dealing with
       policy involve the traditional reporter's questions about implementation
       seem appropriate tee: who, what, when, where, and how much? But to
       this set we must add: To what end. In other words, questions about policy
       ought be linked closely to t!ie objer ^is sought and the l
       my policy wili> in fact, accomplish its intended goals,
       These three types of questions may require different kinds of experts. The
Hrelihood questions may involve hands-on experience and intimate knowledge of
the frontiers of research. The desirability questions may involve a moral, political
or social dimension quite distinct from the disciplinary expertise involved in
judging likelihood. The policy question may involve knowledge of the art of fihe
possible and political savvy,

       With the advent of the wide use of Internet and electronic bulletin boards,
one is tempted to simply say, "Lei the discussion of these sorts of questions be
wide open Use little structure. Let the conversation flow as it may," Tnis,! drink.
                                •Gordon

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 xvill not prove to be efficient, Rather, I recommend a structure based on the
 Delphi method developed at RAND in the early 60's and used many times since.,

        The RAND researchers explored the use of expert panels to address
 forecasting issues, Their reasoning went something like this: experts, particular ly
 when they agree, are more likely than non experts to be correct about questions in
 their field. However.,  RAND (and many others) found that bringing experts
 together in a conference room introduces factors that may have little to do with
 the issue at hand, For example, the loudest voice rather than the soundest
 argument may cany the day; a person may be reluctant 10 abandon a previously
 stated opinion in front of his peers. The give and take of such face to face
 confrontations often gets in the way of a true debate.

       • The Delphi approach was designed to eliminate the principle obstacles to
 conference room meetings of experts.  In most applications:

        Several rounds are employed; general questions are asked in the first
        round

        In a second round, reasons for  extreme positions are sought.

        These reasons are fed back to die group in a third round with instructions
        to reassess positions in view of the reasons For extreme opinions.
       To encourage a true debate, independent of personalities, anonymity is
 required in the sense that no one knew who else is participating. Further, to
 eliminate the force of oratory and pedagogy, the reasons given for extreme
 opinions are synthesized by the researchers in order to give ail of them equal
 "weight". These' aspects: anonymity and teedback represent the two irreducible
 elements of a Delphi study.

       In the early days. Iriviag toward a consensus was impcf~anL Today,
 consensus is- less important for many investigators than it used to be; now a useful
 product of such studies is crystallization of reasons for dis-sensus. Furthermore,
 this process is now seen as no more or less than a systematic means of
 synthesizing the judgments of experts- the aggregate judgment representing a
 kind of composite expert composed, in the domain, of interest, of the expertise of
 all of the participants.

       Some researchers have found that Delphi when used in forecasting does
• not provide more accurate answers than other methods and that consensus occurs
 as a result of pressure brought on participants that have extreme opinions.
 (Woudenbergj 1991) Even if this is so, our application here is more modest that
 accurate forecasting: it is simply an efficient way to gather, synthesize, and
 explore expert opinion.
                                Gordon

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       There are major difference between a "classical" Delphi and the use
proposed here. First we are not very concerned with forecasting accuracy; rather
we want to surface observations about possible deleterious developments and
engage in a structured, multi-disciplinary discussion, about the potential evolution
and consequences of die developments, Second, this is not seen as a "one-shot"
study, but rather an on-going, continuous inquiry. But the process uses anonymity
and feedback to advantage.

       Because the number of respondents is usually small, a "look out" panel
win not produce statistically significant results; in other words, the results
provided by the panel will not predict the response of a larger population c?r even
the findings of a different panel They represent the synthesis of opinion of the
particular group, no more or less, The value of a this work will rest with the ideas
it generates, both those which evoke consensus and those that do not The
arguments for the extreme positions also represent a useful product This will not
be a substitute for analysis, it will provide only an early warning, or hints that
deserve follow up.

       The results produced by an EPA "look out" panel will depend on the
knowledge and cooperation of the panelists; for this reason, it is essential to
include persons who are likely to contribute valuable ideas, la a statistically based
study such as a1 public opinion poll, participants are assumed to be representative
of a larger population; in panels of this sort, non-representative, knowledgeable
persons are needed. So the first problem to be addressed is how to select potential
participants. The EPA laboratory directors, division chiefs,, state environmental
personnel, representatives of environmental action groups all come to mind,

       But how about "urjknowE" people who are outside of the normal lines of
communication but who may be able to contribute new and valuable perceptions?
Here are some suggestions:

       use bulletins boards to identify contributors who have something to say

       get recommendaTions from university pofesscars about bright students

       advertise for participants
       Detailed design, of course, will rest with die EPA staff. But here are some
thoughts about structure and operations to trigger discussion

       The panel is made up of invited expert participants, from EPA, the
       environmejital comniaiity as well as the public, primarily from, the US
       but other countries may be represented as well.
                              Gordon
                                -8-

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        Anonymity (in the sense that comments-will be urmttdbuted) is promised
        and feed back of information is used in sequential questionnaires,

        Panelists are encouraged, to initiate contact whenever they see looming
        issues,
                                                      4.
    -    Non EPA personnel are paid for their time and communications costs.

        The panel operates continuously.

        Questionnaires are drafted by staff and send to the participants by fax, s-
        mail and mail,

        One part of every questionnaire will request perceptions about newly
        observed nascent issues; another part will request comments issues
        reported by others in earlier rounds. Questions may also be included
        seeking judgments about goals and contemplated policies.

        A "filtering" system wiU be used by staff to assure tot the right questions
        go to the correct persons, while not missing the opportunity to gain
        contributions from those outside of the topic area,

        Review of responses is careftd; reports are made periodically and provided
        to the panelists.

        Also, consider the possibility of:

              establishing a set of indicators, the future of which, can be assessed
              by the panel in view of the issues they discuss.

              an amual meeting of participaats
Ted GordOE
January 25,1994
(1) In this discussion, I have ased the tenn" look-out" as a substitute for the more usual tern*
"environmental scanning" to avoid the potential confusion in the us* of word "snvuonmentaT1 in
tils context. "Environmeatai scanning" encompass** the total environment saaoanding $m
activity: scononies, mriats, technology, social ehaage, regulation, etc.

(2) T Gordon tad I Glenn. "Issues itt Creating the MillefflfliiMn Project," United Nations
University, funded by tfe EPA, October, 1993. Some of the material in this pap*r is drwan fiom
this source.
                                  Gordon

                                   -9-

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