Environmental Protection (1801) July 1999 

Agency www.epa.gov/reinvent 

1EPA Aiming for Excellence


Report of the EPA Innovations Task Force


2Printed on paper that contains at least 30 percent postconsumer fiber. 
Contents 

2 Reinvention at EPA 

4 Introduction 

7 Our Commitments 

24 Ensuring Success 

28 Appendices 

28 einvention Accomplishments 

38 eceived by the Innovations Task Force 

44 ey Actions 

R

Comments R

K
Aiming for Excellence


Actions to Encourage Stewardship 

and Accelerate Environmental Progress 

Report of the EPA Innovations Task Force

Aiming for Excellence 2 

Reinvention at EPA


Shortly after taking office, Vice President Gore took charge of a new 

National Partnership for Reinventing Government to radically change the way our government performs. The challenge given to all agencies was to be more efficient, less bureaucratic, and to provide 

better service to the American people. At the U.S. Environmental Protection Agency (EPA), that challenge led us to rethink how we go about achieving environmental and public health protection goals. 

In March 1995, we launched a small set of high-priority projects that quickly evolved into a broader 

reinvention agenda for the Agency. Today, we have numerous reinvention efforts under way. Many 

focus on improving well-established programs, such as permitting and compliance assurance. The 

emphasis is on streamlining regulatory processes and introducing innovations that can make these 

programs more efficient and effective. Others focus on finding fundamentally new approaches for 

the future. Our reinvention initiatives are designed to address environmental problems that have yet 

to be solved through the current system. 

We’d like to tell you about all of our reinvention efforts, but for this brief overview, we’ll focus on a 

few programs we think are especially significant. For starters, we’ve slashed obsolete or unnecessary 

requirements—representing nearly 27 million hours of paperwork a year—without sacrificing protec-
tion capabilities. We’ve dramatically increased public 

access to environmental information, enabling citizens to go 

“Our reinvention initiatives are designed to 

address environmental problems that have 

yet to be solved through the current system.” 

online and find out about environmental conditions and issues that affect their community. We’re 

providing flexibility to meet new pollution reduction targets in cost-effective ways, using emissions 

averaging, trading, and other alternative compliance options. We’re collaborating with others to 

make environmental progress; a recent agreement we helped negotiate between the automobile 

industry, state governments, and other stakeholders, which should reduce emissions from new cars by 

70 percent, is just one example. We’ve launched special programs, such as the Common Sense 

Initiative and Project XL (which stands for excellence and leadership), to test innovative environmental 

management strategies that work more effectively for businesses, their customers, and the people 

who live and work around them. We’re involving stakeholders earlier in the rulemaking process and 

we’re developing new compliance assistance tools to help people understand environmental requirements and comply more easily. 

Recent actions within the Agency prepare us to do more. We’re in the midst of setting up a new 

office to significantly improve the way we collect, manage, and report environmental data. We’re 

applying what we’ve learned from working with industry to improve the effectiveness of EPA programs and policies. And through agreements that clarify how we will work together to foster innovation and increase environmental results, we’re building stronger relationships with state governments. 

If you’d like to learn more about any of these efforts, we invite you to look at EPA’s 1998 annual 

report on reinvention.1 Or take a look at the annual report highlights, presented in Appendix 1. These 

materials provide helpful background for the report that follows on the additional reinvention actions 

we will carry out in the next 12 to 18 months as our ongoing reinvention efforts proceed. 

Aiming for Excellence 3 
Aiming for Excellence 4 

While we’re proud of the 

progress we’ve made through reinvention efforts, 

we’re also interested in additional ideas about 

ways to accomplish even more. So we decided 

to talk with the people who know environmental 

issues the best—business and community representatives, state government and EPA staff— 

people who have important suggestions for 

actions and solutions.2 We received a great 

response to this outreach. (See Appendix 2 for 

more details about stakeholder comments). 

Comments, reactions, and suggestions came in 

by the hundreds. Some were specific, others 

more general. But two themes emerged: 

• EPA needs to do more to help organizations 

comply with the law. 

• EPA needs to encourage those who are willing and able to do more. 

Introduction 
These themes underscore how far we’ve come 

and how far we still have to go in learning to protect the environment. Here in the United States, 

we still have tremendous variability in how well 

businesses and other organizations manage their 

environmental responsibilities. It’s helpful to think 

of this variability as a bell curve along a performance spectrum. At one end, we have companies 

acting as environmental leaders, adding business 

value and gaining competitive advantages along 

the way; they are setting standards of excellence 

that will define future business practices for themselves and their peers. In the middle, we have the 

“main streamers”—businesses, industries, and 

other regulated parties that typically meet requirements, but do little else. And then there are those 

that have been left behind, who do not meet the 

“We believe a system that 

promotes stewardship, in 

addition to compliance with 

environmental requirements, 

has the greatest potential for 

advancing environmental 

management capabilities and 

solving environmental 

problems.” 

Aiming for Excellence 5 

Environmental Performance Among Regulated Facilities Number of Facilities 

Laggards Mainstreamers Top-Performers 

(compliance problems) (exceeds requirements) 

most basic environmental standards. 

As we consider this, we see evidence of environmental achievements. Yes, we have made a 

great deal of progress over the 

past 3 decades, and yes, we have 

companies setting high standards 

for others to follow. But overall, 

we still can do better. And we 

must if we are to successfully 

address unsolved problems such 

as global warming and the environmental consequences of popu-
Aiming for Excellence 6 

lation growth and economic expansion. 

Stakeholders reminded us of what might be 

accomplished if we could improve capabilities 

across the board, shifting the curve toward better 

performance. Clearly, such action could help us 

achieve significant, long-lasting environmental 

results on a much wider scale. 

With this in mind, we believe a system that promotes stewardship, in addition to compliance 

with environmental requirements, has the greatest potential for advancing environmental management capabilities and solving environmental 

problems. For us, the goal is not just compliance, but getting more of our society to achieve 

environmental excellence. 

This vision calls for an ethic of environmental stewardship, where everyone takes more responsibility 

to reduce adverse impacts upon the world in 

which they live. It applies to the environmental 

engineer in charge at the local manufacturing 

plant. It also applies to the local officials faced 

with community development and transportation 

issues, and the millions of private citizens who 

make lifestyle choices each and every day. 

We realize that no one has to do more than just 

comply with environmental requirements. But 

with a growing number of environmental leaders 

in the public and private sectors practicing environmental stewardship, we hope more organizations and the people who run them will begin to 

see its advantages. We also realize we can’t 

expect more without doing more ourselves. 

That’s why we’re committed to using our 

resources to provide businesses and communities with the additional help they need to comply 

and to create new incentives and tools to 

encourage them to achieve even more. 

We know we cannot just talk about such a vision 

—we must take steps to make it happen. As the 

next section describes, that’s exactly what we 

intend to do. 
Aiming for Excellence 

Creating a system 

7 

where everyone 

takes more responsibility for protecting the environment is going to require some changes. In 

thinking about the future, we believe what we 

need most is a system with more incentives, 

rewards, and assistance. We should recognize 

and provide meaningful rewards to those who 

are already environmental leaders, using their 

bench-marking practices to guide others; we 

should give assistance and incentives to the 

“main streamers” to help them not only comply, 

but take extra steps to do more; and we must 

use all available means to bring those with poor 

environmental track records up to speed. 

These changes won’t be made overnight, but we 

can take action to make them a reality in the foreseeable future. We believe we can help accelerate 

environmental progress most effectively if we: 

Our Commitments 
Aiming for Excellence 8 

•	 Use incentives and promote environmental 

management systems (EMSs). 

•	 Provide timely and accessible compliance 

assistance. 

• Create flexible and streamlined permitting. 

•	 Help communities make sound environmental 

decisions. 

The following sections highlight where we are in 

each of these areas, why more needs to be done, 

and what we’ll do in the next 12 to 18 months to 

make further headway. Appendix 3 provides more 

specific details about these commitments. The 

steps EPA will take to achieve success—including 

working with our state and tribal partners and 

promoting innovations within the Agency’s culture—are outlined in the last section of this report. 

Our 

Commitment: 

Use Incentives and Promote 

Environmental Management 

Systems 

Getting more of our society to continuously 

improve environmental performance will require 

new ways of thinking and new ways of doing business. Clearly, one way is by providing special 

assistance to help organizations comply with the 

law. The compliance assistance program we talk 

about in the next section will do that. But what can 

we do to encourage organizations to pursue more 

ambitious improvements? As a first step, we will: 

•	 Use incentives to encourage actions beyond 

what is required. 

•	 Promote use of EMSs that can help organizations incorporate environmental issues into 

their business operations. 

•	 Develop a “performance track” that rewards 

environmental leaders. 

The first step—using incentives—will provide distinct advantages to motivate organizations to go 

the extra mile. The second—promoting EMS use 

—will help organizations make better business 

decisions by taking environmental issues more 
fully into account. The third—developing a performance track—will enable us to recognize and 

reward those who excel environmentally. 

We believe that by using these new approaches, 

we can help organizations see the value and 

strategic advantages in improving environmental 

performance and lead them to increase their 

environmental commitments. We can also help 

these relatively new environmental management 

concepts evolve. By giving them more prominence in our programs and policies, we have an 

opportunity to help develop their full potential 

for increasing environmental results. 

Using Incentives More Widely 

We believe meaningful incentives can be a powerful force for achieving environmental results. 

Providing incentives to “main streamers” encourages them to become leaders. Providing incentives to top performers encourages them to 

continue improving and create cutting-edge, 

efficient practices that can be adopted by others. 

Over time, the cumulative effect should be a 

safer, cleaner environment. 

Incentives are already at work. EPA has them in 

several voluntary partnership programs and in 

regulatory programs. (See Box 1: Incentives Used 

by EPA). We’ve also used incentives in our compliance assurance program. EPA has waived or 

reduced penalties for companies that voluntarily 

Aiming for Excellence 9 

audit, disclose, and correct environmental violations and that take action to prevent future ones. 

Many states also are experimenting with incentives for stewardship; some have established 

“ladders” that recognize and reward different levels of performance. These experiments will give 

us useful information about what works and help 

us use incentives more widely to achieve environmental goals. 

We’ve already learned that different kinds of 

incentives and assistance are necessary. We 

know that what works for one business sector 

might not work for another. Likewise, companies 

within the same industry might have different 

environmental management capabilities and levels of performance. The challenge is finding the 

right kinds of incentives to motivate different 

types of organizations to improve their performance and get better results. 
Incentives Used by EPA Box 1 

Some examples that we use in our voluntary partnership programs 

Some examples that we use in our regulatory programs 

What is the program? 

WasteWise 

Water Alliances for Voluntary 

Efficiency (WAVE) 

Design for the Environment (DfE) 

It gives. . . 

Public recognition. 

Software and technical assistance. 

Information about alternative 

products and processes. 

To . . . 

Encourage recycling and waste 

reduction. 

Encourage facilities to evaluate 

and improve water-use efficiency. 

Help them manage their operations in a more environmentally 

sound manner. 

What is the program? 

Certain Clean Air Act MACT 

standards and Clean Water Act 

NPDES requirements 

Project XL, Pollution Prevention in 

Permitting Program 

Acid Rain Trading Program 

It gives... 

Reduced reporting. 

Flexible permits, such as preapprovals for certain operational 

changes. 

Option to sell SO2 credits. 

If organizations... 

Consistently meet environmental 

requirements. 

Commit to meet or perform better 

than current air emission 

standards. 

Reduce emissions below what is 

required. 

Aiming for Excellence 10 
Aiming for Excellence 11 

Use incentives and voluntar Acti y par

encourage better environmental per

tnerships more widely to on 

formance. 

1

We will work with all interested parties to identify, test, and evaluate incentives that can be 

used to encourage better environmental performance by a wide range of businesses and 

other organizations. We’ll also use voluntary partnership approaches to help address 

unsolved environmental problems and/or unique challenges facing communities or specific 

business sectors. 

There are different opinions about what can be 

used to motivate performance: 

• A recent industry-sponsored report identified 

many incentives that could improve environmental results, including streamlined permit 

procedures, consolidated and streamlined 

reporting, and tax breaks for investing in 

advanced technologies.3 

• Based on results from the Toxic Release 

Inventory, many see benefit from making 

more information about the environmental 

performance of individual companies publicly 

available. 

• As Box 1 showed, our own experiments have 

offered public recognition, technical assistance, regulatory flexibility, and market-based 

trading options. 

It will take time to find out which incentives are 

most effective. To find our way, we’ll work with 

all interested parties—Congress, state and tribal 

governments, industry, environmental groups, 

communities—to identify and develop incentives 

that work. We’ll make incentives a more routine 

part of our regulatory and voluntary programs. 

Promoting the Use of Environmental 

Management Systems 

We believe incentives will motivate organizations 

to comply and even improve their environmental 

performance. But we also think companies 
should take action on their own. One way to do 

this is by making environmental responsibilities 

part of “business as usual.” Today, more and 

more businesses and other organizations are 

doing just that by using EMSs. Like other evolving tools, such as lifecycle management and full 

cost accounting, EMSs help integrate environmental issues into business decisions and practices. Basically, they provide a framework for 

managing environmental responsibilities in a 

more systematic way. We want to encourage the 

use of EMSs that improve compliance and other 

measures of environmental performance. 

So far, the business community has led the way 

in developing EMSs—at both the corporate and 

plant level. Some EMSs have been developed 

for specific business sectors, such as metal finishing and printing. EMSs have great potential 

for helping small businesses, in particular, 

improve environmental performance because 

they offer a type of operational template that 

can be easily modified and adopted. Based on 

their potential for helping organizations gain a 

better awareness of how environmental responsibilities fit into their overall operations, EPA has 

been requiring companies with compliance 

problems to develop EMSs when we settle 

enforcement cases. 

Stakeholders told us the Agency needs to continue to champion EMSs by working with industry, 

the environmental community, and others to support their use. We’ve already started working 

with states to evaluate how well EMSs actually 

improve environmental performance. This evaluation will provide “lessons learned” and will help 

us move from experimenting with EMSs to 

understanding how they can complement environmental programs and policies. 

Acti Promote the use of environmental management systems. 

W

and other measures of environmental performance. W

e will encourage organizations to use EMSs that improve compliance, pollution prevention, 

on 

e’ll continue evaluation efforts to learn 

2

more about which EMS elements and applications are most effective, and we’ll determine 

how these systems might be used to strengthen environmental programs and policies. 

Aiming for Excellence 12 
Developing a “Performance Track” for 

Environmental Leaders 

We’ve already talked about using incentives to 

promote environmental improvements. But what 

about companies that already excel? We believe 

we should find a way to encourage leaders to 

continue striving for improvement. Environmental 

leaders help advance state-of-the-art practices 

that ultimately bring progress. 

How can we do this? Several national policy 

reports have recommended that EPA develop an 

“alternative track” or “performance track” to 

encourage companies to use innovative environmental performance strategies.4 Definitions of a 

“performance track” vary; they generally refer to 

allowing top-performers more flexibility in how 

they meet regulatory requirements if they do 

more to protect the environment and assure 

accountability. Doing more could mean using an 

EMS that improves compliance, pollution prevention, and other measures of environmental 

performance; involving the community in decision-making; and reporting to the public about 

their environmental performance. 

EMSs have the potential to form the foundation 

of a performance track. A company’s environmental performance could be demonstrated 

through an EMS that measures progress toward 

specific environmental goals. Currently, EMSs 

used in the private sector, including ISO 14001 

“The challenges we face as a 

growing, dynamic society 

demand that we go beyond mere 

compliance in the future.” 

— Jack Barkenbus, Executive Director, 

Energy, Environment, and Resources Center, 

University of Tennessee 

Aiming for Excellence 13 
Aiming for Excellence 14 

(an internationally recognized EMS standard) 

measure how well an organization meets its own 

self-defined environmental goals. These goals 

alone will not be sufficient. To create a performance track that is fair and publicly supported, we 

need goals that are broadly understood and 

applied. And we need mechanisms to verify performance, which could potentially include selfauditing and third party certification. 

The concept of a performance track is still relatively new. Up to this point, most experimentation has been limited to certain industry sectors 

or companies. Recently EPA and the states 

EPA and the States Test Leadership Approaches Box 2 

At EPA, we’ve created several innovative programs that experiment with ways to provide incentives 

and reward leadership in environmental protection: 

• Project XL is testing innovative approaches that offer companies flexibility in how they meet environmental requirements if they can produce results that are better than what would otherwise be 

expected. 

• Under the Environmental Leadership Program, facilities that demonstrated strong environmental 

performance were given rewards, such as public recognition through certificates and logo usage 

and a reduction in discretionary inspections. 

Several states also have created programs that provide incentives and reward leadership: 

• Colorado has created a voluntary environmental leadership program that offers financial incentives to companies that prevent pollution, reduce toxic use, improve energy efficiency, and perform other environmentally beneficial activities. 

• Wisconsin is starting a program that will allow select businesses to experiment with regulatory 

innovations that remove administrative burdens, clear the way for better environmental performance, preserve environmental and public health protections, and provide for public accountability. 

• Oregon has launched the EMS Incentives Program, which includes four tiers with increasing 

rewards for facilities meeting increasingly higher standards of environmental performance. 
Acti Develop a “performance track” to motivate o

and reward top environmental per

n 3

formance. 

We will work with states, tribes, industry, and environmental and other interest groups to 

define what it means to be a top environmental performer and to identify appropriate 

building blocks for a new “performance track” that enhances the current regulatory system. 

began experimenting with different programs to 

give incentives to environmental leaders [See 

Box 2: EPA and the States Test Leadership 

Approaches]. We want to continue to learn 

more about this type of approach, and will work 

with states, tribes and other stakeholders to create a system that makes it worth an organization’s time and effort to go the extra mile. 

While we will focus on rewarding those who do 

more than what is required, making sure that 

businesses and other organizations comply with 

the law will continue to be one of our most 

important responsibilities. In the past, EPA and 

state governments have relied on a strong 

enforcement program to do this. We’ll continue 

using this effective tool, but we must look for new 

and creative ways to help regulated parties 

achieve compliance and improve performance 

capabilities. 

For some, the failure to comply comes down to 

a simple lack of understanding about what’s 

required. We need to do a better job of providing information in timely, helpful ways so people 

can fulfill their environmental responsibilities. 

In recent years, we’ve developed new ways to 

improve our compliance assistance efforts by 

setting up compliance assistance centers on the 

Internet that provide certain sectors with quick, 

easy access to the latest regulatory requirements 

and pollution prevention information; developing 

compliance assistance tools, such as plain 

Our 

Commitment: 

Provide Timely and Accessible 

Compliance Assistance 

Aiming for Excellence 15 
Aiming for Excellence 16 

language compliance guides, training modules, 

and compliance checklists; and launching 

national and regional compliance campaigns for 

priority industry sectors. Now we intend to do 

more by: 

• Becoming a more effective “wholesaler” of 

compliance assistance information. 

• Providing compliance assistance tools in a 

more timely manner. 

• Using compliance assistance in strategic 

combination with enforcement, monitoring, 

and incentives to achieve environmental 

results. 

Becoming a More Effective “Wholesaler” 

of Compliance Assistance Information 

The stakeholders who work directly with businesses and other regulated parties to improve 

environmental performance told us how they 

think we could most effectively assist with compliance: by supplying compliance assistance 

tools and information. In other words, they 

thought we should develop materials, but rely on 

an extensive network of environmental assistance 

providers in the public and private sector to 

actually deliver them. We agree, and believe this 

is a sound way for us to leverage our compliance resources. 

Acti

provide assistance on environmental compliance. 

Support a network of public and private organizations that on 4

We will focus on becoming a “wholesaler” of compliance assistance tools and information. 

We’ll meet with compliance assistance providers to share our approach for developing materials that help businesses and communities comply with the law and prevent pollution, and 

we’ll ask them to help us set priorities to determine which materials are needed most. We’ll 

provide these materials, and help them develop training and peer mentoring programs. 
Action 5 

Aiming for Excellence 17 

Providing Compliance Assistance Tools in 

a More Timely Manner 

The stakeholders we talked to consistently suggested that we begin thinking about compliance 

assistance at the start of the rulemaking process. 

We need to do more than issue sound regulations to address today’s problems; we need to 

give people the tools, assistance, and resources 

they need to comply with those requirements 

before those rules take effect. 

“EPA needs to support and 

provide resources to the state 

and local networks that are in 

place to deliver these services 

rather than creating new 

networks.” 

— Lynda Wiese, Director, Bureau of 

Cooperative Environmental Assistance, 

Wisconsin Department of Natural Resources 

Deliver compliance assistance information for new, 

“economically significant” rules when and where it’s needed 5 

We will provide compliance assistance information typically within 90 days of issuing these 

rules so it is available before new requirements take effect. We will continue to make general 

assistance widely available through the Internet, toll-free telephone lines, and other distribution channels. We’ll also evaluate the need for additional compliance assistance centers as 

we maintain support for existing ones. 
Aiming for Excellence 18 

“Compliance assistance often 

plays a critical role in 

improving the overall environmental performance of 

regulated entities, especially 

smaller businesses.” 

— Keith Holman, Chief Regulatory 

Counsel on Environmental and 

Regulatory Affairs, 

U.S. Chamber of Commerce 

Using Compliance Assistance in Strategic 

Combination With Enforcement, 

Monitoring, and Incentives to Achieve 

Environmental Results 

Compliance assistance is one of several 

avenues that can lead to compliance and better 

environmental performance. Incentives, public 

reporting on performance, and enforcement are 

a few others. Before we decide on a course of 

action to address a particular problem, our 

stakeholders recommended that we consider the 

options for getting the desired result and then 

determine how they might be combined or 

sequenced for greatest strategic advantage. 

This approach would allow EPA and states and 

tribal governments to target limited resources 

more effectively. When a new rule takes effect 

for a certain small business sector, for example, 

the most effective course of action might very 

well be an intensive campaign of compliance 

assistance and a later date when monitoring 

would begin to assure performance. In the case 

of a larger, more mature industry, there might be 

less need for compliance assistance, and more 

opportunity for incentives that produce environmental, economic, and social benefits. Clearly, 

different problems require different solutions. We 

should become more flexible and responsive at 

using the tools we have to improve compliance 

problems. 
Aiming for Excellence 19 

When our stakeholders told us we need to help 

businesses and communities comply, we thought 

about ways to change the permitting system. 

After all, by specifying levels of environmental 

performance that must be met, permits are one 

of the primary ways we assure compliance with 

environmental laws. And they are where most 

people first encounter the regulatory process. 

Through the combined efforts of environmental 

regulatory agencies, businesses, environmentalists, and the general public, we’ve created a 

permit system that has dramatically improved 

environmental conditions in the United States. 

Combine compliance assistance, incentives, monitoring, Acti

and enforcement in order to implement environmental laws 

on 6

in a more strategic manner. 

To make better use of limited resources, we will design new strategies that incorporate a 

range of options to address major compliance problems. 

Our 

Commitment: 

Create Flexible and 

Streamlined Permitting “In an industry where being quick 

to market with a new product is a 

requirement for financial success, 

delays from frequent permit 

revisions are a huge concern...” 

— Tim Mohin, Vice President, Environmental, 

Health, and Safety, 

Intel Corporation 
Aiming for Excellence 20 

Box 3 

Examples of Pilot Programs 

to Test Innovative 

Approaches to Permitting 

Through a variety of pilot projects, we have tested 

new permitting approaches that give companies 

and communities greater flexibility if they agree to 

take additional steps for preventing pollution and 

protecting public health and the environment. 

• In the Common Sense Initiative, which 

focused on creating a better environmental 

protection system for specific industry sectors, 

we looked for ways to avoid unnecessary burden. Because of CSI recommendations, each 

of the major permitting programs has been 

working to eliminate excessive backlogs of 

permit reviews and approvals and to implement regulatory changes to streamline permitting procedures. 

• Through Project XL and the Pollution 

Prevention Permitting Program, we’ve tested 

facilitywide permits that use an overall “cap” 

on air emissions as an alternative to permitting each individual new emissions source. 

Now we’re working with states—who issue the 

majority of permits today—to make this system 

more effective at meeting environmental goals 

without creating unnecessary social and economic burdens. Box 3: Examples of Pilot 

Programs To Test Innovative Approaches to 

Permitting shows some of the pilot projects 

we’ve used to test new permitting approaches. 

Earlier this year, EPA announced “The Next 

Generation in Permitting,” an effort to move 

permitting toward measuring performance while 

providing regulated parties more flexibility in 

how standards are met. This and other permitting reform efforts show we’re committed to 

strengthening the role of the public in important 

decisions, focusing on results instead of procedures, and reducing unnecessary burden. 

To accelerate progress, we’ll proceed with some 

additional improvements within the two permit 

programs that affect the largest number of facilities: the NPDES (waste-water discharge) program under the Clean Water Act, and the New 

Source Review and Title V Operating Permit 

programs under the Clean Air Act. 

We want to continue to find ways to make permitting easier on businesses and communities, 

while also making permits more effective for 

protecting public health and the environment. 

With these efforts, we hope to reduce the unnecessary delays and administrative burdens permits 

have often created in the past. 
Along with encouraging better performance 

among regulated parties, we must do more to 

support environmental management and 

problem-solving at the community level. EPA, 

States, and Tribes need to help communities find 

solutions that take local social, economic, and 

environmental conditions into account, and that 

maintain the same level of protection provided 

under national standards. 

Speed up the review and issuance of NPDES Acti (water discharge) per omits. 

n 8

We will streamline NPDES permitting by providing training to improve understanding of the 

NPDES permitting process, and by encouraging applicants to submit draft permit limits or 

conditions that can expedite regulatory review and approval. We will also encourage more 

public involvement in permitting actions. 

Our 

Commitment: 

Help Communities Make 

Sound Environmental 

Decisions 

ActioDevelop more flexible air per n 7mitting policies 

for protecting the environment. 

Based on our experiences in pilot projects, we will identify those approaches that increase 

permitting flexibility while providing equal or better levels of environmental and public health 

protection, provide incentives for pollution prevention, and ensure public participation in permitting decisions. 

Aiming for Excellence 21 
Aiming for Excellence 22 

At EPA, we’ve already started to help communities help themselves. We’ve created tools to support environmental decision-making and 

established programs that enable communities 

to address problems such as abandoned waste 

sites, loss of wetlands, and poor air quality. 

Some of our successful partnering efforts with 

Community-Based Projects. 

These partnering activities show the many roles 

EPA plays in working with communities. In the 

majority of communities, our role is to provide 

the tools and information resources that build 

local capacity for tackling environmental problems. In many cases, we are just one of many 

partners involved in a local effort. Sometimes, 

we play a stronger role, getting directly involved 

with the local stakeholders. 

We want to continue to offer communities the help 

they need to find practical, workable solutions to 

their unique challenges and assure environmental 

justice for their citizens. This will include offering 

Box 4 

Some of EPA’s 

Community-Based 

Projects 

• The Brownfields Initiative helps communities clean up and restore abandoned 

industrial properties, bringing them back 

into productive use. 

• The National Estuary Program provides 

financial and technical support to help 

coastal communities protect their watersheds and estuaries. 

• Sustainable development challenge 

grants offer seed money to help communities leverage additional resources for 

sustainable development activities with 

environmental, economic, and social 

benefits. 

• New monitoring and reporting projects 

give citizens in 68 urban areas more timely 

information about the quality of local 

beaches, outdoor air, and other environmental conditions. 

communities are shown in Box 4: Some of EPA’s 
Aiming for Excellence 

Action 9

23 

Build leadership capacity in communities to participate in 

local environmental problem-solving. 

We will help communities make decisions about issues that improve public health and their 

local environment by developing new environmental management tools, offering technical 

assistance, and providing facilitation support for dialogue on environmental issues. We’ll 

also include community representatives in Agency decisions about programs or policies that 

directly affect them. 

Acti

communities to help them find local solutions to livability issues. 

Provide “smar on t growth” suppor 1t to state, tribes, and 0

Because community development patterns have a great impact on environmental conditions 

and overall quality of life, we will support and encourage smart growth decisions by individuals; communities; businesses; and state, tribal, and local governments. 

tools that help them have open, constructive dialogues among citizen groups, industry representatives, and other stakeholders. And it will include 

tools that enable them to see the environmental 

consequences of planning and development decisions before those decisions are made. 
Aiming for Excellence 24 

Ensuring Success 

The plan that we’ve outlined in this report 

will take work but we are committed to doing 

everything we can to ensure its success. The actions 

we’ve committed to take will be launched through 

our national and regional planning processes, so 

we need to work closely with our state and tribal 

partners and with staff throughout EPA who manage environmental programs. 

Working With Our State and Tribal Partners 

Today, more than 70 percent of environmental programs that can be delegated are being run at the 

state level. Like EPA, states and tribes have shown 

commitment to finding innovative strategies to cut 

costs and improve environmental results. As 

described earlier in this report, innovations are 

under way to improve permitting, to provide recognition for those who deserve it, and to streamline 
unnecessary requirements. We know any 

progress we make toward our vision of environmental excellence will depend on good communication and a close working partnership with 

our fellow innovators. We will: 

•	 Consult and coordinate with states and tribes 

through associations, especially the 

Environmental Council of the States (ECOS), 

EPA’s Tribal Operations Council, and through 

contact with states and tribes individually. 

•	 Rely on well-established planning processes, 

such as those conducted under the National 

Environmental Performance Partnerships 

System (NEPPS) and annual or biennial planning cycles for environmental programs. 

•	 Create additional communication forums so 

that states and tribes are fully informed and 

involved with our reinvention efforts. 

•	 Seek out states and tribes that have pioneered innovative projects to learn from 

and build on their experiences. 

Making Changes Within EPA 

Within EPA, we need to make changes to ensure 

all the actions in this report happen. We will: 

•	 Continue to encourage an organizational culture that promotes innovation and learning. 

• Be accountable for producing results. 

Continue to Encourage an Innovative 

Organizational Culture 

Like many organizations, EPA has focused on 

improving its effectiveness through steps that 

influence organizational culture. Given our mission, we’re striving for an organizational culture 

that promotes creativity, fosters learning, encourages testing and adoption of innovative 

approaches, works in partnership with others, 

expands public involvement in environmental 

decision-making, and supports efforts of businesses and others to protect the environment. 

EPA’s organizational culture has already evolved 

significantly over the last few years. As evidenced 

by the numerous initiatives and achievements 

discussed in EPA’s 1998 annual reinvention 

report, our staff has shown a commitment to 

creating an environmental protection system that 

works better for everyone. As many of our colleagues in the public and private sector already 

know, however, changing organizational culture 

is a continuous and challenging task. 

To realize our own ideals about what our Agency 

can and should be, and to support implementation of the actions in this report, we will: 

•	 Create new budgetary mechanisms for making resources available to innovators within 

the Agency. 

Aiming for Excellence 25 
Aiming for Excellence 26 

• Identify and act upon our own internal rules 

or practices that promote or inhibit innovation and learning. 

• Reward employees who make significant 

achievements that demonstrate innovation 

and creativity. 

• Provide career development opportunities, 

including training and exchange programs with 

outside organizations, that allow people to gain 

new skills and bring new insights to their jobs. 

• Develop guidelines for evaluating how well 

innovative approaches work so we have an 

objective way to identify lessons learned and 

determine the most appropriate next steps. 

• Bring together EPA front line staff to share 

experiences and information about innovative 

approaches and to develop new approaches 

to improve environmental programs. 

Be Accountable for Producing Results 

In Appendix 3, you’ll find our plans for implementing each of the report’s key actions. For 

each action, we’ve identified a lead office and 

specific steps to measure progress. In order for 

these commitments to have an impact and produce results, we need to be accountable for performance. We will take several steps to do this. 

• The Office of Policy and Reinvention will track 

how well we follow through on specific tasks, 

and report quarterly on progress to the 

Deputy Administrator and to the Reinvention 

Action Council (comprised of the Agency’s 

most senior career staff from Headquarter’s 

programs and EPA regional offices). 

• The Reinvention Action Council will identify 

and resolve any implementation problems. 

• We will assign personnel critical to complete 

each task and support them with resources 

and training. They will be held accountable 

for making progress in their projects. 

• We will post our progress on EPA’s reinvention Web site at <epa.gov/reinvent> and in 

the Agency’s annual reinvention report. 

1

U.S. EPA. 1999. Reinventing Environmental Protection. U.S. Environmental Protection Agency. EPA100-R-99-002. March. Available at 

<www.epa.gov/reinvent>. 

2

At the request of Administrator Browner, EPA created a task force in January 1999 to work with stakeholders on identifying next steps for 

reinvention activities. 

3

Global Environmental Management Initiative. 1999. Environmental Improvement through Business Incentives. 

4

See, for example: The Aspen Institute. 1996. The Alternative Path: A Cleaner, Cheaper Way to Protect and Enhance the Environment. 

Series on the Environment in the 21st Century. 

5

Under the Congressional Review Act, “economically significant” rules are generally those expected to have an impact of $100 mil lion or more. 
Aiming for Excellence 27 

“We believe a system that promotes 

stewardship, in addition to compliance 

and solving environmental problems.” 

environmental management capabilities 

the greatest potential for advancing 

with environmental requirements, has 
Appendix 1 Reinvention Accomplishments 

28 Aiming for Excellence 

This overview of EPA’s reinvention accomplishments is 

taken from the Agency’s report, Reinventing 

Environmental Protection: 1998 Annual Report. 

1998 marked another year of steady progress in the U.S. Environmental Protection


Agency’s (EPA’s) efforts to reinvent environmental programs. EPA began its 


reinvention efforts in 1995 when President Clinton, Vice President Gore, and EPA


Administrator Carol Browner announced a reinvention agenda to make 


environmental and public health protection programs more efficient and effective. Since


that time, EPA has pursued common sense reforms and new ideas that can help us


achieve national goals, such as clean air, clean water, and better waste management.


Last year, Administrator Browner made several strategic decisions that should


advance our reinvention capabilities even further. She laid out a vision for improving


the way EPA manages and disseminates environmental information, and called for a


new information office to be set up—the first in the Agency’s history. Harnessing the


many lessons learned about working effectively with industry sectors and other stake-


holders through the Common Sense Initiative, the Administrator approved plans to


apply this learning broadly within EPA programs. After working on the details for


more than a year, she signed an agreement with the states that provides the 

additional flexibility and assurance they need to proceed with their own reinvention 

initiatives. These decisions were milestones in a year when we followed through and 

delivered on some of our earliest reinvention commitments. But the year also 

brought new challenges and initiatives with the potential to significantly shape how 

environmental management is conducted in the 21st century. 

Better Environmental Information 

With more than 40 million hits on EPA’s Web site every month, public demand for


high-quality environmental information has never been greater. To meet this and


other related demands, EPA began setting up its first information office. In addition to


improving data quality and streamlining reporting, this move will advance community


right-to-know opportunities for citizens and improve our ability to analyze environ­


mental conditions.


Established a National Center for Environmental Information and Statistics


A new online center launched in August is putting EPA’s vast reserves of environmen­


tal data to work for citizens. The center makes it faster and easier than ever before


to retrieve, compile, and present data stored in numerous environmental databases.


Users can request easy-to-understand reports about drinking water, surface water,


air quality, hazardous waste, and toxic releases in their communities—just by typing


in their zip code. 


Developed Real-Time Reporting Capabilities


To enable citizens to make decisions about their daily lives by taking actual environ­


mental conditions into account, we worked with select communities on an environ­


mental reporting breakthrough—offering real-time, rather than historical, data. This


advance offers answers to basic questions, such as “is the air quality safe for me to


go jogging today” or “is the water safe for a swim ?”


Pushed for More Environmental Disclosures


Recognizing the effect that public disclosure can have on environmental perform­


ance, the Agency took actions to make more environmental information publicly


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available. We proposed to expand reporting under the Toxic Release Inventory for


persistent, bioaccumulative chemicals, such as dioxin and mercury, by almost 25


percent. Other actions will give Americans access to information about the hazards


from lead-based paint when renovating or remodeling their homes, whether their


drinking water meets federal public health standards, and the potential risks from


facilities in their neighborhoods that produce, use, or store chemical products.


Challenged the Chemical Industry to Make Product Toxicity Data Publicly


Available


A new program, announced by Vice President Gore, challenges the chemical indus­


try to provide missing information on about 2,800 of the nation’s most widely used


toxic chemicals to the public. By agreeing to conduct any necessary toxicity testing


and to publicly report the results, companies can help resolve remaining questions


about risk levels and avoid the need for further regulation. 


Offered Citizens Tools for Evaluating Environmental Performance


New databases were made publicly available that allow citizens to evaluate and


compare the environmental performance of individual facilities or industry sectors as


a whole. A database created under the Agency’s Sector Facility Indexing project


offers compliance and other environmental performance information on facilities in


six industrial sectors. Another database, known as E-GRID, provides extensive data


on the environmental performance and efficiency of electric utilities—information


that might become more valuable as deregulation gives consumers more choice in


determining their energy provider.


Stronger Partnerships 

Industries, businesses, community groups and many other organizations are increasingly working with EPA as partners to improve environmental performance, cut costs, 

and avoid new regulations. These partnerships are leveraging limited resources and 

spawning new ideas that can produce better results more quickly and more costeffectively than what might be expected through regulatory actions alone. 

30 Aiming for Excellence 
Collaborated on Joint Ventures With the States


With two-thirds of the states now working with EPA under the National Environmental


Performance Partnership System, special attention was given to creating more meaning­


ful environmental performance measures that demonstrate the results from federal and


state programs. The year also brought agreement on a process that gives states the


flexibility and assurance they need to engage in their own regulatory reinvention initia­


tives and still meet federal standards.


Offered Assistance for Smart Growth


To help more communities avoid poorly planned development, urban decay, and loss of


valuable green space, we supported “smart growth” through Agency programs. We led a


national network to help expand smart growth tools and information. And by expanding


a $500,000 pilot project into a $5 million national grant program, EPA offered 45 com­


munities seed money to launch sustainable development initiatives in agricultural, rural,


and urban settings.


Doubled Support for Brownfields Redevelopment


By offering $21 million to 107 communities, the Agency doubled its investment for revi­


talizing brownfields—abandoned, idle, or unused properties tainted by environmental


contamination. Since 1995, EPA has awarded more than $42 million to 227 communi­


ties with a goal of supporting 300 brownfield projects by the end of 1999. In March,


Administrator Browner joined Vice President Gore to announce that 16 projects would


collectively receive an additional $28 million and other assistance to create “Brownfield


Showcase” communities for the nation.


Promoted Environmental Stewardship Through Partnership Programs


To spark interest among potential new members, the Agency compiled and publicized


the latest annual results on the environmental and economic benefits from participat­


ing in its voluntary partnership programs. The results showed that about 6,000 part­


ners—ranging from Fortune 500 companies to small family-owned businesses—saved


$1.6 billion through voluntary improvements that eliminated 7.6 million tons of solid


waste, prevented the release of 79 million metric tons of the pollution linked to global


warming, saved nearly 6 million gallons of clean water, and conserved enough energy


to light 56 million households for a year. 


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Shared Business Risks


In April, EPA offered to become a financial partner with responsible parties under


Superfund that are willing to invest in innovative cleanup technologies. We agreed to


share up to one half of the additional cost that would be incurred in cases where an


innovative technology might fail and necessitate further investment. In so doing, the


Agency reduced the responsible parties’ financial risks and bolstered support for new


technology use and development. 


More Tailored, Flexible Approaches 

Increasingly, EPA is relying on a mix of regulatory and nonregulatory approaches to


solve environmental problems in common sense ways. In some cases, this means


offering incentives that prompt voluntary environmental improvements. In others,


regulations are needed, but can be tailored to offer more flexibility in choosing


among compliance options. 


Offered Flexible, Cost-Effective Program for Reducing Smog 


In September, EPA issued a flexible, cost-effective plan that would allow most areas of


the county to meet the 1997 antismog standards without having to implement costly


new controls. The plan offers compliance options for states, which include an emission


trading program for power plants and other sources of nitrogen oxide—a primary


ingredient in smog formation. This approach has the potential to drop the per-ton cost


of controlling these emissions from as much as $10,000 to about $1,500. 


Launched Clean Water Action Plan


In February, President Clinton unveiled a comprehensive Clean Water Action Plan to


finish the job of protecting the nation’s waters. Developed with unprecedented coop­


eration at the federal level, this plan offers the first-ever, multiagency budget for


clean water programs and specifies more than 100 actions to address high-priority


problems, such as polluted runoff from livestock operations. 


32 Aiming for Excellence 
Rewarded Pollution Prevention Achievements


The Agency supported technical innovations that minimize waste and the use of toxic


chemicals and that help avoid the need for new requirements. This included offering


Presidential awards for outstanding green chemistry achievement. In 1998, awards


were given to four companies and two university research teams whose discoveries


offer more environmentally sound alternatives to current products and processes.


Focused on the Needs of Industrial Sectors and Other Stakeholders


After 4 years of unprecedented collaboration involving many diverse parties,


Administration Browner concluded the Common Sense Initiative as an experimental


program for testing a fundamentally different approach to environmental protection.


Lessons learned from working with six industrial sectors and other stakeholders


formed the basis of new plans to adopt sector-based approaches more broadly


across Agency programs and to improve EPA’s ability for involving stakeholders in


decision-making processes.


Used Project XL to Pursue Innovative Approaches


The Agency approved three new projects in 1998, and developed a simplified


process for approving additional projects in the future. One participating company


is exploring how environmental management systems might be used to simplify per­


mitting, recordkeeping and reporting requirements. In Massachusetts, the state envi­


ronmental agency is testing self-certification procedures as an alternative to


traditional environmental permits.


Promoted Innovative Technologies


Recognizing the financial risks and regulatory barriers faced by companies trying to


develop and market innovative environmental technologies, EPA offered information


and sponsored trade shows and award programs to showcase new technologies. In


a new role, we also helped broker discussions between technology developers and


representatives from the financial community in order to secure more capital for new


technology development. 


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Getting to Compliance—and Beyond 

Throughout the year, we looked for ways to help businesses and communities


improve their environmental performance. Often, this meant providing more infor­


mation or technical assistance, particularly for the smaller entities that do not always


have the resources they need to understand what is required. Increasingly, it meant


creating incentives that encourage companies to reach for performance goals that


go beyond compliance. 


Responded to Growing Interest in Environmental Management Systems


Recognizing the interest and questions still surrounding use of Environmental


Management Systems, EPA launched pilot projects to test their effectiveness and


gather information that will be used in future policy decisions. In a move that sent


an important signal to the regulated community, we issued a policy statement clarify­


ing EPA’s support for environmental management systems that “help an organization


achieve its environmental obligations and broader environmental performance


goals.”


Opened Five More Compliance Assistance Centers


In partnership with other organizations, EPA opened new compliance assistance 


centers on the Internet to serve five more sectors: the printed wiring board manufac­


turers, the paints and coatings industry, the transportation sector, chemical manufac­


turers, and local governments. With the four centers opened previously, nine centers


are now up and running. These centers are tailored to serve small and medium-sized


organizations, providing users with round-the-clock access to information about envi­


ronmental regulations, pollution prevention techniques, and related issues. 


Encouraged Environmental Improvements Through Self-Auditing


More companies had environmental penalties reduced or eliminated under an


incentive-based policy EPA announced in 1996 that encourages self-auditing, along


with quick correction and public disclosure of any environmental violations. As of


December 1998, 318 companies had corrected and publicly disclosed environmen­


tal violations at 1,668 facilities, a twofold increase over the number of facilities


doing so the year before.


34 Aiming for Excellence 
Supported Corporate Environmental Mentoring


Recognizing that businesses can often help each other improve environmental per­


formance, EPA offered funding to support what could become a new trend in corpo­


rate America—environmental mentoring. These funds are being used to create an


institute that will provide the information and tools needed to support mentoring


relationships between companies that have environmental expertise to offer and


those in need of special assistance. 


Provided Funding to Improve Drinking Water Compliance


More than 300 small communities facing new requirements under the 1996 Safe


Drinking Water Act got special help in 1998 when the Agency began administering


the federal government’s first-ever loan program for drinking water improvements.


Rather than one-time grants to select communities, financial assistance was offered


through state revolving loan programs. All but the most needy recipients repay their


low interest loan, enabling the states to maintain a reliable source of capital for


other communities needing assistance. 


Less Regulatory Burden 

Many reinvention efforts had the effect of reducing the regulatory burden imposed 

by environmental requirements in 1998, but the requirements imposed for recordkeeping and reporting continued to be a major focal point. By the end of the year, 

EPA had cut 26.9 million hours of paperwork burden by streamlining processes, 

eliminating outdated provisions, or consolidating duplicative requirements—without 

sacrificing the Agency’s ability to ensure environmental and public health protection. These reductions, which surpassed the Agency’s 1995 goal of reducing burden 

by 25 million hours, offset additional requirements that have taken effect in recent 

years to increase environmental protection and accountability. They should also save 

businesses and communities an estimated $807 million a year. 

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Proposed a Consolidated Air Rule for Chemical Manufacturers


A proposed rule that consolidates 16 federal air regulations into a single guideline


could save the average U.S. chemical plant about 1,700 hours or $80,000 a year


in the future. The proposal, which represents the first consolidated rule ever under


the Clean Air Act, would be voluntary. Plant managers could opt to comply with the


consolidated rule or continue operating under the existing 16 rules.


Streamlined Certification Process for Auto Makers


A streamlined process for certifying that new passenger cars and trucks meet federal


standards for air pollution emissions is expected to save automobile manufacturers


an estimated $55 million a year. Under the proposed process, testing would be per-


formed on vehicles actually in use on the nation’s highways rather than on brand


new vehicles. In addition to cutting burden, the new process creates an incentive for


manufacturers to produce more durable emissions control equipment and gives EPA


better data for managing air quality programs.


Simplified Hazardous Waste Management Requirements


The Agency addressed several barriers that have prevented common sense practices


in managing hazardous wastes. Reforms to the 20-year-old program for managing


polychlorinated biphenyls, or PCBs, are expected to produce cost savings estimated


at between $178 million and $736 million each year. New treatment standards for


land disposal of hazardous waste will facilitate cleanups of contaminated sites.


Another regulation simplifies the cleanup and closure of hazardous waste disposal


facilities.


Offered Compliance Alternatives to Small Drinking Water Systems


Based on the 1996 amendments to the Safe Drinking Water Act, the Agency issued


new regulations that will give small community water systems less expensive treat­


ment alternatives to comply with federal drinking water standards in the future.


Smaller systems can also request more time to achieve compliance and variances


from federal requirements, as long as such actions do not threaten public health.


36 Aiming for Excellence 
Eliminated Barriers That Discourage Removal of Lead-Based Paint


We proposed a new rule to expedite the removal of lead-based paint because doing


so will help protect children from exposure to lead. Based on studies showing that


lead-based paint debris could be safely placed in ordinary landfills (under the Toxic


Substances Control Act), we proposed that this disposal option be provided as an


alternative to the traditional, but more expensive disposal currently required under


hazardous waste regulations. 


Published Plain Language Regulations


In 1998, the Agency issued several regulations using plainer language and simpler


formats than ever before. Among them were important requirements explaining what


gas station owners, industrial facilities, and others operating underground injection


wells must do to protect local drinking water supplies, and what industries must do


to respond in a chemical emergency situation. These improvements were possible


because of a pilot program began in 1997 to improve the understanding of EPA


regulations.


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Appendix 2 Summary of Comments Received 

By The Innovations Task Force 

March through May 1999 

38 Aiming for Excellence 

Encouraging Improved Performance 

Encourage stewardship: Many stakeholders agreed that compliance alone should


not be the end goal for environmental management. We can and should do more.


Specifically, we should encourage environmental stewardship, where everyone—


individuals, communities, and companies—takes more responsibility for their


actions. Fostering stewardship needs to be interdisciplinary, taking social, economic,


and other issues into account. It will require a different approach than enforcement.


Recognize top performers or improved performance: Many stakeholders urged EPA


to establish programs for regulated facilities that go beyond compliance with envi­


ronmental requirements. Suggestions ranged from a voluntary program recognizing


sound performance, based on a set of specific criteria, to “case-by-case” actions for


the truly outstanding performers. Some stakeholders felt that the former, a program


with broader applicability, would be well-received and a step in the right direction.


Others felt this would be neither bold nor effective enough. They felt that focusing


on the top performers would allow EPA to offer more meaningful incentives and


make participation more attractive. It would also help to create new leaders that


others could follow. They suggested bench marking performance levels in facilities


that are already widely recognized as top performers as a way to get started quickly.


They also felt that criteria for defining exceptional performance should be multime­


dia, emphasize sustainability and include measures such as:

• Public disclosure 

• Public involvement 

• How well a company addresses particular environmental problems 

• Product stewardship 

• Mentoring other companies 

A number of stakeholders suggested using a “ladder” that recognizes several different performance levels. Those who still have compliance problems would be at the 

lower level; those with better performance would be higher up; the best would be at 

the very top. Incentives and assistance could be provided to help organizations 

move upward. 

Incentives: Recognition can be an incentive, especially when it is in the local community and with clients and customers. However, incentives for superior performance 

are important and these can and should go much further. They could involve such 

things as fewer compliance inspections, more flexibility in regulatory programs, 

reduced reporting and monitoring, and tax credits. 

Tools for Improving Environmental Performance 

Environmental Management Systems (EMSs): Stakeholders identified EMSs as key 

tools for improving environmental performance. However, they felt that EMSs are 

just a tool, and to work best, they need to be tailored to industry sectors. They also 

felt that special attention was needed to help small businesses develop and implement EMSs. This would help overcome a common perception that EMSs are for big 

companies, not small ones. There are successful examples of tailoring EMSs to 

smaller business (e.g., printers) and this is an area where EPA can help. 

Stakeholders also explained that EMS use would likely increase if insurers, bond 

raters and others were encouraged to use a company’s EMSs when evaluating their 

performance. 

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Some stakeholders were sensitive about the role that EPA should take in promoting 

EMSs. Many states and business already are using EMSs, and they felt the Agency 

should not try to step into the leadership roles established by others. EPA’s role 

should be to promote their use, support their development, evaluate their effectiveness, and make recommendations on how to improve them. Conversely, others felt 

EPA should play a more active role in EMS development and testing. 

Integrating environmental and business decisions: Stakeholders noted many other 

tools that could also help businesses account for environmental impacts and make 

more cost effective decisions. These tools include: life-cycle analysis, full cost 

accounting, product stewardship and product “take-back” programs, industrial ecology, etc. They thought EPA should help develop these tools, and support business 

assistance networks that help companies use them. 

Voluntary programs: Stakeholders emphasized that voluntary programs can help 

companies and individuals address unsolved environmental problems. These programs can encourage stewardship in several ways, such as by offering technical or 

financial assistance, or by providing public recognition for environmental actions. 

There were suggestions for new voluntary programs to address certain issues, such 

as reducing use of persistent bioaccumulative and toxic chemicals, reducing nutrient 

loadings into watersheds, implementing innovative air quality improvement projects, 

and improving labeling and creating awards for environmentally friendly products. 

Apply lessons from successful pilots: Our stakeholders emphasized that when an 

innovation proves successful in a pilot project, we need to move quickly to institute 

the innovation more broadly. EPA has tried new approaches through its reinvention 

programs, such as developing flexible permits and working with specific industry on 

sector-based environmental management approaches. Where successful, they felt 

the Agency should expand use of new approaches or integrate them into existing 

programs so that benefits can be realized on a wider scale. 

Market-based or economic incentives: Some stakeholders emphasized the potential 

of market-based approaches for addressing problems. For example, effluent trading 

in watersheds is one way to help address nonpoint source pollution. 

40 Aiming for Excellence 
Promoting Compliance 

Improved regulations: Some suggestions for improving our regulations were: 

•	 Continue to use plain language. Plain language is important because it helps 

people understand what they need to do and increases their ability to comply. 

Stakeholders felt that if EPA can do a better job in this area, there would be less 

need for additional compliance assistance materials, because the requirements 

would be clear. They also suggested that we provide flowcharts and checklists 

along with rules so applicability and requirements can be determined more easily. 

•	 Develop more performance-based regulations. There were a number of specific 

suggestions for more regulatory changes that would increase flexibility in meeting 

permit limits, especially in meeting air requirements. 

•	 Promote sector-based rulemaking. Through the Common Sense Initiative and 

other reinvention efforts, EPA has seen benefits from tailoring environmental 

management strategies for specific industry sectors. EPA should use this 

approach more in rulemaking so that regulations are more effective at addressing problems associated with specific industries. 

•	 Provide more openness during rulemaking and pilot-test rules prior to issuance. 

This will allow the regulation writers to receive input from front line agency staff 

and from people in companies and communities. In this way, EPA can help 

assure that new requirements are understandable and doable. 

Permitting, monitoring, and reporting reforms: A number of stakeholders urged EPA 

to build on its successful initiatives to reduce regulatory burden. Specifically, they 

called for more efforts to consolidate monitoring and reporting. To further reduce 

burden, they also encouraged more use of electronic reporting. On permitting, they 

suggested a number of specific projects from testing permit reforms developed 

through the Common Sense Initiative (PrintSTEP), to one-stop permitting, to sectorbased permits. They also had media-specific suggestions, such as expanding the 

Pollution Prevention in Permitting Program (for air emissions). 

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Compliance assistance: Stakeholders explained that we need to do a better job of 

providing compliance assistance. They had many ideas about how we could do so. 

Some of these were: 

•	 Develop compliance assistance materials and tools that are targeted to the 

needs of the regulated parties. EPA should prepare these materials along with 

regulation development so that more consideration is given to how the new 

requirements will actually be met. This approach would allow the Agency to 

develop assistance materials that are more timely and helpful. 

•	 Coordinate with industries and their trade associations to develop materials that 

work well for the people who will use them. 

•	 Ensure that EPA inspectors and the regulated facilities use the same inspection 

checklists. 

•	 Continue to build on traditional approaches for providing assistance, including 

the existing compliance assistance centers. But also provide more help for small 

businesses who often have fewer resources to deal with environmental issues 

than larger companies. 

•	 Use electronic tools (such as the Internet and computer software programs), but 

don’t rely too heavily on them. Gear these tools to the front line, shop floor people who are most likely to use them. 

•	 Turn to other assistance providers to deliver compliance assistance. There are 

existing networks of organizations (such as local governments, state agencies, 

universities, non-profits, trade associations, small business and technology assistance centers) that all have frequent interactions with businesses. Businesses prefer to go to them for help with compliance issues rather than dealing with EPA. 

EPA should be a “broker” rather than a “retailer” for compliance assistance 

materials. In other words, the Agency should develop materials and make them 

available, but let others actually deliver them to the regulated community. 

42 Aiming for Excellence 
:

•	 Use existing assistance networks and compliance assistance materials to deliver 

pollution prevention assistance as well. Also, keep in mind that many of these 

providers are ideal for delivering additional tools for integrating environmental 

and business decision-making. 

•	 Deliver compliance assistance separately from enforcement, so that companies 

build some trust in working with those who offer assistance. 

•	 Revise EPA’s Audit Policy, Small Business Policy and penalty mitigation protocol to 

give people more incentives to self-disclose and correct environmental violations. 

•	 Continue to measure the effectiveness of EPA’s compliance assistance activities to 

see what is working well. 

•	 Integrate compliance assistance with incentives, monitoring and enforcement to 

address specific environmental priorities. 

Cross-Cutting Issues 

Information management: A number of comments dealt with information-related 

issues. Some suggested that making data about the environmental performance of 

specific facilities more user-friendly and accessible would be a strong incentive for 

corporations to improve or maintain high standards. Others suggested that EPA 

needs to do more to integrate data about ecological conditions, individual facilities, 

and other issues so people can gain a more complete understanding of factors 

influencing conditions at the watershed, ecosystem or community level. 

Still others felt that Agency databases should be designed so that state and EPA staff 

can input and update data more easily. 

Support for community-based activities: Stakeholders spoke about how communities 

and citizens want and need EPA to deliver information and technical assistance that 

will help them use environmental data and participate in environmental decisionmaking. In particular, some stakeholders urged EPA to provide additional support 

and tools to help local governments address urban sprawl. 

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Appendix 3 Key Actions 

44 Aiming for Excellence 

Action 1: Use incentives and voluntary partnerships more widely 

to encourage better environmental performance. 

Objective: 

We will work with interested parties to identify, test, and evaluate incentives that can 

be used to encourage better environmental performance by a wide range of businesses and other organizations. We’ll also use voluntary partnership approaches to 

address unsolved problems and/or unique challenges facing communities or specific 

industry sectors. 

Background: 

Our program and regional offices are already developing ways to promote stewardship. Experimental programs, such as Project XL, and partnership programs, such as 

Energy Star, have used incentives to encourage organizations to make environmental improvements. Additionally, we have started to use incentives to enhance our 

regulatory programs. 

Our rapidly-growing partnership programs continue to show strong promise for 

effecting stewardship. These programs typically improve efficiency, cut waste, and 

conserve resources, lowering costs and yielding environmental benefits. As such, 

we’ve used partnership programs to address a variety of issues, including climate 
change, solid waste, pesticide risks, and to advance new environmental technologies and practices. These experiences have shown that voluntary approaches can be 

a strong complement to our regulatory system, and a tangible means for getting 

better environmental results. 

Approach: 

We will work with states, tribes industry, public interest groups, and other 

stakeholders to: 

• Evaluate ongoing pilots and programs that use incentives. 

• Look for new opportunities to use incentives. 

•	 Make changes in policies and regulations to remove barriers and promote 

stewardship. 

For voluntary programs, we will study the experience gained over the past few years, 

to find out what kinds of voluntary programs work best and why. We will use this 

information to help identify new areas where a voluntary partnership approach 

could achieve significant environmental results, and how we might accomplish more 

through existing programs. 

Tasks: 

1. We will partner with several states to further test incentives (such as expedited 

permitting, consolidated or streamlined reporting, increased permit flexibility). 

Lead: Office of Policy and Reinvention 

2. We will co-sponsor a national conference in 1999 on how economic and information incentives can be used to promote environmental stewardship. 

Lead: Office of Policy and Reinvention 

3. We will award competitive research grants to identify and evaluate incentivebased approaches and investigate the relationship between environmental 

stewardship and financial return and growth. 

Lead: Office of Research and Development 

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4. We will work to improve the accessibility and increase the potential of voluntary 

partnership programs: 

- First, we’ll establish a central point of contact for basic information on EPA 

partnership programs to make it easier for current and potential new partners to discover the full range of programs available. (This will augment outreach efforts by individual programs). 

- Second, we will work with interested sectors to determine which programs 

have greatest value for their specific operations, how these programs might 

best be packaged to simplify use, and whether new features are needed to 

meet their needs. 

- Third, we’ll explore additional areas where partnership programs might be 

created to achieve environmental improvements. 

- Fourth, we will publish annual results achieved by partnership programs to 

demonstrate environmental and economic benefits. We will also work with 

our partners to develop better performance measures, where needed. These 

measures will enable us to more thoroughly evaluate the effectiveness of 

these programs, and prepare a report on their collective contribution to 

achieving national environmental and public health protection goals. 

Lead: Partnership Programs Coordinating Committee 

5. Working with industry and other stakeholders, we will explore incentives to 

encourage further toxicity testing (under the Agency’s chemical right-to-know 

program), and to promote improved product stewardship based on the toxicity 

testing results. 

Lead: Office of Prevention, Pesticides and Toxic Substances 

6. We will work with industry and other stakeholders to explore an environmental 

stewardship initiative that challenges U.S. companies to voluntarily meet U.S. 

environmental and public health standards at their facilities in other countries 

whose standards are less protective. 

Lead: Office of Prevention, Pesticides and Toxic Substances 

46 Aiming for Excellence 
Action 2: Promote the use of environmental management systems. 

Objective: 

We will encourage organizations to use EMSs that improve compliance, pollution 

prevention, and other measures of environmental performance. We’ll continue evaluation efforts to learn more about which EMS elements and applications are most 

effective, and we’ll determine how these systems might be used to strengthen environmental programs and policies. 

Background: 

An environmental management system applies standard business principles to the 

management of an organization’s environmental responsibilities. This kind of system 

looks at environmental concerns in a more systematic way, and as a part of all business decisions and practices. An EMS does not determine the organization’s legal 

obligations; rather, it is a sophisticated tool used by the organization to manage 

compliance and other environmental issues. A strong EMS does not just set rules for 

employees: it tracks performance, identifies and corrects problems, and tries to prevent the problems from recurring. 

Many organizations are adopting EMSs as a management tool. We encourage the 

use of EMSs because they have the potential to improve compliance rates and environmental performance. In 1998, EPA issued a policy statement endorsing the use 

of EMSs that focus on improved environmental performance, including compliance 

and source reduction. 

It is now time for EPA to take a more prominent role in encouraging organizations to 

use EMSs. Already, a number of our programs and regions have helped selected sectors, or organizations in particular geographic areas, to develop strong EMSs. We’ve 

also incorporated EMSs into a number of settlement agreements in enforcement 

cases. We need to look strategically at what else we can do to help promote EMSs. 

At the same time, we still have much to learn about how effective different types of 

EMSs actually are in improving environmental performance, and about how they 

may affect our programs and policies. We are currently working in partnership with 

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a number of states (through the Multi-State Working Group) to develop a national 

database to help us build an understanding of EMSs and their effects. This work will 

be continued and expanded. 

Approach: 

Working with states, tribes, and other stakeholders, we will assess the real-world use 

of EMSs and look at their implications for environmental programs and policies. We 

will help selected sectors (especially smaller businesses) develop and test EMSs, and 

we’ll promote EMSs in selected geographic areas. To do this, we will: 

• Develop a stronger, more far-reaching assistance program. 

•	 Develop additional tools that can help organizations integrate environmental 

planning with other business decisions. 

•	 Continue and expand research on what kinds of EMSs are most effective, and 

how the growing use of EMSs may affect our programs and policies. 

Tasks: 

1. We will designate a single office to provide leadership on Agency EMS policy 

and planning. 

Lead: Deputy Administrator, with advice from Reinvention Action Council 

2. We will promote the use of EMSs to address known compliance and performance problems. Within six months, we will prepare a strategy to increase EMS 

use in targeted sectors or geographic areas, and begin developing tools such as 

training, best practice manuals, mentoring programs, short-term and long-term 

measures of environmental performance, and incentives that encourage 

improved environmental performance. 

Lead: Office of Policy and Reinvention 

3. We will evaluate the environmental and economic results of EMSs, building on 

and expanding current research efforts. (These results will form the basis of an 

evaluation report to be issued within 3 years). 

Lead: Office of Policy and Reinvention 

48 Aiming for Excellence 
4. We will look at other business decision-making tools and evaluate how well they 

improve environmental performance. We will also assess how these other tools 

may work with or enhance a firm’s EMS. 

Lead: Office of Prevention, Pesticides and Toxic Substances 

Action 3: Develop a “performance track” to motivate and reward 

top environmental performance. 

Objective: 

We will work with States, Tribes, industry, environmental, and other interest groups to 

define what it means to be a top environmental performer, and to identify appropriate building blocks for a new “performance track” that enhances the current regulatory system. 

Background: 

States and EPA have already started using incentives to promote top environmental 

performance (see Box 1, page 10). Project XL, the Environmental Leadership Program, 

and leadership programs in Oregon, Colorado, and other states are preliminary 

efforts to motivate top performers. In addition to these programs, a number of policy 

studies have called for creation of an “alternative track” or “performance track.” 

There is broad support for a “performance track” that rewards top performers, but 

there are diverse ideas about how this approach should be designed and operated. 

Unresolved issues include: 

•	 Finding the right incentives to motivate top performance, and identifying the 

changes that are needed in policy, regulations, or statutes to use incentives. 

• Defining and measuring top environmental performance. 

•	 Ensuring that companies and communities are accountable for performance, in 

part by publicly reporting on their performance to the public. 

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•	 Determining the appropriate role for government agencies and the appropriate 

allocation of government resources. 

We are already learning from the past several years of experimentation, and we now 

need to agree on a next phase of activities to create a performance track. This track 

should include both meaningful incentives, and a way to account for results. Because 

this performance track concept is not fully defined, it is not without controversy. But 

we believe it holds strong promise for motivating and rewarding stewardship in companies that are willing to be leaders and achieve better environmental results. 

Approach: 

A process will be established so that diverse interests can work with the Agency in 

developing a performance track that promotes top performance and assures 

accountability for results. This collaborative process will assess what has been effective in previous pilot tests and programs, develop a framework for a performance 

track, and propose practical implementation steps. 

Tasks: 

1. We will convene a group of leaders from state and tribal environmental agencies, industry, environmental and other interest groups to evaluate options for a 

performance track and propose practical steps for demonstration and implementation. This will include: 

- Defining and measuring environmental excellence, for example by “bench 

marking” the performance of 25 to 30 top performers identified by the 

group participants. 

Lead: Office of Prevention, Pesticides and Toxic Substances 

- Defining the characteristics of EMSs and accountability measures that will 

demonstrate top environmental performance. 

Lead: Office of Policy and Reinvention 

- Identifying the best incentives for motivating organizations to improve environmental performance. 

Lead: Office of Policy and Reinvention 

50 Aiming for Excellence 
2.	 We will work with two industry sectors to develop sector-specific performance 

standards that demonstrate a more comprehensive, system-based approach to 

environmental management. This will involve assessing industry trends and conditions, developing environmental performance goals, and designing EMSs to help 

individual facilities improve environmental performance. 

Lead: Office of Policy and Reinvention 

Action 4: Support a network of public and private organizations 

that provide assistance on environmental compliance. 

Objective: 

We will focus on becoming a “wholesaler” of compliance assistance tools and information. We’ll meet with compliance assistance providers to share our approach for 

developing materials that help businesses and communities comply with the law and 

prevent pollution, and we’ll ask them to help us set priorities to determine which 

materials are needed most. We’ll provide these materials, and help them develop 

training and peer mentoring programs. 

Background: 

Many regulated groups, especially small and mid-sized businesses, are wary of 

seeking help from EPA and other federal agencies. Because of this, we are not in 

the best position to offer direct compliance assistance. But, there are many organizations that are in a good position to help because they already have contact with a 

large number of regulated entities. Some examples are state and local governments; 

small business assistance programs and development centers; manufacturing extension partnerships; pollution prevention programs; universities; licensing agencies 

and issuers of building permits; and trade and professional associations. These 

organizations already have an infrastructure in place to deliver information and 

assistance, and businesses often turn to them. 

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Approach: 

We will bring together other organizations in the public and private sector that provide compliance assistance, and seek their ideas about what tools are still needed. 

We will seek their input on the best ways to get new compliance assistance tools 

delivered to them in a timely manner. In this way, we can help build an effective 

environmental assistance network with the ability to reach a much larger audience 

than EPA could ever reach on its own. Our role will be primarily to enable other 

providers to work more effectively, and to provide compliance assistance directly 

only in special circumstances (e.g. in cases where assistance networks may not sufficiently reach all affected parties). We will also work to encourage more collaboration and coordination among organizations that routinely provide assistance on 

business, environmental or other issues. This would be more efficient for small businesses and others seeking information, as well as for EPA and other organizations 

that provide it. 

Tasks 

1. We will convene a national compliance assistance forum to share information 

with participants on recently developed compliance assistance materials, get 

stakeholder input in setting priorities for new compliance assistance materials, 

and exchange compliance assistance tools. We will also use the forum to help 

identify industry sectors that have special compliance assistance needs. 

Lead: Office of Enforcement and Compliance Assurance 

2. We will also sponsor a national meeting of organizations that provide assistance 

to the regulated community. We hope to encourage simpler and more efficient 

“one-stop” shopping for assistance on a variety of inter-related issues, such as 

business management, technical process improvements, pollution prevention, 

and regulatory compliance. 

Lead: Office of Prevention, Pesticides and Toxic Substances 

3. We will assess EPA’s current suite of environmental assistance services for small 

businesses. We’ll assess the value and accessibility of the many hotlines, clear52 Aiming for Excellence 
inghouses, and other EPA support functions. Working with other public and private sector assistance providers, we’ll use these findings to improve our assistance to small businesses. 

Lead: Office of Policy and Reinvention 

4. We will create a clearinghouse of compliance assistance materials and tools. 

This clearinghouse will include information from federal, state, tribal, and local 

governments and from private providers, such as trade associations. 

Lead: Office of Enforcement and Compliance Assurance 

5. We will distribute and market compliance assistance tools to organizations that 

are likely to have contact with regulated groups. 

Lead: All offices that prepare materials or tools to support regulatory action 

6. We will support mentoring programs that help businesses and other organizations 

share environmental management information and expertise with one another. 

Lead: Office of Policy and Reinvention, Office of Water, and Region 4 

Action 5: Deliver compliance assistance information for new 

“economically significant” rules when and where it’s needed. 

Objective: 

We will provide compliance assistance information, typically within 90 days of issuing an “economically significant” rule, so it is available before new requirements 

take effect1. We will continue to make general assistance widely available through 

the Internet, toll-free telephone lines, and other distribution channels. We’ll also 

evaluate the need for additional compliance assistance centers as we maintain support for existing ones. 

Background: 

Clear, understandable regulations and compliance assistance tools improve a facility 

manager’s ability to comply, and they strengthen the public’s ability to effectively 

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participate in environmental and public health protection issues. Over the last several years, EPA has begun to write plain language regulations. We have also developed a variety of compliance assistance tools and mechanisms for delivering them. 

These include plain language guides, compliance assistance centers, hotlines, selfaudit checklists, and special software. We have begun and will continue to evaluate 

these tools, with a special focus on how well they meet the needs of small business. 

Still, as we talked to our stakeholders about compliance, we heard that we need to 

do more. In particular, we need to integrate compliance assistance planning into the 

rulemaking process. 

A more integrated approach should have several positive effects. Earlier consideration of compliance assistance issues during regulation development will allow us to 

develop more effective, understandable regulations designed for application in realworld situations. Providing more timely compliance assistance information will give 

the regulated community the time they need to understand regulatory obligations 

and to focus planning on how to comply through pollution prevention or other 

appropriate controls. Finally, the interaction between facilities and regulatory agencies, and public involvement in environmental decision-making will become more 

positive as all parties gain a clearer understanding about what is required. 

Approach: 

Under the Small Business Regulatory Enforcement Fairness Act (SBREFA), EPA is 

required to prepare a compliance guide for new regulations that have a “significant 

impact on a substantial number of small entities2

.” In the future, we’ll extend this 

type of service more broadly. Specifically, we will provide compliance assistance 

guides or self-audit checklists for economically significant rules that apply to companies or government facilities and that are not already covered by the SBREFA 

requirement. These materials will help regulated entities—in other words, companies 

or government facilities—comply with EPA rules that apply to them. (Rules that aren’t 

directly applicable to companies or government facilities may warrant different forms 

of guidance, such as state program guidance.) 

Because guides and checklists must be tailored to each rule and to diverse audiences (e.g., small businesses versus large manufacturers), they will vary substantially 

in format and length. Where appropriate, they will include information about how to 

54 Aiming for Excellence 
comply through pollution prevention options. We will prepare these materials as 

soon as possible after issuing the rule, typically within 90 days so that requirements 

can be understood well before the actual compliance date. Longer time frames may 

be needed in some cases for stakeholder input on draft assistance materials, for 

highly complex rules or for special circumstances, but these extensions will be subject to the Deputy Administrator’s approval. 

There may be cases in which EPA decides to produce a compliance guide for a rule 

that does not meet the economically significant threshold rather than for a rule that 

does because it would be more beneficial overall, considering factors such as the 

needs of the regulated community and the potential benefit to public health and the 

environment. These “substitutions” will be made as part of an annual compliance 

assistance planning process. In addition, EPA will produce compliance materials for 

other rules that do not meet the economically significant threshold, within budget 

limitations. 

EPA’s media offices will integrate compliance assistance planning into rule development, with active assistance and participation from our enforcement and compliance 

assurance staff at Headquarters and in the regions. We’ll also seek input from State 

program staff, the regulated community and other stakeholders, as appropriate. As 

part of this process, we may identify and develop other materials to supplement 

guides and checklists. 

Tasks: 

1. We will develop compliance assistance guides and/or self-audit checklists for 

economically significant rules that apply to companies and/or government facilities (or rules that were “substituted” because of greater benefit), typically within 

90 days of issuance. Extensions beyond this time frame will be subject to 

approval by the Deputy Administrator. EPA also will produce compliance materials for additional rules that do not meet the economically significant threshold, 

within budget limitations. 

Lead: EPA National program office that prepares regulation, with assistance from 

enforcement and compliance assurance program. 

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2. We will develop an annual compliance assistance plan, in consultation with 

State, Tribal, and other compliance assistance providers, to ensure that compliance assistance resources are focused on areas where they are most needed. 

Based on their input, we will consider developing compliance assistance tools for 

other new rules that do not meet the economically significant threshold or for 

existing rules known to have compliance problems. 

Lead: Office of Enforcement and Compliance Assurance 

3. We will field test certain compliance assistance tools before issuing them. For 

one or two rules, the Agency will also develop special software to guide facility 

operators through regulations and provide answers on applicability, deadlines, 

and what must be done to comply. 

Lead: EPA National program office that prepares regulation, with assistance from 

enforcement and compliance assurance staff 

4. We will field test certain draft regulations prior to promulgation. This will be done 

through simulated trial application of a draft rule with one or more regulated 

entities, with opportunity for public involvement. 

Lead: EPA National program office that prepares regulation 

Action 6: Combine compliance assistance, incentives, monitoring, 

and enforcement in order to implement environmental laws in a 

more strategic manner. 

Objective: 

To make better use of limited resources, we will design new strategies that incorporate a range of options to address major compliance problems. 

Background: 

During the last several years EPA and States have experimented with integrated compliance and enforcement strategies. These strategies usually include some or all of 

the following tools: compliance assistance, compliance incentives (such as penalty 

56 Aiming for Excellence 
relief for firms that conduct self-audits, disclose violations, and quickly correct problems), monitoring, and targeted enforcement actions. Several examples of how these 

tools were strategically applied are described below: 

•	 Steel mills: EPA Region 5 provided steel mini-mills with a 6-month period to selfaudit, disclose, and correct violations in accordance with the Audit Policy or 

Small Business Policy; offered outreach and technical assistance; and followed 

up with inspections, and enforcement as appropriate, at facilities that did not 

audit and disclose. 

•	 Chemical companies: This national strategy gave organic chemical manufacturers compliance assistance, including auditing protocols, and an opportunity to 

audit, disclose, and correct violations. It also included compliance monitoring 

and appropriate enforcement for non-participating companies. 

•	 Universities laboratories: By combining targeted enforcement actions regarding 

hazardous waste violations with customized assistance opportunities, EPA’s New 

England region was able to address RCRA compliance and other performance 

problems at laboratories. 

These and other experiences have shown that strategic combination of enforcement 

with other environmental management tools can be effective for addressing environmental and compliance problems. During focus groups, our stakeholders voiced 

support for this approach. 

Approach: 

As part of future planning processes, we will consult with states, tribes and other 

stakeholders to identify new opportunities for strategically combining compliance 

assistance, incentives, monitoring, and enforcement. Through this approach, we will 

tailor actions to the particular compliance issue and/or sector involved. While the 

combinations and sequences in these strategies may vary, we would likely start with 

compliance assistance first. We would then give incentives, such as extended compliance periods or penalty relief for auditing and correcting problems. Monitoring 

would come next, followed by enforcement, where necessary. 

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Background:

Task: 

1. We will talk to states, tribes and other stakeholders to identify the priorities where 

combined enforcement strategies are appropriate. We will then develop the 

appropriate strategy for each priority area and begin implementation. 

Lead: Office of Enforcement and Compliance Assistance and EPA Regions 

Action 7: Develop more flexible air permitting policies for 

protecting the environment. 

Objective: 

Based on our experiences in pilot projects, we will identify those approaches that 

increase permitting flexibility while providing equal or better levels of environmental 

and public health protection, provide incentives for pollution prevention, and ensure 

public participation in permitting decisions. 

Background: 

For the past 6 years, we have looked for ways to provide greater flexibility under the 

air permit program without sacrificing environmental protection. We have done this in 

connection with ongoing rule development, and through a number of experimental 

pilot permits in Project XL and the “Pollution Prevention in Permitting Project” (P4). 

Approach: 

Because of our pilot programs, we have enough experience to identify approaches 

that can be taken beyond the pilot stage and used more broadly. Currently, permits 

are issued through a decentralized system of state and regional permit writers. We 

will build an extensive support system to disseminate information on new approaches among this network. We will do this through EPA staff, a variety of publicly available information sources, and training programs for federal and state permit writers. 

58 Aiming for Excellence 
Tasks: 

1. We will identify approaches that provide greater flexibility in the New Source 

Review and Title V permitting programs, without sacrificing environmental results 

or weakening the role of the public in permit decisions. 

2. We will publicize those new approaches so that permit writers at EPA and other 

regulatory agencies understand and know how to use them, and so that permit 

applicants and holders become aware of the approaches and their benefits. 

3. We will identify and work with selected sectors for which the new approaches 

offer the greatest benefits. 

Lead: Office of Air and Radiation 

Action 8: Speed up review and issuance of NPDES (water 

discharge) permits. 

Objective: 

We will streamline NPDES permitting by providing training to improve understanding 

of the NPDES permitting process, and by encouraging applicants to submit draft 

permit limits or conditions that can expedite regulatory review and approval. We will 

also encourage more public involvement in permitting actions. 

Background: 

The National Pollutant Discharge Elimination System (NPDES) permitting program 

controls the discharge of pollutants from industrial and municipal sources into U.S. 

waters. Approximately 71,000 facilities have been issued individual NPDES permits, 

primarily by their State environmental agency. Under the Clean Water Act, permits 

are issued for a 5 year period. Permit holders must reapply at least 180 days before 

the day their permit expires. However, if the permitting authority does not send a 

new permit before the expiration date, the operations can be continued under the 

existing permit conditions. 

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The number of facilities requiring permits has grown substantially since the program's inception in 1972. In addition, the complexity of developing permits has 

increased due to new technology-based requirements (e.g., new effluent limitations 

guidelines), the adoption of comprehensive water quality standards by States, and 

the development and incorporation of total maximum daily loads (TMDL). For these 

reasons, the process for permit issuance has become increasingly costly and timeconsuming for EPA and the States who issue permits and for the facilities that need 

them to operate. The result is a "backlog" of expired (administratively extended) 

NPDES permits. The Agency estimates that as many as 35 percent of individual permits are currently expired. 

Approach: 

We will work with an outside organization and several select states to improve 

NPDES permitting for the regulated community and the public. As a first step, we 

will work with them to modify NPDES training materials (originally developed for 

permit writers at regulatory agencies) for permit holders (or applicants), their environmental consultants, and interested citizens. Using these materials, we will then 

develop a certification course for NPDES permit preparation. The certified individuals will be trained to prepare complete permit applications and to prepare draft permit limits or conditions that could be submitted to expedite regulatory review and 

approval. Members of environmental groups, and other citizens interested in the 

NPDES permit development process will also be encouraged to attend the training. 

Based on the results, EPA will decide whether training and/or the option to submit 

preliminary permit information should be offered nationally. 

Task: 

1. Working with a national organization and two or three states, we will develop a 

training program to improve understanding and execution of NPDES permitting. 

Together, we will: 

- Modify NPDES training materials (originally developed for permit writers at 

regulatory agencies) for permit holders, their environmental consultants, and 

interested citizens. 

60 Aiming for Excellence 
- Design, publicize and offer training courses that improve understanding of 

NPDES permitting and provide professional certification for assisting with 

NPDES permit applications. 

2. In the pilot states, we will encourage permit applicants to use certified professionals to submit draft permit limits or conditions that can be used to expedite 

permitting decisions. 

3. After a 3 year demonstration period, we will evaluate the experience and make 

recommendations on whether this permitting approach should be implemented 

nationally. 

Lead: Office of Water 

Action 9: Build leadership capacity in communities to participate in 

local environmental problem-solving. 

Objective: 

We will help communities make decisions about issues that improve public health 

and their local environment by developing environmental management tools, offering technical assistance, and providing facilitation for dialogue on environmental 

issues. We’ll also include community representatives in Agency decisions about programs or policies that directly affect them. 

Background: 

Often, environmental problems are best addressed at the state, tribal, or local level, 

where unique social, economic, and cultural priorities can be better recognized and 

considered in the decision-making process. Many individuals also want the opportunity to participate in environmental decisions that affect them. The Agency has made 

significant progress in developing tools and providing assistance to support community involvement. Our overall strategy has been to work in partnership with communities, states, and tribes on collaborative, flexible approaches to environmental 

protection. 

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Approach: 

Because there are already a wide variety of Agency activities related to communities, 

including many recent initiatives, we’ve chosen to focus on tasks that will increase 

technical assistance to communities and provide additional support for community 

involvement in environmental decisions. We hope that these activities will 

• Create more public participation in EPA activities that will affect them; 

•	 Foster constructive dialogues among public and private stakeholders and local, 

state, and tribal governments to address environmental and public health concerns; and 

•	 Encourage all stakeholders to work cooperatively together to set community priorities for environmental action. 

Tasks: 

1. Increase technical assistance to communities 

As part of a national program on hazardous material research, we support five 

regional university consortiums in carrying out basic and applied research, technology transfer and training. These centers provide technical outreach services for communities in their area, with a special emphasis on providing technical assistance for 

brownfields cleanup and redevelopment. 

As part of the next solicitation to establish new centers, we will place greater emphasis on providing technical support activities, including outreach to communities. 

These centers will: 

- Provide high-quality technical assistance materials for communities and other 

stakeholders on challenging redevelopment issues. 

- Conduct forums for researchers, vendors, regulatory agencies, developers, 

and community leaders to discuss potential applications and benefits of 

cleaning up and redeveloping brownfield sites. 

Lead: Office of Research and Development 

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2. Establish “Good Neighbor Groups” in each EP A region 

Good Neighbor Groups are voluntary groups facilitated by EPA that bring together 

industry; state, tribal and local government; and community representatives in economically disadvantaged areas with major industrial sources. These groups meet 

regularly for discussions and have often led to agreements about new efforts to 

address pollution issues. EPA’s Region 5 office has sponsored several “Good 

Neighbor Groups” with key industries in a South Chicago community; the Agency is 

now ready to expand this program more broadly. 

- Our Region 5 staff with work with other regions to develop a Good Neighbor 

Group guidance document to be used in other parts of the country. 

Lead: EPA Region 5 

- Each EPA Region will establish two “Good Neighbor Groups” over the next 

2 years to facilitate communication among community groups, industry, and 

state, tribal, and local governments. 

Lead: EPA Regions 

3. Improve access to conflict resolution support 

Early and meaningful stakeholder participation in Agency decision-making can 

increase satisfaction with results and help reduce or avoid conflicts. While we’ve 

already adopted a number of regulatory changes and new policies to increase 

meaningful participation, we need to do more to routinely involve stakeholders in all 

Agency programs. When conflicts do arise, we need to turn to non-adversarial, collaborative approaches for dealing with them. To do this, we will improve the ways 

we involve stakeholders in discussions, and we will improve the ways we prevent and 

resolve disputes. 

- We will develop a user-friendly toolkit that explains dispute resolution 

processes and identifies supporting resources that are available for community members and other stakeholders. 

- We will develop an Agency policy on alternative dispute resolution. We will 

establish a permanent office of dispute resolution to oversee and coordinate 

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alternative dispute resolution activities. The office will assist communities, as 

well as EPA programs and regions, in preventing and resolving dispute issues. 

Lead: Office of the Administrator 

4. Assist communities through Supplemental Environmental Projects 

When settling environmental enforcement cases, we require alleged violators to 

comply with Federal environmental laws and regulations and to pay a civil penalty. 

Sometimes, we may include Supplemental Environmental Projects (SEPs) as part of 

the settlement. These projects provide environmental improvements or other forms of 

compensation to the community in which the violation occurred. We encourage 

community involvement in the development of these projects, and we’ve developed 

a brochure to explain the policy to communities. To foster more use of these projects, we will: 

- Develop a guidance document for companies that explains how to involve 

communities in selecting and developing SEP proposals. 

Lead: Office of Enforcement and Compliance Assurance 

5. Evaluate and update EPA’s public participation requirements 

We will assess how well our regulations and policies ensure public participation in 

decision-making. We will report on what we find and develop an action plan to 

upgrade requirements and fill gaps. 

Lead: Office of Policy and Reinvention 

Action 10: Provide “smart growth” support to states, tribes, and 

communities to help them find local solutions to livability issues. 

Objective: 

Because community development patterns have a great impact on environmental conditions and overall quality of life, we will support and encourage smart growth decisions by individuals, communities, businesses, and state, tribal and local governments. 

64 Aiming for Excellence 
Background: 

The development patterns in the United States over the last half of this century have 

resulted in voracious land consumption and the loss of farmland, open space, and 

wildlife habitat. Some unintended consequences of these development patterns 

include growing traffic congestion and air pollution, diminished access to nature 

and open space, and more contaminated stormwater runoff. These changes have 

driven communities across the country to take a new look at development patterns 

and use innovative growth strategies. In search of smarter growth, communities are 

considering policies that will deliver more compact, community-oriented development centered around mass transit hubs, with walkable neighborhoods, convenient 

access to shopping and services, open space and access to nature. 

Approach: 

Our role in smart growth is not to provide regulatory directives or mandates, but to 

support others’ smart growth efforts. The positive impacts of smart growth directly 

support EPA’s goals of protecting human health and the environment. To encourage 

this type of development, we will: 

• Ensure that EPA regulations do not present barriers to smart growth efforts. 

•	 Provide guidance or policy on how smart growth strategies can be used to meet 

regulatory requirements. 

• Support and promote voluntary activities that encourage smart growth. 

•	 Offer tools to help states, tribes, and communities analyze the environmental 

benefits associated with smart growth decisions. 

Our approach involves advancing smart growth through EPA National programs, 

providing information and tools that link environmental, economic, and social 

issues, and promoting financial reforms that encourage more livable communities. 

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Tasks: 

1. Assist in establishing commuter choice programs across the country 

“Commuter Choice” is a voluntary program to improve air quality and reduce traffic 

congestion by educating employers and employees about tax incentives for public 

transit, van pooling and parking benefits. We are partnering with members of the 

business community, environmental interests, and state and local governments to 

extend this program throughout the country. 

- We will provide commuter choice training workshops for business and other 

interested parties; support new and existing commuter choice pilot programs; develop a model commuter choice program for federal agencies; 

and develop Internet-accessible commuter choice training and implementation materials for individual employees, employers, and metropolitan areas. 

Lead: Office of Air and Radiation 

2. Safely return Superfund sites to productive use 

The Superfund Site Recycling Initiative is a nationally coordinated effort to return 

Superfund sites to productive use. More than 100 Superfund sites, many thought to 

be unusable, have already been recycled without an organized effort on the 

Agency’s part. By focusing more on recycling Superfund sites, we can increase the 

number of sites in productive use. We will do this by involving states, tribes, and 

local governments, potentially responsible parties (PRPs) and community organizations in determining the reasonably anticipated future uses of sites and in designing 

cleanups that are consistent with those uses. 

- We will select 50 pilot sites for Superfund recycling. For each site, we will 

provide up to $100,000 for a reuse assessment and for public outreach 

activities to determine future uses of the site. 

- We will evaluate policies and guidelines to determine where refinements can 

be made to facilitate site reuse. 

66 Aiming for Excellence 
- We will work with all regions and with real estate developers and associations to share information about reuse successes, how to replicate those successes, and how to assess the reuse potential of sites. 

Lead: Office of Solid Waste and Emergency Response 

3. Incorporate smart growth principles into the water pollution program 

The Clean Water Act requires EPA to identify sources of pollution within a watershed 

and to allocate pollutant loadings among those sources in a way that assures water 

quality standards are met. Collectively, these allocations represent the watershed’s 

total maximum daily load, or TMDL. By specifying how much pollutant loadings 

need to be reduced for the waterbody to attain water quality standards, TMDLs can 

play an important role in preventing water pollution problems and creating more 

sustainable communities. 

- We will propose changes to the TMDL regulations and guidance. To encourage smart growth principles, we will include incentives for redeveloping 

urban lands and encouraging the protection of critical habitat, agricultural 

lands, and open space. (For example, in allocating the pollutant load reductions needed to meet water quality standards, smaller loadings would be 

allowed in limited growth zones compared to designated growth zones). 

Lead: Office of Water 

4. Provide tools for States, Tribes, and communities to evaluate smart growth decisions 

Communities around the country are supporting new transit, land conservation, and 

open space preservation. Because of the direct link between development patterns 

and pollution problems, we will work with states and other stakeholders to encourage local efforts that will reduce or prevent pollution. 

- We will provide information and modeling tools to help communities evaluate 

the impacts of different development choices. The tools will include indicators 

for analyzing environmental conditions; tracking the performance of transportation investments; and predicting the impacts of development choices on 

air quality, water quality, automobile use, Brownfields, and open space. 

Lead: Office of Policy and Reinvention 

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5. Promote financial reforms that encourage more livable communities 

A key barrier to creating more livable communities is financing. Current financing 

trends favor low density, single use, automobile-dependent development on the 

edges of communities. EPA will work with financial institutions that are beginning to 

develop reforms in financing that encourage more livable communities. 

- We will work with Fannie Mae, BankAmerica, the development community, 

federal agencies, states and other stakeholders to implement innovative 

financing options that will prevent or reduce pollution. 

Lead: Office of Policy and Reinvention 

68 Aiming for Excellence 

1

Under Executive Order 12866, “economically significant” rules are generally those that have an economic impact of $100 million or more. 

2

Under SBREFA, the definition of small entity varies by industry. Some definitions are based on annual revenues, others on the number of employees. Where not specified for a particular industry, the definition is 

generally a business with 500 or fewer employees.