I          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
f                ,        WASHINGTON, D C 20460

 March 6, 1987                                      SftB-EC-87-024


 Honorable Lee M.  Thomas
                                                              TM(: *OM,N,STB*TOB
 U.  S.  Environmental Protection
 401 M Street,  S.  W.                      "                -
 Washington,  D. C.   20460

 Dear Mr. Thomas;

    .  The Science  Advisory Board's (SAB)  Research and Development
 Budget Subcommittee  has completed its second annual review of the
 President's" proposed budget for the Office of Research and Develop-
 ment and is  pleased  to transmit copies to  you and Congressional
 committees that authorize and appropriate  funds  for this office.
                                                       *
      The -President's proposed research budget for Fiscal Year (PY-)    '  '
 1988 for the Office  of Research and Development  (QRD)  is $353,5 million
 and 1,844 workyears, an increase of $8.3 million and a reduction of 22
 work years frcm the current fiscal year.  The proposed budget provides
 a  relatively stable  basis 'for research planning,- while allowing for
 modest overall growth.

      The scope. of  the Subeotmit tee's review addresses three major
 issues:  1)  trends in the research budget;  2)  continuing core needs
 of Ep&'s research program* and 3) comments on specific research
 programs in  eight major areas — air,  radiation, water quality,  drinking
 water*  pesticides/toxic substances,  hazardous wastes/Superfund,  energy/
 acid rain and  interdisciplinary research.
                    ;'',.''    >
      The proposed .-budget should facilitate ORD's capability to provide
 technical support  for* ongoing regulatory programs and allow for some
 modest additional -initiatives for issues that are of rising priority.
 In general I-  the Subcommittee believes that those program  earmarked for
 funding increases can effectively utilize  these  resources.   There are
 some components of -the research program that are currently underfunded
 but, given the current budgetary climate,  the Subcommittee recommends
 additional funding only if Congress appropriates new resources.

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     The Subcommittee and the SAB Executive Ccntnittee believe that
the enclosed report adds to the range of viewpoints that the
Administration arid the Congress should consider in reaching budgetary
decisions, and that scientists and engineers have A responsibility
to present their thoughts and evaluations of the scientific needs
of one of the nation's most important institutions,1

     We appreciate the opportunity to review the proposed research
budget and request that the Agency respond to the advice and recom-
mendations provided in this report.
                         Sincerely,
                         John Neuhold, Chairman
                         Research and Development Budget Subconraittee
                         Science Advisory Board
                            t.  .    ..   .
                         Norton Nelson, Chairman
                         Executive Cotmittee
                         Science Advisory Board
cc: A. James Barnes
    Vaun Newill
    Terry F. Yosie

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                                      SAB-EC-87-Q24
REVIEW OP THE OFFICE OF RESEARCH AND DEVELOPMENT'S
       PROPOSED BUDGET FOR FISCAL YEAR 1988
   Research and Development Budget Subcommittee





              Science Adyisoty Board





      U. 3. Environmental Protect Ion-, Agency-
                   March, 1987

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              U. S, ENVITOMENTAL PROTECTION


                              NOTICE
     This report has been written as a 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 a balanced expert assessment of
scientific natters 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 ccnmercial products
constitute endorsement of recommendat'ion for use.

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                  U. S. ENVIRONMENTAL PROTECTION AGENCY

                          SCIENCE ADVISORY BOARD

               RESEARCH AND DEVELOPMENT BUDGET SUBCOMMITTEE




                                  ROSTER
Dr. John N. Neuhold, Chairwan
Department of Wildlife Sciences
  College of Natural Resources
Utah State University
Logan, Utah  84322
Dr. Terry F. Yosie
Director, Science Advisory Board
U* S. Environmental Protection Agency
Roan 1145;. S^est Tower
Washington, D. C. 20460
Dr. Clayton Callis
2 Holiday Lane
St. Louis, Missouri  63131
Dr. Richard A, Grieseraer
Director, Biology Division
Oak Ridge National Laboratory
Box Y
Oak Ridge, Tennessee 37831
Dr. Raymond Loehr
8,614 ECJ Hall
Civil'Engineering Department
University of Texas
Austin, Texas  78712
Dr* Francis C. McMichael
The Blenko Professor of
  Environmental Engineering
Department of Civil Engineering
Carnegie-Mellon University
Porter Hall 123A
Pittsburgh, Pennsylvania  15213

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                              Table Of Contents
I.      Executive Surtmary                                       1

II*     Introduction and Scope of the Review                    3

III.    Trends in the Research Budget                           6

        1.  Resource Levels                                     6

        2.  Intramural and Sxtramural Resources                 7

IV.     Sense Continuing Core Needs of EPA's Research Program    8

        1 .  Personnel                                           9

        2,  Capability to Define Emerging Problems             12

IV,     Cotroents on Specific Research Programs                 14

        1.  Air                                                14
            A.  Indoor Air           ••. .   '.<                     14
            B.  Ambient Air Quality Research                   15
            C.  Forest Effects of Ozone              .          17
            D.  Global Climate and Stratospheric Modification  17

        2.  Radiation                                          17

        3.  natter Quality                                      18
            A.  feter Quality Based Approach                   18
            B,  Great Lakes                                    20
            C.  Sludge                                         20

        4.  Drinking Water                                     20

        5.  Pesticides/Toxic Substances                        21
            A.  Biotechnology                                  21
            B,  Ecological Risk Assessment                     22
            C.  Structure Activity Relationships               23

        6,  Hazartous Wastes/Superfund                         23
            A.  Superfund Innovative Technologies Evaluation
                (SITE)                                         24
            8.  Alternative Hazardous Waste Technologies
                Program                                        25
            C.  Municipal Waste Combustion                     26

        7.  Energy /Ac id Rain                                   28

        8.  Interdisciplinary Research                         28

v.      References                                             30

        Appendix I:  Summary of the FY 88 Research
                     Budget Proposal by Program Category

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I,   Executive Summary



   •  The President's proposed budget for Fiscal Year (FY) 1988 for the Office



of Research and Development (ORD) is $353.5 million and 1,844 workyears, an



increase of $8.3 million and a reduction of 22 workyears from the current



fiscal yeart  The proposed budget provides a relatively stable basis for research



planning/ while allowing for modest overall growth.



     This is the second consecutive annual review by the Science Mvisory



Board o£ the President's research budget reeconendations.  To conduct this



review, the Board created a Research and Development Budget Subeeftmittee.  The



scope of the Subcommittee's review addresses three major issues.  These



include: 1) trends in the research budget; 2} continuing core needs of SPA's



research program; and 3) comments on specific research programs in eight



major areas—air, radiation, water quality, drinking water, pesticides/toxic



substances, hazardous wastes/Superfund» energy/acid rain and interdisciplinary



research.



     The proposed budget supports QRD's capability to provide technical



support for ongoing regulatory programs and will enable it to develop initiatives



for some selected issues that are of rising priority.  In general, the Subcom-



mittee believes that those programs earmarked for funding increases can



effectively utilize these resources.  There are some components of the research



program that are currently underfunded but, given the current budgetary



climate, the Subccnmittee recomrends additional funding only if Congress



authorizes and appropriates new resources.



     In last year's report, the Subcommittee pointed out that, over a number



of years, a serious underfunding of the in-house program had occurred and



recommended a reversal of this trend.  A modest increase in these resources



is available during the current fiscal year, and a further small increase (of



$2 million for a total of S104 million) is proposed Eor FY '88.  The Subcommittee

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                                    - 2 -





reiterates its recommendation of last year that even greater support of the



in-house program is needed.



     Providing adequate support for the in-house research program, combined



with resolving several salient needs of QRD personnel, can greatly contribute



to the productivity of the Office of Research and Development.  A strong in-



house capability can also enable ORD to'more effectively manage its extramural



budget.                                                 ;



     EPA's ability to achieve its goal of building risk-based decision making



will rest largely on its ability to maintain and enhance the technical skills



of its personnel through training and other Corns of professional development.



In order to achieve this objective, the Subcommittee recommends that EPA



undertake two initiatives:            .';;
                                      f


     o  Develop a strategy to better define SPAls Key scientific staffing



needs.  Such a strategy should address the magnitude of the current skills-



mix problem, training and other needs of existing staff, identification of



new scientific skills needed and their relationship to new hiring decisions,



analyses of resources needed for key risk assessment activities and their



relationship to workload models, and recommendation of specific steps that



build competence In risk assessment.



     O  Analyze the budgetary implications of such a strategy with the goal



of making specific recommendations to the Office of Management and Budget and



the Congress to provide adequate levels of support.



     At present, there aro a number of  issues of growing public concern



which, through thoughtful and prompt EPA response, can be effectively managed.



Examples include stratospheric ozone modification and climate change, bio-



technology, and assessing risks to ecosystems.  What  is needed  is for EPA to



develop a better system of "eyes and ears" that can alert it to issues beyond



today's inurediate regulatory and statutory priorities.

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                                    - 3 -

     The Subcommittee recommends two mechanisms to aid in developing an
improved .capability to define emerging issues,  the first is to revive a
previous IPA initiative entitled the Environmenta 1 Outlook.  Ihe purpose of
this document was to provide information on environmental trends and future
problems, with a particular emphasis on the relationship between socio-economic
changes and their influence on the environment.
     A second mechanism available to EPA is the investigator-initiated
exploratory grants program.  This program should be reoriented to permit more
input from laboratory and program office directors and to improve their
ability to utilize the results of investigator-initiated research.  A central
theme of the grants program should be to develop data and methodologies for
risk assessment or risk reduction.  IfJthis occurs, a greater constituency
for the program will evolve within EPA and should not lessen the ability of
extramural scientists to continue their practice of submitting investigator-
initiated research proposals, nor compromise their ability to perform innovative
research.
* I *  Introduction and__Scpj^e_ of^he Review
     To provide the scientific data needed to identify and assess public health
and environmental problems, and to support the promulgation and enforcement
of regulations and standards under its authorizing statutes, the Environmental
Protection Agency maintains a number of research programs.  Congress has long
recognized the need for improved scientific data and the important linkage
between the Agency's research and regulatory activities, and has recently
augmented the research program by authorizing that research be conducted under
the Superfund Amendments and Reauthorization Act.
     Managing a research program in a regulatory Agency is an extremely
difficult task.  The very nature of the regulatory process—with its short
deadlines, and oftentimes rapidly changing priorities—confronts EPA's research

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programs with a set of challenges that most research organizations, such as

the National Institutes of Health and National Science Foundation, do not

encounter in either frequency or degree*  At the same tine, research carried

out by EPA needs to achieve the same standards of quality expected of other

research organizations by the scientific cownjnity.  These and other challenges

to EPA's research have existed since the Agency's inception and will persist.

     The Science Advisory Board, since its creation, has observed and actively

reviewed the scientific quality and direction of EPA's,research programs.

Beginning last fiscal year, the Board initiated two steps that are consistent

with its independent research review role.  These steps included: agreeing

with ORD's recomendation to evaluate at least six individual research programs

per fiscal year; and reviewing the President's proposed research budget for

the coming fiscal year.  The Board has'."continued this activity to the present

time.                                ,        ,       ,                       .
                    a
     The Science Advisory Board's ongoing reviews o£ research programs and

budgets address several interrelated issues.  These include:

     o  Evaluation of EPA's research needs and current research carried out

or sponsored by the Agency.  Particular enphasis is placed on the future

direction of research needs and efforts.

     o  The integration of research data and methodologies across programs.

     o  The skills of EPA scientific personnel.

     The Board's review of the proposed research budget for PY '88 was carried

out by its Research and Development Budget Subcommittee,  The Subcommittee

met in executive session on January 6-7, 1987 in Washington, D. C, to receive

detailed background briefings from the staff of both the Office of Research

and Development and the Office of the Comptroller, and to begin preliminary

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                                    - 5 _






drafting of. its report.  On January 15, the Subcommittee's Chairman, Dr. John



Neunold, briefed the Executive Conmittee of its preliminary findings.  The



Executive Qcranittee approved the report on March 4, 1986,



     The Subcommittee's review addresses three major Issues.  These include;



1) trends in the research budget? 2) continuing core needs of EPA's research



program; and 3) comments on specific research programs in eight major areas—air,



radiation, water quality, drinking water, pesticides/toxic substances, hazardous



wastes/Superfundf energy/acid rain and interdisciplinary research.



     The Subcomittee also reflected on Administration and Congressional



responses to its budgetary report of last year and found two encouraging



developments.  One is the gradual stability of the research program that has



evolved over the past several years, in both dollars and staff, in the face



of continuing pressure for budgetary reductions across the Federal government."



The second is the slowly growing amount of resources rttade available to EPA's



in-house research program.  While the Subecnmittee continues to believe that



the in-*house program is underfunded, senior'EPA managers recognize the



importance of the issue.



     Because of time and other limitations, the Subccnmittee did  not attempt



to conduct a budgetary .-review of every research program.  Instead, it ccomented



upon programs that either account for a large fraction of the budget, address



significant scientific issues in support of EPA regulatory programs or receive



insufficient priority given the magnitude of the scientific or public policy



issues that are at stake.  A sujtrraary of the program categories in the research



budget Eor FY  '88 is presented in Appendix I.

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                                    - 6 -
III,  Trends in the Research Budget

      1.  Resource Levels

          To be productive, any research program must experience continuity

in research direction and management and have access to a stable level of

resources.  This need for stability stems Craft a number of intersecting

factors including: the lead tine required to acquire awj.-maintain skilled

technical personnel and equipment; planning and executing the research design;

data analysis and interpretation; and preparation and publication of technical

reports, including peer review,

          EPA's FY '88 research budget proposal of $353.5 million, an increase
                                      '.«" '•
of $8,3 million over the current PY '$7'estimate, provides a stable basis of

funding, while allowing, for modest overall growth*-  This represents a welcome

trend that has fceen evolving since PY '84.  It should support ORD's capability

to provide technical support Cor ongoing regulatory programs and will enable

it to allow for some modest additional initiatives for issues that are of

rising priority.,  In general, the Subcommittee believes that those programs

earmarked for funding increases can efficiently absorb these resources.

There are some components of the research program that are currently underfunded

but, given the current budgetary climate, the Subcommittee reccratiends additional

funding only if Congress authorises and appropriates new resources.

          Personnel work years, or FTEs (Full Time Equivalents), experience a

reduction of 21,6 from the FY  '87 level of 1,865.8.  Table'I presents ORD

budgetary and FTE data between PY '80 and the fY '8ft proposal.

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                                   TABLE I




     OFFICE OP RESEARCH AND DEVELOPMENT BUDGETARY AND PERSONNEL RESOURCES



                            FY '80 THROUGH FY '87



                            $ in Millions*                  FTE      	



FY '80 Actuals                $ 336.47  "                    2,344.3



FY '81 Actuals                  299,04                 . :/'  2,167.7



FY '82 Actuals                  244.69                 "     1,982.0



PY '83 Actuals                  215.12                      1,853.2



FY '84 Actuals                  234.84                      1,782.9



FY '85 Actuals                  286.95                      1,804,6



FY '86 Actuals                  320,02 V                    1,821.6



FY '87 Estimate         ,     .   345,20         •  ..     ,    1,865.8  ' -



FY '88 Proposal                 353.51                      1,844.2





*    (Includes Salaries and Expenses and Extramural Research and Development)



       2.  Intramiral and Extramural Resources



           ORD funds are appropriated into two general categories, salaries



and expenses (S&E) and research and development (R&D).  S&S funds support



staff salaries and the major in-house research programs conducted by ORD



laboratories and field stations.  R&D funds are generally applied toward



research conducted by extramural scientists and engineers and are directed at



developing scientific methodologies and data in various program areas, in



addition to EPA sponsored scientific workshops and peer reviews.



       In last year's report, the Subcommittee pointed out that, over a number



of years, a serious underfunding of the in-house program had occurred and



recommended a reversal of this trend.  A modest increase in these resources



is available during the current fiscal year, and a further small increase (of

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                                    - 8 -
$2 million for a total of $104 million) is proposed for PY  '8ft.  The Subecranittee
reiterates its recomnendation of last year that even greater support of the
in-house program is needed.
IV.   Some Continuing Core Needs of EPA* s_ Research Program
      The public health and environmental issues that confront EPA and its
research programs continue to grow in both number and complexity.  In addition,
many of the scientific issues with which it contends are also relatively new
to the scientific canmunity's research agenda.  Examples of these issues
include investigating the risks of health effects other than cancer, assessing
the public health hazards associated with exposures to chemical mixtures at
hazardous waste sites, and examining the potential environmental effects of
genetically engineered organisms.
                                                                  *    .   *       '
      One of 'the central challenges of managing EPA's 'research and development
program is the need to keep pace with and respond expeditiously to the sometimes
rapidly changing regulatory, agenda.  To successfully meet this challenge, ORD
must articulate a core research agenda that conceptually defines, integrates
and implements EPA's key information needs* while introducing new scientific
approaches.  It must also maintain a core of scientific talent with sufficient
flexibility and breadth.to exibit knowledge of both existing and emerging
scientific problems, and with sufficient depth to synthesize and interpret
scientific data in a manner that will withstand independent scrutiny by the
scientific community and regulated parties.  It also needs expertise to meet
the increasing requests for technical support from EPA regional offices and the
states.
      The ability to maintain a core agenda supported by appropriate and
skilled scientific staff is directly affected by the-level  of budgets^ support

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provided for the program, but it is an issue that also transcends the budget to


encompass or reflect such issues as; the development of effective working



relationships with extramural scientists, the private sector and the Congress;



the freedom to publish research results and enter into productive working


relationships with colleagues outside the immediate research program; avenues



for skill enhancement; and career opportunities.  This report focuses only on


sane areas the Subcommittee believes are- more directly affected by the


availability of budgetary support.  Iftese include: maintaining skilled personnel


and instituting an improved capability to identify emerging environmental


problems*



       1,  Personnel


           Providing adequate support for the in-house research program,



combined with resolving several salient;nee'ds of ORD personnel, can greatly


contribute to the productivity of the Office of Research and Development*
                                      •f       ,       *                      •

           What are -sbme of ORD's major personnel needs?  One need stems frcra


the age structure of QRD staff.  Coring a PY '86 study of the functions


influencing the use of S&E resources, some characteristics were identified



that are displayed in Table II.


                                   TABLE II1


      Some Characteristics of EPA Personnel in ORD and Non-OlD Programs



ORD Personnel                               Non-ORD Personnel
58% over age 40                             361 over age 40


46% with 16+ years of work                  24% with 16+ years of work

   experience in the                          experience in the

   Federal government                         Federal government


35% in Grade 13-15                          274 in Grades  13-15


     OBD's older work forcn  requires  it  to continually upgrade the skills of



its staff, but the lack of support  for changing or upgrading  the skills mix



of its personnel can limit research creativity and productivity.

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                                    - 10 -


In addition, the declining support for scientific equipment contrains ORD's

perfonnanee*  Figure 1^ illustrates the trend in equipment purchases.

        One of EPA's primary goals over the next decade is to improve its

institutional capability to conduct risk assessments at both headquarters

and regional offices to support environmental decision making.  This priority

presents major challenges to enhancing the professional, skills and development

of existing personnel and will influence the type of personnel hired in future

years.

     Risk assessment "capacity building" will rake the SPA's decision making

process more "knowledge intensive" not only for the regulatory offices but

also for the Office of Research and Development,  ORD's traditional role of
                                                     *
conducting research and preparing,risk assessments will continue.!, but at   •'  "

least two additional roles are emerging.  They include:

     o  Developing risk assessment methodologies for specific health (including

non-cancer) and ecological effects.

     o  Providing guidance and technical assistance to regulatory and regional

offices and the states to ensure that newly developed scientific methods are

consistently used.

        An example of these emerging ORD roles can be seen in its water quality

based approach research program.  For a number of years research scientists,

principally at the Duluth Research Laboratory, have developed methodologies

for establishing water quality criteria.  Over time, these methodologies have

become  increasingly accepted by the scientific community,  while worK continues

on broadening the use of the methodologies, efforts are also underway to transfe;

existing techniques to regional permit writers and state and local officials.

ORD staff play a prominent role in transfering these techniques and conducting

training sessions.

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                                FIGURE 1

                                     *
                    AIJjOCATION OF SMARIES AND EXPB4SE RESOURCES
PCSB--$62 8
LAB SUPPORT—$4.8

 SCI EQUIP—$6  7

         PCSB—$72 6
                        ALL OTHER  SSE—$29, 7
                                  LAB SUPPORT—$5.6
                                   SCI EQUIP—$3,8  .
                                                               ALL OTHER SSE--$22 6
                i960
            TOTAL $104.0
                          1985
                      TOTAL $104 6
         SCIENTIFIC  EQUIPMENT DOLLARS DECLINE  BY  43%
                TOTAL  SSE  DOLLARS  INCREASE  BY  ,6%

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                                    - 12 -
        EPA's ability to achieve its goal of building risk-based decision making


depends upon its ability to maintain and enhance the technical skills of its


personnel through training and other forms of professional development.  This


is particularly true of the research program where* as previously noted, a


workforce older than that found in other EPA offices needs opportunities for


matching today's skills with tomorrow's problems.      -j..


     In order to improve the technical capabilities of .its personnel, the


Subcommittee recommends that EPA undertake two initiatives:


     o  Develop a strategy to better define EPA's key scientific staffing


needs.  Such a strategy should address the magnitude of the current skills mix


problem? training and other needs of existing staff; identify which new
                                                                          «  *

scientific skills are needed-and their relationship to new hiring decisions;


develop realistic cost estimates for key risk assessment activities and their


relationship to workload models,- and reconroend specific steps that build risk


assessment capacity.


     o  Analyze the budgetary implications of such a strategy with the goal


of making specific recommendations to the Office of Management and Budget and


the Congress to provide adequate levels of support*


     2,  Capability to Define Emerging Problems


         EPA frequently addresses public health or environmental issues at


the point when they have evolved into problems of serious national or regional


concern.  Several recent examples document this argunent including radon,


alternatives to landfilling hazardous wastes and municipal waste combustion.

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                                    - 13 -
         At present, there are a number of issues that are evolving into areas


of greater public concern which/ through thoughtful arid prcnpt EPA response,


can be effectively managed.  Examples include stratospheric ozone modification


and climate change, biotechnology, and assessing risks to ecosystems.  What


is needed is for EPA to develop a better system of "eyes and ears" that can


alert it to issues beyond today's immediate regulatory"and statutory priorities.


         The Subcommittee recaroends two Mechanisms that can aid EPA in developing


an improved capability to define emerging issues.  The first is to revive a


previous EPA initiative entitled the Enyirorpental_0utlpok.3  the purpose of


this document was to provide information op environmental trends and future
                                      ,
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                                    - 14 -






the regulatory offices.  The second reason is that the relationship of the




program to EPA's mission has never been very clear,




     For the exploratory grants program to succeed a different rationale is



required.  The Subcoiroittee believes the program can assist EPA in developing



a capability to define emerging problems.  For it to succeed, the program



needs to be more closely aligned with EPA's research mission of developing

                                                         \

data and methodologies for risk assessment and risk reduction.  This will



require EPA staff (including laboratory and program office directors) to have



a greater voice in articulating the broad problem areas of Agency need.  If



this occurs, a greater consituency for the program will evolve and should not



lessen the ability of extramural scientists to continue their practice of



submitting investigator-initiated research proposals, nor conprcmise their



ability to perform innovative research,      •       *              ^       '
                    o


IV,  Comments on Specific Research Programs



     The proposed research budget for FY 88, in general, pursues a direction



charted in FY 87 or earlier.  Many of: the larger changes in funding actually



occurred in FY '87.  This is especially true in programs devoted to hazardous



waste and Superfund research.



     In its comments on specific research programs* the Subcommittee evaluates



the rationale contained in budgetary support documents that justify funding



increases or decreases, and compares this rationale to the conclusions reached



by the SAB in the past year in  its review of these programs.  In addition,



the expertise of Subcommittee memters has been applied in developing



these conments,



     The Subcommittee evaluated the follcwing programs;




     1.  Air



         A.  Indoor Air

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                                    - 15 -
         Approximately $2.5 million is proposed for indoor air research to

focus chiefly on source characterization and health effects.  This represents

a 5300,000 decrease above FY '87 levels.

         The Subccftinittee believes that the additional resources for this

program are warranted.  Its confidence is reinforced by a series of policy

and management changes made in this program during the past several months.

On November 5, 1986 the SAB Indoor Air Quality Research-Beview Panel submitted

its review of ORD's plan for determining future needs on indoor air,^  The

Panel's major recommendations included? 1) developing and adopting a clear

policy statement that indoor air quality is an important and essential

component of the responsibility of the,.Agency; 25 assigning responsibility

for the indoor air quality research prdgraro to an individual of appropriate

scientific stature with -specific experience i'n this area? 3) the proposed

limited field survey should not be carried out as presented since the resources

that it would demand are not commensurate with the scientific information and

insights that would be obtained?, and 4} preparing a relative risk assessment

for the more important pollutants (including asbestos, biological contaminants,

criteria air pollutants, and toxic chemicals) in order to develop a framework

for decision making,
                      *
     In his response of January 22, 1987 to the Panel Chaiman, the Administrator

concurred with these recommendations and indicated the steps that were underway

to implement them.  As a result, the Subcommittee concludes that EPA is

increasingly capable o£ managing the expanded resources to investigate scientif-

ically and programmatic-ally relevant issues.

     B.  Ambient Air Quality Research

         Funding for research to develop and review primary and secondary

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                                    - 16 -
National ambient Mr Quality Standards (NAAQS) is proposed at $20.5 million,



a reduction of $1.1 million from PY '87.  Approximately S2.5 million frem this



account provides support to the Health Effects Institute (total EPA funding



for the Institute is proposed at S3 million)»



         At least four research objectives could benefit frcm higher levels



of funding in F¥ '88 compared to previous years*  These;include:



         1) Enhancing the capability for alternative measuring techniques for



ambient exposures.  This area is one of growing importance because of increased



evidence of the shortcomings of fixed station monitoring.  There is a need to



undertake source characterization of pollutants and understand human activity

                                      * .    r                       5.

patterns for exposure assessment.  Both issues are essential components in risk
                                      f


assessment.                                            •           -  .     -



     2) Expanding the support 'for epidemiologies! studies.  The .Harvard Six



Cities Study is providing timely and relevant scientific information to EPA in



revising the NA£QS for particulate matter.  This effort supports the general



argument that an expanded epideraiological program can yield cost-effective



research results to help resolve policy relevant issues in a time frame



compatible with EPA's rulemaking schedule.



     3} Improving the capability to extrapolate research results from animals



to humans.  The field of extrapolation modeling is one that promises to yield



a number of scientific insights to link animal studies to human health risk



assessment.  EPA's extrapolation modeling research efforts, if expanded, can



help resolve many of the current scientific uncertainties associated with the



use of animal test data.



     4) Increasing research on acidic aerosols.  The budget proposal does not



address this issue, yet it is likely to emerge as one of the more significant



public health questions over the next several years, especially in relation



to assessing the health risks of acidic deposition.

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                                    - 17 -


        C.  Forest Effects of Ozone

        This issue, at a funding level of $1 million, appears as an  initiative

in a proposed research budget for the first time arid represents a welcome

development.  In 1985, the SAB evaluated the needs 'for a research program

devoted to forest effects.5 EPA plans to initiate research in FY '88 to

assess the risk from ozone on major coniferous and deciduous tree species,

particularly those of commercial value..

        D*  Global Climate and Stratospheric Modification

        These two interrelated issues have rapidly risen on BPA's list of

research and regulatory priorities*  Inf FY '87 the Congress provided SI million

for research related to global warming* apjd the Administration proposes

32,1 roillion for FY '38; stratospheric" ozone was funded at approximately $900,000
                                               *
in FY '87 and the recommended level for PY" '88 remains approximately the sarae.

         The Subcornmittee supports this generally upward trend in research  funding.

It notes that the SAB's Stratospheric Ozone Subcommittee, in its currently

ongoing review of EPA's risk assessment document of stratospheric ozone

modification, has tentatively concluded that environmental risks to aquatic

life and vegetation may be as important as human health risks such as melanoma,

non-melanoma, cataracts and potential effects to the immune system. ^

     2.  Radiation

         Support for radiation research is scheduled to decline frcm $2.5

million in FY '87 to 51.2 million in PY '88, with the major reduction occurring

in radon mitigation research.  Funding will continue for off-site testing at

the Department of Energy's Nevada Text Site,

         The SAB'S Radiation Advisory Committee completed a scientific review

of EPA's radon mitigation program on January 12, 1987.7  j\ major conclusion of

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                                    -la-

this review was that "the largest potential reduction of public health risk
for public funds expended would be achieved by demonstrating a number of
low-cost mitigation techniques that have a high probability of success in the
majority of residences with radon levels in excess of the recommended guideline.
within the constraints of accommodating the matrix requirements for potential
mitigation techniques, high-exposure residences should have priority over
lower exposure situations....increased attention  [should] be given to
pre-and post-mitigation measurements....[there is a] lack of emphasis on
mitigation for new construction!...and more efforts  [are receninended] to
include new construction in the text matrix."
         At the proposed PY '88 funding levels the Subcommittee concludes that
the radon mitigation program, cannot achieve, its previously stated*objectives
of developing and publishing acceptable mitigation techniques that will apply
to the variety of problems facing American henteowners.
     3.  Water Quality
         The F¥ '88 budget proposes $24.7 million for water quality research,
an increase of 5269,000 above the P¥ '87 appropriation.  The water quality
program has three major components, including the:
         A.  Water Quality Based Approach
             The methods for developing water quality criteria have undergone
a steady evolution and extensive review by scientists.  These rethods and the
resulting criteria have attained wide acceptance by  the scientific and regula«
eotmmities.  EPA and the Congress deserve great credit for providing the
scientific leadership and funding over -a number of years to achieve the current
state-of-the-art.

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                                    _ 19 -



             The SAB's Water Quality Based Approach Research Review Subcommittee

evaluated this program in a report dated December 11, 1986,^  This Subeccnfdttee

endorsed the scientific quality of the current program.  Among its major

recommendations for the future direction of the program were the following;

     o  From a scientific perspective,,spills* and resulting exceedenees

greatly above criteria concentrations, represent the greatest retraining

weakness in the current intensity-duration-frequency regulatory framework.

     o  The ecoregion methods of defining regional patterns in water chemistry

and aquatic biota can be a valuable tool to help states define attainable

goals in water quality and aquatic ccratunity improvement,  EPA should continue

to inform states of the ecoregion concept,and assess ways in which the concept

can be used in stats regulatory programs*
                                     *               a                          " "
    •Q  Pollution feom nonpoint sources is a significant road block-to attaining

the national goal of fishable-swirtmable waters in nany parts of the country,

EPA research laboratories should expand their efforts to define and characterize

nonpoint source pollution leading to the wore effective implementation of

control measures.

     o  A critical need exists for a pro-active technology transfer program to

assist state agencies and industry in  implementing the water quality based

approach for toxics control,

     o  The Agency needs to coordinate this research program with efforts to

develop sediment criteria for toxic chemicals.

     The projected 198H outputs do not identify these major research needs

and opportunitiesi although EPA staff are currently considering whether to

include them in a statement of FY  '89 needs.

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                                    - 20 -
     B.  Great Lakes


         Support for Great Lakes research reraains stable.  The PY '88 budget


proposes SI.94 million compared to an appropriation of $1,95 million in PY


'87,  Hits contrasts with the President's suggested reduction of Great Lakes


research by 62% in his FY '87 proposal over PY "36 levels.  The Congress


should ensure that stable research funding continues and seek to appropriate


additional resources given the major contribution of 'trie Great Lakes for


water supply, recreation and other uses.


     C.  Sludge


         Research funding for innovative/alternative wastewater technologies,


sludge management alternatives and toxicity reduction methods is recoonended


at $8.8 million, a reduction of $234,0<30 frcm FY '37,  Several of the major


areas of scientific uncertainty .identified by the SAB^ in its recent -review


of sludge management disposal options are listed as planned research program


outputs Cor FY '83.  These includes evaluation of the toxicity of chronic
        i

exposure to chemicals found in sludge; development of design and performance


information for landfills that receive sludge containing toxic organic substances;


preparation of five environmental indices/hazard profiles for chemicals in


sludge; and development of criteria for risk assessment of pathogens in sludge.


These and other objectives address high priority research needs.  They should


ultimately assist the EPA in generating more realistic risk estimates of


various sludge disposal options.


     4.  Drinking Water
       *

         The FY "88 budget proposes a reduction in drinking water research by


$72,000 for a total program commitment of S23.9 million.  Many scientifically


relevant issues are incorporated in the Agency's projected FY '38 outputs


which reflect additional needs and responsibilities resulting £rom passage

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                                    - 21 -




of the 1986 Amendments to the Safe Drinking Water Act.  These issues include:
                                                                  t

target organ toxicity of drinking water disinfectants and disinfectant lay-


products, and controlling disinfection by-products; analytical method validation


studies for organic contaminants newly regulated under the Act; developing a


methodology to identify viruses and bacteria for exposure assessment; and


evaluating processes for removing volatile organic ccnpounds, pesticides and


radionuclides.                                         -j.


         The Subcemmittee is concerned, however, that an unbalance exists between


the Agency's increased regulatory responsibilities and lack of a commensurate


increase in research funds to support these responsibilities.  The Subcommittee


also questions whether these and other research priorities will attract a


critical mass of funding and staff to^ieet program cownitments.


     S.  Pesticides/Toxic Substances             •.              "             *


         In general, research in pesticides and toxic substances declines by


$1.4 million from FY '8? for a total of $42,2 million.  The Science Advisory


Board has reviewed several pesticide and toxic substances' research areas in


the past one and one-half years.  These include:


        A.  Biotechnology


            Planned FY '88 outputs for this program include a report on the


movement and survival and biological control agents in two natural systems?


and health research to provide methods for detecting and monitoring such


agents in mammalian cells as a basis for developing test protocols,  the


proposed budgetary support for these and other activities is $7.3 million, an


increase of $350,000,


            In its February 1, 1986 report on EPA's biotechnology research


program, the SAS's Study Group on Biotechnology recommended that EPA develop

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                                    - 22 -



a program broader and larger than that envisioned by EPA decision makers.^


It identified critical priorities in three areas in which EPA lacked a research

capability* 1) dispersal of genetically engineered organisms? 2) remedial


action in the event of a release of such organisms; and 3) environmental

effects of a release, either beneficial or detrimental,

           EPA has made roadest beginnings in initiating research for some of


these critical needs, but the Science Advisory Board continues to believe

that EPA's biotechnology research program, as envisioned for FY '88, does not

effectively address these needs to a sufficient degree.

       B.  Ecological Risk Assessment  ,

           Ecological risk assessment is an EPA research program, of very recent

origin.  The SAB's Ecological Risk Assessment Research Review Subcommittee
                                                                          ^  *
completed .its evaluation of this program on January 16,-1987, and was-


favorably inpressed with the degree of progress mad.? since its inception in

1985. 1  Its major conclusion was that the program is comprehensive and


scientifically ambitious.  It sets forth a research direction for the long-term

(perhaps twenty years).  In the short-terra (five years), it is not achievable

as planned, particularly because scene of the key elements (density-dependent


population, community and ecosystem mechanistic models) are based on an

incomplete understanding of the fundamental mechanisms.  However, the research


staff have made a promising start in identifying seme of the inajor issues


this progran should address.  This, combined with some fine-tuning in the

research plan, can produce both an innovative research program and one that

can deliver shorter-terra research products.

         There is an underlying implicit emphasis (*/hich is at tines explicit)


on computer programming, computational algorithm, and decision support

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                                    - 23 -






systems.  It is inperative that such decision rnajting tools have a sound



scientific foundation.  Since resources foe this program are limited, EPA



should concentrate its research efforts on the development and acquisition



of the scientific data Cor these decision support systems*



         the proposed FY '88 budget for this program is $2,6 million, a reduction



of approximately $500,000 from the current fiscal year> ''The Subcommittee



believes that this program, if maintained over a number of years, can achieve a



number of useful research results.  It should receive increased and not decreased



support,



     C.  Structure Activity Relationships



         Structure Activity Relationships (SAR) is a widely used tool in EPA's



toxic substances regulatory program, particularly the. premanufactttring program  •



for new chemicals.  Through analyses"of existing chemical structures scientists



draw assumptions about the behavior of new chemicals with similar or different



structures.  Many scientific uncertainties persist in the use of SAR which



EPA's research program is designed to address.



         For FY '88, the Administration proposes to increase funding for this



program by $600,000 to'$2,3 million,  Among the proposed activities for FY  '88



include: analyses of structurally similar compounds; developing a computer



based system to correlate chemical structure with biological activity; and



developing predictive methods.



         The Subcommittee believes that these expanded resources can support an



important Agency need.  It urges that Congress expand the research program to



enable further evaluation of non-cancer health endpoints.



     6.  Hazardous Wastes/Superfund



         EPA's technical information needs to support its hazardous waste

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                                    - 24 -





management programs have greatly increased In the past several years.  The



reauthorization of Superfund enables the Agency to develop a research program



that can begin to address these expanded needs*  The technical challenges



facing this particular research program are as large, or larger, than those



confronted for any other environmental problem.



         EPA and the Congress anticipated the greater needs for scientific



support for hazardous waste research in FY '87,  QSD received approximately



S40 million in augmented resources for 'Superfund/LUST for this year, and the



FY '88 proposal recommends a total allocation of nearly $60 million for this



account.  Research support for hazardous wastes (excluding Superfund/LUST)



declines by $5,3 million to $45,2 million in FY '88.  32.5 million of this



deletion was withdrawn from a Congressional earmark for the Tufts University

                                      t

Center for Environmental Management.  The Subcommittee strongly %and unanimously
                                     •              B                      _   T *
                                   *          '            "•


urges that future decisions on research centers result from a competitive



peer review process.  The total research dollars available for the combined



hazardous waste/Superfund/LUST programs amount to S105.0 million, an increase



of 15% over the FY  '87 level of $90.2 million.



         The Science Advisory Board has examined three specific areas within



this program.  They include:



         A.  Superfund Innovative Technologies Evaluation (SITE)



             The goal of the SITE program is to enhance the development,



demonstration and use of new or innovative technologies to provide ultimate



remedies for the prevention or mitigation of releases of hazardous substances



from Superfund sites.  The program will function through a demonstration of



selected technologies at specific sites.  It is expected that the private



sector will provide resources for the operational costs of technology



demonstrations, while EPA will pay for sampling and analyses costs.

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                                    - 25 -






     The SAB's Environmental Engineering Committee evaluated the SITE strategy



and Program Plan in a report to the Administrator on June 24, 1986.12  It



concluded that the program had made a clear exposition of its goals and



demonstrated an understanding of the impediments to the development and use



of alternative technologies.  Liability and permitting are two major barriers



that need to be resolved before the program can be fully irtpleinented.  Approxi-



mately $18.5 million is proposed for SITE program funding in FY '88, an



increase of about S10 million from the current year.  The Subcommittee believes



that, contingent upon resolving the liability and permitting problems, the



initial prospect for the success of this program is good.



          B.  Alternative Hazardous Waste_Technologies Program



              The objective of this research program is to develop data to



implement those sections of the Hazardous and Solid Waste Act Amendments of



1984 that require'the banning of high hazard wastes Cram land disposal.  For



fV '88, the proposed budget is S4.6 million, a $100,000 decrease from F¥ '87.



              The current program has five major1 opponents: technology



assessment of existing processes Cor the treatment of wastes,* solidification/



stabilization (s/s)t which concentrates on the characterization of wastes and



binders, the performance of s/g- technologies and a Cield verification effort;



emerging technologies^ which emphasizes filling gaps in waste technology



needs and continuing the development of specific technologies; waste minimization,



directed primarily at documenting current industry practices; and disseminating



information about the program.



              The SAB Environmental Engineering Committee submitted its review



of this program on September IS, 1986.-^  its major comments for inproving



the program included:



              o  It is primarily oriented towards RCRA-related research not

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                                    - 26 -


all of which is applicable to Superfund (and particularly not to problems

Superfuncl will face as a result of the RCRA land banning decisions).  The

Superfund portion of the program should be designed to address these gaps*

         o  The waste minimization component should be significantly

strengthened, especially to include establishing a formal network between

industry, academia, and government to share successful strategies» practices,

data, and programs.  More emphasis should be placed on cthe reduction or

elimination {as a result of process changes or product formulations) of

hazardous wastes.

         o  OFD should review the choices for evaluating existing technologies/

processes for the treatment of wastes which are to be banned from land disposal
                                    '' ,   +'
under the 1984 RCBA amendments to be.'$ure that potentially significant processes

have not been overlooked (such as biological treatment: of aqueous-organic  .

liquids, steam'Stripping of wastewaters, and treatment of residuals from

solvent recovery).

         o  The in-house program should be expanded to provide valuable hands-

on experience to the staff, and to aid the staff in selecting technologies

and managing extramural projects.

         The Subcommittee concludes that the proposed FY '88 budget will not

meet all the above listed needs.

        C.  Municipal Waste Combustioi

            A number of intersecting events have combined to alter the nation's

awareness, and the public policy framework, regarding municipal waste management,

These include; growing amounts Of municipal waste to be collected and disposed;

shrinking landfill capacity, particularly in large urban areas; limitations

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                                    - 27 -
in the current potential for recycling waste and reducing the volume of


wastes generated; difficulties in gaining public acceptance to site new


landfills or other technologies? escalating costs in transportation and


storage of municipal wastes; concerns over the public health and environmental


inpacts of storing municipal wastes in'"landfills, including ground water


contamination? potential for environmental controls on landfills that will
                                                       .,_>"

increase their operating costs and legal liability; public health and environ-


mental concerns over alternative waste management-strategies, including


incineration and ocean diarping; and Congressional action through the Hazardous


and Solid Haste Act Amendments of 1984 that favor raore permanent methods of


disposal (i.e. incineration) over the'.-storage of wastes.


         IXiring the early 198Q's EPA's combustion research program suffered"
                      •     *             -'       "•     '

drastic funding reductions.  As a result, the Agency is currently playing


catch-up to rebuild its research program and to enhance the technical skills


of existing staff.  This occurs at a time of significant public controversy


concerning the incineration of municipal wastes, and of hazardous wastes at


sea and on land.  One of the major reasons that SPA experiences such great


difficulty in gaining public acceptance for its decisions on incineration


technologies sterns from its inability to provide scientific answers to a host


of questions as to whether waste incineration poses unacceptable risks to


public health and the environment.


         The FY '88 budget proposal for incineration—$2.4 million for both


municipal and hazardous wastes—will not appreciably improve the Agency's


ability to resolve many of the technical questions, or defend its risk manage-


ment choices.

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                                    - 28 -
     7.  Energy/Acid Sain

         The overwhelming majority of th* resources in this program will be

earmarked for acidic deposition research.  The acidic deposition budget contains

approximately $S5»3 million for FY '88, a modest decrease from S55.4 million

in the current year.  Given EPA's other pressing research priorities, the

Subcommittee concurs with the recommendation not to increase support for this

effort.  For the same reason it supports the decision Toot to fund cold climate

or synfuels research.

     8.  Interdisciplinary Research

         The interdisciplinary research program includes a diverse set of

activities such as developing guidelines .to promote more consistency in

risk assessment, managing' the Agency-wide quality assurance program, the
                                                                 *      *       ''
visiting scientist program and.exploratory centers and grants.

         The latter two are the best known cotponents of the interdisciplinary

program.  Beginning in FY '85, EPA initiated a series of changes in its

management of the centers and also marginally increased their funding levels

to approximately $540,000 per center.  In general, the centers and EPA staff

have also evolved a closer working relationship which is reflected in the

reccmnendation that the FY '38 funding level of $4,5 Million for the program
                      ti
remains constant from the current year.

         The Subcommittee reiterates the reccmnendation contained in the

SAB's 1985 review of the centers program that EPA should fund each center at

a minimum level of $750,000-$!,000,000 to enable them to acquire a critical

mass of core support resources and become more productive than their current

capability.  It notes that SARA enables EPA to create additional centers but

that no funds were requested.

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         the exploratory, grants program continues to suffer ftcm the lack of



a constituency within EPA or the Administration.  This is further reflected



in the reduction of support for grants in F¥ '88 to $10,7 million fron the FY



'8? level of $14.0 million*  Hie Subconmittee believes that the program



should be modified to more clearly support EPA's mission of developing data



and methodologies for risk assessment and risk reduction, while still perserving



its investigator-initiated character.  EPA sould involve its laboratory and



program office staff in identifying specific long-range problem areas that



individual investigators could respond to within the current competitive



framework, subject to review by peer panels.  This would expand EPAfs



institutional'stake in the program, assist its becoming more responsive to



ORD and EPA needs, while still preserving the freedom of individual researchers



to submit scientifically creative proposals. . In summary, the Sobccnmittee.



believes that alternatives are needed to the current operation of the grants



problem because the continuation of the status quo will produce increasing



frustration for both EPA and the scientific ceroiunity*  At best, the continuation



of current practice will result in maintaining a program that, at present, is



too small to have a major impact in advancing scientific knowledge for EPA



decision makers.

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                                     - 30 *
 V,   References

 1.   Analyses of S s E Resources in the Office of Research and Development,
     Prepared by: Utilization of Salaries and, Expenses Resources (USER)
     Group, Office of Research and Development, u. S.  Environmental Protection
     flgency, July 2, 1986.

 2.   Ibid.

 3.   Environmental Outlook 1980, Office of Research and Development, U.  S.
     Environmental Protection Agency, July, 1980 (EPA-600/8-80-003).

 4.   Review of the Office ofResearch and Development'sPlans for Determining
     Future Research Needs on Indoor Mr Pollution, Report of the Indoor Air
     Quality Research Review Panel, Science Advisory Board, U. S. Environmental
     Protection Agency, November 5, 1986,

 5.   Review of the Forest Effects Research Program of the Office of Research
     and^Development, Report of the Forest Effects Review Panel, Science
     Advisory Board, U. S.  Environmental Protection Agency, December 9,  1985,

 6.   Reviewof EPA*s Assessment ofthe.Risks of Stratospheric Modification,
     Stratospheric Ozone Subcommittee, -'Science Advisbry Boart, CJ. S. Environ-
     mental Protection Agency, Draft Report, February 9, 1987.
                                                      *
 7.   Review of the EPA Radon Mitkption Test Matrix, Radiation Advisory
     Committee, Science Advisory Board, U. S. SPA, June 12, 1987.

 8.   Review of EPA's Water QualityBased Approach ResearchProgram, Water Quality
     Based Approach Research Review Subcommittee, Science Advisory Board, U. S.
     Environmental Protection Agency, December 11, 1986.

 9.   Review o£ Technical Documents Supporting Proposed Revisions to EPA
     Regulations for the Disposal/Reuse ofSewage Sludge Under Section 405(d?
     of the Clean Water Act, Environmental Engineering Committee, Science
     Advisory Board, U. S.  Environmental Protection Agency, January 15,  1987*

10.   Assessing EPA's Biotechnology Research and InformationNeeds, Report of
     the Study Group on Biotechnology, Science Advisory Board, U. S. Environ-
     mental Protection .Agency, February 1, 1986.

11.   Review of EPA's Ecological Risk Assessment ResearchProgram, Ecological
     Risk Assessment Research Review Subcommittee, Science Advisory Board,
     U. S. Environmental Protection Agency, January 16, 1987.

12.   Report on the..Review of the_ Superfund Innovative Technology Evaluation
     _(SITB) Program; Draft Strategy ar^ Program Plan, Environrtiental Engineerirg
     Committee, Science Advisory Board, U. S. Environmental Protection Agency,
     June 24, 1986,

13.   Review of the Alternative. TecjiTOJ.j3gies_Resgiarch Program, Environmental
     Engineering Committee, Science"Advisory Board, U. S. Environmental
     Protection Agency, September  18, 1986.

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                                                              APPENDIX  I
Resources ACT Distributed by Medium as Follows;


                             1988 Research Budget
Sesearch Program
Air
Water
Drinking Water
Hazardous Waste
Pesticides
Radiation
Interdisciplinary
"toxic Substances'
Energy /Ac id lain
Superfund/LUST
Management/Support

S (M)
65. S
24.7
23.9
45.2
13.2
1.4 •,'•'
22.9
29.0
58.9
59.1
9.B
S353.5
Change from 1987
-j.,+2.4
+0.3
-0.1
-5.3
+0,7
-1.3
-5,0 ' *
-2.1
-0.7
+19.3
+0.1
+8.3
Sources Office of the Ccmptroller, U. S. Environmental Protection Agency,
        March, 1987.

-------