SEPA
                                                                                      190B12001
       United States
       Environmental Protection
       Agency
                            Cross-Cutting Fundamental Strategy
                        FY 2011 Action Plan Annual Progress Report
         Strategy 3:  Advancing Science, Research and Technological Innovation
Advance a rigorous basic and applied science research and development agenda that informs, empowers, and
    delivers innovative and sustainable solutions to environmental problems. Provide relevant and robust
           scientific data and findings to support the Agency's policy and decision-making needs.
                                       Executive Summary
In FY 2011, EPA took important steps to: (1) plan and implement innovative and sustainable technologies and
methods for addressing environmental problems; (2) expand efforts to communicate research results; and, (3)
promote partnerships to leverage funding and foster research innovations. Some of the most significant
accomplishments and challenges are noted below.

Accomplishment Highlights:
   EPA's research scientists partnered with Agency program offices, Regions and external stakeholders to
    address high priority cross-cutting issues such as: the impact of hydraulic fracturing on drinking water;
    validation of air monitoring methods and new technologies; green and sustainable water infrastructure; and
    next-generation tools for screening chemicals that disrupt the human endocrine system.
   Working collaboratively, EPA's research scientists, program offices, and Regions have developed four
    integrated research frameworks for: (1) air, climate, and energy; (2) safe and sustainable water; (3)
    chemical  safety for sustainability; and, (4) sustainable and healthy communities.
   EPA has initiated an effort to evaluate technology opportunities and market assessments, which will
    implement  Executive Order (E.O.) 13563, "Improving Regulation and Regulatory Review," for potential
    inclusion  into the Agency's Action Development Process.
   The Agency has initiated a series of efforts to support and promote technologies and methods that
    scrutinize environmental and human health impacts from the beginning to the end of the technology life
    cycle.
    o  EPA partnered with several other federal agencies on regional innovation initiatives that focus on
       technology innovation with environmental relevance. As part of this effort, EPA leveraged its funding
       with more than $6 million from the Department of Commerce and the Department of Energy for the i6
       Green Challenge grants for 6 regional initiatives to bring green technologies to market.
    o  EPA collaborated with the Small Business Administration to support and help launch the Water
       Technology Innovation Cluster, which is designed to spur innovation and research-to-market activities in
       the Ohio River Valley.
   The Agency has launched the "Great Environmental Moments in Science" website and report to highlight
    important advances in environmental science realized through EPA research.
FY 2011 Annual Progress Report: Advancing Science, Research and Technological Innovation

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Challenges:
  The collaboration between EPA scientists and state and local partners to identify research and technology
   needs and solutions has been broadened. Therefore, the effort focused specifically at the Environmental
   Council of the States (ECOS) has been postponed.
  The evaluations of water and air monitoring technologies planned for 2011 have not been completed since
   they have been incorporated into broader efforts to evaluate and prioritize both technology innovation and
   research needs during FY 2012.
  The Agency's efforts to support and promote technologies and methods that scrutinize environmental  and
   human  health impacts throughout the technology life-cycle have extended into 2012 to ensure that
   stakeholders are fully engaged.
  Efforts to establish an  EPA Senior  Environmental Technology Officer (SETO) are well underway but will  not
   be completed during FY 2011.
FY 2011 Annual Progress Report: Advancing Science, Research and Technological Innovation

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                                  FY 2011 Performance Summary
               Strategy 3: Advancing Science, Research, and Technological Innovation
        FY 2011 Action Plan Activity
                 Status/Explanation
                    = Activity complete
1.   Plan and implement research programs
    through close partnerships among EPA
    offices, partners, and external stakeholders
    (Supports Principles 1 and 4).
EPA's research program has engaged internally with EPA
program and regional offices and externally with other
stakeholders. Together, EPA and its partners defined
research questions. These research questions informed the
development of problem oriented-research frameworks
and action plans. In June, the Science Advisory Board and
Board of Scientific Counselors (BOSC) reviewed the research
frameworks. These Federal Advisory Committee Act (FACA)
committees support EPA's approach to deliver and
communicate research outcomes.

According to feedback in the draft BOSC-SAB report:
  "Considerable synergies will be realized in integrating
   [Office of Research and Development] ORD research
   activities into the new programmatic areas."
  "The SAB is highly supportive of the realignment of ORD
   research programs and of aligning the FY 2012 budget
   with them."
       Address the research needs identified by
       EPA offices, partners, and external
       stakeholders by: developing and
       implementing a research plan on the
       impact of hydraulic fracturing on drinking
       water; issuing a competitive Request for
       Applications (RFA) on validating air
       monitoring methods and new
       technologies; issuing an RFA on green
       sustainable water infrastructure;
       initiating new research efforts to develop
       next-generation tools that support
       implementation of the Agency's
       Endocrine Disrupter Screening Program
       (EDSP); and publishing  findings on the
       detection, measurement, exposure
       effects, and environmental applications
       of nano-sized particles  in environmental
       media.
   Fracking:  Released Draft Hydraulic Fracturing Study for
    public comment and peer review. Study examines the
    impacts of hydraulic fracturing on drinking water
    resources. The study plan reflects extensive input from
    the public, Science Advisory Board (SAB), EPA Regions,
    EPA's water program, industry, and communities. First
    report due end of 2012.

   Air RFA: Awards in process. Grantees to receive
    funding in FY 2012.

   Green Infrastructure RFA: Issued an RFA and identified
    one candidate for a grant. Funding package has been
    completed.  ORD is issuing an additional RFA to use
    remaining funds. Under the new RFA, three additional
    applicants will be funded by October 2012.

   Supporting EDSP: EPA has started developing next-
    generation screening tools for its Endocrine Disrupter
    Screening Program.  EPA has screened over 2,000
    chemicals using ToxCast rapid endocrine testing
    methods.  (Initiated testing of 2,100 chemicals in
    ToxCast and 10,000  in Tox21.)
FY 2011 Annual Progress Report: Advancing Science, Research and Technological Innovation

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                                  FY 2011 Performance Summary
               Strategy 3: Advancing Science, Research, and Technological Innovation
        FY 2011 Action Plan Activity
                 Status/Explanation
                    =  Activity complete
       Identify the barriers to developing
       sustainable solutions to high priority
       environmental problems in collaboration
       with the Environmental Council of the
       States (ECOS) and other State and local
       partners. Recommend science and
       technology solutions that can aid in
       overcoming those barriers.
The collaboration between EPA scientists and state and
local partners has been broadened. Therefore, the effort
focused specifically at the Environmental Council of the
States (ECOS) has been postponed.
       Conduct an inventory of water and air
       monitoring technologies developed and
       funded by other federal agencies that
       may be appropriate for environmental
       application.
The evaluations of water and air monitoring technologies
planned for FY 2011 were not completed.  They have been
incorporated into broader efforts to evaluate and prioritize
both technology innovation and research needs in FY 2012.
       Select two pending regulatory actions
       and conduct a technology opportunity
       and market assessment, to begin
       developing a framework for such
       assessments as part of the Action
       Development Process (ADP).
Implementation is underway but is taking longer than
expected.  The Agency developed a plan for implementing
E.O. 13563, "Improving Regulation and Regulatory Review/'
and issued it in August 2011. Under the plan, EPA will
select two pending regulatory actions and conduct a
technology opportunity and market assessment. EPA will
then develop a framework for such assessments as part of
the Action Development Process. Technology opportunity
and market assessments will be tied to this plan. EPA
expects to complete pilot analyses in FY 2012, which will
inform future work in this area.
       Conduct a retrospective analysis of the
       technology cost of selected rulemakings
       to estimate the actual costs of developing
       and deploying new environmental
       technologies.
The National Center for Environmental Economics (NCEE)
is conducting a pilot project that evaluates the degree to
which ex-ante and ex-post cost estimates of regulations
differ, and possible reasons for the differences.  For select
regulations, NCEE is attempting to determine what affected
entities did to comply with the new requirements and how
much it cost them to comply. Various methodologies are
being used to collect ex-post cost information, ranging from
using publicly available data sources to reaching out to
experts on industry compliance as well as associations and
trade groups. A draft report for the first round of pilot
projects is expected to be completed by December 2011.
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                                  FY 2011 Performance Summary
               Strategy 3: Advancing Science, Research, and Technological Innovation
        FY 2011 Action Plan Activity
              Status/Explanation
                = Activity complete
       Identify which of the more than 50
       regional innovation initiatives funded by
       other federal agencies focus on
       technology innovation with
       environmental relevance, and develop
       actions for EPA to support these to speed
       the development and utilization of new
       technologies that may significantly lower
       environmental impacts by engaging a
       wide range of stakeholders, including
       technology developers, researchers,
       entrepreneurs, and economic
       development organizations.
EPA partnered with several federal agencies on regional
innovation initiatives which focus on technology
innovation with environmental relevance, as well as
shared funding and implementation of these
innovation drivers.

In FY 2011, EPA leveraged $280K of Agency funding
with more than $6 million from the Department of
Commerce and the Department of Energy for i6 Green
Challenge grants for 6 regional initiatives to bring green
technologies to market.

In FY 2011, EPA collaborated with the Small Business
Administration to support and help launch the Water
Technology Innovation Cluster, which is designed to
spur innovation and research-to-market activities in the
Ohio River Valley.
2.  Support and promote technologies and
   methods that scrutinize environmental and
   human health impacts from the beginning to
   the end of the technology life cycle
   (Supports Principles 1, 2, and 4).
FY 2011 Annual Progress Report: Advancing Science, Research and Technological Innovation

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                                   FY 2011 Performance Summary
               Strategy 3: Advancing Science, Research, and Technological Innovation
         FY 2011 Action Plan Activity
                 Status/Explanation
                    = Activity complete
       Implement a competitive program that
       encourages EPA scientists and engineers
       to develop integrated trans-disciplinary
       research projects and partnerships with
       entrepreneurs, universities, and other
       research institutions.
Completed Pathfinder Projects: Pathfinder Projects are
part of EPA's research program's approach to promote
innovation among scientists. Over 110 applications were
received and reviewed by a panel of nearly 30 external
experts in innovation and sustainability. In this competitive
process, 12 project awards were made on January 31, 2011
covering "high risk/high reward" research. Examples of
projects include:

   EPA scientists are collaborating with the Naval Research
    Lab to make water quality data as accessible to the
    "person on the street" as weather data by using remote
    sensing technology on the  International Space Station.
   EPA scientists are using smart phones, social
    networking sites ("Facebook"), and life-simulation
    virtual environments ("The Sims" or "Second Life") to
    develop realistic simulations of human activities and
    chemical exposures. This project will use smart phones
    to scan bar-codes on products in homes to determine
    potential exposure sources.
       Convene a meeting to engage external
       stakeholders and private markets and to
       communicate emerging opportunities for
       environmental technology and product
       innovation that support EPA's regulatory
       agenda.
An EPA cross-office working group is organizing a Spring
2012 symposium.  Symposium themes have been
developed in partnership with EPA program offices and
Regions, and session planning is underway (see below). The
working group has identified venue options and is analyzing
which option will minimize costs to EPA and maximize
participation by co-conveners.
       Utilize the EPA Futures Community of
       Practice to evaluate emerging issues and
       technology innovations to inform Agency
       planning and achieve the Administrator's
       priorities.
   EPA's Futures Community of Practice is identifying,
    developing, and organizing technical sessions for a
    Market Opportunities Symposium in Spring 2012 (see
    above). Sessions will bring together EPA experts,
    partners in other federal agencies, private industry, and
    the private finance sector to explore how innovative
    technologies and market opportunities can be used to
    improve environmental outcomes.

   EPA developed a new crowd-sourcing website
    (http://futures.ideascale.com/) that serves as the EPA
    Futures Community of Practice online collaboration
    tool. The site promotes information sharing, best
    practices, collaboration, and the generation of ideas on
    technology innovation and emerging environmental
    issues.
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                                  FY 2011 Performance Summary
               Strategy 3: Advancing Science, Research, and Technological Innovation
        FY 2011 Action Plan Activity
                 Status/Explanation
                    = Activity complete
       Launch a challenge prize for technology
       innovation and work with key partners to
       catalyze international innovation
       adoption of key environmental
       technologies.
EPA is serving as a technical consultant supporting the
World Bank and US Agency for International Development
(USAID) on a proposal for a challenge competition with the
X-Prize Foundation  on financing innovative water
technologies. USAID is currently working on alternative
ways to fund the project after procedural issues arose over
funding and forced  a delay in project development.
       Leverage the technology and innovation
       insights of the Environmental Financial
       Advisory  Board, which provides advice to
       the Agency on "how to pay" questions for
       environmental protection. Seek advice to
       advance the most promising technology
       and financing innovations.
In response to an Agency request, the Environmental
Financial Advisory Board (EFAB) identified creative options
to provide incentives to boiler facility owners to comply
with the new Maximum Available Control Technology
standards for air.
   EFAB's Clean Air Technology Project Workgroup has
    been collecting and analyzing information on the
    financial condition of the corporations and industries
    that must comply with the new standards, and
    examining the costs of obtaining and operating both
    new and traditional control technologies.
   Ongoing developments in finalizing and promulgating
    the standards  have impacted completion of this effort.
   The EFAB Clean Air Technology Workgroup is
    developing an interim report delineating its preliminary
    findings, observations, and recommendations.
   The EFAB plans to continue its analysis of the various
    corporations, industries, and technologies  using the
    information that becomes available as the  final
    standards are  developed and implemented.
       Establish an EPA Senior Environmental
       Technology Officer (SETO) to coordinate
       environmental technology-related issues
       across the Agency.
Two top candidates will be selected by the end of FY 2011.
Conduct an independent external review process of the top
candidates before making a final selection decision.
    Communicate the design, definition,
    conduct, transfer, and implementation of
    research and technological innovation so
    that it can be understood readily and used
    by stakeholders (Supports Principle 3).
FY 2011 Annual Progress Report: Advancing Science, Research and Technological Innovation

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                                 FY 2011 Performance Summary
              Strategy 3:  Advancing Science, Research, and Technological Innovation
        FY 2011 Action Plan Activity
                 Status/Explanation
                   = Activity complete
       Launch the "Impact Initiative/' which
       gathers and communicates information
       on the results of EPA's research, to better
       inform the public on the impact of EPA's
       research on public policy, human health,
       and the environment. Fully implement
       GEMS (Great Environmental Moments in
       Science) to highlight important advances
       in environmental science realized through
       EPA research.
A GEMS website and report were launched that highlights
advances in science that are attributed to EPA.
FY 2011 Annual Progress Report: Advancing Science, Research and Technological Innovation

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