Goal 2: Clean and Safe Water

« Determine whether to regulate at least five unregulated contaminants on the
second contaminant candidate list (CCL) and, through the Six-Year Review of
existing regulations, whether a revision to an existing standard is warranted;

« Continue analysis to prepare the Agency’s third CCL;

« Continue the comprehensive Lead and Copper Rule Review that began in 2004;
« Begin to develop revisions to the Total Coliform Rule (TCR); and

« Consider additional protections of drinking water distribution systems.

Drinking Water Implementation

During FY 2007, EPA will support state efforts to meet existing and new drinking
water standards including the Cryptosporidium (Long Term 2 Enhanced Surface Water
Treatment), Disinfection (Stage 2 Disinfectants and Disinfection Byproducts Rule), and
Ground Water Rules. In many states, EPA will be responsible for directly implementing
the early monitoring requirements under the Cryptosporidium and Disinfection rules. In
addition, initial monitoring requirements under the revised arsenic rule and revised
radionuclides rule will be underway. EPA and the states will use the following tools to
encourage compliance:

+ Public Water System Supervision (PWSS) Program Grants: These grants to

states and tribes provide assistance to implement and enforce National Primary
Drinking Water Regulations to ensure the safety of the Nation's drinking water
resources and to protect public health.

+ Sanitary Surveys: Sanitary surveys are on-site reviews of the water sources,
facilities, equipment, operation, and maintenance of public water systems. All states
are to be in compliance with requirements to conduct sanitary surveys at CWSs
once every three years starting in 2004.

+ Data Access, Quality, and Reliability: EPA will complete the modernization of the
Safe Drinking Water Information System (SDWIS), which serves as the primary

source of national information on compliance with all health-based, regulatory
requirements of SDWA.

Promotion of Sustainable Management of Drinking Water Infrastructure

The Drinking Water State Revolving Loan Fund (DWSRF), established under the
SDWA, offers low interest loans to help public water systems across the nation make
improvements and upgrades to their water infrastructure, or support other activities that
build system capacity. In FY 2007, the DWSRF program will provide an estimated 600
additional loans. EPA will also work with states to increase the percentage of loan
agreements made each year that return a system to compliance, estimated to be 30%
of loan agreements in 2002.

24


Goal 4: Healthy Communities and Ecosystems

Goal 4: Healthy Communities and Ecosystems

Strategic Goal: Protect, sustain, or restore the health of people, communities, and
ecosystems using integrated and comprehensive approaches and partnerships.

Resource Summary

($ in 000)

FY 2007

° FY 2006 President’s
16.8% of Budget Enacted Budget Difference

1 - Chemical, Organism, and Pesticide

Risks $399,054 $376,875 -$22,179
2 — Communities $272,119 $247,874  -$24,245
3-— Ecosystems $193,886 $199,421 $5,535
4 - Enhance Science and Research $384,263 $404,764 $20,501
Goal 4 Total ** $1,249,321 $1,228,934 _-$20,388
Workyears * 3,812.5 3,834.2 21.7

* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview. ** Numbers may not add due to rounding.

EPA must bring together a wide variety of programs, tools, approaches and
resources to promote healthy communities and ecosystems. Achieving the Agency’s
goal of protecting, sustaining or restoring healthy communities and ecosystems requires
strong partnerships with Federal, state, tribal and local governments. Programs under
this goal focus on reducing chemical and pesticide risks, addressing high priority
ecosystem risks, and supporting local community priorities.

A key component of this goal is protecting human health and the environment by
identifying, assessing, and reducing the potential risks presented by the thousands of
chemicals and pesticides on which our society and economy have come to depend.
EPA must also address the emerging challenges posed by a growing array of biological
organisms—naturally occurring and, increasingly, genetically engineered—that are
being used in industrial and agricultural processes.

4-1


Goal 3: Land Preservation and Restoration

To meet its objective for reducing releases to the environment by managing hazardous
wastes and petroleum products properly, EPA intends to achieve the following results in
FY 2007:

e Prevent releases from RCRA hazardous waste management facilities by
increasing the number of facilities with permits or other approved controls by 2.4
percent over the FY 2006 level. At the end of FY 2005, 90 percent of the
facilities had permits or other approved controls; '*

e Increase the percentage of UST facilities in significant operational compliance
with both release detection and release prevention (spill, overfill, and corrosion
protection) requirements to 67 percent of the estimated universe of
approximately 256,000 facilities; and

e Reduce the number of confirmed releases at UST facilities to 10,000 or fewer.
(Between FY 1999 and FY 2005, confirmed releases averaged 10,844. The
annual number of confirmed releases in FY 2005 was 7,421).

Emergency Preparedness, Response, and Homeland Security

EPA will continue to improve its emergency preparedness and response
capability, including homeland security capabilities. EPA plays a major role in reducing
the risks that accidental and intentional releases of harmful substances and oil pose to
human health and the environment. Under the multi-agency National Response Plan
(NRP), EPA evaluates and responds to thousands of releases annually. EPA’s primary
role in the NRP is to serve as the Federal On-Scene Coordinator (OSC) for spills and
releases in the inland zone. As a result of NRP efforts, many major oil spills and
releases of hazardous substances have been contained, minimizing the adverse
impacts on human health and the environment.

An important component of EPA’s land strategy is to prevent oil spills from
reaching our Nation’s waters. Under the Clean Water Act, as amended by the Oil
Pollution Act, the Agency requires certain facilities (defined in 40 CFR 112.2) to develop
and implement spill prevention, control, and countermeasure (SPCC) plans.
Compliance with these requirements reduces the number of oil spills that reach
navigable waters and prevents detrimental effects on human health and the
environment should a spill occur.

Each year, EPA personnel assess, respond to, mitigate, and clean up thousands
of releases, whether accidental, deliberate, or naturally occurring. These incidents
range from small spills at chemical or oil facilities to national disasters, such as
hurricanes and earthquakes, to large-scale terrorist events.

'3 This goal currently tracks approximately 2,460 hazardous waste management facilities subject to permitting requirements.
This baseline was updated for FY 2006.

3-9


Appendix E: Acronyms

ICR
IFMS
IPCC
IRM
ISTEA
ITMRA
LUST
MACT
MUR
NAAQs
NAFTA
NAPA
NAS
NDPD
NEP
NEPPS
NESHAP
NOA
NPDES
NPL
NPM
NPR
NPS
OAM
OA
OAR
OARM
OCFO
OCHP
OECA
OE
OERR
OFA
OFPP.
OGC
OIA
OlG
OMTR
OPAA
OPPE
OPPTS
ORD
OSWER
OTAG

PBTs

Environmental Protection Agency
List of Acronyms

Information Collection Rule

Integrated Financial Management System
Intergovernmental Panel on Climate Change
Information Resource Management

Intermodal Surface Transportation Efficiency Act
Information Technology Management Reform Act of 1995-AKA Clinger/Cohen Act
Leaking Underground Storage Tanks

Maximum Achievable Control Technology

Monthly Utilization Report

National Ambient Air Quality Standards

North American Free Trade Agreement

National Academy of Public Administration

National Academy of Science

National Data Processing Division

National Estuary Program

National Environmental Performance Partnership System
National Emissions Standards for Hazardous Air Pollutants
New Obligation Authority

National Pollutant Discharge Elimination System
National Priority List

National Program Manager

National Performance Review

Non-Point Source

Office of Acquisition Management

Office of the Administrator

Office of Air and Radiation

Office of Administration and Resources Management
Office of the Chief Financial Officer

Office of Children’s Health Protection

Office of Enforcement and Compliance Assurance
Office of Environmental Information

Office of Emergency and Remedial Response

Other Federal Agencies

Office of Federal Procurement Policy

Office of the General Counsel

Office of International Activities

Office of the Inspector General

Open market trading rule

Office of Planning, Analysis and Accountability

Office of Policy, Planning and Evaluation

Office of Pesticides, Prevention and Toxic Substances
Office of Research and Development

Office of Solid Waste and Emergency Response
Ozone Transport Advisory Group

Office of Water

Persistent Bioaccumulative Toxics


Goal 4: Healthy Communities and Ecosystems

Water Programs

Protecting the Great Lakes: As the largest freshwater system on the face of the earth
(containing 20 percent of the earth’s surface water and 84 percent'® of the surface
water in the United States), the Great Lakes ecosystem holds the key to the quality of
life and economic prosperity for tens of millions of people. While significant progress
has been made to restore the environmental health of the Great Lakes, work remains.

In FY 2007, EPA will continue efforts to protect and restore the Great Lakes, and will
work with State, local, and Tribal partners, using the Collaboration’s strategy as a guide.
The President's May 2004 Executive Order directed EPA to establish the Great Lakes
Interagency Task Force to coordinate the Federal effort to improve water quality in the
Great Lakes. EPA is working with partners to restore the chemical, physical, and
biological integrity of the Great Lakes ecosystem, by implementing Clean Water Act
core programs and other actions including the clean up and de-listing of Areas of
Concern (AOC), and a reduction in PCB concentrations in lake trout and walleye. Some
of the key activities identified in the Strategic Plan'’ include preventing and controlling
invasive species, cleaning up Areas of Concern through the Great Lakes Legacy Act. In
support of the Strategic Plan in FY 2007, EPA will give special attention to work in the
following three areas:

« Core Clean Water Programs: While the Great Lakes face a range of unique
pollution problems (e.g., extensive sediment contamination) they also face problems
common to most other water bodies around the country. Core clean water programs
must be fully and effectively implemented throughout the Great Lakes Basin. EPA
will focus on assuring that by 2008, 100 percent of the major, permitted discharges
to the Lakes or major tributaries have permits that reflect the most current standards.
In addition, EPA will focus on assuring that 95 percent of permits are consistent with
the national Combined Sewer Overflow Policy.

¢ Great Lakes Legacy Act: Restoration of contaminated sediments around the Great
Lakes is a critical step toward meeting water quality goals. In FY 2007, EPA will
expedite work to address contaminated sediment. EPA anticipates that FY 2007
funding will result in cleanup of a half million cubic yards of contaminated sediments.

¢ Critical Ecosystem Issues: |n FY 2007 EPA will lead the development of
management recommendations to mitigate the underlying causes of the annual
occurrence of high rates of oxygen depletion which lead to low dissolved-oxygen
levels in Lake Erie in the so-called “dead zone.” EPA will also lead Canadian and
U.S. Federal agencies and the academic community in exploring causes of the rapid
decline of the Diporeia population in the Great Lakes. The dead zone occurrence

1 Great Lakes National Program Office. Basic Information. http:/Avww.epa.gov/g|npo/basicinfo.html
"” Great Lakes Regional Collaboration. December 2005. A Strategy to Restore and Protect the Great Lakes — Action Plan.
Available online from http://www. glre.us/

46


Goal 1: Clean Air and Global Climate Change

Academy of Sciences (NAS). The NAS has conducted four reviews of EPA’s PM
research since 1998 to identify relevant, high-priority research needs and monitor
research performance.

In FY 2007, the Agency’s air toxics research will complete selected ongoing
research efforts and begin transitioning toward the Multiple Air Pollutant Program
(MAPP) focus recommended by external review. Air toxics research provides health
hazard and exposure methods, data, and models that enable the Agency to reduce
uncertainty in risk assessment. It also produces tools that enable national, regional,
state, and local officials to identify and implement cost-effective approaches to reduce
risk from sources of air toxics.

Recognizing that environmental policy and regulatory decisions will only be as
good as the science upon which they are based, EPA makes every effort to ensure that
its science is of the highest quality and relevance, thereby providing the basis for sound
environmental results. EPA uses the Research and Development (R&D) Investment
Criteria of quality, relevance, and performance in its decision-making processes through
a) the use of research strategies and plans, b) program review and evaluation by the
Board of Scientific Counselors (BOSC) and the Science Advisory Board (SAB), and c)
peer review.

In 2005, the BOSC evaluated the NAAQS research program to assess the quality
and relevance of its research and the program’s historical performance.’ The
subcommittee concluded that the program has reduced scientific uncertainty and that
there was a high degree of integration between the program’s in-house and external
research, which is usually conducted through competitive, peer-reviewed grants under
the Agency’s Science to Achieve Results (STAR) program.

Research is guided by strategies and plans that are developed with participation
from Agency research programs’ major clients. Strategies outline the research needs
and priorities. Multi-year research plans outline steps for meeting strategic research
needs and annual performance goals and measures for evaluating progress.

Taken together, these mechanisms serve to ensure that EPA’s research and
science remain relevant, of high quality, and contribute to superior environmental
performance.

The Agency approaches its research programs' workforce planning in a manner
consistent with its human capital strategy. Key elements of this strategy include
working to develop and implement a holistic approach to recruitment, preserving a
diverse workforce that reflects a wide spectrum of viewpoints, and retaining existing
talent.

' BPA, Office of Research and Development, Board of Scientific Counselors, Particulate Matter and Ozone
Research Program (Washington: EPA, 2005). Available at: <http://www.epa.gov/osp/bosc/pdf/pm0508rpt.pdf>

16


Appendix A: Categorical Grants

Underground Injection Control (UIC) Grants

The FY 2007 President's Budget includes $10.9 million for the Underground
Injection Control grants program. Ensuring safe underground injection of waste materials
is a fundamental component of a comprehensive source water protection program. Grants
are provided to states that have primary enforcement authority (primacy) to implement and
maintain UIC programs. EPA and the states will address 95 percent or higher of Classes
I, Il, and Ill existing wells determined to be in violation and Class V existing wells
determined to be in violation in FY 2007. Additionally, EPA and the states will close or

permit 80 percent of Motor Vehicle Waste Disposal wells (Class V) identified during FY
2007.

Targeted Watershed Grants

The President's FY 2007 Budget funds Targeted Watershed grants at $6.9 million.
The program supports competitive grants to watershed stakeholders ready to undertake
immediate action to improve water quality, and to improve watershed protection
measures with tools, training and technical assistance. Special emphasis will be given
to projects that promote water quality trading opportunities to more efficiently achieve
water quality benefits through market-based approaches.

BEACH Act Grants

The President's FY 2007 budget includes $9.9 million for the 35 states and
territories with Great Lakes or coastal shorelines to protect public health at the Nation's
beaches. The Beaches Environmental Assessment and Coastal Health Act (BEACH
Act) of October 2000 authorizes EPA to award grants to help eligible states and
territories develop and implement beach bacteria monitoring and notification programs.
These programs inform the public about the risk of exposure to disease-causing
microorganisms in coastal waters (including the Great Lakes).

Non-Point Source Program Grants (NPS — Section 319)

In FY 2007, the President’s Budget includes $194.0 million for Non-Point Source
Program grants to states, territories, and tribes. These grants enable states to use a
range of tools to implement their programs including: non-regulatory and regulatory
programs, technical assistance, financial assistance, education, training, technology
transfer, and demonstration projects. The request also eliminates the statutory one-
third of one-percent cap on Clean Water Act Section 319 Non-point Source Pollution
grants that may be awarded to tribes. This program will reduce the annual amount of
runoff of phosphorus, nitrogen, and sediment by 4.5 million pounds, 8.5 million pounds,
and 700,000 tons, respectively.

A-6


Goal 4: Healthy Communities and Ecosystems

concluded that the program’s goals and scientific questions are appropriate and
represent an understandable and solid framework for setting research priorities. The
human health subcommittee concluded that the program’s research is of high quality
and appropriately focused. In addition, the ecological subcommittee stated that the
potential benefits of the program to the public are evident and clearly articulated. The
subcommittees also reviewed each program’s external research, which is usually
conducted through competitive, peer-reviewed grants under the Agency’s Science to
Achieve Results (STAR) program.

Research is guided by a number of research strategies and plans, which are
developed in concert with internal and external partners. Strategies are tailored to
specific research needs and priorities. The Agency maintains multi-year research plans
(MYP) that outline steps for meeting those strategic research needs and annual
performance goals and measures for evaluating progress.

Three major research programs in this Goal have undergone OMB’s PART
evaluation through FY 2005. They include endocrine disruptors research, ecosystems
protection research and human health research. Climate change research is tentatively
scheduled for PART review in FY 2006.

Lastly, workforce planning is essential to sustaining a viable and credible
research program. The Agency approaches its research program workforce planning in
a manner consistent with its human capital strategy. Key elements of this strategy
include working to develop and implement a holistic approach to recruitment, preserving
a diverse workforce that reflects a wide spectrum of viewpoints, and retaining existing
talent.

FY 2005 PARTs

The following programs were assessed by OMB’s Program Assessment Rating Tool
(PART) for the FY 2005 PART process:

e Lead Risk Reduction

e Endocrine Disruptors (re PART)
e Ecological Research (re PART)
e Human Health Research

e Oceans and Coastal Programs

4-16


Goal 4: Healthy Communities and Ecosystems

local wildlife. Further, differences in public health standards can contribute to global
pollution. A chemical of particular concern to one country may not be controlled or
regulated in the same way by another. EPA employs a range of strategies for achieving
its goals. These strategies include participation in bilateral programs (U.S.-Mexico and
U.S.-Canada programs, and the Border Environmental Cooperation Commission
(BECC)), cooperation with multinational organizations like the Commission for
Environmental Cooperation, the World Trade Organization and the World Health
Organization, and contribution to a set of measurable end points that will show
reduction in pollutants of concern and that will reduce exposure to our citizens along the
US borders, and the reduction of pollutants at their origin thereby reducing the level of
pollutants in the global atmosphere.

Research

EPA has a responsibility to ensure that efforts to reduce potential environmental
risks are based on the best available scientific information. Strong science allows
identification of the most important sources of risk to human health and the environment
as well as the best means to detect, abate, and avoid possible environmental problems,
and thereby guides our priorities, policies, and deployment of resources.

To enable the Agency to enhance science and research for healthy people,
communities, and ecosystems, EPA will engage in high priority, multidisciplinary
research efforts in areas related to human health, ecosystems, mercury, global change,
pesticides and toxics, endocrine disruptors, computational toxicology and Homeland
Security.

The Agency is also proposing an investment in nanotechnology research, and an
investment to promote transparency of and participation in EPA assessments (as part of
the IRIS process) in FY 2007.

In FY 2007, the human health research program will continue research efforts on
cumulative risks. Research will focus on risk intervention and prevention strategies that
ultimately reduce human risk associated with exposures to single and multiple
environmental stressors, including reducing chemical exposure in schools. Also, the
Agency’s Human Health Risk Assessment Research Program will complete 16 human
health assessments of high priority chemicals for interagency review or external peer
review, and deliver final air quality criteria documents for lead, which will serve as the
basis for the EPA staff paper supporting the National Ambient Air Quality Standards
(NAAQS).

In order to balance the growth of human activity with the need to protect the
environment, it is important to understand the current condition of ecosystems, what
stressors are changing that condition, what the effects are of those changes, and what
can be done to prevent, mitigate, or adapt to those changes. To meet these objectives,

414


Goal 5: Compliance and Environmental Stewardship

Throughout FY 2007, EPA will continue to investigate options for encouraging self-
directed audits and disclosures. We will also continue to measure and evaluate the
effectiveness of Agency programs in improving compliance rates and provide
information and compliance assistance to the regulated community. Further, the
Agency will maintain its focus on evaluating the effectiveness of the innovative
approaches developed through better communication, fostering partnerships and
cooperation, and the application of new technologies.

Partnering: State, tribal and local governments bear much of the responsibility for
ensuring compliance, and EPA works in partnership with them and other Federal
agencies to promote environmental protection. EPA also develops and maintains
productive partnerships with other nations to enable and enforce compliance with
U.S. environmental standards and regulations.

Improving Environmental Performance through Pollution Prevention

Through pollution prevention integration, EPA will work to bring about a

performance-oriented regulatory system that develops innovative, flexible strategies to
achieve measurable results; promotes environmental stewardship in all parts of society;
supports sustainable development and pollution prevention; and fosters a culture of
creative environmental problem solving.

5-4

Partnering with Businesses_and Consumers: \n 2007, through the Pollution
Prevention (P2) program, EPA will continue to encourage, empower, and assist

government and business to “green” the nation’s supply and demand structures to
make them more environmentally sound. Through the Environmentally Preferable
Purchasing Program, the Agency will provide enhanced guidance to the Federal
building community on model green construction specifications and help Federal
agencies identify and procure those products that generate the least pollution,
consume fewest non-renewable natural resources, and constitute the least threat to
human health and to the environment. EPA's innovative Green Suppliers Network
Program works with large manufacturers to increase energy efficiency; identify cost-
saving opportunities; optimize resources and technology through the development of
sound business approaches incorporating pollution prevention; and to promote those
approaches among their numerous suppliers.


Goal 5: Compliance and Environmental Stewardship

Building Tribal Capacity

Since adoption of the EPA Indian Policy in 1984 EPA has worked with tribes on a
government-to-government basis, to affirm the Agency’s trust responsibility to federally
recognized tribes. Under Federal environmental statutes, the Agency has responsibility
for assuring human health and environmental protection in Indian Country. EPA has
worked to establish the internal infrastructure and organize its activities in order to meet
this responsibility. EPA’s American Indian Environmental program goes a step further
in ensuring environmental protection in Indian Country. EPA’s strategy for achieving this
Objective has three major components:

« Establish an Environmental Presence in Indian Country: The Agency will work to
create an environmental presence for each Federally recognized tribe. In FY 2007,

using Tribal General Assistance Program (GAP) grant resources EPA will provide
approximately 517 Federally recognized tribes and Inter-Tribal Consortia access to
resources to hire at least one person working in their community to build a strong,
sustainable environment for the future; for these purposes, the universe of eligible
entities is 572. Tribal communities can then assess environmental conditions on
their lands, and build an environmental program tailored to their specific needs.
EPA will also continue to develop environmental and public health outcome-based
measures to quantify programmatic success.

« Provide Access to Environmental Information: EPA will provide the information
needed by tribes to meet EPA and tribal environmental priorities. At the same time,
we will ensure that the Agency has the ability to view and analyze the conditions in
Indian Country, and the impacts of EPA and tribal actions and programs in Indian
Country. The Agency continues to take advantage of new technology to establish
direct links to the U.S. Geological Service, Bureau of Reclamation, Indian Health
Service, and other Federal agency data systems to further the development of an
integrated, comprehensive, multi-agency Tribal Program Enterprise Architecture.
The Agency continues to formalize interagency data standards and protocols to
ensure quality information is collected and reported consistently among the Federal
agencies. To this end, EPA has adopted Tribal Identifier codes that will enable data
systems to identify Tribal sources of information. In FY 2007, EPA will integrate two
additional existing Agency data systems within the Tribal Program Enterprise
Architecture and encourage other agencies to adopt common tribal codes.

¢ Implementation of Environmental Goals: The Agency will provide opportunities
for the implementation of environmental programs by tribes, or directly by EPA, as
necessary.

In addition to assisting in the building of Tribal environmental capacity, another
key role of the environmental presence workforce in Indian Country is to alert EPA of
immediate public health and ecological threats, so EPA can work with the tribe to
respond quickly and effectively.

5-8


Goal 4: Healthy Communities and Ecosystems

baseline from which EPA will track progress toward this strategic goal in later years.
EPA will also continue an initiative to improve and enhance emergency preparedness
and prevention in tribal communities.

Brownfields

Economic changes over several decades have left thousands of communities
with these contaminated properties and abandoned sites. Working with its state, tribal,
and local partners to meet its objective to sustain, cleanup, and restore communities
and the ecological systems that support them, together with extension of the
Brownfields tax credit, EPA intends to achieve the following results in FY 2007:

« Assess 1,000 Brownfields properties

« Clean up 60 properties using Brownfields funding

« Leverage $900 million in cleanup/redevelopment funding
« Train 200 participants, placing 65 percent in jobs

Smart Growth

The Smart Growth program achieves measurably improved environmental and
economic outcomes by working with states, communities, industry leaders, and
nonprofit organizations to minimize the environmental impacts of development. EPA
provides tools, technical assistance, education, research, and environmental data to
help states and communities grow in ways that minimize environmental and health
impacts and evaluate environmental consequences of various development patterns.
EPA’s Smart Growth activities and tools show community and government leaders how
they can meet environmental standards through innovative community design, and
identify and research new policy initiatives to improve environmental quality by
supporting environmentally friendly development patterns. In FY 07, EPA plans to build
upon its work in Smart Growth outreach and direct implementation assistance.

EPA will also continue to coordinate smart growth work with EPA’s Brownfield
program to reuse and revitalize vacant and abandoned properties. EPA plans to
continue developing incentives for brownfield redevelopment, provide direct assistance
to communities working on brownfields, and maintain our education and outreach on
innovative methods for brownfield redevelopment.

Community Action for a Renewed Environment

EPA supports community-based, multi-media approaches to the reductions of
toxics through the Community Action to Renew the Environment (CARE) program.
This program fills a gap in our national programs which provide a broad level of basic

4-12


Goal 2: Clean and Safe Water

28

program to guide assessment and restoration efforts. This Strategy calls for EPA to
continue work in developing scientific "criteria documents" for key chemical,
microbial, and water pollutants, including implementation protocols and methods.
Key elements identified in the Strategy include developing nutrient criteria, adopting
biological criteria, approving state WQSs in a more timely manner, and providing
technical and scientific support to the states and tribes in conducting Use
Attainability Analyses and developing site-specific criteria. Finally, EPA will work
with states and tribes to ensure the effective operation and administration of the
standards program.

Improve Water Quality Monitoring: Scientifically defensible water quality data and
information are essential to all aspects of the national program to protect and restore
water yet, as documented in numerous independent evaluations, Federal and state
water quality monitoring and assessment programs need strengthening. Top
priorities for FY 2007 are state participation in efforts to develop statistically valid
monitoring networks, continued EPA support of states in developing monitoring
programs consistent with national monitoring guidance published in 2003, and state
support of the national water quality database.

Develop Total Maximum Daily Loads (TMDLs) and Related Plans: Development
of TMDLs for an impaired waterbody is a critical tool for meeting water restoration
goals. In FY 2007, EPA will continue to support states as they develop TMDLs to
meet court-ordered schedules and ensure that the national policy of TMDL
completion within 13 years of waterbody listing is met. EPA will continue to pursue
innovative approaches to help states and other partners develop and implement
waterbody restoration plans as efficiently as possible.

Control Nonpoint Source Pollution on a Watershed Basis: Polluted runoff from
nonpoint sources is the largest single remaining cause of water pollution. In FY

2007, EPA will use grants to states under Section 319 of the CWA to support efforts
to manage nonpoint pollution through the development and implementation of
watershed plans. Special emphasis will be placed on restoring impaired waters on a
watershed basis.

Industrial Water Pollution Control: EPA will develop regulations for industries
where the risk to waterbodies can be reduced and water quality can be improved
through wastewater treatment. In FY 2007, EPA will be working on regulations for
the 4 industries identified in the 2004 effluent guideline plan and any additional
industries that may be identified in the 2006 plan.

Strengthen NPDES Permit Program: The NPDES program requires point sources
discharging to water bodies to have permits. In FY 2007, EPA will work with states
to use the “Permitting for Environmental Results Strategy” to address concerns
about the workload for issuing permits and the health of state NPDES programs.
Additionally, EPA will finalize a rule that incorporates financial incentives for states
that implement adequate NPDES fee systems.


Goal 4: Healthy Communities and Ecosystems

Biological agents are potential weapons that could be exploited by terrorists
against the United States. EPA’s pesticides antimicrobial program has been very
responsive to addressing this threat by assessing efficacy of antimicrobial products
used against biological weapons of mass destruction, and registering products as
necessary.

EPA programs under this goal have many indirect benefits. For example, each
year the Toxic Substances Control Act (TSCA) New Chemicals program reviews and
manages the potential risks from approximately 1,700 new chemicals and 40 products
of biotechnology that enter the marketplace. Americans also come into daily contact
with any number of chemicals that entered the market before the New Chemicals
Program was established in 1978, yet relatively little is known about many of their
potential impacts. Obtaining basic hazard testing information on large volume
chemicals is one focus of EPA’s work in the Existing Chemicals program. EPA also
plans a dual approach to address the possible health risks associated with nanoscale
materials. EPA is currently reviewing pre-manufacture notices for new nanoscale
materials under TSCA to ensure protection of human health and the environment. For
new and existing chemical nanoscale materials, EPA is developing a stewardship
program.

The Acute Exposure Guideline Levels (AEGLs) Program was designed by EPA
to provide scientifically credible data to directly support chemical emergency planning,
response, and prevention programs mandated by Congress. Emergency workers and
first responders addressing accidental or intentional chemical releases need to know
how dangerous a chemical contaminant may be to breathe or touch, and how long it
may remain dangerous. The program develops short-term exposure limits applicable to
the general population for a wide range of extremely hazardous substances
(approximately 400).

As the population in coastal regions grows, the challenges to preserve and
protect these important ecosystems increase. Through the National Estuary Program,
coastal areas have proved valuable grounds for combining innovative and community-
based approaches with national guidelines and interagency coordination to achieve
results.

Wetlands are among the most productive ecosystems in the world, comparable
to rain forests and coral reefs. Yet the nation loses an estimated 58,000 acres per year,
and existing wetlands may be degraded by excessive sedimentation, nutrient
enrichment, and other factors. '®

'S Dahl, T.E. 1990. Status and Trends of Wetlands in the Conterminous United States, 1986 to 1997. Washington, DC: U.S.
Department of the Interior, U.S. Fish and Wildlife Service. Available online at:
http://wetlands.fws.gov/bha/SandT/SandTReport.html : Report to Congress on the Status and Trends of Wetlands in the
Conterminous United States, 1986 to 1997.

4-2


Appendix A: Categorical Grants

standards. In 2007 EPA will work with states to implement the new rules governing
discharges from Concentrated Animal Feeding Operations (CAFOs) such that most
CAFOs will be permitted by 2008. EPA will also review and update state and tribal
water quality standards so that over 91 percent of submissions will be approvable in
2007. Lastly, EPA’s goal for 2007 is that over 66 percent of states will have updated
their standards to reflect the latest scientific information in the past three years.

Wetlands Grants

In FY 2007, the President's Budget includes $16.8 million for Wetlands Program
Grants. Through Wetlands Program Development Grants, states, tribes, and local
governments receive technical and financial assistance to support the Administration’s
goal of protecting, restoring, and enhancing 3 million acres of wetlands. Grant funds will
be used for the development and implementation of state and tribal wetland programs
that improve water quality in watersheds throughout the country, as well as assist
private landowners, educate local governments, and monitor and assess wetland
quantity and quality.

Public Water System Supervision Grants

In FY 2007, the President's Budget includes $99.1 million for Public Water
System Supervision (PWSS) grants. These grants provide assistance to implement and
enforce National Primary Drinking Water Regulations to ensure the safety of the
Nation's drinking water resources and to protect public health. In FY 2007, the Agency
will emphasize that states use their PWSS funds to ensure that drinking water systems of
all sizes achieve or remain in compliance and drinking water systems of all sizes are
meeting new health-based standards that came into effect in FY 2006, e.g. arsenic and
uranium.

Indian General Assistance Program Grants

In FY 2007, the President's Budget includes $56.9 million for the Indian General
Assistance Program (GAP) to help Federally recognized tribes and inter-tribal consortia
develop, implement and assume environmental programs. In FY 2007, 517 federally-
recognized tribes and inter-Tribal Consortia, or 90 percent of a universe of 572 eligible
entities, will have access to an environmental presence, or representative, to administer
environmental programs.

Homeland Security Grants

In FY 2007, the President’s Budget includes $5.0 million for homeland security
grants to support states’ efforts to work with drinking water and wastewater systems to
develop and enhance emergency operations plans; conduct training in the
implementation of remedial plans in small systems; and develop detection, monitoring
and treatment technology to enhance drinking water and wastewater security. EPA
homeland security grants will be awarded to 56 states and territories.

A-5


Annual Performance Plan and Budget Overview

EPA’s Mission

The mission of the Environmental Protection Agency (EPA) is to protect and
safeguard human health and the environment. This budget supports the
Administration's commitment to achieving environmental results as we work to develop
more efficient methods to conduct our mission. It also emphasizes the Administration’s
desire to diversify our energy sources, promote emission-reductions technologies,
revitalize the Great Lakes, and improve the security of our Nation’s drinking water
infrastructure. Additionally, this budget incorporates new responsibilities and
requirements for some of EPA’s major programs, along with some new provisions
mandated by the Energy Policy Act of 2005 (EPAct).

Annual Performance Plan and Budget

The EPA’s FY 2007 Annual Performance Plan and Budget requests $7.3 billion
in discretionary budget authority and 17,560 Full Time Equivalents (FTE). This request
demonstrates the Agency’s efforts to work with its state, tribal, and local government
partners to protect clean air and water, preserve and restore contaminated lands,
promote healthy communities and ecosystems, assure compliance with environmental
regulations, and to secure the Nation’s environmental assets through homeland security
programs such as Water Sentinel. Specific narratives for each program outline what the
resources accomplish and FY 2007 priorities. Human Capital and EPA’s workforce
levels are two overarching resource areas that impact all programs and projects. A
discussion of planning and management initiatives follows.

Human Capital

In FY 2007 EPA will continue to develop and refine its Human Capital strategies,
to ensure that the Agency recruits, trains and retains a qualified pool of employees to
protect human health and safeguard the air, water and land. EPA will continue its
systematic approach to workforce planning throughout the Agency which includes:
setting targets, and closing competency gaps, in mission critical occupations (MCOs);
increasing emphasis on innovative and flexible recruitment and hiring strategies to
address personnel shortages within MCOs; and improving the overall effectiveness of
the hiring process for the Agency’s workforce.

EPA has met many important milestones in implementing its revised Human
Capital Strategy, and the Human Capital Accountability Plan. In FY 2005, EPA National
Program Managers (NPMs) and Regional offices formally adopted the Human Capital
Strategy, and developed office-specific Action Plans, using the Agency’s Human Capital
strategy framework. Results of the Agency’s Action Plans will then be used to inform
the Human Capital strategic planning process, and to make future strategic workforce
decisions.

ili




CATEGORICAL PROGRAM GRANTS (STAG

Appendix A: Categorical Grants

by National Program and State Grant

(Dollars in Thousands)

Air_& Radiation
State and Local Assistance
Tribal Assistance
Radon

Water

Pollution Control (Section 106)
Beaches Protection

Nonpoint Source (Section 319)
Wetlands Program Development
Water Quality Cooperative Agrmts
Targeted Watersheds
Wastewater Operator Training

Drinking Water
Public Water System Supervision (PWSS)

Underground Injection Control (UIC)

Hazardous Waste
H.W. Financial Assistance
Brownfields
Underground Storage Tanks

Pesticides & Toxics
Pesticides Program Implementation
Lead
Toxic Substances Compliance
Pesticides Enforcement

Multimedia
Environmental Information
Pollution Prevention
Sector Program (Enf & Comp Assurance)
Indian General Assistance Program
State and Tribal Performance Fund

$220,261.0 $185,179.5
$10,887.0 $10,939.5
$7,439.0 $8,073.5
$238,587.0 $204,192.5
$216,172.0 $221,661.0
$9,853.0 $9,900.0
$204,278.0 $194,040.0
$15,765.0 $16,830.0
$0.0 $0.0
$16,608.0 $6,930.0
$1,182.0 $0.0
$463,858.0 $449,361.0
$98,279.0 $99,099.0
$10,838.0 $10,890.0
$4,926.0 $4,950.0
$114,043.0 $114,939.0
$101,944.0 $103,345.5
$49,264.0 $49,494.9
$11,774.0 $37,566.7
$162,982.0 $190,407.1
$12,907.0 $12,968.9
$13,499.0 $13,563.1
$5,074.0 $5,098.5
$18,622.0 $18,711.0
$50,102.0 $50,341.5
$19,706.0 $14,850.0
$4,926.0 $5,940.0
$2,217.0 $2,227.5
$56,654.0 $56,925.0
$0.0 $0.0
$83,503.0 $79,942.5

Total Categorical Grants

Reflects FY 2006 Enacted 0.476% rescission and additional 1% reduction

A-7


Appendix B: Infrastructure Finance

counties) the necessary tools, information, and strategies for promoting a unified
approach to environmental assessment, cleanup, characterization, and redevelopment
at sites contaminated with hazardous wastes and petroleum contaminants.

The resources included in this budget will enable the Agency, in conjunction with
EPA’s state, local, and Tribal partners, to achieve several important goals for 2007.
Some of these goals include:

- 94 percent of the population served by community water systems will receive
drinking water meeting all health-based standards.

- Award 101 assessment grants under the Brownfields program, bringing the
cumulative total grants awarded to 1,081 by the end of FY 2007 paving the way
for productive reuse of these properties. This will bring the total number of sites
assessed to 9,000 while leveraging a total of $10 billion in cleanup and
redevelopment funds since 1995.

Goal 1: Clean Air and Global Climate Change

Diesel Emissions Reduction Grant Program

In FY 2007, EPA will support the National Clean Diesel program, authorized in
Sections 791-797 of the Energy Policy Act of 2005. This program focuses on reducing
particulate matter (PM) by up to 95% from existing diesel engines, including on-highway
and nonroad equipment and reducing other, smog-forming emissions such as nitrogen
oxides and hydrocarbons. Five sectors are targeted for reduction: freight, construction,
school buses, agriculture, and ports. Grants will be provided to eligible entries in areas
of the country that are not meeting ambient air quality standards. This program will help
provide immediate reductions by retrofitting the engines with emission control
technologies sooner than would otherwise occur through normal turnover of the fleet
because these engines often remain in service for 20 or more years. In 2007, up to 30
percent of the appropriated funds will be used to provide formula grants to states for the
purpose of establishing state grant and loan programs. EPA expects to fund at least 200
new grants deploying technology in various sectors using diesel engines. These funds
will also support competitive grants for replacing, repowering and retrofitting older
school buses with emission control technology, potentially reducing PM emissions by up
to 95 percent.

Goal 2: Clean and Safe Water

Capitalizing Clean Water and Drinking Water State Revolving Funds

The Clean Water and Drinking Water State Revolving Fund programs
demonstrate a true partnership between states, localities and the Federal government.
These programs provide Federal financial assistance to states, localities, and Tribal
governments to protect the nation’s water resources by providing funds for the

B-2


Goal 3: Land Preservation and Restoration

For more information concerning EPA's land revitalization efforts, please refer to
http:/Awww.epa.gov/swerrims/landrevitalization/.

Reducing and Recycling Waste

Preventing pollution before it is generated and poses harm is often less costly
than cleanup and remediation. Source reduction and recycling programs can increase
resource and energy efficiencies and thereby reduce pressures on the environment.
RCRA directs EPA to minimize the amount of waste generated and to improve recovery
and conservation of materials through recycling. To this end, EPA builds on
partnerships with other Federal agencies; state, tribal, and local governments; business
and industry; and non-governmental organizations. These voluntary partnerships
provide information sharing, recognition, and assistance to improve practices in both
public and private sectors.

EPA launched the Resource Conservation Challenge (RCC) as a major national
effort to find flexible, yet more protective ways to conserve our valuable natural
resources through waste reduction, energy recovery, and recycling. Through the RCC,
EPA challenges every American to prevent pollution, promote recycling and reuse, and
conserve energy and materials. The RCC programs foster source reduction and
recycling in business, industry, and government; encourage local adoption of economic
incentives that further source reduction and recycling; reduce hazardous wastes
containing priority chemicals; promote waste-based industries that concurrently create
jobs; foster cost-effective recycling programs in communities and tribes; enhance
markets for recycled materials by increasing procurement of recycled-content products;
encourage innovative practices that result in more cost-effective source reduction and
recycling; implement the President’s Climate Change Action Plan; and provide
information to assess and track progress in reaching national goals.

Reducing waste generation has clear benefits in combating the ever-growing
stream of municipal solid waste (MSW). MSW includes waste generated from
residences, commercial establishments, institutions, and industrial non-process
operations. Annual generation of MSW grew steadily from 88 million to 236 million tons
between 1960 and 2003.'2 In FY 2007, EPA’s municipal solid waste program will
implement a set of coordinated strategies, including source reduction (also called waste
prevention), recycling (including composting), combustion with energy recovery, and
landfilling. Preference will be given to strategies that maximize the diversion of waste
from disposal, with source reduction (including reuse) as the highest priority.

2 Us Environmental Protection Agency. Municipal Solid Waste in the United States: 2003 Facts and Figures, Executive
Summary, U.S. Government Printing Office, Washington, DC, October 2003. Available online at www.epa.gov/epaoswer/non-
hu/muncpl/msw99.htm. Last updated April 5, 2005.


Goal 2: Clean and Safe Water

Protection of Sources of Drinking Water

In FY 2007, EPA will work with states and water systems to improve protection of
sources of drinking water in two key areas.

+ Voluntary Source Water Protection Strategies: EPA will promote the concept of
a multiple barriers approach to drinking water program management and will work
with states to track, to the extent feasible, the development and implementation of
source water protection strategies. EPA has set a goal of increasing the number of
source water areas (both surface and ground water) for community water systems
that have minimized risk to public health from an estimated baseline of 5% of all
areas in 2002 to 20% in FY 2007.

+ Underground Injection Control: EPA works with states to regulate injection of
hazardous substances and other waste to prevent contamination of underground
sources of drinking water. In FY 2007, EPA will continue to focus on shallow wells
(Class V) in source water areas. EPA and the states will work to assure that all
identified Class V motor vehicle waste disposal wells are closed by 2008. EPA and
states will also work to assure that 100 percent of Class |, Il, Ill and V wells that are
determined to be in violation are addressed.

Assurance that Critical Water Infrastructure is Secure

In FY 2007, EPA will continue to lead and support state and water utility efforts to
secure their water infrastructure from terrorist threats and other intentional harm. In
addition, due to its responsibilities under Homeland Security Presidential Directives 7
and 9, EPA will support the water sector in implementing protective measures and in
continuing to pilot a new and innovative drinking water surveillance and monitoring
program. In FY 2007, EPA will establish, in selected cities, additional pilot contamination
warning systems based upon intensive water monitoring and other surveillance. The
pilots will integrate information from contaminant-specific sampling and laboratory
analysis, on-line water quality monitoring, public health surveillance, customer
complaints and physical security to form a comprehensive contamination warning
system. The WaterSentinel program will prove the concept of an effective contamination
warning system, so that drinking water utilities, ideally of all sizes and characteristics,
could adopt such a system. The Agency will also provide critical tools, training, and
exercises that will help utilities detect, prevent, and respond to threats.

Fish and Shellfish Safe to Eat

Across the U.S., states and tribes have issued fish consumption advisories for a
range of persistent, bioaccumulative contaminants covering more than 840,000 river
miles and 14 million lake acres as of 2003.'° The EPA Strategic Plan calls for
improving the quality of water and sediments to allow increased consumption of fish and
shellfish. EPA’s national approach to meeting safe fish and shellfish goals is described
below.

© United States Environmental Protection Agency Office of Water. Fact Sheet: National Listing of Fish Advisories. EPA-823-
F-04-016. August 2004. Available on the Intemet at http:/Avww.epa.gov/waterscience/fish/advisories/factsheet.pdf

25


Goal 2: Clean and Safe Water

Research

EPA’s drinking water and water quality research programs conduct leading edge,
problem-driven research to provide a sound scientific foundation for Federal regulatory
decision-making. These efforts will result in strengthened public health and aquatic
ecosystem protection by providing data methods, models, assessments, and
technologies for EPA program and regional offices, as well as state and local
authorities.

In FY 2007, the drinking water research program will continue to focus on filling
key data gaps and developing analytical detection methods for measuring the
occurrence of chemical and microbial contaminants on the Contaminant Candidate List
(CCL) and developing and evaluating cost-effective treatment technologies for removing
pathogens from water supplies while minimizing microbial/disinfection by-product
(M/DBP) formation. The water quality research program will continue providing
approaches and methods the Agency and its partners need to develop and apply
criteria to support designated uses, tools to diagnose and assess impairment in aquatic
systems, and tools to restore and protect aquatic systems.

A new investment in FY 2007 will support research and development of
innovative approaches and technologies aimed at the growing gap in the nation’s water
infrastructure requirements. Aging and deteriorated potable water and wastewater
infrastructure makes it difficult to meet Clean Water Act and Safe Drinking Water Act
requirements, and increases the potential for waterborne disease outbreaks. The
purpose of this initiative will be to generate the science and engineering to evaluate
promising innovative technologies and techniques to reduce the cost of operation,
maintenance, and replacement of aging and failing wastewater and potable water
conveyance systems and move towards sustainable water infrastructure.

Other important areas of research in FY 2007 will include: 1) developing a web-
enabled database of treatability information for chemicals and pathogens, providing
information to the Agency for prioritization of contaminants and for Homeland Security
efforts; 2) reporting on public health benefits associated with improvements in drinking
water treatment to reduce microbial exposures; 3) conducting wetlands research to
develop a hierarchical assessment approach to address the objectives of the
President's initiative to preserve and restore wetlands, and augment the current no-net-
loss policy; and 4) performing a suite of epidemiological studies to establish a strong,
defensible link between rapid water quality indicators and swimming-associated health
effects.

Recognizing that environmental policy and regulatory decisions will only be as
good as the science upon which they are based, EPA makes every effort to ensure that
its science is of the highest quality and relevance, thereby, providing the basis for sound
environmental results. EPA uses the Research and Development (R&D) Investment
Criteria of quality, relevance, and performance in its decision-making processes through
the use of research strategies and plans, program review and evaluation by the Board

241


Goal 2: Clean and Safe Water

will be monitored and managed under the BEACH Act and that states and localities will
be taking actions where possible and appropriate to address sources of unsafe
conditions that result in the closure of beaches.

Identify Unsafe Recreational Waters and Begin Restoration

Another important element of the strategy to restore waters unsafe for swimming
is to identify the specific waters that are unsafe and develop plans to accomplish the
needed restoration. An important part of this work is to maintain strong progress toward
development of TMDLs based on the schedules established by states in conjunction
with EPA. In a related effort, the Agency will better focus compliance assistance and,
where necessary, enforcement resources on unsafe recreational waters. In addition,
working with communities that have frequent wet weather discharges (which are a
major source of pathogens) to ensure progress to reduce the frequency of these
discharges is one of the Agency’s national enforcement priorities for FY 2005 through
2007.

Reduce Pathogen Levels in Recreational Waters Generally

In addition to focusing on waters that are unsafe for swimming today, EPA, states
and tribes will work in FY 2007 to reduce the overall level of pathogens discharged to
recreational waters using three key approaches:

+ Reduce pollution from CSOs;
+ Address major sources discharging pathogens under the permit program; and
+ Improve management of septic systems.

Restore and Improve Water Quality on a Watershed Basis

A significant investment of the National Water Program resources is under the
CWA, which directly support efforts to restore and improve the quality of rivers, lakes,
and streams. In FY 2007, EPA will work with states to make continued progress toward
the clean water goals identified in the Strategic Plan by using a two-part strategy. EPA
will also implement core clean water programs, including innovations that apply
programs on a watershed basis and accelerate efforts to improve water quality on a
watershed basis.

Implement Core Clean Water Programs:

To protect and improve water quality on a watershed basis in FY 2007, EPA, in
partnership with states and tribes, will continue to focus the work on integrating the six
key program areas that form the foundation of the water program. Core water program
work includes:

¢« Strengthen Water Quality Standards: The top priority for the criteria and

standards program in FY 2007 is the continued implementation of the Water Quality
Standards (WQS) and Criteria Strategy, developed in cooperation with states, tribes,
and the public in 2003. The Standards and Criteria Strategy prioritizes key strategic
actions EPA and the states need to complete in order to strengthen the WQS

27


Goal 3: Land Preservation and Restoration

To meet its objective for reducing materials use through product and process
redesign, and increasing materials and energy recovery from wastes otherwise
requiring disposal, EPA intends to achieve the following results in FY 2007:

e Maintain the national average MSW generation rate at no more than 4.5 pounds
per person per day; and
e Divert 85.2 million tons of MSW from landfills and combustion.

Recognizing that some hazardous wastes cannot be completely eliminated or
recycled, the RCRA program works to reduce exposure to hazardous wastes by
maintaining a cradle-to-grave approach to waste management. The program’s primary
focus is to prevent hazardous releases from RCRA facilities and reduce emissions from
hazardous waste combustion through a combination of regulations, permits and
voluntary standards. State program authorization provides the states with primary
RCRA implementation and enforcement authority; reduces overlapping and dual
implementation by the states and EPA; provides the regulated community with one set
of regulations; reduces overall Federal enforcement presence in the states; and can
provide the opportunity for some of the newer, less-stringent RCRA regulations to be
implemented by the states. To date, 48 States, Guam, and the District of Columbia are
authorized to issue permits. Important goals of the RCRA program include strong state
partnerships, the authorization of states for all portions of the RCRA hazardous waste
program, including regulations addressing waste management issues contained in
permits, and results-oriented state oversight.

EPA works with states, tribes and Intertribal Consortia to prevent, detect, and
correct leaks into the environment from Federally-regulated USTs containing petroleum
and hazardous substances. Achieving significant improvements in release prevention
and detection requires a sustained emphasis by both EPA and its partners. Because
states are the primary enforcers of the UST program requirements, EPA has adopted a
decentralized approach to UST program implementation by building and supporting
strong state and local programs. Concerns about the use of fuel oxygenates, like
MTBE, in gasoline further underscores EPA’s and the states’ emphasis on promoting
compliance with all UST requirements. EPA provides technical information, forums for
information exchanges and training opportunities to states, tribes and Intertribal
Consortia to encourage program development and/or implementation of the UST
program. In FY 2007, EPA will make grants to states and tribes under Section
2007(f)(2) of the Solid Waste Disposal Act (SWDA) for underground storage tank
detection, prevention and correction programs and grants or cooperative agreements
for new activities authorized by the Underground Storage Tank Compliance Act of 2005
(USTCA), which was enacted as Title XV, Subtitle B of the EPAct, that are not
otherwise provided for in Section 2007 of the SWDA. Due to authority limits, EPA will
not use STAG funds for leaking underground storage tank cleanup activities that are
authorized by Section 205 of the Superfund Amendments and Reauthorization Act of
1986, even if those activities are also authorized by the USTCA.

3-8


Goal 2: Clean and Safe Water

50 industrial categories.° In addition, sustained efforts to implement “best management
practices” have helped reduce runoff of pollutants from diffuse or “nonpoint” sources.

Cleaner, safer water has renewed recreational, ecological, and economic
interests in communities across the nation. The recreation, tourism, and travel industry
is one of the largest employers in the nation, and a significant portion of recreational
spending comes from swimming, boating, sport fishing, and hunting.* Each year, more
than 180 million people visit the shore for recreation.” In 2001, sportspersons spent a
total of $70 billion— $35.6 billion on fishing, $20.6 billion on hunting, and $13.8 million on
items used for both hunting and fishing. Wildlife watchers spent an additional
$38.4 billion on their activities around the home and on trips away from home.® The
commercial fishing industry, which also requires clean water and healthy wetlands,
contributed $28.6 billion to the economy in 2001.” The Cuyahoga River, which once
caught fire, is now busy with boats and harbor businesses that generate substantial
revenue for the City of Cleveland. The Willamette River in Oregon has been restored to
provide swimming, fishing, and water sports. Even Lake Erie, once infamous for its
dead fish, now supports a $600 million per year fishing industry.®

Although there has been much progress on important economic, human health and
environmental benefits, there is still work to be done to realize the vision of clean rivers,
lakes, streams and coastal areas and safe water to drink. In 2007, EPA will work with
states and tribes to continue accomplishing measurable improvements in the safety of
the Nation’s drinking water and in the condition of rivers, lakes and coastal waters. This
Overview summarizes key environmental and public health goals and describes the
general strategies EPA proposes to implement to accomplish these goals. With the
help of states, tribes and other partners, EPA expects to continue progress toward
protecting human health and improving water quality by 2008, including —

« Water Safe to Drink: increase the percentage of population served by community
water systems that meet all applicable health-based drinking water standards from
89% to 95%;

¢ Fish and Shellfish Safe to Eat: reduce the percentage of the water miles/acres
identified by states or tribes as having fish consumption advisories in 2002 where
increased consumption of safe fish is allowed, (485,205 river miles, 11,277,276 lake
acres) while increasing the percentage of the shellfish growing acres monitored by
states that are approved or conditionally approved for use from 77% to 91%;

* Code of Federal Regulations. Title 40, PARTs 405 -471. Revised as of July 1, 2005
‘Travel Industry Association of America. Tourism for America, 11" Edition. Washington, DC: Travel Industry of America.
5 Pew Oceans Commission. 2002. America's Living Oceans Charting a Course for Sea Change. Arlington, VA: Pew Oceans
Commission.
° US. Fish and Wildlife Service. 2002. 2001 National Survey of Fishing, Hunting and Wildlife-Associated Recreation.
Washington, DC: Government Printing Office.

National Marine Fisheries Service. 2002. Fisheries of the U.S. 2001. Washington, DC: Government Printing Office.
* United States Environmental Protection Agency Office of Water. 1998. Clean Water Action Plan: Restoring and Protecting
America’s Water. Washington, DC: Govemment Printing Office.

2-2


Appendix D: Budget Tables

Program / Project
Toxic Substances: Lead Risk Reduction Program $10,162.0 $11,367.6
TRI / Right to Know $14,289.0 $15,243.4
Tribal - Capacity Building $11,049.0 $11,435.7
US Mexico Border $5,749.0 $6,061.0
Wetlands $19,416.0 $20,992.2
Rescission of Prior Year's Funds ($80,000.0) $0.0
LAgency Total $7,625,416.0__ $7,315,475.0

‘FY 2006 Enacted includes 0.476% rescission and additional 1% reduction.

D-6


Appendix B: Infrastructure Finance

Infrastructure / STAG Project Financing

(Dollars in Millions)
FY 2006 FY 2007

Enacted Budget’ | President’s Budget
Infrastructure Financing
Clean Water State Revolving Fund (CWSRF) $886.8 $687.6
Drinking Water State Revolving Fund (DWSRF) $837.5 $841.5
STAG Projects
Brownfields Environmental Projects $88.7 $89.1
Clean School Bus Initiative $6.9 $0.0
Diesel Emissions Reduction Program $0.0 $49.5
Mexico Border Projects $49.3 $24.8
Alaska Native Villages $34.5 $14.9
Targeted Projects - Puerto Rico $0.0 $1.0
TOTAL $1,903.7 $1,708.4

TFY 2006 Enacted includes a 0.476% rescission and an additional 1% reduction.

Infrastructure and Special Projects Funds

The President's Budget includes a total of $1,708.4 million in 2007 for EPA’s
Infrastructure programs and State and Tribal Assistance Grant (STAG) projects.
Approximately $1,545 million will support EPA’s Goal 2: Clean and Safe Water, $114
million will support EPA’s Goal 4: Healthy Communities and Ecosystems and $50
million will support Goal 1: Clean Air and Global Climate Change.

Infrastructure and targeted projects funding under the STAG appropriation
provides financial assistance to states, municipalities, interstates, and Tribal
governments to fund a variety of drinking water, wastewater, air and Brownfields
environmental projects. These funds are essential to fulfill the Federal government's
commitment to help our state, Tribal and local partners obtain adequate funding to
construct the facilities required to comply with Federal environmental requirements and
ensure public health and revitalize contaminated properties.

Providing STAG funds to capitalize State Revolving Fund (SRF) programs, EPA
works in partnership with the states to provide low-cost loans to municipalities for
infrastructure construction. As set-asides of the SRF programs, grants are available to
Indian Tribes and Alaska Native Villages for drinking water and wastewater
infrastructure needs based on national priority lists. The Brownfields Environmental
Program provides states, tribes, and political subdivisions (including cities, towns, and

B-1


Goal 5: Compliance and Environmental Stewardship

guidance reporting measures. The P2 grant management system will be enhanced
by the incorporation of P2 metrics that capture quantifiable environmental results
within individual work plans and sharing those results regionally and nationally.

« NEPA Federal Review: EPA fulfills its uniquely Federal responsibilities under the
National Environmental Policy Act (NEPA) by reviewing and commenting on other
Federal agency Environmental Impact Statements (EISs). NEPA requires that
Federal agencies prepare and submit ElSs to identify potential environmental
consequences of major proposed activities, and develop plans to mitigate or
eliminate negative impacts. The Enforcement and Compliance Assistance Program
maximizes its use of NEPA review resources by targeting its efforts toward
potentially high-impact projects, thereby promoting cooperation and innovation, and
working towards a more streamlined review process.

¢ Environmental Information Exchange Network: The Exchange Network Grant
Program provides funding to states, territories, tribes, and Tribal Consortia to help
them develop the information management and technology (IM/IT) capabilities they
need to participate in the Environmental Information Exchange Network (Exchange
Network). In FY 2007, EPA, states, tribes, and territories will continue to re-engineer
data systems so that information previously not available or not easily available can
be exchanged using common data standards. By the end of 2007 all fifty states and
approximately ten tribes will have established nodes on the Exchange Network and
will be mapping data for sharing with partners and submission to EPA.

Promoting Environmental Stewardship and Innovation

In FY 2007, EPA will promote environmental stewardship, an ethic that goes
beyond the minimum compliance with environmental regulations. The Agency will
accomplish this through education, and by providing incentives, tools and technical
assistance to states, tribes, communities and businesses. EPA will accomplish its goals
using the next generation of voluntary environmental protection strategies, which
emphasize results rather than process, and promote business practices that are both
environmentally and economically sustainable. EPA will work to achieve a
performance-oriented regulatory system that allows flexible strategies to achieve
measurable results; environmental stewardship that maintains sustainable development
and places pollution prevention first; and a culture of creative environmental problem
solving that emphasizes collaboration and results-driven work. EPA will focus on five
areas under its innovation strategy:

« Promote innovative environmental leadership in business, one that uses new
ideas, creative partnerships, and sound analysis to grow their business and
protect the environment;

e Instill the ethics of environmental stewardship and sustainability in business
practices;

5-6


Goal 1: Clean Air and Global Climate Change

state and Federal air pollution programs established under the Clean Air Act help
prevent tens of thousands of premature mortalities, millions of incidences of chronic and
acute illness, tens of thousands of hospitalizations and emergency room visits, and
millions of lost work days.

Comparison of Growth Areas and Emissions

187% ni
’ -- Tia _ Gross Domestic Product

150%

100% F

50% F

47%

40%

73
im. Vehicle Miles Traveled

50% F

NI bd
— } Energy Consumption

>

Lae

=

i]

Aggregate Emissions
=] (Six Principal Pollutants)

70 80 90 04

According to EPA analyses, the benefits of implementing the Clean Air Act exceed costs by a factor
of six or seven to one. Based on EPA’s estimates, Clean Air Act costs have been relatively small
compared to the dollar value of public health and environmental benefits. For example, EPA
estimates that every dollar the agency spends on voluntary climate change programs returns $75 in
energy savings.

The FY 2007 budget request includes funding for implementing provisions of the
Energy Policy Act of 2005, which includes new responsibilities and requirements in the
fuels and diesel retrofit programs. In the area of fuels, EPA is required to develop a
number of new regulations, revise several existing regulations, revise models and
undertake a series of fuel-related studies and analyses. This effort includes
promulgating regulations for: a major new renewable fuels program; the current
Reformulated Gasoline (RFG) Program; new regulations requiring health and
environmental testing of fuels; and in conjunction with DOE, conducting a study on
Federal, state, and local fuel requirements with recommendations on harmonization.
The request includes funding for expanded diesel retrofit program for a variety of
sources.

1-2


Goal 3: Land Preservation and Restoration

contaminated groundwater is under control through engineered or natural
processes by 10;

e Select final remedies at 25 Superfund sites on the National Priorities List (NPL);
e Complete construction of remedies at 40 Superfund sites on the NPL;

e Increase the percentage of high priority RCRA facilities with human exposure to
controlled toxins from an estimated 82% in FY 2006 to 89%;

e Increase the percentage of high priority RCRA facilities with toxic releases to
groundwater contamination to 75% from an estimated 68% in FY 2006; and

e Complete 13,000 leaking underground storage tanks cleanups.

Enforcement authorities play a unique role under the Superfund program: they are
used to leverage private-party resources to conduct a majority of the cleanup actions
and to reimburse the Federal government for cleanups financed by the Trust Fund. The
Superfund program’s “enforcement first” policy ensures that sites that have viable
potentially responsible parties (PRPs) are cleaned up by those parties, allowing EPA to
focus appropriated resources on sites where viable PRPs either do not exist or lack
funds or capabilities needed to conduct the cleanup. In tandem with this approach,
various reforms have been implemented to increase fairness, reduce transaction costs,
and promote economic development. For more information regarding EPA's
enforcement program and _ its various components, please refer to

www.epa.gov/compliance/cleanup/superfund/.

The Agency also has been encouraging the establishment and use of Special
Accounts within the Superfund Trust Fund. These accounts segregate site-specific
funds obtained from responsible parties that complete settlement agreements with EPA.
These funds may create an incentive for other PRPs at that specific site to perform work
they otherwise might not be willing to perform. Alternatively, these funds may be used
by the Agency to fund cleanup activities if there are not known or viable PRPs. As a
result, the Agency can get more sites cleaned up while preserving the appropriated
Trust Fund dollars for sites without viable PRPs.

In FY 2007, the Agency will continue to implement its “enforcement first” strategy.
It will negotiate remedial design/remedial action cleanup agreements and removal
agreements at contaminated properties. Where negotiations fail, the Agency will either
take unilateral enforcement actions to require PRP cleanup or use appropriated dollars
to remediate sites. When appropriated dollars are used to clean up sites, the program
will recover this money from the PRPs whenever possible. The Agency will also
continue its efforts to establish and maximize the use of Special Accounts to facilitate
clean up.

By continuing to pursue cost recovery settlements, the program promotes the
principle that polluters should perform or pay for cleanups, preserving appropriated

3-5


Appendix A: Categorical Grants

Categorical Grants Program (STAG)

(Dollars in Millions)

7 $1137
$1,200: $1,079 $1,113
$1,006

$1,000

$8004

$6004

$4004

$2004

$04

2000 2001 2002 2003 2004 2005 2006 2007
Ena. Ena. Ena. Ena. Ena. Ena. Ena. Request

In FY 2007, the President's Budget requests a total of $1,089 million for
22 “categorical” program grants for state, interstate organizations, non-profit
organizations, intertribal consortia, and Tribal governments. EPA will continue to
pursue its strategy of building and supporting state, local and Tribal capacity to
implement, operate, and enforce the Nation’s environmental laws. Most environmental
laws envision establishment of a decentralized nationwide structure to protect public
health and the environment. In this way, environmental goals will ultimately be
achieved through the actions, programs, and commitments of state, Tribal and local
governments, organizations and citizens.

In FY 2007, EPA will continue to offer flexibility to state and Tribal governments
to manage their environmental programs as well as to provide technical and financial
assistance to achieve mutual environmental goals. First, EPA and its state and Tribal
partners will continue implementing the National Environmental Performance
Partnership System (NEPPS). NEPPS is designed to allow states more flexibility to
operate their programs, while increasing emphasis on measuring and reporting
environmental improvements. Second, Performance Partnership Grants (PPGs) will
continue to allow states and tribes funding flexibility to combine categorical program
grants to address environmental priorities.

To improve both of these processes, EPA will develop a standardized template

that all states will use to develop and submit their state grant agreements. This new
template will include clear linkages to EPA's Strategic Plan and long-term and annual

A-1


Appendix A: Categorical Grants

Federal program grants for building state capacity for lead abatement, and enhancing
compliance with disclosure, certification and training requirements.

Pesticides Program Implementation Grants

The President's FY 2007 Budget includes $13.0 million for Pesticides Program
Implementation grants. These resources will assist states and tribes to implement the
safer use of pesticides, including: worker protection; certification and training of
pesticide applicators; protection of endangered species; Tribal pesticide programs; and
integrated pest management and environmental stewardship. In FY 2007, EPA plans to
complete a cumulative 96 percent of all Reregistration Eligibility Decisions, which often
include changes to allowable use patterns, for pesticides already in the market.
Pesticides Program Implementation Grants help state programs stay current with
changing requirements.

Lead Grants

The President's FY 2007 Budget includes $13.6 million for Lead grants. This
funding will support the development of authorized programs in both states and tribes to
prevent lead poisoning through the training of workers who remove lead-based paint,
the accreditation of training programs, the certification of contractors, and renovation
education programs. Another activity that this funding will support is the collection of
lead data to determine the nature and extent of the lead problem within an area so that
states, tribes and the Agency can better target remaining areas of high risk. In
FY 2007, EPA expects to reduce the number of child lead poisoning cases by 17,000.

Pollution Prevention Grants

The FY 2007 request includes $6.0 million for Pollution Prevention grants. The
program provides grant funds to deliver technical assistance to small and medium-sized
businesses. The goal is to assist businesses and industries with identifying improved
environmental strategies and solutions for reducing waste at the source. The program
demonstrates that source reduction can be a cost-effective way of meeting or exceeding
Federal and state regulatory requirements. In FY 2007, EPA is targeting a cumulative
30 percent reduction in annual pollution releases to the environment.

Environmental Information Grants

In FY 2007, the President’s Budget includes $14.9 million to continue the
Environmental Information Exchange Network (Exchange Network) grant program.
Started in 2002, the Exchange Network grant program provides assistance to states,
territories, tribes, and Tribal Consortia, to develop the information management and
technology (IM/IT) capabilities they need to participate in the Exchange Network. This
will improve environmental decision making, increase environmental data quality and
accuracy, and reduce burdens on those who provide and those who access information.
In FY 2007, EPA, states, tribes, and territories will continue to re-engineer data systems
so that information previously not available or not easily available can be exchanged

A-3


Appendix A: Categorical Grants

using common data standards. By the end of 2007 all fifty states and approximately ten
tribes will have established nodes on the Exchange Network and will be mapping data
for sharing with partners and submission to EPA.

State and Tribal Underground Storage Tanks Program

The President’s FY 2007 Budget includes $37.6 million for Underground Storage
Tank grants. In FY 2007, EPA will provide assistance to states to help them meet their
new responsibilities under the Energy Policy Act of 2005. This includes performing
additional inspections, developing operator training requirements, prohibiting fuel
deliveries at non-compliant UST facilities, and requiring secondary containment for new
and replaced tanks and piping or financial responsibility for tank installers and
manufacturers. States and tribes will use these resources to ensure that UST owners
and operators routinely and correctly monitor all regulated tanks and piping in
accordance with regulations, and also to develop programs with sufficient authority and
enforcement capabilities to operate in lieu of the Federal program.

Hazardous Waste Financial Assistance Grants

In FY 2007, the President's Budget includes $103.3 million for Hazardous Waste
Financial Assistance grants. Hazardous Waste Financial Assistance grants are used
for the implementation of the Resource Conservation and Recovery Act (RCRA)
hazardous waste program, which includes permitting, authorization, waste minimization,
enforcement, and corrective action activities. In FY 2007, EPA expects to increase the
number of hazardous waste facilities with permits by 2.4% in order to meet the 2008
goal of 95% coverage and increase the percent of annual permit renewals in line with
2008 requirements of a 50% annual renewal rate.

Brownfields Grants

In FY 2007, the President’s Budget includes $49.5 million to continue the
Brownfields grant program that provides assistance to states and tribes to develop and
enhance their state and Tribal response programs. This funding will help states and
tribes develop legislation, regulations, procedures, and guidance, to establish or
enhance the administrative and legal structure of their response programs. In addition,
grant funding will help states and tribes capitalize Revolving Loan Funds for Brownfields
cleanup, purchase environmental insurance, and conduct site-specific related activities
such as assessments at Brownfields sites. In FY 2007, the funding provided will result
in the assessment of 1,000 Brownfields properties. Brownfields grantees will leverage
$900,000 in cleanup and redevelopment funding.

Water Pollution Control (Clean Water Act Section 106) Grants

In FY 2007, the President's Budget includes $221.7 million for Water Pollution
Control grants. These funds enable National Pollution Discharge Elimination System
(NPDES) permitting, enhance water quality monitoring activities, support Total
Maximum Daily Load (TMDL) development, and will lead to improved water quality

A4


Goal 3: Land Preservation and Restoration

protect the land: reducing waste at its source, recycling waste, managing waste
effectively by preventing spills and releases of toxic materials, and cleaning up
contaminated properties. The Agency especially is concerned about threats to our most
sensitive populations, such as children, the elderly, and individuals with chronic
diseases, and prioritizes cleanups accordingly. Additional information on these
programs can be found at: www.epa.gov/superfund, http:/Avww.epa.gov/epaoswer/hazwaste/ca/,
and http:/Awww.epa.qov/superfund/programs/er/index.htm.

The Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA, or Superfund) and the Resource Conservation and Recovery Act (RCRA)
provide the legal authority for most of EPA’s work toward this goal. The Agency and its
partners use Superfund authority to clean up uncontrolled or abandoned hazardous
waste sites and return the land to productive use. Under RCRA, EPA works in
partnership with states and tribes to address risks associated with leaking underground
storage tanks and with the generation and management of hazardous and
nonhazardous waste.

EPA also uses authorities provided under the Clean Air Act, Clean Water Act,
and Oil Pollution Act of 1990 to protect against spills and releases of hazardous
materials. Controlling the many risks posed by accidental and intentional releases of
harmful substances presents a significant challenge. EPA’s approach integrates
prevention, preparedness, and response activities to minimize these risks. Spill
prevention activities keep harmful substances from being released to the environment.
Improving its readiness to respond to emergencies through training, development of
clear authorities, and provision of proper equipment ensures that EPA is adequately
prepared to minimize contamination and harm to the environment when spills do occur.

The following themes characterize EPA's land program activities under Goal 3:
Revitalization; Recycling, Waste Minimization and Energy Recovery; Emergency,
Preparedness and Response and Homeland Security; and implementation of the
recently-authorized Energy Policy Act of 2005 (EPAct).

e Revitalization: All of EPA’s cleanup programs (Superfund Remedial, Superfund
Federal Facilities Response, RCRA Corrective Action, Brownfields, and
Underground Storage Tanks) and their partners are taking proactive steps to
accommodate and facilitate the cleanup and revitalization of contaminated
properties. Revitalizing these once productive properties can provide numerous
positive impacts for communities such as removing blight, satisfying the growing
demand for land, helping limit urban sprawl, fostering ecologic habitat
enhancements, enabling economic development, and maintaining or improving
quality of life. Efforts are underway to develop cross-program revitalization
measures that will enable EPA to capture a broader array of accomplishments
resulting from the assessment and cleanup of properties.

e Recycling, Waste Minimization and Energy Recovery: EPA's strategy for
reducing waste generation and increasing recycling is based on: (1) establishing

3-2


Appendix C: Trust Funds

Of the total funding requested, $183 million and 1,105 workyears are for
Superfund enforcement related activities. One of the Superfund program’s primary
goals is to have responsible parties pay for and conduct cleanups at abandoned or
uncontrolled hazardous waste sites. The program focuses on maximizing all aspects of
Potentially Responsible Party (PRP) participation; including reaching a settlement with
or taking an enforcement action by the time of a Remedial Action start at 90 percent of
non-Federal Facility Superfund sites. EPA emphasizes fairness in the settlement
process.

The Agency has also been encouraging the establishment and use of Special
Accounts. These accounts provide EPA with the ability to more efficiently clean up sites
using funds provided by responsible parties. These funds can be provided to PRPs as
an incentive to perform clean up work they might not be willing to perform, or used by
the Agency to fund clean up. The result is the Agency can clean up more sites, and
allows the Agency to preserve appropriated Trust Fund dollars for other sites. Where
PRP negotiations and previous enforcement actions fail, EPA uses its appropriation to
clean up sites and then seeks to recover these costs from the PRPs.

The FY 2007 President's Budget also includes resources supporting Agency-
wide resource management and control functions. This includes essential
infrastructure, contract administration, financial accounting, other fiscal operations and
funds for Federal agency partners. The Agency works with several Federal agencies to
perform essential services in areas where the Agency does not possess the specialized
expertise. Contributors include the United States Coast Guard, the National Oceanic
and Atmospheric Administration, the Department of the Interior, the Federal Emergency
Management Agency, and the Occupational Safety and Health Administration.

In addition, the Agency provides funds for Superfund program research and
auditing. The President's Budget requests $28 million and 106 workyears to be
transferred to Research and Development for innovative cleanup technology testing.
The Superfund research program is driven by program office needs to reduce the cost
of cleaning up Superfund sites, improve the efficiency of characterizing and remediating
sites, and reduce the scientific uncertainties for improved decision-making at Superfund
sites. The President's Budget also requests $13 million and 94 workyears to be
transferred to the Inspector General for program auditing.

Base Realignment and Closure Act

The FY 2007 President's Budget requests 78 reimbursable workyears to conduct
the Base Realignment and Closure Act (BRAC) program. Since 1993, EPA has worked
with the Department of Defense (DoD) and the states’ environmental programs to make
property environmentally acceptable for transfer, while protecting human health and the
environment at realigning or closing military installations. Between 1988 and 1995, 497
major military installations representing the Army, Navy, Air Force, and Defense
Logistics Agency were slated for realignment or closure. Of these,

C-2


Annual Performance Plan and Budget Overview

Environmental Protection Agency’s
Resources by Major Category

(Dollars in Billions)

© Operating Programs
O Trust Funds
Q Infrastructure
$9.0
Beta s79_ 98-1 $8.1 eq seo
; $74 SiS $76 S76
$7.0 | $6.7 a i UW a L a a i |
$6.0 4 H goo 1 8221 sz6 1 28 s26 L s26 L843 1 4, :
: $4.2
$5.0 1 $25 LI a : UW a LI a a i | | $4.3 |
$4.04 a a t
$1.3 | | sia] | $15 | | s15| | 914] | $14] [913] 1, -
$2.07 $1.4 7 | | | | i i | $1.3
$2.0 4 4 Z LI a
s1.0 4) $27 Lf $29 1] $84 1 | S84 1 | S88 $3.6
$0.0 {Jo AS AN A EM EW : : , : :

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
PB

FYs 1996-2006 reflect EPA’s final Enacted Operating Plan
FY 2007 reflects the President's Budget.

FY 2002 does not include $175.6 million provided for Homeland security in the Emergency Supplemental
Appropriations Act.


Annual Performance Plan and Budget Overview

In FY 2006, as part of workforce planning efforts, EPA will complete an
assessment of current competency gaps for senior management, the first selected MCO
sample group. In FY 2007, the Agency will further its Workforce Planning efforts by
closing competency gaps in senior leadership positions and developing plans to
address the competency gaps in other MCOs. The results will continue to be evaluated
through our Human Capital accountability reporting, ensuring a highly skilled, diverse,
results-oriented workforce with the right mix of technical expertise, experience, and
leadership capabilities.

Workforce

EPA values its world class workforce and uses its expertise to meet urgent
responsibilities across a broad range of national and local environmental issues. In FY
2007 adjustments to EPA’s workforce management strategy will help better align
resources, skills, and Agency priorities. A key step is aligning the total number of
authorized positions and actual FTE utilization. In FY 2007 EPA’s estimated 17,560
FTE will work toward advancing the Agency's mission of protecting human health and
the environment.


Goal 2: Clean and Safe Water

¢ Surface Water Meeting Standards: address water quality problems on a
watershed basis so that water quality standards are fully attained in water bodies
identified by states as not meeting standards

« Healthy Coastal Waters: maintain or improve the overall health of each of the four
major coastal ecosystems around the country, as measured by the National Coastal
Condition Report.

The clean and safe water goals are closely related to goals established in Goal 4
of the Agency Strategic Plan regarding improvements in wetlands, estuaries, targeted
geographic programs such as the waters of the Mexico Border region, the Great Lakes,
the Chesapeake Bay, and the Gulf of Mexico. The key strategies that EPA plans to
implement in FY 2007 to make progress toward the public health and environmental
goals identified in the Strategic Plan are briefly described below.

Water Safe to Drink

For almost 30 years, protecting the Nation’s public health through safe drinking
water has been the shared responsibility of EPA, the states, and nearly 54,000
community water systems (CWSs)? nationwide that supply drinking water to more than
260 million Americans (approximately 90% of the U.S. population). Within this time
span, safe drinking water standards have been established and are being implemented
for 91 microbial, chemical, and radiological contaminants. Forty-nine states have
adopted primary authority for enforcing their drinking water programs. Additionally, CWS
operators are better informed and trained to both treat contaminants and prevent them
from entering the source of their drinking water supplies.

During 2007, EPA, the states, and CWSs will build on these successes while
working toward the 2008 goal of assuring that 95 percent of the population served by
CWSs receives drinking water that meets all applicable standards. Collectively, these
core areas and other interrelated elements of the national safe drinking water program
form a balanced, integrated framework that comprises the multiple barrier approach to
protecting public health from unsafe drinking water. EPA has identified key activities
within five core program areas described below that are critical to ensuring safe drinking
water.

Drinking Water Standards

During FY 2007, EPA will continue to assess the need for new or revised drinking
water standards based on available data on health effects, occurrence, risks of
exposure, analytical (detection) methods, as well as information on technologies to
prevent, detect, or remove specific contaminants. Specifically, EPA will:

° Although the Safe Drinking Water Act applies to 159,796 public water systems nationwide (as of January 2004), which include
schools, hospitals, factories, campgrounds, motels, gas stations, etc. that have their own water system, this implementation plan
focuses only on CWSs, A CWS is a public water system that provides water to the same population year-round. As of January
2004, there were 52.838 CWSs.

23


Goal 1: Clean Air and Global Climate Change

Goal 1: Clean Air and Global Climate Change

Strategic Goal: Protect and improve the air so it is healthy to breathe and risks to
human health and the environment are reduced. Reduce greenhouse gas intensity by
enhancing partnerships with businesses and other sectors.

Resource Summary

($ in 000)

FY 2007

FY 2006 President’s
13% of Budget Enacted Budget __ Difference
1 - Healthier Outdoor Air $583,162 $596,460 $13,298
2 - Healthier Indoor Air $46,957 $47,675 $718
3 - Protect the Ozone Layer $16,666 $21,625 $4,959
4 - Radiation $36,214 $37,243 $1,029
5 - Reduce Greenhouse Gas Intensity $111,091 $110,298 -$793
6 - Enhance Science and Research $129,507 $118,724 -$10,783
Goal 1 Total ** $923,596 $932,025 $8,428
Workyears * 2,655.3 2,652.0 -3.3

* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview. ** Numbers may not add due to rounding.

EPA implements the Clean Air and Global Climate Change goal through national
and regional programs designed to provide healthier outdoor and indoor air for all
Americans, protect the stratospheric ozone layer, minimize the risks from radiation
releases, reduce greenhouse gas intensity, and enhance science and research. In
implementing the goal, EPA carries out its responsibilities through programs that include
several common elements: setting risk-based priorities; facilitating regulatory reform
and market-based approaches; partnering with state, tribal, and local governments,
non-governmental organizations, and industry; promoting energy efficiency; and using
sound science.

EPA's Key Clean Air Programs — including those addressing particulate matter,
ozone, acid rain, air toxics, indoor air, radiation and stratospheric ozone depletion —
focus on some of the highest health and environmental risks faced by the Agency.
These programs have achieved results. According to EPA’s projections, every year,

14


CBEP
CCAP
CCTl
CEIS
CFO
CG
CsI
CSO
CWA
CWAP
DBP
DfE
DFAS
EDP

EPCRA
EPM
ERRS
ESC
ETl
ETV

FCO
FASAB
FIFRA
FMFIA
FQPA
GAPG
GHG
GPRA
HSWA
HPV

HWIR
IAG

Appendix E: Acronyms

Environmental Protection Agency
List of Acronyms

Assistant Administrator

Alternative Dispute Resolution

Assistant Regional Administrator

Agency for Toxic Substances and Disease Registry
Buildings and Facilities

Clean Air Act

Concentrated Animal Feeding Operations

Clean Air Allowance Trading Program

Community Action for a Renewed Environment
Clean Air Partnership Fund

Community-Based Environmental Protection
Climate Change Action Plan

Climate Change Technology Initiative

Center for Environmental Information and Statistics
Chief Financial Officer

Categorical Grant

Common Sense Initiative

Combined Sewer Overflows

Clean Water Act

Clean Water Action Plan

Disinfectant By Products

Design for the Environment

Defense Finance and Accounting System
Environmental Leadership Project

Environmental Justice

Emergency Preparedness and Community Right-to-Know Act
Environmental Programs and Management
Emergency Rapid Response Services

Executive Steering Committee

Environmental Technology Initiative

Environmental Technology Verification

Fixed Account Numbers

Funds Certifying Officer

Federal Accounting Standards Advisory Board
Federal Insecticide, Fungicide and Rodenticide Act
Federal Managers’ Financial Integrity Act

Food Quality Protection Act

General Assistance Program Grants

Greenhouse Gas

Government Performance and Results Act
Hazardous and Solid Waste Amendments of 1984
High Production Volume

Homeland Security

Hazardous Waste Identification Media and Process Rules
Interagency Agreements




Appendix D: Budget Tables

Resources by Program / Project

(Dollars in Thousands)

Acquisition Management

Administrative Law

Alternative Dispute Resolution

Audits, Evaluations, and Investigations

Beach / Fish Programs

Brownfields

Brownfields Projects

Categorical Grant: Beaches Protection

Categorical Grant: Brownfields

Categorical Grant: Environmental Information
Categorical Grant: Hazardous Waste Financial Assistance
Categorical Grant: Homeland Security

Categorical Grant: Lead

Categorical Grant: Nonpoint Source (Sec. 319)
Categorical Grant: Pesticides Enforcement

Categorical Grant: Pesticides Program Implementation
Categorical Grant: Pollution Control (Sec. 106)
Categorical Grant: Pollution Prevention

Categorical Grant: Public Water System Supervision (PWSS)
Categorical Grant: Radon

Categorical Grant: Sector Program

Categorical Grant: State and Local Air Quality Management
Categorical Grant: Targeted Watersheds

Categorical Grant: Toxics Substances Compliance
Categorical Grant: Tribal Air Quality Management
Categorical Grant: Tribal General Assistance Program
Categorical Grant: Underground Injection Control (UIC)
Categorical Grant: Underground Storage Tanks
Categorical Grant: Wastewater Operator Training
Categorical Grant: Wetlands Program Development
Central Planning, Budgeting, and Finance

Children and Other Sensitive Populations: Agency Coordination
Civil Enforcement

Civil Rights / Title VI Compliance

Clean Air Allowance Trading Programs

Clean School Bus Initiative

Climate Protection Program

Commission for Environmental Cooperation

Compliance Assistance and Centers

Compliance Incentives

Compliance Monitoring

Congressional, Intergovernmental, External Relations
Congressionally Mandated Projects

$43,350.0
$4,607.0
$2,023.0
$50,241.0
$3,156.0
$24,534.0
$88,676.0
$9,853.0
$49,264.0
$19,706.0
$101,944.0
$4,926.0
$13,499.0
$204,278.0
$18,622.0
$12,907.0
$216,172.0
$4,926.0
$98,279.0
$7,439.0
$2,217.0
$220,261.0
$16,608.0
$5,074.0
$10,887.0
$56,654.0
$10,838.0
$11,774.0
$1,182.0
$15,765.0
$99,039.0
$5,633.0
$120,513.0
$10,575.0
$26,235.0
$6,897.0
$109,482.0
$4,116.0
$28,941.0
$9,598.0
$86,418.0
$50,339.0
$279,776.0

$49,293.4
$4,860.9
$2,117.0
$48,416.0
$2,653.9
$24,637.3
$89,119.4
$9,900.0
$49,494.9
$14,850.0
$103,345.5
$4,950.0
$13,563.1
$194,040.0
$18,711.0
$12,968.9
$221,661.0
$5,940.0
$99,099.0
$8,073.5
$2,227.5
$185,179.5
$6,930.0
$5,098.5
$10,939.5
$56,925.0
$10,890.0
$37,566.7
$0.0
$16,830.0
$110,103.7
$6,063.8
$123,487.0
$11,053.7
$28,385.8
$0.0
$104,392.9
$4,137.0
$30,032.2
$9,844.9
$94,162.9
$52,273.1
$0.0

D-3


Goal 2: Clean and Safe Water

¢ Support Sustainable Wastewater _Infrastructure: The Clean Water State
Revolving Funds (CWSRFs) provide low-interest loans to help finance wastewater

treatment facilities and other water quality projects. Recognizing the substantial
remaining need for wastewater infrastructure, EPA will continue to provide significant
annual capitalization to CWSRFs in FY 2007. Another important approach to
closing the gap between the need for clean water projects and available funding is to
use sustainable management systems to prolong the lives of existing systems. EPA
will work to encourage rate structures that lead to full cost pricing and other
conservation measures.

Accelerate Watershed Protection

Strong execution of core CWA programs alone is not sufficient to maintain and
accelerate progress toward cleaner water and accomplish the water quality
improvements called for in the Strategic Plan. About a decade ago, EPA fostered the
watershed approach, focusing on multi-stakeholder and multi-program efforts within
hydro-logically defined boundaries, as a better way to address water quality problems.
In FY 2007, EPA will accelerate watershed protection by working in three key areas:

« Core Programs Organized_by Watershed: In addition to development of
watershed based plans, discussed below, core programs can be implemented on a
watershed basis. Some examples in practice as a result of innovations developed
by state, EPA Regions, and others are development of TMDLs and NPDES permits
on a watershed basis and implementing water quality “trading” programs within a
watershed.

« Local Watershed Protection Efforts: EPA is developing national tools, training,
and technical assistance that will help community partnerships to be more effective
at improving watershed health.

« Apply an Adaptive Management Framework: The best way to achieve progress
in improving and protecting waters and watersheds is by applying an adaptive

management approach to better understand the problems, set challenging but
realistic goals, and address opportunities associated with developing programs and
building partnerships at the watershed level. In FY 2007, EPA will continue to work
with states and tribes to apply an adaptive management framework to identify the
specific mix of watershed tools that best suit local needs and conditions.

Protect Coastal and Ocean Waters

Coastal waters are among the most productive ecosystems on Earth, but they
are also among the most threatened ecosystems, largely as a result of rapidly
increasing growth and development. About half of the U.S. population now lives in
coastal areas and coastal counties are growing three times faster than counties
elsewhere in the Nation. The work described here will be closely coordinated with the
implementation of the National Estuary Program (described in Goal 4).

For FY 2007, EPA’s national strategy for improving the condition of coastal and
ocean waters will include the key elements listed below. The health of ocean and

29


nae

.
€
€
*
€
i
&
ke
Ps
£
€

a

Voltodahudch Lob lohotel

‘

thé
gp USE



Appendix D: Budget Tables

Program / Project
Criminal Enforcement $45,840.0 $46,295.7
Diesel Emissions Reduction Grant Program $0.0 $49,500.0
Drinking Water Programs $98,748.0 $102,364.1
Endocrine Disruptors $8,767.0 $7,985.4
Enforcement Training $3,526.0 $3,125.6
Environment and Trade $1,766.0 $1,861.2
Environmental Education $8,889.0 $0.0
Environmental Justice $6,396.0 $4,615.7
Exchange Network $19,350.0 $17,480.9
Facilities Infrastructure and Operations $451,775.0 $468,791.3
Federal Stationary Source Regulations $23,215.0 $25,678.3
Federal Support for Air Quality Management $105,961.0 $98,338.5
Federal Support for Air Toxics Program $27,630.0 $27,778.4
Federal Vehicle and Fuels Standards and Certification $58,613.0 $68,324.5
Financial Assistance Grants / IAG Management $26,228.0 $24,767.8
Forensics Support $16,772.0 $17,369.4
Geographic Program: Chesapeake Bay $22,118.0 $26,397.7
Geographic Program: Great Lakes $21,164.0 $20,577.1
Geographic Program: Gulf of Mexico $4,809.0 $4,310.7
Geographic Program: Lake Champlain $1,926.0 $933.8
Geographic Program: Long Island Sound $470.0 $466.9
Geographic Program: Other $9,957.0 $9,050.0
Great Lakes Legacy Act $28,989.0 $49,600.0
Homeland Security: Communication and Information $6,771.0 $7,099.7
Homeland Security: Critical Infrastructure Protection $20,622.0 $54,065.3
Homeland Security: Preparedness, Response, and Recovery $76,583.0 $97,601.7
Homeland Security: Protection of EPA Personnel and Infrastructure $20,168.0 $20,327.2
Human Health Risk Assessment $39,392.0 $38,335.7
Human Resources Management $46,943.0 $45,475.7
Indoor Air: Radon Program $5,588.0 $5,961.4
Information Security $4,092.0 $6,350.7
Infrastructure Assistance: Alaska Native Villages $34,485.0 $14,850.0
Infrastructure Assistance: Clean Water SRF $886,759.0 $687,555.0
Infrastructure Assistance: Drinking Water SRF $837,495.0 $841,500.0
Infrastructure Assistance: Mexico Border $49,264.0 $24,750.0
Infrastructure Assistance: Puerto Rico $0.0 $990.0
International Capacity Building $6,138.0 $6,390.3
IT / Data Management $116,006.0 $118,404.0
Legal Advice: Environmental Program $36,686.0 $38,216.3
Legal Advice: Support Program $13,206.0 $13,465.9
LUST / UST $18,277.0 $22,303.8
LUST Cooperative Agreements $65,647.0 $58,207.2
Marine Pollution $12,212.0 $12,462.4
National Estuary Program / Coastal Waterways $23,773.0 $18,417.2
NEPA Implementation $12,640.0 $13,787.5
Oil Spill: Prevention, Preparedness and Response $12,066.0 $12,964.6
Pesticides: Field Programs $24,516.0 $24,926.3

D-4


Goal 4: Healthy Communities and Ecosystems

localities on planning for growth, and continuing to play a lead role in the five-year
reassessment of the Action Plan for Reducing, Mitigating, and Controlling Hypoxia in
the Northern Gulf of Mexico.

The NEP is EPA’s flagship watershed protection effort. The NEP provides
inclusive, community-based planning and action at the watershed level and has an
established record of improvements to ecosystem conditions.

A top priority in FY 2007 is to continue supporting the efforts to implement
Comprehensive Conservation and Management Plans in all 28 NEP estuaries. EPA
created a baseline to track priority actions in 2004 and now tracks implementation of
actions.

The health of the nation’s estuarine ecosystems also depends on the
maintenance of high-quality habitat. Diminished and degraded habitats are less able to
support healthy populations of wildlife and marine organisms and perform the economic,
environmental, and aesthetic functions on which coastal populations depend for their
livelihood. A key success has been the restoration of over 500,000 acres of habitat
over the past decade. For 2007, EPA has set a goal of protecting or restoring an
additional 75,000 acres of habitat within the 28 study areas. Finally, EPA will work with
NEPs in FY 2007 to provide more focused support for several priority areas, including
invasive species, nutrient over-enrichment, and coastal growth.

Wetlands Protection

Wetlands are among our Nation’s most critical and productive natural resources.
They provide a variety of benefits, such as water quality improvements, flood protection,
shoreline erosion control, and ground water exchange. Wetlands are the primary
habitat for fish, waterfowl, and wildlife, and as such, provide numerous opportunities for
education, recreation, and research. EPA recognizes that the challenges the nation
faces to conserve our wetland heritage are daunting and that many partners must work
together for this effort to succeed. EPA's strategy for meeting wetland goals in FY 2007
is described below:

« Meeting the President’s goal of restoring or creating three million wetland acres will
be accomplished primarily by other Federal programs (Farm Bill, agriculture
incentive programs, and wetlands acquisition and restoration programs, including
those administered by Fish and Wildlife Service) and non-Federal programs. EPA
supports the goal through EPA’s regulatory programs, including the CWA Section
404/401 permit review, compliance and enforcement, and other programs. EPA will
also support states, tribes, and others to protect and restore wetlands and build
capacity to increase wetland functionality. In implementing these responsibilities,
each Region will identify watersheds where wetlands and other aquatic resources
are most at risk, including from cumulative impacts. EPA will improve levels of
protection by integrating wetlands protection into other EPA programs such as

48


Goal 1: Clean Air and Global Climate Change

human health problems, and damages crops and other vegetation. It is a key
ingredient of urban smog.

e Fine Particle Rule: The Clean Air Fine Particle Rules (dealing with PM 2.5
designations and implementation) designate those areas where air does not meet
the health-based standards for fine-particulate pollution and classify the seriousness
of the problem in each area. An upcoming rule will also set forth the schedule and
minimum elements required for state plans to reduce the levels of fine particulate
matter in areas where the standards are not met. Particulate Matter is associated
with increased hospital admissions and emergency room visits for people with heart
and lung disease as well as increased work and school absences. It is also the
major source of haze that reduces visibility in many parts of the United States,
including our National Parks.

The Clean Air Interstate Rule and the Nonroad Diesel Rule, combined with other
existing state and Federal programs, including the Tier 2 clean vehicles and gasoline
sulfur standards for cars and light trucks, the heavy duty diesel engines and low sulfur
diesel rule, and the NOx SIP Call Rule to reduce interstate ozone, will bring well over
half of counties now monitoring non-attainment into attainment with the fine particle and
ozone standards.

The Indoor Air Program characterizes the risks of indoor air pollutants to human
health, develops techniques for reducing those risks, and educates the public about
what they can do to reduce their risks from indoor air. Through voluntary partnerships
with non-governmental and professional organizations, EPA educates and encourages
individuals, schools, industry, the health care community, and others to take action to
reduce health risks in indoor environments using a variety of approaches including
national public awareness, media campaigns, as well as community-based outreach
and education. EPA also uses technology-transfer to improve the design, operation,
and maintenance of buildings — including schools, homes, and workplaces — to promote
healthier indoor air. EPA also supports a national radon (second only to smoking as a
cause of lung cancer) program that encourages voluntary national, regional, state, and
tribal programs and activities that support initiatives targeted to radon testing and
mitigation as well as radon resistant new construction.

For more than a decade, businesses and organizations have partnered with EPA
through voluntary climate protection programs to pursue common sense approaches to
reducing greenhouse gas emissions and help in meeting the President’s greenhouse
gas intensity goal. Voluntary programs such as Energy Star and SmartWay Transport
have contributed to increasing the use of energy-efficient products and practices and
reducing emissions of carbon dioxide as well as methane and other greenhouse gases
with very high global warming potentials. These partnership programs help spur
investment in advanced energy technologies and the purchase of energy-efficient
products and create emissions reduction benefits that accrue over the lifetime of the
investment or product.

1-4


Goal 1: Clean Air and Global Climate Change

The Clean Air Rules are a suite of actions that will dramatically improve

America's air quality and will address the transport of pollution across state borders.
The rules provide national tools to achieve significant improvement in air quality and the
associated benefits of improved health, longevity and quality of life for all Americans.
Taken together, they will make significant air quality improvement in years to come.
The Clean Air Rules encompass the following major rules:

Clean Air Mercury Rule: EPA issued the Clean Air Mercury Rule (originally
proposed as the Utility Mercury Reductions Rule) on March 15, 2005.' This rule will
build on the Clean Air Interstate Rule (CAIR) to reduce mercury emissions from coal-
fired power plants, the largest remaining domestic source of human-caused mercury
emissions. Issuance of the Clean Air Mercury Rule marks the first time EPA has
regulated mercury emissions from utilities, and makes the U.S. the first nation in the
world to control emissions from this major source of mercury pollution. Mercury is a
persistent, toxic pollutant that accumulates in the food chain. While concentrations of
mercury in the air are usually low, mercury emissions can reach lakes, rivers and
estuaries and eventually build up in fish tissue. Americans are exposed to mercury
primarily by eating certain species of fish. However, close to 80 percent of the fish
Americans buy comes from overseas, from other countries and from waters beyond
our reach and control. The United States contributes just a small percentage of
human-caused mercury emissions worldwide - roughly three percent with U.S.
utilities responsible for about one percent of that.

NonRoad Diesel Rule: The Clean Air Nonroad Diesel Rule, a component of the
National Clean Diesel Campaign (NCDC), will improve diesel engine function to
remove emissions and innovative diesel fuel refining techniques to remove sulfur.
The black puff of smoke seen coming from construction and other nonroad diesel
equipment will be eliminated. Even with more stringent heavy-duty highway engine
standards set to take effect over the next decade, over the next twenty years millions
of diesel engines already in use will continue to emit large amounts of nitrogen
oxides and particulate matter, both of which contribute to serious public health
problems. The Diesel Retrofit work will be covered under the Energy Policy Act of
2005. These problems are manifested by thousands of instances of premature
mortality, hundreds of thousands of asthma attacks, millions of lost work days, and
numerous other health impacts. The NCDC works to reduce the pollution emitted
from diesel engines across the country through the implementation of varied control
strategies and the aggressive involvement of national, state, and local partners.
Other Air programs use voluntary approaches to mitigate risk, such as the Indoor Air
program and the Climate Change program, described below.

Ozone Rule: The Clean Air Ozone Rules (dealing with 8-hour ground-level ozone
designation and implementation) designate those areas where air does not meet the
health-based standards for ground-level ozone and classify the seriousness of the
problem in each area. The Rules also set forth the schedule and minimum elements
required in plans states must submit to reduce the levels of ozone in areas where
the ozone standards are not met. Ground-level ozone is an air pollutant that causes

1-3


Goal 5: Compliance and Environmental Stewardship

lo
ZA “An Ounce of Pollution Prevention is Worth Over 167 Billion Pounds of Cure”

A Decade of Pollution Prevention Results, 1990-2000

167 Billion Pounds of
Pollution Prevented by

Media Resources Conserved

Water

| * 215 million kWh of energy
Ss * 4.1 billions gallons of water
Waste
80
+ $666 million in cost savings

Source: National Pollution Prevention Roundtable, January 2003 report on achievement of state and local P2

« Partnering with Industry: EPA will continue to reduce the amount of toxic
chemicals in use by encouraging the design of alternative less toxic chemicals and
industry processes through its Green Chemistry and Green Engineering Programs.
New emphasis will be placed on the development of environmentally preferable
substitutes for emerging chemicals of concern such as brominated flame retardants,
perfluorinated acids, and chemicals which are persistent in the environment, toxic,
and capable of accumulating in animal, fish, and human tissue. In conjunction with
the efforts of the Green Chemistry and Green Engineering Programs, the Design for
the Environment Program will continue collaborative partnerships with industries to
develop safer products, processes and technologies.

« Reducing Impacts in the Electronics Lifecycle: EPA is focusing FY 2007 efforts
to address key environmental impacts in the electronics lifecycle. End-of-life impacts

of used and obsolete electronics are part of an increasing and complex waste
stream that poses enormous environmental management problems. Almost 3
million tons of consumer electronics entered the municipal waste stream in 2003, up
from 2 million in 2001. This includes personal computers, TVs, other video and
audio products, telephones, fax machines, printers, and modems. Electronic
products contain hazardous materials. Monitors, circuit boards, batteries, and other
electronic components contain lead, mercury, brominated flame retardants (BFRs)
and cadmium.

¢ Pollution Prevention Grant Program: Pollution Prevention Grants to states and
tribes enable them to provide technical assistance, education and outreach to assist
businesses and industries in identifying strategies and solutions to reduce wastes
and pollution at the source. The importance of tracking outcomes from P2 grants
has been reinforced by adding key P2 environmental outcome targets to program

5-5



Goal 4: Healthy Communities and Ecosystems

pesticides on the market and the associated tolerance residues remain safe for the
public and the environment. EPA will also continue identifying candidates for countering
potential bioterrorist use of pesticides and biopesticides.

*TOLERANCE REASSESSMENT SUMMARY BREAKDOWN

Tolerances Total
Category Reasesed af 119108" Remaining Reassessed
ig assess
Organophosphates 1691 1147 544 67.83%
Carbamates 545 317 228 58.17%
Organochlorine 253 253 0 100%
Carcinogen 2008 1530 478 76.2%
High Hazard Inert 5 5 0 100%
Other 5219 4578 641 87.70%
TOTALS 9721 7830 1891 80.50%

*EPA’s Tolerance Index. Tolerance Tracking Svstems and Tolerance Reassessment Database.

EPA plans to emphasize the continuation and further development of programs
for the review of new and existing chemicals. The Agency will also continue to carry out
its mandate to review potential risks from newly manufactured or imported chemicals
before they are introduced to commerce. EPA’s “Sustainable Futures” program
encourages chemical manufacturers to apply pollution prevention techniques in the
design of new chemicals, so that chemicals entering the new chemical review process
will be less hazardous and less risky.

In addressing chemicals that have entered the market before the inception of the
new chemical review program, EPA will continue to implement its voluntary High
Production Volume (HPV) Chemicals Program, which challenges industry to develop
chemical hazard data on existing chemicals that it chooses to “sponsor.” This will
enable EPA and the public to screen many chemicals already in commerce for risks
they may be posing.

Complementing HPV is the Voluntary Children’s Chemical Evaluation Program
(VCCEP), a high-priority screening program targeting existing chemicals believed to
have particular impact on children’s health. Inventory Update Reporting Data, due for
submission in 2006, will provide the Agency with valuable manufacturing, processing

44



Appendix D: Budget Tables

Environmental Protection Agency

Summary of Agency Resources by Appropriation
(Dollars in Thousands)

Science & Technology (S&T) ? $730,810 $788,274
Rescission of Prior Year's S&T Funds -$1,000
Environmental Programs and Management (EPM) $2,346,711 $2,306,617
Rescission of Prior Year's EPM Funds -$2,000
Office of Inspector General 2 $36,904 $35,100
Buildings & Facilities $39,626 $39,816
Oil Spill Response $15,629 $16,506
Superfund (SF) $1,242,074 $1,258,955
- Superfund Program $1,198,581 $1,217,828
- Inspector General Transfer $13,337 $13,316
- Science & Technology Transfer $30,156 $27,811
Rescission of Prior Year's SF Funds -$11,000
Leaking Underground Storage Tanks $79,953 $72,759
State & Tribal Assistance Grants (STAG) $3,213,709 $2,797,448
Rescission of Prior Year's STAG Funds -$66,000 $0
Agency Total: $7,625,416 $7,315,475

‘ FY 2006 Enacted includes a 0.476% rescission and additional 1% reduction.
? Does not include Superfund transfers--see the Superfund line items below for annual amounts.

D-1


Goal 3: Land Preservation and Restoration

solvents and other industrial chemicals, to Department of Energy sites containing
nuclear waste. EPA’s Superfund Federal Facilities Response program helps Federal
and local governments, tribes, states, redevelopment authorities and the affected
communities ensure contamination at Federal or former Federal properties is addressed
in a manner that protects human health and the environment. For more information on
the Superfund Federal Faciliies Response program, please refer to

http:/Awww.epa.gov/fedfac.

EPA uses a variety of tools to accomplish cleanups, including permits,
enforcement actions, consent agreements, and Federal Facility Agreements. Cleanup
programs at all levels of government work together to ensure that appropriate cleanup
tools are used; that resources, activities, and results are coordinated with partners and
stakeholders and communicated to the public effectively; and that cleanups are
protective and contribute to community revitalization. The Agency’s two major cleanup
programs, Superfund and RCRA Corrective Action, now rely on similar human health
and groundwater protection environmental indicators. EPA is working to coordinate
across all of its cleanup programs, while maintaining the flexibility needed to
accommodate differences in program authorities and approaches.

EPA fulfills its cleanup and waste management responsibilities on tribal lands by
acknowledging tribal sovereignty, which means recognizing tribal governments as the
most appropriate authorities for setting standards, making policy decisions, and
managing programs consistent with Agency standards and regulations. EPA works with
its Federal, state, tribal, and local government partners to identify facilities and sites on
or adjacent to Indian country requiring attention and to monitor changes in priorities.

Even though the Superfund program met its FY 2005 targets for a majority of its
existing performance measures, challenges remain for the coming years. The program
has a number of projects ready for construction, while it also needs to fund several
large, complex remedial projects at an optimal pace. In addition, as the program has
matured, it has become necessary for the Agency to devote more resources toward
post construction activities, including long-term remedial actions and five-year reviews.
Therefore, the Agency proposes to redirect resources from earlier phase activities
toward construction in FY 2007.

To meet its objective to control the risks to human health and the environment at
contaminated properties or sites through cleanup, stabilization, or other action, and to
make land available for reuse, EPA intends to achieve the following results in FY 2007:

e Make 350 final site-assessment decisions under Superfund;

e Increase the total number of Superfund sites where all identified unacceptable
human exposures are controlled to at or below health-based levels for current
land and/or groundwater use conditions by 10;

« Increase the total number of Superfund sites where the migration of

34


Goal 4: Healthy Communities and Ecosystems

Section 319, State Revolving Fund, NEP; working with the COE and/or states on
permitting and mitigation compliance; providing grants and technical assistance to
state, tribal or local organizations; and developing information, education and
outreach tools.

¢ Building upon the analysis of existing mitigation data base systems, the COE, EPA,
USDA, DOI, and NOAA is in the process of establishing a shared mitigation
database. Utilizing the shared database, the Agencies will provide an annual public
report card on compensatory mitigation to complement reporting of other wetlands
programs. The COE has initiated six new performance measures designed to
improve permitting and mitigation compliance, including compliance inspections and
audits, and resolution of enforcement actions.

EPA will work with the COE to ensure application of the 404(b)(1) guidelines,
which require that discharges into waters of the U.S. be avoided and minimized to the
extent practicable. Each Region will also identify opportunities to partner with the COE
in meeting performance measures for compensatory mitigation for unavoidable impacts.
The Agency is also working closely with the COE to develop and implement wetlands
and barrier island restoration projects along the Gulf Coast to help ensure an improved
level of protection from hurricanes.

Chesapeake Bay Protection and Restoration

The Chesapeake Bay is the largest estuary in the United States and a water
resource of tremendous ecological and economic importance. For over twenty years,
efforts to protect and restore the Bay have been led by the Chesapeake Bay Executive
Council—Bay area governors, the mayor of the District of Columbia; the EPA
Administrator, and the chair of the Chesapeake Bay Commission, a tri-state legislative
body. This unique regional partnership has defined environmental improvements
needed in the Bay and developed a strategy that blends regulatory and voluntary
processes.

While there are a number of measures used by the Chesapeake Bay Program, a
key measure of success, which integrates both water quality and essential aquatic
habitat, is the restoration of submerged aquatic vegetation (SAV). An additional
measure of environmental improvement in the Bay is the reduction in nitrogen,
phosphorus, and sediment entering the bay.

To achieve improved water quality needed to restore submerged aquatic
vegetation, the Chesapeake Bay Program partners committed to reducing nutrient and
sediment pollution loads sufficiently to remove the Bay and the tidal portions of its
tributaries from the list of impaired waters by 2010. Key elements of state strategies to
achieve these reductions include: the implementation of advanced treatment of
wastewater to reduce nutrient discharges, the use of a range of management practices
to reduce nutrients and sediments from farms, and the restoration and protection of

49


Goal 3: Land Preservation and Restoration

and expanding partnerships with businesses, industries, tribes, states, communities,
and consumers; (2) stimulating infrastructure development, environmentally
responsible behavior by product manufacturers, users, and disposers (“product
stewardship”), and new technologies; and (3) helping businesses, government,
institutions, and consumers through education, outreach, training, and technical
assistance.

e Emergency Preparedness, Response, and Homeland Security: EPA has a
major role in reducing the risk to human health and the environment posed by
accidental or intentional releases of harmful substances and oil. EPA will continue
to improve its capability to effectively prepare for and respond to these incidents,
including natural disasters such as Hurricane Katrina, working closely with other
Federal agencies within the National Response Plan.

e Implementing New Energy and Transportation Legislation: EPA has a critical
role in implementing the EPAct. The EPAct contains numerous provisions that

significantly affect Federal and state underground storage tank (UST) programs. In
FY 2007, EPA will provide assistance to states to help them meet their new
responsibilities, which include performing additional inspections, developing operator
training requirements, prohibiting fuel deliveries at non-compliant UST facilities, and
requiring secondary containment for new and replaced tanks and piping or financial
responsibility for tank installers and manufacturers.

Controlling Risks to Human Health and the Environment at Contaminated Sites

EPA and its partners work to identify contaminated lands that pose significant
risks to human health and the environment. Once identified, these contaminated lands
are cleaned up to levels sufficient to prevent and control risks to human health and the
environment and, where necessary, to return the land to productive use. EPA and its
partners follow four key steps to accomplish cleanups and control risks to human health
and the environment from contaminated lands: assessment of risk, identification and
stabilization of contaminants, selection of appropriate remedies to address risk posed
by contaminants, and implementation of remedies to reduce contamination to below
health-based risk levels. The Agency’s cleanup activities, some new and some well-
established, include removing contaminated soil, capping or containing contamination in
place, pumping and treating groundwater, and bioremediation. New tools, such as
Triad, a process for flexible and targeted sampling, help provide a more focused
strategy to characterize contaminated lands. Also, through an Environmental
Management Systems approach, which involves a continuous cycle of planning,
implementing, reviewing, and improving practices at each site, EPA has improved
performance and reduced operating costs of remedies while ensuring continued
protectiveness.

EPA has ongoing cleanup and property transfer responsibilities at some of the

Nation’s most contaminated Federal properties, which range from realigning and closing
military installations and former military properties containing unexploded ordnance,

3-3




vi

Environmental Protection Agency’s
FY 2007 Budget by Goal

Total Agency: $7,315.5 Million

Goal 5 Goal 1
10%
Goal 4
17%
$1,690
Goal 3

23%

Goal 1: Clean Air and Global Climate Change
Goal 2: Clean and Safe Water

O Goal 3: Land Preservation and Restoration
Goal 4: Healthy Communities and Ecosystems

Goal 5: Compliance and Environmental Strewardship



Goal 2: Clean and Safe Water

Safe Fish

Most of the current fish consumption advisories issued by states are for mercury,
PCBs, and dioxin. EPA is emphasizing strategic partnerships within the Agency to
address these pollutants. EPA’s water program is also addressing remaining
controllable sources of fish exposure to these chemicals. The Agency is:

« Developing mercury fish tissue criteria implementation guidance to ensure new
criteria are incorporated into WQS and implemented in National Pollutant
Discharge Elimination System (NPDES) permits;

« Working with states to improve their advisory programs with particular emphasis
on periodic re-sampling of previously tested waters that are under advisory; and

« Working to identify emerging contaminants to ensure that routes of fish exposure
to new, emerging contaminants are addressed early.

Safe Shellfish

Success in achieving the shellfish goals relies on implementation of CWA
programs that are focused on sources of pollution that cause shellfish acres to be
closed. Important new technologies include pathogen source tracking, new indicators of
pathogen contamination and predictive correlations between environmental stressors
and their effects. Once critical areas and sources are identified, core program
authorities, including expanded monitoring, development of Total Maximum Daily Loads
(TMDLs), and revision of discharge permit limits can be applied to improve conditions.

Water Safe for Swimming

Recreational waters, especially beaches in coastal areas and the Great Lakes,
provide recreational opportunities for millions of Americans. Swimming in some
recreational waters, however, can pose a risk of illness as a result of exposure to
microbial pathogens. In November 2004, EPA established more protective health-
based WOQSs for bacteria for those states and Territories bordering Great Lakes or
ocean waters that had not yet adopted standards in accordance with the Beaches
Environmental Assessment and Coastal Health Act of 2000, an important step to further
protect the quality of the nation's coastal recreation waters.'' For FY 2007, EPA’s
national strategy for improving the safety of recreational waters will include these key
elements:

Improve Beach Monitoring and Public Notification

A key component of the strategy for improving the safety of recreational waters is
improving monitoring of public beaches and notifying the public of unsafe conditions.
EPA is working with states to implement the Beaches Environmental Assessment and
Coastal Health (BEACH) Act. In FY 2007, EPA expects that all Tier 1 public beaches

' United States Environmental Protection Agency. Federal Register, November 16, 2004; Volume 69, Number 220; pages
67217 - 67243. Water Quality Standards for Coastal and Great Lakes Recreation Waters. Available on the Interenet at
http://www epa.gov/fedrgstr/EPA-WA TER/2004/November/Day-16/w25303.htm

26


Appendix D: Budget Tables

Environmental Protection Agency

Summary of Agency Resources by Goal
(Dollars in Thousands)

FY 2007
FY 2006 President's __

Goal Enacted’ Budget Difference
1 - Clean Air and Global Climate Change $923,596 $932,025 $8,428
2 - Clean and Safe Water $3,133,212 $2,731,342 -$401,870
3 - Land Preservation and Restoration $1,656,471 $1,689,635 $33,164
4 - Healthy Communities and Ecosystems $1,249,321 $1,228,934 -$20,388
5 - Compliance and Environmental

Stewardship $742,815 $733,540 -$9,276
Rescission of Prior Year's Funds -$80,000
Total * $7,625,416 $7,315,475 _-$389,941

’ Reflects FY 2006 Enacted 0.476% rescission and additional 1% reduction.

? Totals may not add due to rounding.

D-2


Goal 5: Compliance and Environmental Stewardship

encourage compliance with regulatory requirements, and to reduce adverse public
health and environmental problems. To achieve compliance, the regulated
community must first understand its obligations, and then learn how to best comply
with regulatory obligations. In FY 2007, EPA will support the regulated universe by
working to assure that requirements are clearly understood. EPA also enables other
assistance providers (e.g., states, universities) to provide compliance information to
the regulated community.

Compliance Monitoring: The Agency reviews and evaluates the activities of the
regulated community to determine compliance with applicable laws, regulations,
permit conditions and settlement agreements, and to determine whether conditions
presenting imminent and substantial endangerment exist. The majority of work
years devoted to compliance monitoring are provided to the Agency’s Regional
offices to conduct investigations and on-site inspections, and perform monitoring,
sampling and emissions testing. FY 2007 Compliance Monitoring activities will be
both environmental media- and sector-based. The traditional media-based
inspections complement those performed by states and tribes, and are a key part of
our strategy for meeting the long-term and annual goals established for the air,
water, pesticides, toxic substances, and hazardous waste environmental goals
included in the EPA Strategic Plan. The National Enforcement and Compliance
Assurance Program will utilize statistically valid noncompliance information to select
and evaluate National Priorities.

Enforcement: The Enforcement Program addresses violations of environmental
laws, to ensure violators come into compliance with Federal laws and regulations. In
FY 2007, the program will work to achieve the Agency’s environmental goals
through consistent, fair and focused enforcement of all environmental statutes. The
overarching goal of the Enforcement program is to protect human health and the
environment, targeting its actions according to degree of health and environmental
risk. Further, it aims to level the economic playing field by ensuring violators do not
realize an economic benefit from non-compliance, and also seeks to deter future
violations; one way the enforcement program carries this out is by working with the
Department of Justice (DOJ) on enforcement of all environmental laws and
regulations. In FY 2007, EPA will continue to implement its National Compliance
and Enforcement Priorities, which address the most widespread types of violations
that also pose the most substantive health and environmental risks. The National
Compliance and Enforcement Priority list will use the statistically valid
noncompliance information developed by the Compliance Monitoring program. Also
in FY 2007, the Enforcement Program will carry out actions outlined in the Domenici-
Barton EPAct, providing compliance assistance to owners and operators of
Underground Storage Tanks.

Auditing and Evaluation Tools: Maximum compliance requires the active efforts

of the regulated community to police itself. Evaluation of self-reporting will occur in
order to understand the effectiveness and accuracy of such self-reporting.

5-3


Appendix C: Trust Funds

107 installations have been designated as Fast-Track sites. The Fast-Track program
strives to make parcels available for reuse as quickly as possible, by transfer of
uncontaminated or remedial parcels, lease of contaminated parcels where cleanup is
underway, or “early transfer” of contaminated property undergoing cleanup. In addition
to EPA’s responsibilities for the previous four rounds of BRAC, new responsibilities are
anticipated as part of BRAC Round 5. This FY 2007 request does not include support
for BRAC-related services to DoD at BRAC 5 facilities; if EPA services related to BRAC
5 facilities are required, the Agency assumes DoD will reimburse EPA for the costs the
Agency incurs to provide BRAC-related services.

Leaking Underground Storage Tanks

The FY 2007 President’s Budget requests $73 million and 77 workyears for the
Leaking Underground Storage Tank (LUST) program. Not less than 80 percent (80%)
of LUST appropriated funds will be used in cooperative agreements for states and tribes
to carry out specific purposes. EPA will continue to work with the states to achieve more
cleanups completed each year, and reduce the FY 2005 backlog of 119,240 cleanups
not yet completed. Since the beginning of the UST program, EPA has cleaned up
almost 74 percent (or 332,799) of all reported releases.

C-3


Program / Project
Pesticides: Registration of New Pesticides
Pesticides: Review / Reregistration of Existing Pesticides
Pollution Prevention Program
POPs Implementation
Radiation: Protection
Radiation: Response Preparedness
RCRA: Corrective Action
RCRA: Waste Management
RCRA: Waste Minimization & Recycling
Reduce Risks from Indoor Air
Regional Geographic Initiatives
Regional Science and Technology
Regulatory Innovation
Regulatory/Economic-Management and Analysis
Research: Air Toxics
Research: Computational Toxicology
Research: Drinking Water
Research: Endocrine Disruptor
Research: Environmental Technology Verification (ETV)
Research: Fellowships
Research: Global Change
Research: Human Health and Ecosystems
Research: Land Protection and Restoration
Research: Pesticides and Toxics
Research: SITE Program
Research: Water Quality
Research: Economics and Decision Science (EDS)
Research: NAAQS
Research: Sustainability
Science Advisory Board
Science Policy and Biotechnology
Small Business Ombudsman
Small Minority Business Assistance
State and Local Prevention and Preparedness
Stratospheric Ozone: Domestic Programs
Stratospheric Ozone: Multilateral Fund
Superfund: Emergency Response and Removal
Superfund: Enforcement
Superfund: EPA Emergency Preparedness
Superfund: Federal Facilities
Superfund: Remedial
Superfund: Support to Other Federal Agencies
Superfund: Federal Facilities Enforcement
Surface Water Protection
Toxic Substances: Chemical Risk Management
Toxic Substances: Chemical Risk Review and Reduction

Appendix D: Budget Tables

$44,067.0
$59,938.0
$16,621.0
$1,697.0
$15,384.0
$6,100.0
$39,396.0
$65,793.0
$11,825.0
$23,947.0
$8,060.0
$3,522.0
$21,511.0
$16,551.0
$16,226.0
$12,327.0
$45,170.0
$10,494.0
$2,990.0
$11,691.0
$18,619.0
$167,703.0
$36,005.0
$30,357.0
$1,206.0
$51 ,269.0
$2,361.0
$66,777.0
$26,095.0
$4,402.0
$1,694.0
$3,343.0
$2,503.0
$11,377.0
$4,938.0
$8,600.0
$193,584.0
$156,653.0
$10,540.0
$31,336.0
$588,905.0
$9,540.0
$9,410.0
$189,212.0
$9,008.0
$46,542.0

$42,533.7
$54,635.0
$21,292.4
$1,808.7
$15,026.2
$6,274.6
$40,372.3
$67,887.3
$12,235.1
$24,293.0
$9,137.3
$3,520.7
$25,853.6
$17,554.8
$12,274.2
$14,983.1
$49,242.5
$9,081.2
$0.0
$8,383.0
$17,456.4
$161,312.7
$34,071.1
$26,223.7
$0.0
$56,988.2
$2,494.6
$65,455.6
$21,404.9
$4,615.7
$1,754.0
$3,501.7
$2,646.6
$12,508.4
$5,221.4
$13,365.0
$192,398.9
$163,650.5
$8,863.1
$31,486.6
$581,594.9
$8,575.4
$10,196.9
$191,587.2
$7,736.5
$44,637.0

D-5


Goal 5: Compliance and Environmental Stewardship

Board (SAB). EPA’s Science Advisory Board (SAB), an independently chartered
Federal Advisory Committee Act (FACA) committee, annually conducts in-depth reviews
and analyses of EPA’s Science and Technology (S&T) account and other science
activities. The SAB provides its findings to the House Science Committee of Congress
and reports them to EPA’s Administrator.

Research is guided by research strategies and plans, which are developed with
participation from our major clients (R&D Criteria: Quality; Relevance). The strategy
outlines research needs and priorities. The Agency also maintains multi-year research
plans (MYP) that outline steps for meeting strategic research needs, and annual
performance goals and measures for evaluating progress. Taken together, these
mechanisms serve to ensure EPA’s research and science remain relevant, of high
quality, and contribute to superior environmental performance.

In order to sustain a viable and credible workforce, the Agency approaches its
research programs’ workforce planning in a manner consistent with its human capital
strategy. Key elements of this strategy include working to develop and implement a
holistic approach to recruitment, preserving a diverse workforce that reflects a wide
spectrum of viewpoints, and retaining existing talent.

FY 2005 PARTs

No programs within Goal 5 were assessed by OMB’s Program Assessment Rating
Tool (PART) in FY 2005.

5-10


Goal 3: Land Preservation and Restoration

e Inspect or conduct exercises or drills at approximately 200 oil storage facilities
required to have Facility Response Plans; and

e Respond to 300 oil spills.

Implementing New Legislation

EPA has a critical role to play in implementing the EPAct. The EPAct contains
numerous provisions that significantly affect Federal and state underground storage
tank (UST) programs. The EPAct requires that EPA and states strengthen tank release
and prevention programs, such as: mandatory inspections every three years, operator
training, prohibition of delivery for non-complying facilities, secondary containment or
financial responsibility for tank installers, and various compliance reports. The EPAct
imposes very strict deadlines on EPA and states; EPA is required to develop numerous
grant guidelines before the FY 2007 grant cycle and states are required to develop their
first new requirements for tank owners by February 2007.4 EPA must develop
regulations and guidance that states must adopt, and must develop a strategy for USTs
in Indian Country to bring them into compliance and to clean up leaks. EPA is currently
working with state, tribal, and industry partners to develop and implement the various
requirements.

Enhancing Science and Research to Restore and Preserve Land

The FY 2007 land research program supports the Agency's objective of reducing
or controlling potential risks to human health and the environment at contaminated
waste sites by providing the science to accelerate scientifically defensible and cost-
effective decisions for cleanup at complex sites in accordance with the CERCLA.

In FY 2007, research will focus on contaminated sediments, ground water
contamination, site characterization, and technical support to specific sites. Reducing
uncertainties in the assessment of contaminated sediments and developing and
evaluating remedial options will be the focus of this research theme. Ground water
research will continue to develop applications for permeable reactive barriers and
address fate and transport and treatment methods for contaminants. Site
characterization and sampling methods will continue to support site specific statistical
and analytical applications. The technical support centers will continue to provide site
specific assistance on technical issues. Oil spill research will address fate and effects
of non-petroleum oil and dispersion effectiveness. Underground storage tank research
will address fate and transport issues for fuel components and remediation methods.

Multimedia decision-making and materials management constitute the two major
areas of research under the RCRA in FY 2007, as the Agency works toward identifying
releases to inform proper facility management. Multimedia research continues to

14 For more information, please visit http://frwebgate.access. gpo.gov/egi-
bin/getdoc.cgi?dbname=109_cong_public_laws&docid=f:publ058.109.pdf and scroll to Title XV - Ethanol and Motor Fuels,

Subtitle B Underground Storage Tank Compliance, on pages 500-513 of the pdf file.

3-11


Appendix B: Infrastructure Finance

construction of drinking water and wastewater treatment facilities. The state revolving
funds are two important elements of the nation’s substantial investment in sewage
treatment and drinking water systems, which provides Americans with significant
benefits in the form of reduced water pollution and safe drinking water.

EPA will continue to provide financial assistance for wastewater and other water
projects through the Clean Water State Revolving Fund (CWSRF). CWSRF projects
include nonpoint source, estuary, storm water, and sewer overflow projects. The
dramatic progress made in improving the quality of wastewater treatment since the
1970s is a national success. In 1972, only 84 million people were served by secondary
or advanced wastewater treatment facilities. Today, 99 percent of community
wastewater treatment plants, serving 181 million people, use secondary treatment or
better. Water infrastructure projects supported by the program contribute to direct
ecosystem improvements by lowering the amount of nutrients and toxic pollutants in all
types of surface waters. While great progress has been made, many rivers, lakes and
ocean/coastal areas still suffer an enormous influx of pollutants after heavy rains. The
contaminants result in beach closures, infect fish and degrade the ability of the
watersheds to sustain a healthy ecosystem. Improvements to our cities infrastructure
remain a top priority if we are to reclaim our water resources.

The FY 2007 President's Budget Request includes $687.6 million in funding for
the CWSRF. More than $23 billion has already been provided to capitalize the CWSRF,
well over twice the original Clean Water Act authorized level of $8.4 billion. Total
CWSRF funding available for loans since 1987, reflecting loan repayments, state match
dollars, and other funding sources, is approximately $55 billion, of which more than $52
billion has been provided to communities as financial assistance.

The dramatic progress made in improving the quality of wastewater treatment
since the 1970s is a national success. In 1972, only 84 million people were served by
secondary or advanced wastewater treatment facilities. Today, 99 percent of
community wastewater treatment plants, serving 181 million people, use secondary
treatment or better.

The DWSRF will be self-sustaining in the long run and will help offset the costs of
ensuring safe drinking water supplies and assisting small communities in meeting their
responsibilities. Since its inception in 1997, the Drinking Water State Revolving Fund
(DWSRF) program has made available $11.1 billion to finance 4,196 infrastructure
improvement projects nationwide, with a return of $1.73 for every $1 of Federal funds
invested. The need for infrastructure improvements greatly exceeds the available
resources at every level: Federal, state, and local. EPA is exploring solutions with our
partners.

B-3


Goal 3: Land Preservation and Restoration

advance multimedia modeling and uncertainty/sensitivity analysis methodologies that
support core RCRA program needs as well as emerging RCRA resource conservation
needs which include beneficial reuse issues (e.g., electronic waste recycling and waste-
derived products). Materials management research will provide technical reports and
technical support on methods to improve industrial and municipal waste management.
Materials management research will evaluate landfill caps, containment technologies,
as well as leachate issues and hard to treat wastes.

Recognizing that environmental policy and regulatory decisions will only be as
good as the science upon which they are based, EPA makes every effort to ensure that
its science is of the highest quality and relevance, thereby providing the basis for sound
environmental results. EPA uses the Research and Development (R&D) Investment
Criteria of quality, relevance, and performance in its decision-making processes through
a) the use of research strategies and plans, b) peer review, and c) program review and
evaluation by the Board of Scientific Counselors (BOSC) and the Science Advisory
Board (SAB).

In 2005, the BOSC evaluated the Land Research Program to assess the quality
and relevance of its research and the program’s historical performance. The BOSC will
report its findings to the Agency in the 2" quarter of 2006.

Research is guided by research strategies and plans, which are developed with
participation from major clients. The strategy outlines the research needs and priorities.
The Agency also maintains multi-year research plans that outline steps for meeting
strategic research needs, and annual performance goals and measures for evaluating
progress.

Taken together, these mechanisms serve to ensure that EPA’s research and
science remain relevant, of high quality, and contribute to superior environmental
performance.

In order to sustain a viable and credible workforce, the Agency approaches its
research programs’ workforce planning in a manner consistent with its human capital
strategy. Key elements of this strategy include working to develop and implement a
holistic approach to recruitment, preserving a diverse workforce that reflects a wide
spectrum of viewpoints, and retaining existing talent.

FY 2005 PARTs

The following programs were assessed by OMB’s Program Assessment Rating Tool
(PART) for the FY 2005 PART process (final PART ratings will be included in the
President's Budget):

e Superfund Federal Facilities Response
e Oil Spill
e Superfund Emergency Response and Removal (rePART).

3-12


Goal 4: Healthy Communities and Ecosystems

the Agency’s ecosystems research will continue to develop approaches to identify and
test the linkages between probability-based and targeted water quality monitoring
programs, landscape characteristics, and the probability of water body impairment. The
Agency will continue to develop monitoring methods and decision support systems to
improve its ability to identify probable causes of ecological impairment in streams.
Diagnosis and forecasting models previously developed will be applied to provide a
better scientific basis for ecosystem protection and restoration.

With the completion of critical research efforts in FY 2006 in areas such as the
development of tools and approaches for the prioritization of endocrine disruptor
screening and testing needs, the computational toxicology research program is
positioned to expand efforts in FY 2007 to focus on four key areas: information
technology, chemical prioritization and categorization tools, system biology models, and
cumulative risk assessment. In the pesticides and toxics research program, research
designed to provide updated tools for asbestos risk assessments will be completed in
2007.

In FY 2007, an increased investment in nanotechnology research will accelerate
efforts to generate the underlying science needed to better understand and predict the
potential implications of nanoparticle releases to the environment and their fate,
transport, and potential effects on human health and ecosystems. Nanotechnology
research will also identify how nano-scale science can be responsibly used for
beneficial environmental applications, such as improved sensors and new control and
remediation technologies.

In addition, resources in FY 2007 supporting health risk assessments will elevate
and help to ensure acceptance of Agency assessments through identification and airing
of scientific issues at an early stage in assessment development, improve transparency
in how issues are resolved, and enhance the quality, objectivity, utility, and integrity of
health assessments that result from advice and review from the National Academy of
Sciences.

Recognizing that environmental policy and regulatory decisions will only be as
good as the science upon which they are based, EPA makes every effort to ensure that
its science is of the highest quality and relevance, thereby providing the basis for sound
environmental results. EPA uses the Research and Development (R&D) Investment
Criteria of quality, relevance, and performance in its decision-making processes through
the use of research strategies and plans, program review and evaluation by the Board
of Scientific Counselors (BOSC) and the Science Advisory Board (SAB), and peer
review.

In 2005, the BOSC evaluated the endocrine disruptors, human health, and
ecological research programs to assess the quality and relevance of the research and
the programs’ historical performance. The endocrine disruptors subcommittee

4-15


Goal 2: Clean and Safe Water

of Scientific Counselors (BOSC) and the Science Advisory Board (SAB), and peer
review.

In 2005, the BOSC evaluated the Agency's drinking water research program to
assess the quality and relevance of its research and the program’s historical
performance. The subcommittee concluded that the program has produced significant
research, which in turn has been used by the Agency’s Office of Water (OW), states,
and industry to achieve outcomes. The subcommittee also lauded the program’s use of
the Agency’s Science to Achieve Results (STAR) program, which awards competitive
research grants through a rigorous peer review process. The FY 2005 PART process
resulted in specific annual and long term performance measures that will improve
quantification of outcomes. Notably, the drinking water research program will measure
the long term utility of its products for key decisions by the Office of Water.

Strategies are tailored to specific research needs and priorities. The Agency
maintains multi-year research plans (MYP) that outline steps for meeting those strategic
research needs and annual performance goals (APG) and measures (APM) for
evaluating progress.

Taken together, these mechanisms serve to ensure that EPA’s research and
science remain relevant, of high quality, and contribute to superior environmental
performance.

In order to sustain a viable and credible workforce, the Agency approaches its
research programs’ workforce planning in a manner consistent with its human capital
strategy. Key elements of this strategy include working to develop and implement a
holistic approach to recruitment, preserving a diverse workforce that reflects a wide
spectrum of viewpoints, and retaining existing talent.

FY 2005 Performance Assessment Rating Tool Evaluations (PARTs):

The following programs were assessed using the Program Assessment Rating
Tool (PART) for the FY 2005 PART process (final PART ratings will be included in the
President's Budget):

* Oceans and Coastal Programs

+ Surface Water Protection Program

+ Section 106 Categorical Grants (Pollution Control)
+ Drinking Water Research

2-12


Goal 5: Compliance and Environmental Stewardship

will also carry out actions outlined in the Domenici-Barton EPAct, providing compliance
assistance to owners and operators of Underground Storage Tanks. The EPA will
protect human health and the environment by increasing compliance with existing laws
and regulations. Innovation and environmental stewardship will be encouraged. In
addition, EPA will assist Federally recognized tribes in assessing environmental
conditions in Indian Country, and will help build their capacity to implement
environmental programs. EPA will also strengthen the scientific evidence and research
supporting environmental policies and decisions on compliance, pollution prevention,
and environmental stewardship.

Improving Compliance with Environmental Laws

Critical to the success of EPA’s mission is a strong commitment to ensuring
compliance with environmental laws and policies. Working in partnership with state and
tribal governments, local communities and other Federal agencies, in FY 2007 EPA will
identify and address significant environmental and public health problems, strategically
deploy its resources, and make use of integrated approaches to reduce noncompliance
and achieve strong environmental protection outcomes.

In order to meet the Agency’s goals, its “smart enforcement’ strategy employs an
integrated, common-sense approach to problem-solving and decision-making. An
appropriate mix of data collection and analysis; compliance monitoring, assistance and
incentives; civil and criminal enforcement resources; and innovative problem-solving
approaches are used to address significant environmental issues and achieve
environmentally beneficial outcomes.

This approach also requires the Agency to develop and maintain strong and
flexible partnerships with regulated entities and a well-informed public, in order to foster
a climate of empowerment and shared responsibility for the quality of our nation’s land,
resources and communities. Thus, the Agency can carefully target its enforcement and
compliance assurance resources, personnel and activities to address the most
significant risks to human health and the environment, and to ensure that certain
populations do not bear a disproportionate environmental burden.

EPA’s continued enforcement efforts will be strengthened through the
development of meaningful measures to assess the impact of enforcement and
compliance activities; assist in targeting areas that pose the greatest risks to human
health or the environment; display patterns of noncompliance; or include
disproportionately exposed populations. Further, EPA cooperates with states and the
international community to enforce and ensure compliance with cross-border
environmental regulations. EPA also helps to build their capacity to design and
implement effective environmental regulatory, enforcement and Environmental Impact
Assessment programs.

¢« Compliance _Assistance_and_Incentives: The Agency's Enforcement and
Compliance Assurance Program uses compliance assistance and incentive tools to

5-2


Appendixes




Goal 4: Healthy Communities and Ecosystems

and the Diporeia decline are both problems believed to be related to invasive
species.

In FY 2006 EPA will issue Great Lakes Legacy Act program regulations, which
will outline how resources will be used and projects prioritized to remediate
contaminated sediments in the Great Lakes AOCs.

Mexico Border Water Quality

The United States and Mexico have a long-standing commitment to protect the
environment and public health in the U.S.-Mexico Border Region. The U.S.-Mexico
Border 2012 Program, a joint effort between the U.S. and Mexican governments, will
work with the 10 border states and with border communities to improve the region's
environmental health using the Border 2012 Plan. Under this plan, EPA expects to take
several key actions to improve water quality and protect public health.

« Core Program Implementation: EPA will continue to implement core programs
under the Clean Water Act (CWA) and related authorities, ranging from discharge
permit issuance, to watershed restoration, to nonpoint pollution control.

« Wastewater Treatment Financing: Federal, state, and local institutions participate
in border area efforts to improve water quality through the construction of
infrastructure and development of pretreatment programs. Specifically, Mexico’s
National Water Commission (CNA) and EPA provide funding and technical
assistance for project planning and construction. The program has sufficient
resources to carry out currently approved projects and provides $25 million to
address new needs in FY 2007.

¢ Build Partnerships: \|n FY 2007, EPA will establish a workgroup with Mexico to
develop a workplan to define specific steps needed to accomplish the water quality
improvement goals expressed in the Border 2012 Plan.

National Estuary Program (NEP)/Coastal Watersheds

The goal of this program is to restore the physical, chemical, and biological
integrity of the Nation’s estuaries and coastal watersheds by protecting and enhancing
water quality and living resources.

In FY 2007, EPA will undertake various efforts in support of coastal watershed
protection and restoration. In the area of monitoring, we will continue to work with our
Federal and state partners on the National Coastal Condition Report, the only
statistically-significant measure of U.S. water quality on a nationwide basis. We will
also support estuarine monitoring efforts using such tools as the Ocean Survey Vessel
Bold, EPA’s research vessel. EPA will also support coastal watersheds to enhance
their efforts to address threats to the health of estuaries and coastal waters through
various means, including providing technical assistance on financing estuary and
coastal protection projects, developing and disseminating tools and resources for

47


Goal 4: Healthy Communities and Ecosystems

and use information on many chemicals in commerce. EPA will make special efforts to
assess the potential risks of newly developed substitutes for a chemical category of
emerging concern: brominated flame retardants. EPA is working to engage
stakeholders in a cooperative process to evaluate the efficacy and potential risks of
developing flame retardants. In addition, the Agency will continue to evaluate and
implement perfluorooctanoic acid (PFOA) risk management actions as needed and will
continue developments of information collection and chemical testing rules to address
the needs of the Agency and others.

The lead program is developing a comprehensive program for the management
of renovation, repair and painting activities involving lead based paint hazards and will
continue to shift its focus from oversight and rule development at the Headquarters level
to regional oversight of activities supported through grant funding, such as state-
implemented lead-based paint training and certification programs and efforts targeted to
high-risk areas, and on implementation of a few of the highest priority regulatory and
outreach efforts. The Agency will continue to work with the Maritime Administration
(MARAD) in order to dispose of its fleet of obsolete ships containing equipment that
uses PCBs and will continue to work with the U.S. Navy to develop a national approval
for the reefing of ships.

The Agency will continue Homeland Security activities focused on identifying and
reviewing proposed pesticides for use against pathogens of greatest concern for crops,
animals, and humans in advance of their potential introduction, including testing of
antimicrobial products to determine which are effective against human pathogens. If the
safety concerns are met, and the product is effective (as in the case of antimicrobials),
EPA can approve use of the product. Close cooperation with other Federal agencies
and industry will continue in order to carry out these activities which directly respond to
requirements in Homeland Security Presidential Directives. Additionally, EPA’s Acute
Exposure Guideline Levels (AEGLs) program will continue to develop proposed AEGL
values.

The Toxic Release Inventory (TRI) program provides the public with
information on the releases and other waste management of toxic chemicals. Two
laws, Section 313 of the Emergency Planning and Community Right-To-Know Act
(EPCRA) and Section 6607 of the Pollution Prevention Act (PPA), require EPA to collect
information on listed toxic chemicals from certain industries and make the information
available to the public through various means, including a publicly accessible national
database.

45


Appendix A: Categorical Grants

goals, as well as consistent requirements for regular performance reporting. It also will
allow for meaningful comparisons between various states' past and planned activities
and performance, making progress more visible and programs more transparent.

HIGHLIGHTS:

State & Local Air Quality Management, Radon, and
Tribal Air Quality Management Grants

The FY 2007 request includes $204.2 million for Air State and Local Assistance
grants to support state, local, and Tribal air programs as well as radon programs. State
and Local Air Quality Management and Tribal Air Quality Management grant funding is
requested in the amount of $185.2 million and $10.9 million, respectively. These funds
provide resources to state, local, and Tribal air pollution control agencies for the
development and implementation of programs for the prevention and control of air
pollution or for the implementation of national primary and secondary ambient air
standards. In FY 2007, EPA will place particular emphasis on implementing the Clean
Air Interstate Rule (CAIR) and developing 8-hour ozone state implementation plans
(SIPs), which states must submit to EPA in FY 2007. States also will begin work on fine
particle (PM-2.5) SIPs, and will incorporate regional haze reduction strategies,
developed by regional planning organizations, into their Regional Haze SIPs. States
must submit both the PM and Regional Haze SIPs to EPA in January 2008. Lastly, this
request includes $8.1 million for Radon grants, to provide funding for state radon
programs. In FY 2007, EPA expects 190,000 additional homes to have radon reducing
features (90,000 mitigations and 100,000 new homes with radon resistant new
construction), bringing the cumulative number of U.S. homes with radon reducing
features to 2.4 million.

Pesticide Enforcement, Toxics Substance Compliance, & Sector Program Grants

In FY 2007, the President’s Budget includes $26.0 million to build environmental
enforcement partnerships with states and tribes and to strengthen their ability to
address environmental and public health threats. The enforcement state grants request
consists of $18.7 million for Pesticides Enforcement, $5.1 million for Toxic Substances
Enforcement Grants, and $2.2 million for Sector Grants. State and Tribal enforcement
grants will be awarded to assist in the implementation of compliance and enforcement
provisions of the Toxic Substances Control Act (TSCA) and the Federal Insecticide,
Fungicide, and Rodenticide Act (FIFRA). These grants support state and Tribal
compliance activities to protect the environment from harmful chemicals and pesticides.

Under the Pesticides Enforcement Grant program, EPA provides resources to
states and Indian Tribes to conduct FIFRA compliance inspections and take appropriate
enforcement actions and implement programs for farm worker protection. Under the
Toxic Substances Compliance Grant program, states receive funding for compliance
inspections of asbestos and polychlorinated biphenyls (PCBs) and for implementation of
the state lead abatement enforcement program. The funds will complement other

A-2


Goal 1: Clean Air and Global Climate Change

Workforce

Senior management supports Human Capital efforts to develop leadership and
technical skills for all employees supporting the Clean Air and Global Climate Change
Goal. Offices within the Goal are analyzing their knowledge management needs and
capabilities as an important element of the overall strategic succession plan. This
analysis includes evaluating the skills of the current workforce and needs for the future
to ensure that EPA possesses the skills necessary to meet the challenges that lie
ahead.

The Agency approaches its research programs’ workforce planning in a manner
consistent with its human capital strategy. Key elements of this strategy include
working to develop and implement a holistic approach to recruitment, preserving a
diverse workforce that reflects a wide spectrum of viewpoints, and retaining existing
talent.

EPA offices work together to enhance information and data access across the
offices, and better communicate EPA’s message about air quality.
FY 2005 PARTs

The following programs were assessed in 2005 though OMB’s Program Assessment
Rating Tool (PART).

e National Ambient Air Quality Standards (NAAQS) Federal Program

e Air Quality Grants and Permitting Programs

e Indoor Air Environments

e National Ambient Air Quality Standards (NAAQS) Research (re-PART)

1-7


Goal 5: Compliance and Environmental Stewardship

Goal 5: Compliance and Environmental Stewardship

Strategic Goal: — Improve environmental performance through compliance with
environmental requirements, preventing pollution, and promoting environmental stewardship.
Protect human health and the environment by encouraging innovation and providing incentives
for governments, businesses, and the public that promote environmental stewardship.

Resource Summary

($ in 000)
FY 2007
o) FY 2006 President’s
10% of Budget Enacted Request Difference
1 - Improve Compliance $485,147 $491,033 $5,887
2 - Improve Environmental
Performance through Pollution
Prevention and Innovation $120,976 $112,735 -$8,240
3 - Build Tribal Capacity $73,552 $74,631 $1,079
4 - Enhance Science and Research $63,141 $55,140 -$8,001
Goal 5 Total** $742,815 $733,540 -$9,276
Workyears * 3,495.3 3,480.5 -14.8

* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview. ** Numbers may not add due to rounding.

In FY 2007, the Environmental Protection Agency will work to improve the
nation’s environmental protection practices, and to enhance natural resource
conservation on the part of government, business, and the public. To accomplish these
goals, the Agency will employ a mixture of effective inspection, enforcement and
compliance assistance strategies; provide leadership and support for pollution
prevention and sustainable practices; reduce regulatory barriers; and refine and apply
results-based, innovative, and multimedia approaches to environmental stewardship
and safeguarding human health.

In order to be effective, the EPA requires a strong enforcement and compliance
program, one which identifies and reduces noncompliance problems; assists the
regulated community in understanding environmental laws and regulations; responds to
complaints from the public; strives to secure a level economic playing field for law-
abiding companies; and deters future violations. In FY 2007, the enforcement program

5-1


Goal 5: Compliance and Environmental Stewardship

e Promote stronger  facility-level environmental management, including
Environmental Management Systems (EMSs);

e Improve overall environmental performance within high-priority business sectors;
and

e Improve program efficiency through increased evaluation and measurement.

Innovation Grant Program: EPA will expand the Innovation Grants program to
encourage states and tribes to develop and test innovative protection strategies, such
as permit streamlining and environmental management systems. These grants promote
the use of innovative technologies for better environmental results, and demonstrate
measurable efficiencies in environmental management.

Performance Track: Performance Track is one of EPA’s most successful and fastest
growing voluntary programs--successful because it uses positive incentives to
recognize and reward private and public facilities that demonstrate environmental
stewardship, and strong environmental performance beyond current requirements. In
FY 2007, EPA will move to significantly increase the number of facilities participating in
the program, with closer coordination and involvement of states. EPA will expand
activities to recruit facilities to participate in Performance Track and provide assistance
to those facilities. In FY 2007 Performance Track members will collectively achieve an
annual reduction of: 1.1 billion gallons in water use; 8.4 million MMBTUs in energy use;
20,000 tons in materials use; 360,000 tons of solid waste; 42,000 tons of air releases;
and 10,000 tons in water discharges.

Sector-based Stewardship: |n FY 2007 EPA will continue to work with twelve
industrial business sectors: agribusiness, cement manufacturing, construction, forest
products, iron and steel manufacturing, paint and coatings, ports, shipbuilding, metal
finishing, die casting and meat processing. EPA will work with national representatives
of these business sectors to set pollution reduction goals, measure performance,
provide environmental protection tools and technical assistance, remove barriers,
develop incentives, reduce unnecessary regulatory burden
and test innovative strategies.

Small Business Ombudsman: EPA will continue to support
the Small Business Ombudsman who serves as EPA's
gateway and leading advocate for small business issues,
partnering with state Small Business Assistance Programs,
and hundreds of small business trade associations, to reach Serving Small Businesses and the Environment
out to the small business community. These partnerships

provide the information and perspective EPA needs to help small businesses reduce
waste and materials use, and to achieve their environmental goals. This is a
comprehensive program that provides networks, resources, tools and forums for
education and advocacy on behalf of small businesses.

5-7


Goal 2: Clean and Safe Water

Goal 2: Clean and Safe Water

Strategic Goal: Ensure drinking water is safe. Restore and maintain oceans, watersheds,
and their aquatic ecosystems to protect human health, support economic and recreational
activities, and provide healthy habitat for fish, plants, and wildlife.

Resource Summary

($ in 000)

i FY 2007

o FY 2006 _ President’s
37% of Budget Enacted Budget __ Difference
1 - Protect Human Health $1,220,989 $1,177,458 -$43,531
2 - Protect Water Quality $1,791,520 $1,412,741 -$378,779
3 - Enhance Science and Research $120,703 $141,143 $20,441
Goal 2 Total ** $3,133,212 $2,731,342 -$401,870
Workyears * 2,930.1 2,906.8 -23.3

* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview. ** Numbers may not add due to rounding.

Over the 30 years since enactment of the Clean Water and Safe Drinking Water
Acts (CWA and SDWA), government, citizens, and the private sector have worked
together to make dramatic progress in improving the quality of surface waters and
drinking water. Thirty years ago, much of the Nation’s tap water had either very limited
treatment (usually disinfection) or no treatment at all. About two-thirds of the surface
waters assessed by states were not attaining basic water quality goals and were
considered polluted.2 Some of the Nation’s waters were open sewers posing health
risks and many water bodies were so polluted that traditional uses, such as swimming,
fishing, and recreation, were impossible.

Today, drinking water systems monitor and treat water to assure compliance with
drinking water standards covering a wide range of contaminants. In addition, EPA now
protects sources of drinking water through activities such as regulating underground
injection of wastes. The number of polluted waters has been reduced and many clean
waters are even healthier. A massive investment of Federal, state, and local funds
resulted in a new generation of wastewater treatment facilities able to provide
“secondary” treatment or better. EPA has issued national discharge regulations for over

2 United States Environmental Protection Agency Office of Water. 1998, Clean Water Action Plan: Restoring and Protecting
America’s Water. Washington, DC: Government Printing Office.

21


Table of Contents

Introduction and Overview:

Annual Performance Plan and Budget OVerviewW 0.0... cccccccetetneteteneneteneneentes iii
Goals:

Goal 1: Clean Air And Global Climate Change........ccccccccnneeietiietneneenee 1-1
Goal 2: Clean and Safe Water ...........0.cccccccccceccceseseceeeeeseseeceeeseeesesceeeesestscseseceeeeetieets 2-1
Goal 3: Land Preservation and Restoration ..........00cccccecceeeereeeeeeeeetenenerseeees 3-1
Goal 4: Healthy Communities and Ecosystems ..0......0...0:0: cece eect eeteeteeeeeeets 4-1
Goal 5: Compliance and Environmental Stewardship ...........0...0.0: eects 5-1
Appendices:

Categorical Grants Program.............. cece cere eetetee eres ceteeeeeetesetieeeeeteseteteseesesreeed A-1

Infrastructure Financing

Trust Funds..

Budget Tables:
Agency Resources by Appropriations... cccccccccceteteetetenteteteeetetreenenenrents D-1
Agency Resources by Goal ....... cc cccccccccecerenetetetetetenetneneeeneteeneneneees D-2
Program Projects .....0..ccccccccecetneteeneieeneistneneneneeneieneieneneeenees D-3

List Of ACFONYMS.........c ccc eceecceeeeceeceeneeeseeeeeseeesecseeesecseeeeeeseeseesseseeeseseeeseeieeeeeeeenseeseens E-1


Goal 3: Land Preservation and Restoration

EPA will work to improve its capability to respond effectively to incidents that may
involve harmful chemical, oil, biological, and radiological substances. The Agency will
explore improvements in field and personal protection equipment, expand training for
response personnel and continue to participate in multi-agency training and exercises.
EPA also will review response data provided in the “after-action” reports prepared by
EPA emergency responders following a release and examine “lessons learned” reports
to identify which activities work and which need improvement. Application of this
information and other data will advance the Agency’s state-of-the-art emergency
response operations.

EPA's 25-year-old Emergency Response and Removal program is supported by
EPA OSCs, the Environmental Response Team (ERT) and the National
Decontamination Team (NDT), who respond to small and large scale response actions,
disasters and terrorist incidents. Responding to these incidents is one of EPA's
traditional responsibilities.

The FY 2007 President's Budget request includes funding to enable EPA to
improve the capabilities of EPA’s responders through procurement of state-of-the-art
equipment, to organize a new Environmental Laboratory Response Network (eLRN)
program to strengthen such lab capabilities, expand participation for pre-deployments to
national security special events, and develop decontamination protocols.

In FY 2007, EPA will continue to implement its homeland security plans and
procedures and to meet its responsibilities in order to respond to major hazardous
substance, oil, weapons of mass destruction (WMD) or nationally significant terrorist
incidents. EPA will prepare for the possibility of simultaneous attacks on multiple
targets and will implement the National Approach to Response (NAR), which is EPA’s
internal multi-faceted mechanism to effectively manage and conduct responses to
nationally significant events. The NDT will improve its specialized decontamination
capabilities to address chemical and biological and/or radiological agents in both
environmental and building contamination situations. The ERT will provide training and
specialized scientific, technical, and health and safety support to EPA’s responders.

To meet its objective to reduce and control the risks posed by accidental or
intentional releases of harmful substances by improving our Nation’s capability to
prepare for and respond more effectively to these emergencies, EPA intends to achieve
the following results in FY 2007:

e Improve the Agency’s emergency preparedness by achieving and maintaining
the capability to respond to simultaneous large-scale emergencies and by
improving response readiness by 10 percent from the previous year using the
core emergency response criteria;

e Complete 315 removal actions (excluding actions at Federal facilities and actions
by PRPs with enforcement instruments);

3-10


Appendix B: Infrastructure Finance

Set-Asides for Tribes

To improve public health and water quality on Tribal lands, the Agency will
continue the 1 % percent CWSRF set-aside for funding wastewater grants to tribes as
provided in the Agency’s 2002 appropriation. The 2002 World Summit in Johannesburg
adopted the goal of reducing the number of people lacking access to basic sanitation by
50 percent by 2015. Through this program, EPA contributes to this goal which will
provide for the development of sanitation facilities for tribes and Alaska Native Villages.

Alaska Native Villages

The President's Budget provides $15 million for Alaska native villages for the
construction of wastewater and drinking water facilities to address serious sanitation
problems. EPA will continue to work with the Department of Health and Human
Services’ Indian Health Service, the State of Alaska, the Alaska Native Tribal Health
Council and local communities to provide needed financial and technical assistance.

Puerto Rico

The President's Budget includes $1.0 million for the next design phase of
upgrades to Metropolitano’s Sergio Cuevas treatment plant in San Juan, Puerto Rico.
EPA and Puerto Rico provided $7 million to date ($3.8 million and $3.2 million,
respectively). When all upgrades are complete, EPA estimates that about 1.4 million
people will enjoy safer, cleaner drinking water.

Goal 4: Healthy Communities and Ecosystems

Brownfields Environmental Projects

The President's Budget includes $89.0 million for Brownfields environmental
projects. EPA will award grants for assessment activities, cleanup, and revolving loan
funds (RLF). Additionally, this includes cleanup of sites contaminated by petroleum or
petroleum products and environmental job training grants. In FY 2007, the funding
provided will result in the assessment of 1,000 Brownfields properties. Brownfields
grantees will leverage $900,000 in cleanup and redevelopment funding.

Mexico Border

The OMB Submission includes a total of $25.0 million for water infrastructure
projects along the U.S./Mexico Border. The goal of this program is to reduce
environmental and human health risks along the U.S./Mexico Border. EPA's
U.S./Mexico Border program provides funds to support the planning, design and
construction of high priority water and wastewater treatment projects along the border.
The Agency’s goal is to provide protection of people in the U.S.-Mexico border area for
health risks by increasing the number of homes connected to potable water supply and
wastewater collection and treatment systems. The program has sufficient resources to
carry out currently approved projects and provides $25 million to address new needs in
FY 2007.

B-4


Goal 2: Clean and Safe Water

coastal waters and progress in meeting EPA’s strategic targets will be tracked through
the National Coastal Condition Report. In addition, the OSV BOLD, EPA’s ocean
survey vessel, will support monitoring and assessment needs in coastal regions.

Reduce Vessel Discharges

EPA will focus on enhancing regulation of discharges of pollution from vessels.
Key work for FY 2007 includes developing the proposal for wastewater standards for
cruise ships operating in Alaskan waters and cooperating with the Department of
Defense to develop discharge standards for all armed forces vessels.

Manage MPRSA Ocean Dumping Program (Including Dredged Material)

Several hundred million cubic yards of sediment are dredged from waterways,
ports, and harbors every year to maintain the Nation’s navigation system. All of this
sediment must be disposed of safely. EPA and the U.S. Army Corps of Engineers
(COE) share responsibility for regulating how and where the disposal of sediment
occurs. In FY 2007, EPA and COE will continue to focus resources on improving how
disposal of dredged material is managed, including evaluating, designating, and
monitoring disposal sites. EPA will also review and concur on the disposal permits
issued by COE.

Manage Invasive Species

One of the greatest threats to U.S. waters and ecosystems is the uncontrolled
spread of invasive species. Invasive species commonly enter U.S. waters through the
discharge of ballast water from ships. In FY 2007, EPA will assist the U.S. Coast Guard
in its efforts to develop ballast water discharge standards. In addition, EPA will continue
efforts to target invasive species in coastal areas. Efforts addressing invasive species
on an international level are discussed below.

International Activities

Internationally, our objective is to protect the environmental quality of U.S.
coastal and ocean waters. U.S. waters are subject to international sources of pollution
and EPA’s international efforts in this area are focused on the development and
implementation of international standards necessary to address transboundary sources
of pollution, pollution affecting shared ecosystems, and the introduction of non-
indigenous species through maritime shipping. To reach these ends we are seeking to
reduce the introduction of invasive species to U.S. waters by working with the U.S.
Coast Guard regarding the International Ballast Water Standards Convention under
MARPOL. Another emphasis is negotiation of effective international standards
addressing harmful anti-foulants and air emissions from ships. Achievement of the
objective and strategic targets will enhance U.S. water quality, human health, and help
stabilize aquatic ecosystems in North America.

2-10


United States Environmental Protection Agency
Office of the Chief Financial Officer (2732A)
Publication Number: EPA-205-S-06-001
February 2006

www.epa.gov/ocfo

Photo Credit: (front and back cover)
Deborah Steckley, U.S. EPA



Goal 4: Healthy Communities and Ecosystems

riparian forests that serve as a buffer against sediment and nutrient pollution that enters
waterways from the land.

The targets in EPA's plan for nutrient and sediment reductions are scientifically based
and also reflect a multi-state consensus. The Program plans to conduct a full re-
evaluation in 2007. In the meantime, the Program continues to pursue program
strategies to accelerate nutrient-sediment reduction, including state adoption of
enforceable bay-specific water quality standards by the end of summer 2005, an
innovative new basin-wide NPDES permitting strategy for nitrogen and phosphorus, and
development of a strategy to address excess animal manure and poultry litter for
Chesapeake Executive Council endorsement in 2005. Attention is also being given to
financing issues.

Protecting the Gulf of Mexico

The Gulf of Mexico basin has been called “America's Watershed.” Its U.S.
coastline is 1,630 miles long. Thirty-three major rivers feed into the Gulf, as well as
drainage from 31 states and drainage from Mexico. One sixth of the U.S. population
now lives in Gulf Coast states. For FY 2007, EPA has worked with states and other
partners to define key activities to support attainment of environmental and health goals.
These activities fall into three categories:

+ Core Clean Water Programs: The Clean Water Act provides authority and
resources that are essential to protecting water quality in the Gulf of Mexico and in
the larger Mississippi River Basin that contributes pollution, especially oxygen
demanding nutrients, to the Gulf. EPA will work with states to assure effective
implementation of core clean water programs, including discharge permits, nonpoint
pollution controls, wastewater treatment, and protection of wetlands.

+ Protecting and Restoring the Gulf of Mexico: A central pillar of the strategy to
restore the health of the Gulf is restoration of water quality and habitat in 12 priority
coastal watersheds. These 12 watersheds include 354 of the impaired segments
identified by states around the Gulf and will receive targeted technical and financial
assistance to restore impaired waters. The 2008 goal is to fully attain water quality
standards in at least 20 percent of these segments.

+ Reducing the Size of the Hypoxic Zone: Any strategy to improve the overall
health of the entire Gulf of Mexico must include a focused effort to reduce the size of
the zone of hypoxic conditions (i.e. low oxygen in the water) in the northern Gulf.
Actions to address this problem will need to focus on both controlling localized
addition of pollution to the Gulf and on controlling the loadings of nutrients from the
Mississippi River.

In working to accomplish this goal, EPA and other Federal agencies will continue
implementation of core clean water programs and partnerships among agencies.
Specific efforts in FY 2007 will include:

4-10


Goal 3: Land Preservation and Restoration

Superfund Trust Fund resources for site remediation where there is no known or
viable PRP. The Agency’s expenditures are recouped through administrative actions,
CERCLA section 107 case referrals, and through settlements reached with the use of
alternative dispute resolution.

EPA’s financial management offices provide a full array of support services to the
Superfund program including managing oversight billing for Superfund site cleanups
and financial cost recovery. The Department of Justice supports EPA’s Superfund
Enforcement program through negotiations and judicial actions to compel PRP cleanup
and litigation to recover Trust Fund monies spent.

Encouraging Land Revitalization

Land is one of America’s most valuable resources. However, where
contamination presents a real or perceived threat to human health and the environment,
options and even interest in future use of that property may be limited. To address
these common scenarios, EPA’s cleanup programs have set a national goal of returning
formerly contaminated sites to long-term, sustainable, and productive use. This goal
creates greater impetus for selecting and implementing remedies that, in addition to
providing clear environmental benefits, support reasonably anticipated future land use
options and provide greater economic and social benefits.

To help achieve its land revitalization goals, EPA works with external partners to:
(1) promote land revitalization by ensuring that current use or reuse options are
considered explicitly in the evaluation of cleanup options; (2) commit the necessary
resources to address current use or reuse as a top priority in cleanup decisions; (3)
develop new comprehensive policies and programs to address unintended cross-
jurisdiction and cross-program barriers to the protective reuse of contaminated
properties; (4) promote protective, long-term current use or reuse of properties; (5)
promote sustainable reuse to prevent further contamination and indirect environmental
problems that may result from some reuse (sustainable reuses include open spaces,
energy efficient buildings, low impact design, smart growth community developments,
and wildlife habitats); (6) develop and promote a land revitalization research agenda
that improves our understanding of and our ability to use protectively or reuse
contaminated or potentially contaminated properties; (7) build partnerships to leverage
knowledge, expertise, and resources in the revitalization of properties (including
government-to-government partnerships at the local, state, tribal, and Federal levels as
well as partnerships with non-government, private, and community organizations); (8)
expand community capabilities through improved public involvement tools and
information systems on contamination, cleanup, reuse, and long-term stewardship; (9)
expand and promote educational and training programs that encourage and provide
needed tools to achieve land revitalization; and (10) promote various approaches to
measure and report the status and impacts of the collective efforts to revitalize.

346


Goal 4: Healthy Communities and Ecosystems

In 2001 the Supreme Court determined that some isolated waters and wetlands
are not regulated under the Clean Water Act (CWA). Many waters with important
aquatic values may no longer be covered by CWA Section 404 protections. However,
in FY 2007, EPA and the Army Corps of Engineers (COE) will continue to strive towards
EPA’s commitment of “no net loss” of wetlands in the United States.

Large water bodies like the Gulf of Mexico, the Great Lakes, and the
Chesapeake Bay are surrounded by industrial and other development and have been
exposed to substantial pollution over many years at levels higher than current
environmental standards permit. As a result, the volume of pollutants in these water
bodies has exceeded their natural ability to restore balance. Working with stakeholders,
EPA has established special programs to protect and restore these unique resources by
addressing the vulnerabilities for each.

EPA's Brownfields program promotes the clean up, reuse, and redevelopment of
brownfields sites through its assessment, revolving loan fund, and cleanup grants. The
program also supports research, training, and technical assistance efforts; clarifies
liability issues; and promotes Federal, state and local partnerships toward the goal of
putting contaminated land back into productive use.

The Agency will continue to support the National Environmental Justice Advisory
Council (NEJAC) which provides the Agency significant input from interested
stakeholders such as community-based organizations, business and industry, academic
institutions, state, tribal and local governments, non-governmental organizations and
environmental groups.

Pesticides and Chemicals Programs

EPA will continue using both voluntary and regulatory approaches to address
risks associated with the use of pesticides in the home, work environment and
agricultural settings. These approaches include identifying and assessing potential
risks from pesticides, setting priorities for addressing these risks, strategizing for
reducing these risks, and promoting innovative and alternative measures of pest control,
such as environmental stewardship and integrated pest management (IPM). In
addition, EPA will strengthen education and training of workers and the public and
promote the registration and use of reduced risk pesticides.

EPA will make progress towards its objective of protecting human health,
communities and ecosystems from pesticide use by focusing on meeting our Food
Quality Protection Act (FQPA) statutory mandate of completing the assessment of all
existing tolerances (9,721). This process includes the issuance of all food use
Reregistration Eligibility Decisions (REDs). These regulatory actions will ensure that

43


WwIPP

Appendix E: Acronyms

Environmental Protection Agency
List of Acronyms

Personnel, Compensation and Benefits
Particulate Matter

Partnership for a New Generation of Vehicles
Publicly Owned Treatment Works
Performance Partnership Grants

Program Results Code

Public Water System Supervision
Responsibility Center

Resource Conservation and Recovery Act of 1976
Regional Geographic Initiative

Risk Management Plan

Responsible Planning Implementation Office
Reprogramming Request

Rural Water Technical Assistance

Science and Technology

Sub-allocation (level)

Superfund Amendments and Reauthorizations Act of 1986
Senior Budget Officer

Small Business Regulatory Enforcement Fairness Act
Safe Drinking Water Act

Safe Drinking Water Information System
Superfund Innovative Technology Evaluation
Senior Leadership Council

State Revolving Fund

Senior Resource Official

State and Tribal Assistance Grants
Sludge-to-Oil-Reactor

Source Water Protection

Surface Water Treatment Rule

Total Maximum Daily Load

Toxic Release Inventory

Toxic Substances Control Act

Underground Injection Control

Underground Storage Tanks

Working Capital Fund

Water Infrastructure Funds

Waste Isolation Pilot Project


Goal 3: Land Preservation and Restoration

Goal 3: Land Preservation and Restoration

Strategic Goal: Preserve and restore the land by using innovative waste
management practices and cleaning up contaminated properties to reduce risks posed
by releases of harmful substances.

Resource Summary

($ in 000)

FY 2007

0) FY 2006 President’s
23% of Budget Enacted Budget __ Difference
1 — Preserve Land $217,306 $242,091 $24,785
2 — Restore Land $1,383,140 $1,395,285 $12,145
3 - Enhance Science and Research $56,025 $52,259 -$3,766
Goal 3 Total ** $1,656,471 _ $1,689,635 $33,164
Workyears * 4,737.8 4,686.2 -51.6

* Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview. ** Numbers may not add due to rounding.

Uncontrolled, hazardous and nonhazardous wastes on the land can migrate to
the air, groundwater, and surface water, contaminating drinking water supplies, causing
acute illnesses or chronic diseases, and threatening healthy ecosystems in urban, rural,
and suburban areas. Hazardous substances can kill living organisms in lakes and
rivers, destroy vegetation in contaminated areas, cause major reproductive
complications in wildlife, and otherwise limit the ability of an ecosystem to survive.

EPA leads the country’s activities to prevent and reduce the risks posed by
releases of harmful substances and by contaminated land. The most effective
approach to controlling these risks incorporates developing and implementing
prevention programs, improving response capabilities, and maximizing the effectiveness
of response and cleanup actions. This approach will help to ensure that human health
and the environment are protected and that land is returned to or continues to be used
beneficially.

EPA will work to preserve and restore the land with the most effective waste
management and cleanup methods available. EPA uses a hierarchy of approaches to

3-1




Goal 1: Clean Air and Global Climate Change

EPA’s Domestic Stratospheric Ozone Protection Program will continue to
implement the provisions of the Clean Air Act and the Montreal Protocol on Substances
that Deplete the Ozone Layer (Montreal Protocol), contributing to the reduction and
control of ozone-depleting substances (ODSs) in the U.S. and lowering health risks to
the American public associated with exposure to UV radiation.

In FY 2007, EPA will continue upgrading the national radiation monitoring
system, thus improving response time, data dissemination, and population/geographic
coverage of the U.S., should there be an accidental or intentional release of radiation
either domestically or internationally. EPA will also maintain readiness of deployable
monitors allowing for sampling density at locations near and downwind from radiological
incidents. The Agency will continue to enhance laboratory response capacity and
capability to ensure a minimal level of surge capacity for radiological incidents.

International Activities

EPA will continue to work with other agencies on the Methane to Markets
program. This program is an international initiative that focuses on advancing cost-
effective, near-term methane recovery and use as a clean energy source. The goals of
the program are to reduce global methane emissions to enhance economic growth,
promote energy security, improve the environment, and reduce greenhouse gas
emissions. Other benefits include improving mine safety, reducing waste, and improving
local air quality. EPA is the lead agency for the Methane to Markets program.

EPA will also participate in the newly-established Asia-Pacific Partnership on
Clean Development and Climate. The Partnership aims to promote development and
transfer of cleaner, more efficient technologies that can address greenhouse gas
mitigation and energy security - issues that are crucial not only to the region but the
entire world. Through these programs, EPA will work with international governments to
transfer American technology and voluntary program techniques. The Department of
State is the lead agency for implementing this initiative.

Research

EPA’s air research provides the scientific foundation for the Agency to fulfill its
responsibilities under the Clean Air Act, which helps make the air safe to breathe and
protects human health and the environment. The Agency focuses its research on
National Ambient Air Quality Standards (NAAQS) pollutants and also studies hazardous
air pollutants (HAPs).

In FY 2007, the Agency’s air research will continue to strengthen the scientific
basis for the periodic review and implementation of air quality standards. This research
is concentrated on particulate matter (PM), but includes other NAAQS pollutants. PM
research is aligned with the ten priority research topics for PM identified by the National

15


Goal 5: Compliance and Environmental Stewardship

Pollution Prevention and Enforcement Research

EPA has developed and evaluated tools and technologies to monitor, prevent,
control, and clean up pollution throughout its history. During the 1970s and 1980s, the
agency emphasized controlling or remediating environmental dangers. Since the
Pollution Prevention Act of 1990, the agency has increasingly focused on preventative
and sustainable approaches to health and environmental problems. Sustainable
approaches require: (1) innovative design and production techniques that minimize or
eliminate environmental liabilities; (2) integrated management of air, water, and land
resources; and (3) changes in the traditional methods of creating and distributing goods
and services. EPA remains committed to helping industry achieve these ideals while at
the same time adopting more effective and efficient practices, materials, and
technologies.

EPA’s pollution prevention work promotes innovative new technology, assessing
the interaction of stressors threatening human and environmental health, and
developing cost-effective responses to those stressors (R&D Criteria: Relevance). In
FY 2007, research will continue to explore the principles governing sustainable systems
and the integration of social, economic, and environmental objectives in environmental
assessment and management. In a broader context, the program will focus not just on
the industrial sectors, but on all decision-makers in areas critical to environmental
stewardship (e.g., municipal sector and ecosystems) such as testing the effectiveness
of a market-based incentive as a tool to manage storm water run-off in urban
watersheds. Efforts within environmental economics and decision science research are
designed to improve EPA’s decision making, cost-benefit analyses, and implementation
strategies (R&D Criteria: Performance). Research will focus on benefit transfer
methods and better understanding of and design for practical trading programs. These
two areas are high priorities for EPA’s program offices and have broad applications to
the Agency’s regulatory work.

Also in FY 2007, the innovative student design competition award program
known as P3 (People, Prosperity, and Planet) will support up to 50 student design
projects from around the country. This awards program encourages technological
innovation in a wide range of activities. This competition promotes innovative thinking in
sustainable approaches toward research, development and design of scientific and
technical solutions to environmental problems. In FY 2006 several awards have already
moved from the design stage to business plan and may soon be ready for
commercialization (R&D Criteria: Relevance; Performance).

Recognizing environmental policy and regulatory decisions will only be as good
as the science upon which they are based, EPA makes every effort to ensure that its
science is of the highest quality and relevance, thereby, providing the basis for sound
environmental results. EPA uses the Research and Development (R&D) Investment
Criteria of quality, relevance, and performance in its decision-making processes through
a) the use of research strategies and plans, b) peer review, and c) program review and
evaluation by the Board of Scientific Counselors (BOSC) and the Science Advisory

5-9


Appendix C: Trust Funds

Trust Funds
(Dollars in Millions)
FY 2006 FY 2007
Enacted"? President’s Budget’
$ FTE $ FTE
Superfund? $1,199) 3,126] $1,218 3,097]
Inspector General (Transfers) $13} 94 $13 94
Research & Development (Transfers) $30) 106 $28 106]
(Superfund Total $1,242) 3,327| $1,259 3,297
IRescission of Prior Year's SF Funds -$11 ie) $0) ie)
IBase Realignment and Closure* $0 78 $0 78
LUST $80° 77 $73) 7
Trust Funds Total: $1,311 3,482) $1,332 3,452

‘ Totals may not add due to rounding.

Includes enacted agency-wide across-the-board 0.476 percent reduction and 1.0 percent reduction

5 Includes about $26 million for the Department of Justice annually in FY 2006 and FY 2007.
Funding for reimbursable FTE provided by the Department of Defense via Interagency Agreement.
Includes enacted supplemental resources for Hurricane Katrina response.

Superfund

In FY 2007, the President's Budget requests a total of $1,259 million in
discretionary budget authority and 3,297 workyears for Superfund. Currently, more than
94 percent of the 1,547 sites on the Superfund National Priorities List (NPL) are either
undergoing cleanup construction, are completed, or are deleted.

Of the total funding requested for Superfund, $582 million and 950 workyears are
for Superfund cleanups. The Agency’s Superfund cleanup program addresses public
health and environmental threats from uncontrolled releases of hazardous substances.
The Agency expects to demonstrate significant progress in reducing risk to human
health and the environment. To address the challenges of meeting construction and
post-construction responsibilities, EPA proposes to redirect resources toward
construction from activities undertaken in the earlier phases of the Superfund remedial
program. In FY 2007, EPA and its partners anticipate completing 40 Superfund
cleanups at NPL sites to achieve the overall goal of 1,046 total construction completions
by the end of 2007.

C-1


Goal 4: Healthy Communities and Ecosystems

- Work with states to select a project watershed in each of the states in the
Lower Mississippi River Basin to reduce nitrogen loadings to the lower
Mississippi River;

+ Work with states and other partners to identify "100 Highest Opportunity
Watersheds" where nitrogen reduction strategies will be implemented;

+ Implement the "Friends of the Gulf’ award program to recognize
corporations, organizations, or individuals that have taken effective,
voluntary measures to reduce nutrient inputs; and

+ Work with the private sector to support Industry Led Solutions for reducing
both point and nonpoint sources.

Multidisciplinary Programs

Children’s Health

EPA’s Children’s Health program reduces risks to children from a range of
environmental hazards. The Agency builds partnerships and effective working
relationships with other Federal agencies, health care providers, and international
organizations to incorporate children’s environmental health concerns into their
programs and activities. In addition, work is underway to reduce exposure of older
adults to environmental hazards. Efforts focus on building capacity, providing tools and
information for better decision-making, and engaging in outreach activities.

Solid Waste and Emergency Response

To reduce or eliminate the potential risks associated with chemical releases, EPA
must first identify and understand potential chemical risks and releases. EPA will use
information generated by the Risk Management Program (RMP), Emergency Planning
and Community Right-to-Know Act (EPCRA), and the Spill Prevention Control and
Countermeasure (SPCC) program to supplement data on potential chemical risks and
to develop voluntary initiatives and activities to reduce risk at high-risk facilities, priority
industry sectors, and/or specific geographic areas.

To meet its objective of protecting human health, communities, and ecosystems
from chemical releases through facility risk reduction efforts and building community
infrastructures, EPA, working with state and local implementing agencies, intends to
complete 400 RMP audits in FY 2007. EPA will also continue to work to transition the
RMP submission system to allow complete Internet-based risk management plan
submission.

Information collected from the local emergency planning committees (LEPCs)

indicating how they have incorporated appropriate facility risk information into their
emergency preparedness and community right-to-know programs will serve as a

4-11


Goal 4: Healthy Communities and Ecosystems

health and environmental protection but which do not always sufficiently meet the needs
of all communities, especially those which are overburdened by toxic pollutants. CARE
works to reduce those risks through cost-effective, tailored and immediate actions.
Grants will be awarded to provide funding for communities to organize and assess the
risks in their community and to take action to reduce those risks. The program also
provides multi-media risk reduction and risk assessment tools, models to assist
communities in identifying, prioritizing and reducing risks. This program will result in
measurable results in the reduction of exposures to toxic pollutants including toxic
chemicals, lead, pesticides and particulates, as well as a reduction in exposure to
asthma triggers.

Enforcement and Compliance

EPA’s continued enforcement efforts will be strengthened through the
development of measures to assess the impact of enforcement activities, and assist in
targeting areas that pose the greatest risks to human health or the environment, display
patterns of noncompliance, and include disproportionately exposed populations.

Environmental Justice

EPA's enforcement program supports Environmental Justice efforts by focusing
enforcement actions and criminal investigations on industries that have repeatedly
violated environmental laws in minority and/or low-income areas. EPA’s environmental
justice program will continue education, outreach, and data availability initiatives. The
program provides a central point for the Agency to address environmental and human
health concerns in minority and/or low-income communities, segments of the population
that have been disproportionately exposed to environmental harms and risks. The
program will continue to manage the Agency’s Environmental Justice Community Small
Grants program which assists community-based organizations working to develop
solutions to local environmental issues.

The Agency will continue to support the National Environmental Justice Advisory
Council (NEJAC). The Council provides the Agency with significant input from
interested stakeholders such as community-based organizations, business and industry,
academic institutions, state, tribal and local governments, non-governmental
organizations and environmental groups. The Agency will also continue to chair an
Interagency Working Group consisting of eleven departments and agencies, as well as
representatives of various White House offices, to ensure that environmental justice
concerns are incorporated into all Federal programs.

International Affairs

Many human health and environmental risks to the American public originate
outside our borders. Many pollutants can travel easily across borders - via rivers, air
and ocean currents, and migrating wildlife. Even in the remote Arctic, industrial
chemicals such as polychlorinated biphenyls (PCBs) have been found in the tissues of

4-13