ENVIRONMENTAL PROTECTION AGENCY
                ENVIRONMENTAL FINANCIAL ADVISORY BOARD
                           STRATEGIC ACTION AGENDA
                              FISCAL YEARS 2011 -2012
BACKGROUND

The  Environmental  Financial  Advisory  Board  (EFAB)  is  chartered  under  the  Federal  Advisory
Committee Act to advise EPA on environmental finance issues, options proposals,  and trends. EFAB
seeks ways of lowering costs and increasing investments in public purpose environmental facilities and
services. EFAB is supported by EPA's Office of the Chief Financial Officer.

The Chair of the Board is Bradley Abelow, Chief Operating Officer, MF Global Holdings, Ltd. of New
York, NY. EFAB's Designated Federal Official is Michael Shapiro, Deputy Assistant Administrator for
the  Office of Water. EFAB's  plans and operation are aligned with the major environmental goals
presented in EPA's strategic plan.

EPA GOALS AND EFAB ISSUES

EFAB's work is organized in support of the 5 major goals in EPA's Strategic Plan:

1.     Taking Action on Climate Change and Improving Air Quality
2.     Protecting America's Waters
3.     Cleaning Up Our Communities and Advancing Sustainable Development
4.     Ensuring the Safety of Chemicals and Preventing Pollution
5.     Enforcing Environmental Laws

In  its strategic planning process, EFAB  applies these thematic EPA goals  in the  context of the
requirement in its charter to provide advice and recommendations on the following issues:

   •  Reducing  the  cost of financing  sustainable environmental  facilities,  discouraging  polluting
      behavior, and encouraging stewardship of natural  resources;

   •  Creating incentives to increase private investment in the provision of environmental services and
      removing or reducing constraints on private involvement imposed by current regulations;

   •  Developing  new and innovative environmental financing  approaches  and  supporting and
      encouraging the use of cost-effective existing approaches;

   •  Identifying approaches specifically targeted to small community financing;

   •  Assessing   government  strategies  for implementing public-private  partnerships,  including
      privatization and operations and maintenance issues, and other alternative financing mechanisms;

   •  Improving  governmental principles of accounting  and disclosure  standards to help  improve
      sustainability of environmental programs;

   •  Increasing the capacity issue  of state and local governments  to carry out  their respective
      environmental programs under current Federal tax laws;

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   •   Increasing the total investment in environmental protection and stewardship of public and private
       environmental resources to help ease the environmental financing challenge facing our nation; and

   •   Removing barriers and increasing opportunities for the U.S. financial services and environmental
       goods and services industries in other nations.

Based on these goals and objectives and input from EPA, EFAB develops a Strategic Action Agenda
describing its workgroup structure and lists  ongoing and completed projects.  Given the number, scope,
and nature of the issues  that EFAB addresses, its workgroups take the  lead in  developing projects for
consideration and approval by the Full Board.

CURRENT EFAB WORKGROUPS

       ^     Clean Air Technology:  Chaired by  Sharon Dixon Peay, State of Connecticut, Hartford,
             CT

       ^     Tribal Environmental Programs: Chaired by Debi Livesay, Torres  Martinez Desert
             Cahuilla Indian Tribe, Salton City, CA

       ^     Transit-Oriented  Development:  Chaired  by  Phil  Johnson,   Green  Terra  Energy
             Corporation, Washington, DC
STATUS OF EFAB PROJECTS
                                On-Going Projects FY 2012
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       1.     Clean Air Technology
                    EPA Strategic Goals: Taking Action on Climate Change and Ensuring Air Quality
                    Primary Customer: Office of Air and Radiation

       2.     Tribal Environmental Programs
                    EPA Strategic  Goal:  Protecting America's  Waters  and Cleaning  Up  Our
                    Communities
                    Primary Customer: Office of International and Tribal Affairs

       3.     Transit-Oriented Development
                    EPA Strategic Goal: Cleaning Up Our Communities
                    Primary Customer: Office of Policy

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                             Completed Projects
                                  FY2011
I
1.  Voluntary Environmental Improvement Bond (VEIB) Programs, May 2011
             EPA Strategic  Goals:  Taking Action on Climate Change  and Improving Air
             Quality and Protecting America's Waters
             Primary Customers: Office of Air and Radiation and Office of Water

2.  SRF Investment Options: Current Status and Prospects for Enhancing SRF Sustainability,
   February 2011
             EPA Strategic Goal: Protecting America's Waters
             Primary Customer: Office of Water

3.  Financial Assurance: Improving Cost Estimation, December 2010
             EPA  Strategic   Goals:   Cleaning   Up  Our Communities  and  Enforcing
             Environmental Laws
             Primary Customers:  Office of Solid Waste and Emergency Response and Office
             of Enforcement and Compliance Assurance

4.  Financial Assurance: Letter on the Use of Credit Ratings, December 2010
             EPA  Strategic   Goals:   Cleaning   Up  Our Communities  and  Enforcing
             Environmental Laws
             Primary Customers:  Office of Solid Waste and Emergency Response and Office
             of Enforcement and Compliance Assurance
This Strategic Action Agenda is a flexible planning tool and is updated during the fiscal year as
needed.  All revisions will be shown on the Board's home page at:
http ://www. epa.gov/efmpage/efab .htm

A Webcast Meeting of the full board is scheduled for Tuesday, October 18, 2011. The purpose of
this  meeting is to hear from informed speakers  on environmental  finance issues, proposed
legislation, EPA priorities, discuss progress with current workgroup projects, and to review and
consider recent requests for assistance from a number of EPA program offices.

A full board meeting is being planned for the Spring of 2012 (dates to be announced soon).

Your comments are important and welcome. For additional information, contact Vanessa Bowie at
the Center for Environmental Finance at bowie.vanessa.bowie@epa.gov.

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