Goal 3: Land Preservation and Restoration

are no 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 2008, the Agency 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.

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.

Enhancing Science and Research to Restore and Preserve Land

The FY 2008 land research program supports the Agency’s objective of reducing
and 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 of sites in accordance with CERCLA, RCRA and other
applicable statutes. 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.

In FY 2008, EPA is requesting $48.6 million to enhance science and research in
support of EPA’s land preservation and restoration programs. Research activities in
FY 2008 will focus on contaminated sediments, ground water contamination, site
characterization, analytical methods, and site-specific technical support. Research
activities will advance EPA’s ability to accurately characterize the risks posed by
contaminated sediments and determine the range and scientific foundation for remedy
selection options. EPA’s land research program will also address the transport of
contaminants in ground water and subsequent intrusion of contaminant vapors into
buildings. Oil spill remediation research will continue to focus on physical, chemical, and
biological risk management methods for petroleum and non-petroleum oils spilled into
freshwater and marine environments, as well as development of a protocol for testing
solidifiers and treating oil. UST research will address the development of online
transport models that can be used by state project managers. Research in resource
conservation, corrective action, hazardous waste treatment, landfills, leaching,
containment systems, and landfill bioreactors will constitute the major areas of research
and support for RCRA activities in FY 2008. In addition, EPA’s land research program
will continue to provide site-specific assistance on technical issues across the land
remediation and restoration programs.

3-5


Appendix A: Categorical Grants

Homeland Security Grants

In FY 2008, the request 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. Fifty-six states and
territories are eligible for Homeland Security grants.

Underground Injection Control (UIC) Grants

The FY 2008, EPA requests $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 continue to address Classes |, Il, and III existing
wells determined to be in significant violation and Class V wells determined to be in
violation in FY 2008. Additionally, EPA and the states will close or permit Motor Vehicle
Waste Disposal wells (Class V) identified during FY 2008.

BEACH Act Grants

The FY 2008 request 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—Clean Water Act Section 319)

In FY 2008, EPA requests $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: both 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. EPA’s goal is to reduce annually the amount of runoff of
phosphorus, nitrogen, and sediment through 319-funded projects by 4.5 million pounds,
8.5 million pounds, and 700,000 tons, respectively.

A-7


Appendix A: Categorical Grants

Pesticide Enforcement, Toxics Substance Compliance, & Sector Program Grants

The FY 2008 request 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
Federal program grants for building state capacity for lead abatement, and enhancing
compliance with disclosure, certification and training requirements. Under the Sector
program grants, EPA builds environmental partnerships with states and Tribes to
strengthen their ability to address environmental and public health threats, including
contaminated drinking water, pesticides in food, hazardous waste, toxic substances,
and air pollution. These grants also support state agencies implementing authorized,
delegated, or approved environmental programs.

Pesticides Program Implementation Grants

The FY 2008 request includes $13.0 million for Pesticides Program
Implementation grants. These resources will assist states and Tribes in implementing
the safer use of pesticides, including: worker protection programs; certification and
training of pesticide applicators; protection of endangered species; Tribal pesticide
programs; and integrated pest management and environmental stewardship.

In FY 2008, EPA plans to complete a cumulative 100 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 FY 2008 request 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

A-3


Appendix B: Infrastructure Finance

Federal funds invested. As of June 30, 2006, $7.3 billion in capitalization grants have
been awarded, amounting to loans/assistance of $11 billion.

The following table illustrates the long-term financial picture for the DWSRF:

Annual Federal Revolving Level Time Span
Capitalization
$841.5 million through 2018 _| $1.2 billion (in 2001 $) 2019 through 2039

FY 2008 Request level is $842.2 Million

Set-Asides for Tribes

To improve public health and water quality on Tribal lands, the Agency will
continue the 1 ’4 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 $15.5 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.

Goal 4; Healthy Communities and Ecosystems

Brownfields Environmental Projects

The President's Budget includes $89.3 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 2008, the funding
provided will result in the assessment of 1,000 Brownfields properties. Using EPA grant
dollars, the brownfields grantees will leverage cleanup and redevelopment jobs and
$900.0 million in cleanup and redevelopment funding.

Mexico Border

The President's Request includes a total of $10.0 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

B-4



Goal 2: Clean and Safe Water

By removing drinking water and wastewater bonds from the volume cap, this proposal
will provide States and communities greater access to PABs to help finance their water
infrastructure needs and increase capital investment in the Nation's water infrastructure.

This Water Enterprise Bond proposal would provide an exception to the unified
annual State volume cap on tax-exempt qualified private activity bonds for exempt
facilities for the “furnishing of water” or “sewage facilities.” To ensure the long-term
financial health and solvency of these drinking water and wastewater systems,
communities using these bonds must have demonstrated a process that will move
towards full-cost pricing for services within five years of issuing the Private Activity
Bonds. This will help water systems become self-financing and minimize the need for
future subsidies.

Homeland Security

EPA has a major role in supporting the protection of the nation’s critical water
infrastructure from terrorist threats. In FY 2008, EPA will continue to support the Water
Security Initiative (formerly known as Water Sentinel) pilot program and water sector-
specific agency responsibilities, including the Water Alliance for Threat Reduction
(WATR), to protect the nation’s critical water infrastructure. The FY 2008 budget
provides $22 million for the Water Security Initiative completing deployment of final pilot
systems. In FY 2008, the Agency in collaboration with our water sector security
stakeholders, will continue our efforts to develop, implement and initiate tracking of
national measures related to homeland security critical infrastructure protection
activities.

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 2008, these research programs will conduct studies and deliver science
products needed by the nation to realize clean and safe water. The drinking water
research program will focus on filling key gaps in data, methods and technologies to
support the Agency’s mission to protect drinking water from chemical and microbial
contaminants including developing contaminant detection methods, conducting health
effects studies, developing and evaluating cost-effective treatment technologies, and
constructing tools to protect source waters. The water quality research program will
continue providing approaches and methods that 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. These
programs also will conduct research that will yield tools and strategies to manage our
nation’s aging water infrastructure.

23


Appendix D: Budget Tables

Resources By Program Project
(Dollars in Thousands)

FY 2007 FY 2008
Program / Project PresBud PresBud
Research: Drinking Water $49,243 $48,548
Research: Economics and Decision Science(EDS) * $2,495 $0
Research: Endocrine Disruptor $9,081 $10,131
Research: Fellowships $8,383 $8,438
Research: Global Change $17,456 $16,908
Research: Human Health and Ecosystems $161,313 $145,046
Research: Land Protection and Restoration $34,071 $32,379
Research: NAAQS ? $65,456 $0
Research: Pesticides and Toxics $26,224 $24,795
Research: Water Quality $56,988 $56,454
Research: Sustainability $21,405 $22,478
Science Advisory Board $4,616 $4,790
Science Policy and Biotechnology $1,754 $1,780
Small Business Ombudsman $3,502 $3,261
Small Minority Business Assistance $2,647 $2,466
State and Local Prevention and Preparedness $12,508 $12,960
Stratospheric Ozone: Domestic Programs $5,221 $4,489
Stratospheric Ozone: Multilateral Fund $13,365 $9,865
Superfund: Emergency Response and Removal $192,399 $191,880
Superfund: Enforcement $163,651 $161,610
Superfund: EPA Emergency Preparedness $8,863 $9,318
Superfund: Federal Facilities $31,487 $31,879
Superfund: Remedial $581,595 $584,836
Superfund: Support to Other Federal Agencies $8,575 $6,575
Superfund: Federal Facilities Enforcement $10,197 $9,843
Surface Water Protection $191,587 $196,092
Toxic Substances: Chemical Risk Management $7,737 $5,654
Toxic Substances: Chemical Risk Review and Reduction $44,637 $45,046
Toxic Substances: Lead Risk Reduction Program $11,368 $13,546
TRI / Right to Know $15,243 $15,728
Tribal - Capacity Building $11,436 $11,477
US Mexico Border $6,061 $4,646
Wetlands $20,992 $21,518

Rescission to Prior Year Funds $0 -$5,000

? Consolidated in Research: Clean Air
“Transferred to Regulatory/Economic Management & Analysis

D-6



Appendix D: Budget Tables

Resources By Program Project
(Dollars in Thousands)

FY 2007 FY 2008

Program / Project PresBud PresBud
Compliance Incentives $9,845 $9,930
Compliance Monitoring $94,163 $94,610
Congressional, Intergovernmental, External Relations $52,273 $49,902
Criminal Enforcement $46,296 $48,855
Diesel Emissions Reduction Grant Program $49,500 $35,000
Drinking Water Programs $102,364 $100,383
Endocrine Disruptors $7,985 $5,890
Enforcement Training $3,126 $3,985
Environment and Trade $1,861 $1,945
Environmental Justice $4,616 $4,579
Exchange Network $17,481 $16,797
Facilities Infrastructure and Operations $468,791 $480,865
Federal Stationary Source Regulations $25,678 $26,504
Federal Support for Air Quality Management $98,339 $101,376
Federal Support for Air Toxics Program $27,778 $26,963
Federal Vehicle and Fuels Standards and Certification $68,325 $65,722
Financial Assistance Grants / IAG Management $24,768 $26,488
Forensics Support $17,369 $17,385
Geographic Program: Chesapeake Bay $26,398 $28,768
Geographic Program: Great Lakes $20,577 $21,757
Geographic Program: Gulf of Mexico $4,311 $4,457
Geographic Program: Lake Champlain $934 $934
Geographic Program: Long Island Sound $467 $467
Geographic Program: Other $9,050 $8,575
Great Lakes Legacy Act $49,600 $35,000
Homeland Security: Communication and Information $7,100 $6,906
Homeland Security: Critical Infrastructure Protection $54,065 $35,230
Homeland Security: Preparedness, Response, and Recovery $97,602 $89,429
Homeland Security: Protection of EPA Personnel & Infrastructure $20,327 $15,403
Human Health Risk Assessment $38,336 $42,828
Human Resources Management $45,476 $45,214
Indoor Air: Radon Program $5,961 $5,857
Information Security $6,351 $6,375
Infrastructure Assistance: Alaska Native Villages $14,850 $15,500
Infrastructure Assistance: Clean Water SRF $687,555 $687,554
Infrastructure Assistance: Drinking Water SRF $841,500 $842,167
Infrastructure Assistance: Mexico Border $24,750 $10,000

D-4


Appendix E: Acronyms

Environmental Protection Agency
List of Acronyms

SBO Senior Budget Officer

SBREFA Small Business Regulatory Enforcement Fairness Act
SDWA Safe Drinking Water Act

SDWIS Safe Drinking Water Information System

SITE Superfund Innovative Technology Evaluation
SLC Senior Leadership Council

SRF State Revolving Fund

SRO Senior Resource Official

STAG State and Tribal Assistance Grants
STORS _ Sludge-to-Oil-Reactor

STS Science and Technology for Sustainability
SWP. Source Water Protection

SWTR Surface Water Treatment Rule

TAS To Act as State

TMDL Total Maximum Daily Load

TRI Toxic Release Inventory

TSCA Toxic Substances Control Act

UIC Underground Injection Control

UST Underground Storage Tanks

VCCEP Voluntary Children’s Chemical Evaluation Program
WATR Water Alliance for Threat Reduction

WCF Working Capital Fund

WIF Water Infrastructure Funds

WIPP Waste Isolation Pilot Project

E-4


Appendix D: Budget Tables

Environmental Protection Agency
Summary of Agency Resources by Goal

(Dollars in Thousands)

FY 2007 FY 2008
President's President's .

Goal Budget Budget __Difference
1 - Clean Air and Global Climate Change $933,691 $911,568 ($22,123)
2 - Clean and Safe Water $2,729,396 $2,714,315 ($15,081)
3 - Land Preservation and Restoration $1,690,386 $1,663,120 ($27,266)
4 - Healthy Communities and Ecosystems $1,227,659 $1,171,565 ($56,094)
5 - Compliance and Environmental

Stewardship $734,343 $743,831 $9,488
Rescission of Prior Year's Funds ($5,000)
Total $7,315,475 __ $7,199,400 __ ($116,076)

Note: Totals may not add due to rounding.

D-2


Goal 4: Healthy Communities and Ecosystems

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 and has
assigned values to 190 chemicals to date.

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. The HPV Chemicals Program
challenges industry to develop chemical hazard data on existing chemicals that it
chooses to “sponsor.” EPA will make data publicly available for approximately 1,400
HPV chemicals sponsored under the program and issue initial risk screening reports for
the highest priority of those chemicals. 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.

The Agency will continue to manage its programs to address specific chemicals
and toxics of concern, including lead, mineral fibers, mercury, polychlorinated biphenyls
(PCBs), perfluorooctanoic acid (PFOA), and persistent, bioaccumulative and toxic (PBT)
chemicals generally. The Lead program is focusing efforts on reducing lead hazards,
and a $1 million investment, as requested for FY 2008, will allow the Agency to
promulgate a final regulation to address lead-safe work practices for renovation, repair
and painting activities in homes with lead-based paint. The program will also continue
to improve methods to reach vulnerable populations and communities with a high
concentration of children with elevated blood-lead levels and emphasize grant-
supported activities such as state-implemented lead-based paint training and
certification programs.

EPA’s Community Action for a Renewed Environment (CARE) is a competitive
grant program that offers an innovative way for communities to take action to reduce
toxic pollution. Through CARE, communities create local collaborative partnerships that
implement local solutions to reduce releases of toxic pollutants and minimize exposure
to toxic pollutants.

Water Programs

EPA's ecosystem protection programs encompass a wide range of approaches
that address specific at-risk regional areas and larger categories of threatened systems,
such as estuaries and wetlands. Locally generated pollution, combined with pollution
carried by rivers and streams and through air deposition, can accumulate in these
ecosystems and degrade them over time. Large water bodies, such as the Gulf of
Mexico, the Great Lakes, and the Chesapeake Bay, have been exposed to substantial
pollution over many years. Coastal estuaries and wetlands are also vulnerable. As the

43


Appendix A: Categorical Grants

A-8

CATEGORICAL PROGRAM GRANTS (STAG)

by National Program and State Grant

(Dollars in Thousands)

Air_& Radiation

State and Local Assistance $185,179.5 $185,180.0
Tribal Assistance $10,939.5 $10,940.0
Radon $8,073.5 $8,074.0
$204,192.5 $204,194.0
Water
Pollution Control (Section 106) $221,661.0 $221,664.0
Beaches Protection $9,900.0 $9,900.0
Nonpoint Source (Section 319) $194,040.0 $194,040.0
Wetlands Program Development $16,830.0 $16,830.0
Water Quality Cooperative Agrmts $0.0 $0.0
Targeted Watersheds $6,930.0 $0.0
Wastewater Operator Training $0.0 $0.0
$449,361.0 $442,434.0
Drinking Water
Public Water System Supervision (PWSS) $99,099.0 $99,100.0
Underground Injection Control (UIC) $10,890.0 $10,891.0
$4,950.0 $4,950.0
$114,939.0 $114,941.0
Hazardous Waste
H.W. Financial Assistance $103,345.5 $103,346.0
Brownfields $49,494.9 $49,495.0
Underground Storage Tanks $37,566.7 $22,274.0
$190,407.1 $175,115.0
Pesticides & Toxics
Pesticides Program Implementation $12,968.9 $12,970.0
Lead $13,563.1 $13,564.0
Toxic Substances Compliance $5,098.5 $5,099.0
Pesticides Enforcement $18,711.0 $18,711.0
$50,341.5 $50,344.0
Multimedia
Environmental Information $14,850.0 $12,850.0
Pollution Prevention $5,940.0 $5,940.0
Sector Program (Enf & Comp Assurance) $2,227.5 $2,228.0
Indian General Assistance Program $56,925.0 $56,925.0
State and Tribal Performance Fund $0.0 $0.0
$79,942.5 $77,943.0
Total Categorical Grants $1,089,183.6



Annual Performance Plan and Budget Overview

land. EPA has met many important milestones in implementing its revised Human
Capital Strategy and the Human Capital Accountability Plan.

In FY 2006, the core competencies were assessed for the Agency’s senior
leadership, human resources management, and information technology positions.
The Agency will implement plans to close the competency gaps identified. In FY 2007
and 2008, the Agency will continue to assess the competencies for its priority MCOs.
The assessment results will be used by the Agency to target developmental resources
and recruiting practices to ensure that EPA can meet its mission and retain a highly-
skilled, diverse, and results-oriented workforce with the right mix of technical expertise,
professional experience, and leadership capabilities.

Workforce

EPA values its world class workforce and its expertise enables us to meet our
urgent responsibilities across a broad range of national and local environmental issues.
In FY 2007, we are making adjustments to EPA’s workforce management strategy that
will help us better align resources, skills, and Agency priorities. A key step in this
adjustment is improving the alignment between the total number of positions authorized
and actual FTE utilization. As such, in FY 2008 EPA is proposing to reduce its Agency
authorized FTE ceiling by 235.9 positions to 17,323.8, which is consistent with the
Agency’s historical FTE levels. The result of these reductions will not impede Agency
efforts to maximize efficiency and effectiveness in carrying out its programs and will not
result in an overall change in the number of FTEs at EPA. The program project
descriptions provided later in this document, provide the details of these changes.

Organization of the Annual Performance Plan and Congressional Justification

In response to the President's Management Agenda, this budget more clearly
integrates budget and performance. EPA developed a submission that presents the
budget in a more succinct, programmatic format. It also closely aligns performance
information with program narratives. Verification and validation documents will be
provided electronically.

Annual Performance Plan and Congressional Justification Components

EPA’s Annual Performance Plan is integrated into the Annual Budget Request.
Where applicable, programmatic funding increases are tied to performance measures
and associated targets by program/project. To fully explain the Agency’s resource
needs, the Budget contains annual performance goals and performance measures that
the Agency uses to achieve its results.


Appendix A: Categorical Grants

CATEGORICAL GRANTS PROGRAM (STAG)

(Dollars in millions)

$1,168

$1,200

A

$1,113

$1,079

9 $1,065

$1,006

$1,000

883

$800-

$600-

$400-

$200-

$0+

2000 2001 2002 2003 2004 2005 2006 2007 2008
Ena. Ena. Ena. Ena. Ena. Ena. Ena. Pres. Pres.

*Does not account for the 2006 $80.0 million rescission.

Categorical Grants

In FY 2008, EPA requests a total of $1.065 billion 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 2008, EPA will continue to offer flexibility to state and Tribal governments
to manage their environmental programs as well as 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.

A-1


Goal 3: Land Preservation and Restoration

EPA will continue to collaborate with states and the private sector to conduct field
sampling and optimize operations and monitoring of long-term remedies and research
activities. Furthermore, in response to an independent review of the RCRA portion of
the land research program, a shift in the research program will be made in FY 2008 to
address nanotechnology fate and transport research issues in an effort by the program
to focus on emerging issues and strategic research topics.

346


Goal 4: Healthy Communities and Ecosystems

change, pesticides and toxics, endocrine disruptors, computational toxicology,
nanotechnology, and Homeland Security. The Agency also will cultivate the next
generation of environmental scientists by awarding fellowships to pursue higher
education in environmentally related fields and by hosting recent graduates at its
facilities.

In FY 2008, 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. The
Agency’s human health risk assessment (HHRA) research program will develop and
implement a process to identify, compile, characterize, and prioritize new scientific
studies for science assessments of criteria air pollutants to assist EPA’s air and
radiation programs in determining the National Ambient Air Quality Standards (NAAQS).
Also, the HHRA research program will complete 16 human health assessments of high
priority chemicals for interagency review or external peer review and deliver revised
science assessments for Sulfur Dioxide and Nitrogen Oxides.

In order to balance human well-being with the need to protect the environment, it
is important to understand the type of services that ecosystems provide, the stressors
that affect these services, and how to successfully optimize the services provided by the
ecosystem as a whole. In FY 2008, the ecosystems protection program will continue
research on the development of decision-support tools for managing resources in ways
that improve their resilience to disturbance, thus reducing the need for future costly
restoration efforts. The program will also use spatial analysis methods to develop
options for maximizing existing ecosystem services and for analyzing tradeoffs among
the types of services that can be achieved.

Computational toxicology research, which facilitates a better understanding of the
relationships between sources of environmental pollutant exposure and adverse
outcomes, will support four key areas in FY 2008:

Information technology,

Chemical prioritization and categorization tools,
Systems biology models, and

Cumulative risk assessment.

ecee

Specifically, initial results for the “ToxCast,” will emerge in FY 2008. The
“ToxCast’ is the Agency’s chemical prioritization research program that offers promise
in revolutionizing the effective and efficient use of animals in toxicology testing
schemes. In addition, modeling research, which now plays a crucial role in practically
all areas of biological research, will begin developing a computational model of the liver

46


Goal 4: Healthy Communities and Ecosystems

communities. Pound for pound, children breathe more air, drink more water, and eat
more food than adults, and their behavior patterns may increase their exposure to
potential toxics. Even older Americans in good health may be at increased risk from
exposure to environmental pollutants. As people age, their bodies are less able to
detoxify and eliminate toxins. Native Americans represent another segment of the
population with a different risk profile. Their traditional sources for food and ways of life
may lead to higher levels of exposure to certain toxics.

Pesticides Programs

A key component of protecting the health of people, communities, and
ecosystems is identifying, assessing, and reducing the risks presented by the
thousands of chemicals on which our society and economy have come to depend.
Toward that end, EPA is investing $122.4 million in Pesticides Licensing programs in
FY 2008. Chemical and biological pesticides help meet national and global demands
for food; provide effective pest control for homes, schools, gardens, highways, utility
lines, hospitals, and drinking water treatment facilities; and control animal vectors of
disease. In accordance with the provisions of the Federal Insecticide, Fungicide and
Rodenticide Act (FIFRA), the Agency is restructuring the presentation of FIFRA
implementation funding and replacing the Pesticides Registration, Reregistration and
Field programs with these new programs in FY 2008:

e Pesticides: Protect Human Health from Pesticides Risk
e Pesticides: Protect the Environment from Pesticides Risk, and
e Pesticides: Realize the Value of Pesticides Availability

In 2008, as required by the Food Quality Protection Act (FQPA), EPA will
continue to establish a process for periodic review of pesticide registrations with the
goal of completing the process every 15 years. The Agency will also focus its
reregistration resources to support the 2008 FQPA deadline for completing non-food
use Registration Eligibility Decisions (REDs).

Toxics Programs

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 1,500 new chemicals and 40 products
of biotechnology that enter the marketplace. This new chemical review process not only
protects the public from the possible immediate threats of harmful chemicals, but it has
also contributed to changing the behavior of the chemical industry, making industry
more aware and responsible for the impact these chemicals have on human health and
the environment.

The Acute Exposure Guideline Levels (AEGLs) program was designed by EPA to
provide scientifically credible data to directly support chemical emergency planning,

4-2


Appendix A: Categorical Grants

HIGHLIGHTS:

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

The FY 2008 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.
Grant funds for State and Local Air Quality Management and Tribal Air Quality
Management are requested in the amount of $185.2 million and $10.9 million,
respectively. These funds provide resources to multi-state, 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 ambient air
standards set to protect public health and the environment.

In FY 2008, EPA will continue to work with state and local air pollution control
agencies to develop or implement state implementation plans (SIPs) for the 8-hour
ozone standard, the fine particle (PM-2.5) standard, and regional haze. States must
submit the 8-hour ozone SIPs to EPA in FY 2007, and will continue with their
implementation in FY 2008. States must submit regional haze SIPs to EPA in
December 2007 and PM2.5 SIPs in April 2008. States will incorporate regional haze
reduction strategies, developed by regional planning organizations, into their Regional
Haze SIPs.

EPA will work with Federally-recognized Tribal governments nationwide to
continue development and implementation of Tribal air quality management programs.
Tribes are active in protection of the 4% of the land mass of the United States over
which they have sovereignty and work closely with EPA to monitor criteria pollutants
and air toxics. Tribes participate extensively in national monitoring networks and
operate and report data from over 300 monitors. Several Tribes are developing Tribal
Implementation Plans for continuing air quality management programs and roughly 30
will have qualified for and accepted designation to act as a state (TAS) for at least part
of the Clean Air Act.

Lastly, this request includes $8.1 million for Radon grants to continue to focus
efforts on priority activities to achieve health risk reduction. In FY 2008, EPA expects
220,000 additional homes to have radon reducing features (approximately 145,000
mitigations and 75,000 new homes with radon resistant new construction), bringing the
cumulative number of U.S. homes with radon reducing features to 2,000,000. EPA
estimates that this cumulative number will result in approximately 800 future premature
cancer deaths prevented (each year these radon reducing features are in place).

A-2


Goal 3: Land Preservation and Restoration

land revitalization, the Superfund program is participating in efforts to implement
cross-program revitalization measures to capture a broader array of
accomplishments across all of EPA’s cleanup programs resulting from the
assessment and cleanup of properties. One example is the new Superfund
Remedial PART measure “Acres of land ready for reuse.” In addition, in FY 2006
the Superfund program developed the “Site-wide Ready for Anticipated Use”
measure to track National Priority List (NPL) sites where construction of the remedy
is complete; where cleanup goals in the Record of Decision (ROD) have been
achieved such that there are no unacceptable risks associated with current and
reasonably anticipated future uses; and where all institutional controls required in the
ROD have been implemented. In FY 2008, the Agency expects 30 NPL sites to
achieve this accomplishment.

e Recycling, Waste Minimization and Energy Recovery: EPA's strategy for
reducing waste generation and increasing recycling will continue to be based on:

1) establishing and expanding partnerships with businesses, industries, Tribes,
states, communities, and consumers; 2) stimulating infrastructure development and
environmentally responsible behavior by product manufacturers, users, and
disposers; and 3) helping businesses, government, institutions, and consumers
reduce waste generation and increase recycling through education, outreach,
training, and technical assistance. In FY 2008, EPA will continue the Resource
Conservation Challenge 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.

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. In FY 2008, EPA
will continue to improve its capability to effectively prepare for and respond to these
incidents, including natural disasters such as hurricanes, by working closely with
other Federal agencies within the National Response Plan. EPA will also continue
to develop a national environmental laboratory capability and decontamination
options to ensure that the nation can quickly recover from nationally significant
incidents.

¢ Implementing the EPAct: The EPAct? contains numerous provisions that
significantly affect Federal and state underground storage tank (UST) programs and
requires that EPA and states strengthen tank release and prevention programs. In
FY 2008, EPA is requesting $34 million to provide assistance to states to help them
meet their new responsibilities, which include 1) mandatory inspections every three
years for all underground storage tanks, 2) operator training, 3) prohibition of

? For more information, refer to http://rwebgate.access.epo.gov/egi-
bin/getdoc.cgi?dbname=109_cong_public_laws&docid=f:publ058.109.pdf (scroll to Title XV - Ethanol And Motor Fuels,

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

3-3


Goal 1: Clean Air and Global Climate Change

healthier indoor air. EPA also carries out a national radon program that encourages and
facilitates 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. Radon is second only to smoking as a cause of lung cancer.

Climate Protection

For more than a decade, businesses and other organizations have partnered
with EPA through voluntary climate protection programs to pursue common sense
approaches to reducing greenhouse gas emissions and meeting the President's
greenhouse gas intensity goal. Voluntary programs such as Energy Star and SmartWay
Transport have increased the use of energy-efficient products and practices and
reduced emissions of carbon dioxide as well as methane and other greenhouse gases
with very high global warming potentials. These partnership programs 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. In 2008, EPA will invest $4.4 million in the Methane to Markets by assessing
the feasibility of methane recovery and use projects at landfills, coal mines, and natural
gas and oil facilities and by identifying and addressing institutional, legal, regulatory and
other barriers to project development in partner countries. In addition EPA plans to
invest $5 million to support the Asia-Pacific Partnership programs. In FY 2008 this
partnership between the United States, Australia, China, India, Japan, and South Korea
will focus on developing country-specific strategies to improve energy security and
reduce pollution. EPA also will work with the Asia-Pacific region to develop and deploy
new and emerging technologies and tailor programs, such as methane capture and use,
to meet the specific conditions of each area. Both the Methane to Markets program and
Asia Pacific Partnerships will coordinate with other agencies to achieve the goals in
these programs.

Stratospheric Ozone — Domestic and Montreal Protocol

In FY 2008 EPA’s Domestic Stratospheric Ozone Protection Program will invest
$9.8 million support cost-effective projects that are designed to build capacity and
eliminate ODS production and consumption in over 60 developing countries. The
Multilateral Fund continues to support over 5,150 activities in 139 countries, and when
fully implemented, will prevent annual emissions of more than 223,729 metric tons of
ODS. Over 80% of already agreed project activities have been implemented to date,
with remaining work in these already agreed projects expected to be fully implemented
by 2009. In addition to continuing to implement the provisions of the Clean Air Act and
the Montreal Protocol on Substances that Deplete the Ozone Layer (Montreal Protocol),
and 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.

1-3


Goal 5: Compliance and Environmental Stewardship

environmental protection in Indian country. EPA’s strategy for achieving this objective
has three major components:

e Establish an Environmental Presence in Indian Country: The Agency will
continue to work to create an environmental presence for each Federally-
recognized Tribe.

« Provide Access to Environmental Information: EPA will provide the
information Tribes need to meet EPA and Tribal environmental priorities, as well
as characterize the environmental and public health improvements that result
from joint actions.

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

In FY 2008, the budget provides $56.9 million for GAP grants, which will build
Tribal environmental capacity to assess environmental conditions, utilize available
Federal information, and build an environmental program tailored to Tribes’ needs.
The grants will develop environmental education and outreach programs, develop and
implement integrated solid waste management plans, and alert EPA to serious
conditions that pose immediate public health and ecological threats. Through GAP
program guidance, EPA emphasizes outcome based results.

Sustainability

EPA has developed and evaluated tools and technologies to monitor, prevent,
control, and clean up pollution throughout its history. Since the Pollution Prevention Act
of 1990, the Agency has increasingly focused on preventative and sustainable
approaches to health and environmental problems. EPA’s efforts in this area support
research specifically designed to address the issue of advancing sustainability goals —
EPA's Science and Technology for Sustainability (STS) program.

Sustainable approaches require: innovative design and production techniques
that minimize or eliminate environmental liabilities; integrated management of air, water,
and land resources; and changes in the traditional methods of creating and distributing
goods and services.

In FY 2008, EPA’s Sustainability research program will embark on a new effort
that is aimed at creating a suite of science-based sustainability metrics that are readily
understood by the public. This work will address both large and small systems.

In addition, the People, Prosperity, and Planet (P3) Award will support up to 50 student
design projects from around the country, focusing on challenges in areas such as
materials and chemicals, energy, resources, and water.

5-5


Goal 5: Compliance and Environmental Stewardship

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

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 order to meet the Agency’s goals, the program’s 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.

Further, the Agency’s Enforcement and Compliance Assurance program uses
compliance assistance and incentive tools to encourage compliance with regulatory
requirements and 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.

The Agency’s Compliance Monitoring program 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. FY 2008
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 Enforcement program addresses violations of environmental laws, to ensure
that violators come into compliance with Federal laws and regulations. In FY 2008, 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. In FY 2008, EPA will
continue to implement its National Compliance and Enforcement Priorities (NCEP),
which address the most widespread types of violations that also pose the most
substantive health and environmental risks. The NCEP list will use statistically valid
noncompliance information developed by Compliance Monitoring. In addition, in FY
2008 EPA anticipates reducing, treating, or eliminating an estimated 550 million pounds

5-2


vi

Environmental Protection Agency’s
FY 2008 Budget by Goal

Total Agency: $7,199 Million

Goal 5
10% 7 Goal 1

Goal 4
16%

$1,172

$1,663

Goal 3
23%

[i Goal 1: Clean Air and Global Climate Change

OGoal 2: Clean and Safe Water

O Goal 3: Land Preservation and Restoration

O Goal 4: Healthy Communities and Ecosystems

i Goal 5: Compliance and Environmental Strewardship

Note: excludes $5 million reduction to prior year funding


Annual Performance Plan and Budget Overview

Environmental Protection Agency’s
Resources by Major Category

(Dollars in Billions)

@ /nfrastructure O Trust Funds B Operating Programs
$9.0

$8.4
$8.0 $7.9 ,$8.1 8.1 $8.0

7.6 SL
7. $7.3 $7.2

$7.0

$6.0

$5.0

$4.0 4

1.3 $1.4 1.5 $1.5 $1.4 $1.4
$3.0 4 $14 || § a a u a a || $1.3 1] : B:
1.3

$1.3 $1.3
$2.0 4 = L|

$1.0 4

$0.0 4

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
EN EN EN EN EN EN EN EN EN PB PB

FYs 1998-2006 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.


Goal 3: Land Preservation and Restoration

delivery for non-complying facilities®, 4) secondary containment or financial
responsibility for tank manufacturers and installers, 5) various compliance reports,
and 6) grant guidelines. EPA is also submitting new legislative language to allow
states to use alternative mechanisms such as the Environmental Results Program
(ERP) to meet the mandatory three-year inspection requirement. This proposal
provides States with a less costly alternative to meet the objectives of the Energy
Policy Act. In FY 2008, EPA will also implement the UST Tribal strategy* developed
in FY 2006 in Indian country.

Enforcement

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
appropriations. 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.®

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,
solvents, and other industrial chemicals to Department of Energy sites containing
nuclear waste. EPA’s Superfund Federal Facilities Response and Enforcement
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.®

In FY 2008, the Agency will continue to encourage the establishment and use of
Special Accounts within the Superfund Trust Fund. As of the end of FY 2006, EPA
maintains more than 500 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.

In addition, these funds may be used by the Agency to fund cleanup activities if there

3 Refer to Grant Guidelines to States for Implementing the Delivery Prohibition Provision of the Energy Policy Act of 2005,
August 2006, EPA-510-R-06-003, http://www.epa.gov/oust/fedlaws/epact_05.htm#Final.

* Refer to Strategy for an EPA/Tribal Partnership to Implement Section 1529 of the Energy Policy Act of 2005, August 2006,
EPA-510-F-06-005, http:/Avww.epa.gov/oust/fedlaws/epact_05.htm#Final.

* For more information regarding EPA’s enforcement program and its various components, please refer to
http://www.epa.gov/compliance/cleanup/superfund/.

° For more information on the Superfund Federal Facilities Response and Enforcement program, please refer to

http://www.epa.gov/fedfac.

34


Goal 1: Clean Air and Global Climate Change

These programs have achieved results. Every year, state and Federal air pollution
programs established under the Clean Air Act 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.

Clean Air Rules

The Clean Air Rules are a major component of EPA work under Goal 1 and
include a suite of actions that will dramatically improve America's air quality. Three of
the rules specifically address the transport of pollution across state borders (the Clean
Air Interstate Rule, Clean Air Mercury Rule and Clean Air Nonroad Diesel Rule). These
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 the next 15 years one of the most productive periods of
air quality improvement in America's history. In FY 2008, EPA will be working with the
states and industry to implement these rules.

Energy Policy Act

In addition to the suite of Clean Air Rules, EPA is investing over $8 million to
develop and operate the market-based credit trading system required by the Renewable
Fuels Standard (RFS) program, in addition to annual State-by-State surveys to
determine market shares of conventional and reformulated gasoline containing ethanol,
and data collection and analysis activities needed to evaluate the impacts of the RFS
program on the environment, air quality, and on the nation’s energy security. The
Renewable Fuels Standards (RFS) rule is scheduled to be promulgated in 2007 and
work will continue on the development of several more actions required by the Energy
Policy Act (EPAct) of 2005. Some of these EPAct actions involve a study of the
changes in emissions of air pollutants and air quality, and a fuel system harmonization
study. In 2008, EPA will promulgate new standards for locomotives and marine diesel
engines, as well as new standards for large commercial ships. EPA also will issue a
rule addressing exhaust and evaporative emissions from small gasoline engines (under
50 horsepower), including all recreational marine gasoline engines, non-handheld
engines (such as those used in lawnmowers), and handheld engines (such as those
used in trimmers and chainsaws).

Reduce Risks to Indoor Air and Radon Programs

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 and 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

1-2


Goal 4: Healthy Communities and Ecosystems

populations in coastal regions grow, the challenges to preserve and protect these
important ecosystems increase. Working with stakeholders, EPA has established
special programs to protect and restore these unique resources.

In FY 2008, EPA will continue cooperation with Federal, state and Tribal
governments and other stakeholders to achieve the President’s goal, set in 2004, to
restore, improve, and protect three million acres of wetlands by 2009. A $17.2 million
request in FY 2008 will support and monitor all 28 National Estuary Programs (NEPs) in
implementing approved Comprehensive Conservation and Management Plans
(CCMPs), which identify more than 2,000 priority actions needed to protect and restore
the estuaries.

The Great Lakes program ecosystem is requesting
$21.8 million in the FY 2008 budget to continue support of the Great Lakes Regional
Collaboration and the Great Lakes Water Quality Agreement. The program will monitor
ecosystem indicators; support toxics reduction through contaminated sediment
remediation and pollution prevention; protect and restore habitat; and address strategic
issues such as aquatic invasive species and the need to investigate the decline of
Diporeia, a key lower-food web organism. The FY 2008 request to implement the Great
Lakes Legacy Act, which supports cleanup of contaminated sediments, is $35 million.
EPA is committed to its long-term goal of 100 percent attainment of dissolved oxygen
standards in waters of the Chesapeake Bay and 185,000 acres of submerged aquatic
vegetation (SAV). In FY 2008, $4.5 million will bring the Agency closer to improving key
priority coastal and ocean issues in the Gulf of Mexico.

Brownfields

Building the capacity for a community to make decisions that affect their
environment is at the heart of EPA’s community-centered work. EPA's efforts to share
information and build community capacity offer the tools communities need to consider
the many aspects of planned development or redevelopment. EPA encourages
community development by providing funds to assist communities with inventory,
assessment, and clean up the lightly contaminated properties (“Brownfields”) that lie
abandoned or unused. In addition, along the U.S.-Mexico border, addressing local
pollution and infrastructure deficiencies are priorities for Mexico and the United States
under the Border 2012 Agreement. Addressing these challenges requires combining
innovative and community-based approaches with national guidelines and interagency
coordination to achieve results.

Smart Growth

The Smart Growth program works with stakeholders to create an improved
economic and institutional climate for Brownfields redevelopment. Critical issues for
Brownfield redevelopment in FY 2008 include land assembly, development permitting
issues, financing, parking and street standards, and other factors that influence the

44


EPA BUDGET
IN BRIEF

FY 2008



Appendix C: Trust Funds

Trust Funds
(Dollars in Millions)
FY 2007 FY 2008
President’s Budget" | President’s Budget’
$ FTE $ FTE
Superfund? $1,218) 3,097} $1,211 3,057]
Inspector General (Transfers) $13} 94 $7 44
Research & Development (Transfers) $28) 106 $26 105]
Superfund Total $1,259] 3,297] $1,245, 3,206
Base Realignment and Closure* $0 78 $0 78
LUST $73) 77| $72 75)
Trust Funds Total: $1,332) 3,452) $1,317 3,359

1 Totals may not add due to rounding.

2 Includes about $26 million for the Department of Justice in FY 2007 and approximately $25 million in FY 2008.
2 Includes Department of Justice Funding (about $26 million in FY 2007 & about $25 million in FY 2008)

3 Funding for reimbursable FTE provided by the Department of Defense via an Interagency Agreement.

Superfund

In FY 2008, the President’s Budget requests a total of $1,245 million in
discretionary budget authority and 3,206 workyears for Superfund. Currently, more than
95 percent of the 1,557 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, $617 million and 1,080 workyears
are for Superfund cleanups, including Federal facilities. 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 a total of $4 million for Regional construction cleanup work at NPL
sites. In FY 2008, EPA and its partners anticipate completing 30 Superfund cleanups at
NPL sites to achieve the overall goal of 1,060 total construction completions by the end
of FY 2008.

C-1


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)

FY 2007 FY 2008
President’s President’s

38% of Budget Budget Budget __ Difference

1 - Protect Human Health $1,176,755 = $1,155,717 -$21,038

2 - Protect Water Quality $1,412,834 $1,422,163 $9,329
3 - Enhance Research to Support Clean

& Safe Water $139,807 $136,435 -$3,372

Goal 2 Total ** $2,729,396 $2,714,315 -$15,081

Workyears * 2,890.8 2,895.6 4.8

* 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 and Safe Water goal through programs designed to
provide improvements in the quality of surface waters and drinking water. In FY 2008,
EPA will work with states and Tribes to continue to accomplish measurable
improvements in the safety of the nation’s drinking water and in the conditions of rivers,
lakes, and coastal waters. With the help of these partners, EPA expects to make
significant progress in these areas, as well as support a few more focused water
initiatives.

The National Water Program will continue to pay special attention to sustainable
infrastructure and watershed stewardship, through its “four pillars” program, specifically
focusing on innovative financing and leveraging for infrastructure sustainability, banking
for wetlands conservation, and trading among point sources and non-point sources for
water quality upgrades. Additionally, in FY 2008, the Agency will continue advancing
the water quality monitoring initiative and a water quality standards strategy under the
Clean Water Act, as well as, important rules and activities under the Safe Drinking
Water Act, involving lead and emerging contaminants. Related efforts to improve
monitoring and surveillance will help advance water security nationwide.

21


Goal 1: Clean Air and Global Climate Change

Radiation Monitoring

In FY 2008, 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.

Global Change Research

EPA conducts research that provides a scientific foundation for the Agency's
actions to protect the air all Americans breathe. In FY 2008, EPA’s air research
program will support implementation of the Clean Air Act, especially the National
Ambient Air Quality Standards (NAAQS). The NAAQS program will focus on setting
limits on how much tropospheric ozone, particulate matter, carbon monoxide; sulfur
dioxide, nitrogen oxides, and lead are allowed in the atmosphere. EPA also conducts
research to improve understanding of the risks from hazardous air pollutants, also
known as air toxics.

In FY 2008, the Agency’s air research program will continue research to
understand the sources and composition of air pollution; develop methods for controlling
sources’ emissions; study atmospheric chemistry and model U.S. air quality; investigate
Americans’ exposure to air pollution; and conduct epidemiological, clinical, and
toxicological studies of air pollution’s health effects. The Agency also will award
research grants to universities and nonprofits to study topics such as how long-term
exposure to fine particles in the atmosphere influences heart disease. In FY 2008, an
important focus of the program will be air pollution near roads.

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 federal 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.

1-4




Appendix B: Infrastructure Finance

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 2008.
Some of these goals include:

- 90 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 1,160 by the end of FY 2008 paving the way
for productive reuse of these properties. This will bring the total number of sites
assessed to 11,000 while leveraging a total of $10.9 billion in cleanup and
redevelopment funds since 1995.

Goal 1: Clean Air and Global Climate Change

Diesel Emissions Reduction Grant Program

In FY 2008, 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 percent 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
entities 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 2008, up
to 30 percent of the appropriated funds may be used to provide formula grants to states
for the purpose of establishing state grant and loan programs. EPA expects to fund at
least 100 new grants deploying emission control 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. By the end of FY 2006,
approximately 10,000 buses will have been switched to a cleaner fuel, retrofitted with
emissions control equipment, or replaced. EPA estimates that the $35 million for
National Clean Diesel Campaign grants will leverage at least an additional $72 million in
funding assistance and reduce PM by approximately 5,040 tons, achieving up to an
estimated $1.4 billion dollars in health benefits.

B-2


Goal 5: Compliance and Environmental Stewardship

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 guidance reporting measures.

In FY 2008, through the National Partnership for Environmental Priorities
(NPEP), the Agency will continue to reduce priority chemicals in wastes. As of August
2006, the NPEP program has obtained industry commitments for 2.1 million pounds of
priority chemical reductions through 2011. Reductions will be achieved primarily
through source reduction made possible by safer chemical substitutes.

Promoting Innovation and Stewardship: In FY 2008, EPA will work to bring about a
performance-oriented regulatory system that develops innovative, flexible strategies to
achieve measurable results; promote environmental stewardship in all parts of society;
support sustainable development and pollution prevention; and foster a culture of
creative environmental problem solving.

The Performance Track (PT) program will improve program reporting, develop
and implement national and regional challenge commitments, and leverage state
environmental leadership programs by aligning PT with 20 state programs. In addition,
EPA will sponsor a formal program evaluation of the program in FY 2008 and FY 2009.

Also in FY 2008, EPA will continue to grow its partnerships and track
environmental performance trends with major manufacturing sectors, such as steel,
cement, forest products, and shipbuilding, plus important non-manufacturing sectors like
agribusiness, construction, and ports. The Agency will address barriers to improved
performance, provide sector-specific “drivers” for continuous improvement and
stewardship, and use the partnerships to tackle high priority environmental issues.

EPA will also continue to promote environmental performance through the
Environmental Results Program (ERP), a state-run program promoting environmental
performance and efficiency through assistance and incentives to both states and
businesses. In FY 2008, EPA will support the growing demand for the ERP program,
beyond the 15 States and 10 sectors currently active in the program.

Finally, EPA will continue the State Innovation Grant (SIG) program in FY 2008,
which provides support to states, allowing them to develop their own innovative
approaches, including flexible permitting, ERP, and environmental leadership programs
(e.g. PT). Measurement and program evaluation also will continue to be priorities.

Building Tribal Capacity

The EPA Indian Policy of 1984 promotes working with federally recognized Tribes on
a government-to-government basis. Under Federal environmental statutes, the Agency
will work to assure 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 Office works to ensure

5-4


Appendix C: Trust Funds

Of the total funding requested, $179 million and 1,060 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
there are no viable PRPs. 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 2008 President's Budget also includes resources supporting Agencywide
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. In most years, 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 $26 million and 105 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 $7 million and 44 workyears to be
transferred to the Inspector General for program auditing.

Base Realignment and Closure Act

The FY 2008 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 2005, over

C-2


Goal 5: Compliance and Environmental Stewardship

of pollutants building upon our achievements to date in reducing pollution through
enforcement settlement agreements and compliance incentives by an estimated 4.5
billion pounds over the last six fiscal years.

Maximum compliance requires the active efforts of the regulated community.
Evaluation of self-reporting will occur in order to understand the effectiveness and
accuracy of such self-reporting. Throughout FY 2008, EPA will continue to investigate
options for encouraging self-directed audits and disclosures. Also in FY 2008, EPA’s
Enforcement and Compliance Assurance program will continue to develop meaningful
measures to assess the impact of enforcement and compliance activities and target
areas that pose the greatest risks to human health or the environment, display patterns
of noncompliance, or include disproportionately exposed populations.

NEPA Federal Review: EPA fulfills its uniquely Federal responsibilities under the
National Environmental Policy Act (NEPA) and Section 309 of the Clean Air Act by
reviewing and commenting on other Federal agency Environmental Impact Statements
(EISs), and making the comments available to the public. 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 adverse impacts.

Improving Environmental Performance through Innovation, Pollution Prevention and Stewardship

Pollution prevention will continue being one of the Agency’s primary tools for
minimizing and preventing adverse environmental impacts by preventing the generation
of pollution at the source. 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.

Partnering with Businesses and Consumers: In 2008, through the Pollution
Prevention (P2) program, EPA will promote stronger regional partnerships and
geographically tailored approaches to address unique community problems. Also in FY
2008, 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 (GSN) 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. P2 Grants to states and Tribes enable them to provide technical
assistance, education and outreach to assist businesses and industries in identifying

5-3


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 2008

President's President’s
13% of Budget Budget Budget __ Difference
1 - Healthier Outdoor Air $628,676 $588,247 -$40,429
2 - Healthier Indoor Air $47,832 $45,699 -$2,133
3 - Protect the Ozone Layer $21,666 $17,131 -$4,535
4 - Radiation $39,453 $39,318 -$135
5 - Reduce Greenhouse Gas Intensity $99,750 $122,937 $23,187
6 - Enhance Science and Research $96,315 $98,236 $1,921
Goal 1 Total ** $933,690.8 _ $911,568.1 -$22,123
Workyears * 2,664.4 2,620.6 -43.8

* 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.

14


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 2008

9 President’s President’s
16% of Budget Budget Budget__Difference
1 - Chemical and Pesticide Risks $386,011 $387,166 $1,155
2 - Communities $251,034 $234,758 -$16,276
3 - Restore and Protect Critical Ecosystems $198,151 $178,374 -$19,777
4 - Enhance Science and Research $392,464 $371,268 -$21,196
Goal 4 Total ** $1,227,659 $1,171,565 _-$56,094
Workyears * 3,825.4 3,743.9 -81.5

* 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 2008, the Environmental Protection Agency will protect, sustain or restore
the health of communities and ecosystems by bringing together a variety of programs,
tools, approaches and resources, including partnerships with stakeholders and Federal,
state, Tribal, and local government agencies. EPA manages environmental risks to
watersheds, communities, homes, and workplaces to protect human health and the
environmental integrity of ecosystems. The Agency employs a mix of regulatory
programs and partnership approaches to achieve results in ways that are efficient,
innovative, and sustainable. Ideally, EPA can implement a strategy of preventing
pollution at the source; however, where programs to prevent pollution or ecosystem
damage are not viable, EPA promotes waste minimization, avoidance of impact on
habitat, safe disposal, and remediation.

In managing risk, EPA directs its efforts toward the greatest threats in our
communities, homes, and workplaces, including threats to sensitive populations such as
children and the elderly, and to communities with potential disproportionately high and
adverse environmental and public health effects including minorities and/or low-income

4-1


RPIO

SALC
SARA
SAV

Appendix E: Acronyms

Environmental Protection Agency
List of Acronyms

Ozone Depleting Substances

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 General Counsel

Office of International Affairs

Office of the Inspector General

Open market trading rule

Office of Planning, Analysis and Accountability
Office of Prevention, Pesticides, and Toxic Substances
Office of Research and Development

Office of Solid Waste and Emergency Response
Ozone Transport Advisory Group

Office of Water

Pollution Prevention

People, Prosperity, and Planet

Private Activity Bonds

Persistent Bioaccumulative Toxics

Personnel, Compensation and Benefits
Polychlorinated Biphenyls

Perfluorooctanoic acid

Particulate Matter

Partnership for a New Generation of Vehicles
Publicly Owned Treatment Works

Performance Partnership Grants

Program Results Code

Performance track

Public Water System Supervision

Responsibility Center

Resource Conservation and Recovery Act of 1976
Record of Decisions

Renewable Fuel Standards

Regional Geographic Initiative

Risk Management Plan

Record of Decision

Responsible Planning Implementation Office
Reprogramming Request

Potentially Responsible Party

Rural Water Technical Assistance

Science and Technology

Science Advisory Board

Sub-allocation (level)

Superfund Amendments and Reauthorizations Act of 1986
Submerged Aquatic Vegetation


Appendix A: Categorical Grants

at non-compliant UST facilities, requiring secondary containment for new and replaced
tanks and piping or financial responsibility for tank installers and manufacturers, and
ensuring owners and operators routinely and correctly monitor all regulated USTs and
piping in accordance with regulations.

EPA has the primary responsibility for implementation of the UST program in
Indian Country. In FY 2008, grants under the FY 1999 Appropriations Act (P.L. 105-
276) will continue to help Tribes develop the capacity to administer UST programs. For
example, funding is used to support training for Tribal staff, educate owners and
operators in Indian Country about UST requirements, and maintain information on USTs
located in Indian Country. EPA also will implement the UST Tribal strategy developed
in FY 2006 in Indian Country.

Hazardous Waste Financial Assistance Grants

In FY 2008, EPA requests $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 2008, EPA expects to increase the
number of hazardous waste facilities with permits in order to meet the 2008 goal of 95
percent coverage and increase the percent of annual permit renewals in line with 2008
requirements of a 50 percent annual renewal rate.

By the end of FY 2008, EPA and the authorized states will also control human
exposures to contamination at 95 percent of the highest priority RCRA corrective action
facilities (1,968 facilities), control migration of contaminated groundwater at 80 percent
of these facilities, and complete the construction of final remedies at 20 percent of these
facilities.

Brownfields Grants

In FY 2008, EPA requests $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 2008, the funding provided will result in the
assessment of 1,000 Brownfields properties. Using EPA grant dollars, the brownfields
grantees will leverage $900.0 million in cleanup and redevelopment funding.

A-5


Appendix A: Categorical Grants

Water Pollution Control (Clean Water Act Section 106) Grants

The FY 2008 EPA request 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 standards. EPA will
work with states to implement the new rules governing discharges from Concentrated
Animal Feeding Operations (CAFOs). States and authorized Tribes will continue to
review and update their water quality standards as required by the Clean Water Act.
The Agency’s goal is that 87 percent of state submissions will be approvable in 2008.
EPA also encourages states to continually review and update the water quality criteria
in their standards to reflect the latest scientific information from EPA and other sources.
EPA’s goal for 2008 is that 68 percent of states will have updated their standards to
reflect the latest scientific information in the past three years.

Wetlands Grants

In FY 2008, the request includes $16.8 million for Wetlands Program grants.
Through Wetlands Program Development Grants, states, Tribes, and local governments
receive technical and financial assistance that will support the Administration’s goal of
protecting, restoring, and enhancing 3 million acres of wetlands These grants will do
this through 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 2008, EPA requests $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 2008, 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.

Tribal General Assistance Program Grants

In FY 2008, EPA's request includes $56.9 million for the Tribal General
Assistance Program (GAP) to help Federally-recognized Tribes and intertribal consortia
develop, implement and assume environmental programs. In FY 2008, 50% of
Federally-recognized Tribes and intertribal Consortia, out of a universe of 572 eligible
entities, will have access to an environmental presence, or representative, to administer
delegated environmental programs.

A-6


Appendix D: Budget Tables

Resources By Program Project
(Dollars in Thousands)

FY 2007 FY 2008

Program / Project PresBud PresBud
Infrastructure Assistance: Puerto Rico $990 $0
International Capacity Building $6,390 $5,311
IT / Data Management $118,404 $111,067
Legal Advice: Environmental Program $38,216 $39,972
Legal Advice: Support Program $13,466 $13,986
LUST / UST $22,304 $22,277
LUST Cooperative Agreements $58,207 $58,207
Marine Pollution $12,462 $12,851
National Estuary Program / Coastal Waterways $18,417 $17,203
NEPA Implementation $13,788 $14,366
Oil Spill: Prevention, Preparedness and Response $12,965 $13,499
Pesticides: Field Programs * $24,926 $0
Pesticides: Registration of New Pesticides * $42,534 $0
Pesticides: Review / Re-registration of Existing Pesticides ' $54,635 $0
Pesticides: Protect Human Health from Pesticide Risk * $0 $65,808
Pesticides: Protect the Environment from Pesticide Risk * $0 $43,865
Pesticides: Realize the Value of Pesticide Availability 1 $0 $12,586
Pollution Prevention Program $21,292 $19,935
POPs Implementation $1,809 $1,831
Radiation: Protection $15,026 $14,679
Radiation: Response Preparedness $6,275 $6,649
RCRA: Corrective Action $40,372 $39,573
RCRA: Waste Management $67,887 $69,158
RCRA: Waste Minimization & Recycling $12,235 $13,666
Reduce Risks from Indoor Air $24,293 $22,228
Regional Geographic Initiatives $9,137 $9,553
Regional Science and Technology $3,521 $3,574
Regulatory Innovation $25,854 $23,866
Regulatory/Economic-Management and Analysis $17,555 $20,104
Research: Air Toxics 7 $12,274 $0
Research: Clean Air * $0 $81,054
Research: Computational Toxicology $14,983 $15,103

‘ Restructured to better reflect pesticide activities related to protecting Human Health & the Environment
? Consolidated in Research: Clean Air
* Consolidates Research: NAAQS and Research: Air Toxics


Goal 4: Healthy Communities and Ecosystems

by integrating biological information in order to achieve an improved understanding of
how susceptibility to toxicant exposure depends on environmental, behavioral and
genetic factors, and on age and health status.

Endocrine Disruptors research will continue to develop methods and models to
evaluate the effects associated with exposure to endocrine disruptors as well as
continue to develop improved molecular and computational tools that can be used to
prioritize endocrine disrupting chemicals for screening and testing. Nanotechnology
research is another area of high visibility in FY 2008. Efforts will continue to focus on
nanotechnology’s environmental applications and investigate its implications on the
environment, health, and safety.

In FY 2008, continued research in the pesticides and toxics research program
will characterize toxicity and pharmacokinetic profiles of perfluoroalkyl chemicals,
examine the potential for selected perfluorinated telomers to degrade to
perfluoroctanoic acid or its precursors, and develop methods and models to forecast the
fate of pesticides and byproducts from source waters through drinking water treatment
systems and ultimately to the U.S. population.

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.

47


Appendix E: Acronyms

FMFIA
FQPA
FTE
GAP
GHG
GPRA
GSN
HHRA
HSWA
HPV

HWIR
IAG
ICR
IFMS
IPCC

ISTEA
ITMRA
LUST
MACT
MCO
NAAQs
NAFTA
NAPA
NAS
NCDP
NCEP
NDPD
NEP
NEPA
NEPPS
NESHAP

NPDES
NPEP
NPL
NPM
NPR
NPS
OAM
OA
OAR
OARM
OCFO
OCHP

Environmental Protection Agency
List of Acronyms

Federal Managers’ Financial Integrity Act

Food Quality Protection Act

Full-Time Equivalents

General Assistance Program (Grants)

Greenhouse Gas

Government Performance and Results Act

Green Suppliers Network

Human Health Risk Assessment

Hazardous and Solid Waste Amendments of 1984
High Production Volume

Homeland Security

Hazardous Waste Identification Media and Process Rules
Interagency Agreements

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

Mission Critical Occupation

National Ambient Air Quality Standards

North American Free Trade Agreement

National Academy of Public Administration

National Academy of Science

National Clean Diesel Program

National Compliance and Enforcement Priorities
National Data Processing Division

National Estuary Program

National Environmental Policy Act

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

National Pollutant Discharge Elimination System
National Partnership for Environmental Priorities
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


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 environmental results as we work to increase the pace
of improvement and identify new and better ways to carry out our mission. It also
emphasizes the need for sound management of our federal resources, as delineated in
the President's Management Agenda.

Annual Performance Plan and Congressional Justification

The EPA’s Fiscal Year (FY) 2008 Annual Performance Plan and the
Congressional Justification request is $7.2 billion in discretionary budget authority and
17,324 Full Time Equivalents (FTE). This request reflects the Agency’s efforts to work
with its partners towards protecting air, water, and land, as well as providing for EPA’s
role in safeguarding the nation from terrorist attacks. This request echoes the
Administration's commitment to setting high environmental protection standards, while
focusing on results and performance, and achieving goals outlined in the President's
Management Agenda.

The budget builds on EPA’s long record of accomplishments since its founding
37 years ago. The Agency and nation as a whole has achieved enormous successes.
This budget builds on these successes by strengthening our geographic initiatives,
better leveraging our nation’s resources, strengthening citizen involvement, maintaining
our enforcement capabilities, and implementing the President's commitment to
efficiently manage Federal resources.

Homeland Security

Following the cleanup and decontamination efforts of 2001, the Agency has
focused on ensuring we have the tools and protocols needed to detect and recover
quickly from deliberate incidents. The emphasis for FY 2008 is on several areas:
decontaminating threat agents, protecting our water and food supplies, and ensuring
trained personnel and key lab capacities are in place to be drawn upon in the event of
an emergency. Part of these FY 2008 efforts will continue to include activities to
implement a common identification standard for EPA employees and contractors, the
SmartCard initiative.

Human Capital

EPA will continue its systematic approach to workforce planning throughout the
Agency by setting targets and closing competency gaps in the mission-critical
occupations (MCOs) that have been identified. This will be done through the ongoing
use of human capital strategies to ensure that the Agency recruits and retains a
qualified pool of employees to protect human health and safeguard the air, water, and

ili


Appendix B: Infrastructure Finance

from health risks by increasing the number of homes connected to potable (drinkable)
water supply and wastewater collection and treatment systems. The program has
sufficient resources to carry out currently approved projects and provides $10.0 million
to address new needs in FY 2008.

B-5


Appendix B: Infrastructure Finance

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
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 84,000,000 people were served by
secondary or advanced wastewater treatment facilities. Today, 99 percent of
community wastewater treatment plants, serving 181,000,000 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 2008 request includes $687.6 million in funding for the CWSRF. More
than $24 billion has been provided to capitalize the CWSRF, almost three times the
original Clean Water Act authorized level of $8.4 billion. Total CWSRF funding
available for loans since 1988 through June 2006, reflecting loan repayments, state
match dollars, and other funding sources, is nearly $61 billion, of which more than

$58 billion has been provided to communities as financial assistance. The
following table illustrates the long-term financial picture for the CWSRF:

Annual Federal Revolving Level Time Span
Capitalization
$687.6 million through 2011 __| $3.4 billion (in 2001 $) 2015 through 2040

The DWSRF is designed to be self-sustaining over time 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 $12.8 billion to finance 4,985
infrastructure improvement projects nationwide, with a return of $1.73 for every $1 of

B-3



Goal 2: Clean and Safe Water

Other important areas of research in FY 2008 will include: 1) development of
molecular microarrays for detection of bacterial pathogens and non-pathogenic
microbes in drinking water source waters; 2) epidemiological studies on the illness rate
for untreated groundwater and distributions systems; 3) studies on the practice of
blending together waste water effluents in various stages of the disinfection process to
prevent peak wet weather flows from overwhelming treatment facilities while protecting
water quality; and 4) providing more efficient monitoring and diagnostic tools through
continued research to develop methods of using landscape assessments for monitoring
and assessing watershed conditions. These programs will help assess risks and
priorities for ensuring clean water.

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.

24


Appendix E: Acronyms

Environmental Protection Agency
List of Acronyms

Assistant Administrator

Alternative Dispute Resolution

Acute Exposure Guideline Levels

Assistant Regional Administrator

Agency for Toxic Substances and Disease Registry
Buildings and Facilities

Board of Scientific Counselors

British Thermal Units

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

Comprehensive Conservation and Management Plan
Climate Change Technology Initiative

Center for Environmental Information and Statistics
Comprehensive Environmental Response, Compensation, and Liability Act
Chief Financial Officer

Categorical Grant

Common Sense Initiative

Combined Sewer Overflows

Clean Water Act

Clean Water Action Plan

Clean Water State Revolving Fund

Disinfectant By Products

Design for the Environment

Defense Finance and Accounting System
Environmental Leadership Project

Environmental Impact Statement

Environmental Justice

Enacted Budget

Emergency Preparedness and Community Right-to-Know Act
Energy Policy Act of 2005

Environmental Programs and Management
Environmental Results Program

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


Goal 3: Land Preservation and Restoration

of response and cleanup actions. This approach will help ensure that human health and
the environment are protected and that land is returned to beneficial use.

In FY 2008, EPA also will continue to use a hierarchy of approaches to 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. '

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, allowing land to be returned 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. In FY 2008, EPA will continue to
ensure that it is adequately prepared to minimize contamination and harm to the
environment from spills and releases of hazardous materials by improving its readiness
to respond to emergencies through training as well as maintaining a highly skilled, well-
trained, and equipped response workforce.

The following themes characterize EPA’s land program activities under Goal 3 in
FY 2008: Revitalization; Recycling, Waste Minimization and Energy Recovery;
Emergency Preparedness, 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, Superfund Removal, RCRA Corrective Action,
Brownfields, and Underground Storage Tanks) and their partners are taking
proactive steps to facilitate the cleanup and revitalization of contaminated properties.
Revitalizing these once productive properties helps communities by 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. In reflection of the high priority the Agency has placed on

Additional information on these programs can be found at: www.epa.gov/superfund,
hittp://www.epa.gov/superfund/programs/er/index.htm, http://www.epa.gov/epaoswer/hazwaste/ca/, and
hittp://www.epa.gov/swerrims/landrevitalization,

3-2


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


Appendix A: Categorical Grants

states, Tribes and the Agency can better target remaining areas of high risk.
In FY 2008, EPA expects to reduce the number of child lead poisoning cases by
38,700.

In FY 2008, EPA will continue to award Targeted Grants to Reduce Childhood
Lead Poisoning. These grants are available to a wide range of applicants, including
state and local governments, Federally-recognized Indian Tribes and Tribal consortia,
territories, institutions of higher learning, and nonprofit organizations. In addition, EPA
will continue a grant program initiated in FY 2007 which focuses on low-income
communities through grants to national organizations engaged in working with these
communities. This grant program is designed to help national and community
organizations reach under-served populations that may have a disproportionate number
of children with elevated blood lead levels.

Pollution Prevention Grants

The FY 2008 request includes $5.9 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 2008, EPA is targeting a
reduction of 469 million pounds of pollution, 1.7 billion gallons of water conserved,
50.1 million dollars saved through reduction in pollution and 1.3 billion BTUs conserved.

Environmental Information Grants

In FY 2008, EPA requests $12.9 million to continue the Environmental
Information Exchange Network (Exchange Network) grant program. Started in 2002,
the Exchange Network grant program provides states, territories, Tribes, and Tribal
consortia assistance to develop the information management and technology (IM/IT)
capabilities they need to participate in the Exchange Network and thus improve
environmental decision making, increase environmental data quality and accuracy, and
reduce burdens on those who provide and those who access information. With nodes
established in all 50 states, in FY 2008 this grant program will emphasize supporting all
partners in the development and exchange of regulatory and non-traditional data flows
in FY 2008.

State and Tribal Underground Storage Tanks Program

The FY 2008 request includes $22.3 million for Underground Storage Tank
(UST) grants. In FY 2008, EPA will continue to assist states and Tribes in implementing
the UST program and will provide assistance and alternative mechanisms to states to
help them meet their new responsibilities authorized under the Energy Policy Act.
These new duties include performing additional inspections so that tanks are inspected
every three years, developing operator training requirements, prohibiting fuel deliveries

A4


Goal 4: Healthy Communities and Ecosystems

economic viability of Brownfields redevelopment. The Smart Growth program removes
barriers and creates incentives for Brownfield redevelopment by changing development
standards that affect the viability of Brownfields redevelopment; and creating cross-
cutting solutions that improve the economic, regulatory and institutional climate for
Brownfield redevelopment.

International Affairs

To sustain and enhance domestic and international environmental progress, the
Agency collaborates with other nations and international organizations to identify,
develop, and implement policy options to address environmental problems of mutual
concern. By assisting developing countries in managing their natural resources and
protecting the health of their citizens, EPA helps reduce transboundary movement of
pollution in the air and in water. EPA also works to include environmental protection
provisions and commitments to effectively enforce environmental laws and regulations
in all international trade agreements negotiated by the United States.

Environmental Justice

EPA is committed to environmental justice for all people, regardless of race, color,
national origin, or income. Toward that end, the Agency will focus its environmental
justice efforts on the following eight priorities:

Reducing asthma attacks,

Reducing exposure to air toxics,

Increasing compliance with regulations,

Reducing incidence of elevated blood lead levels,

Ensuring that fish and shellfish are safe to eat,

Ensuring that water is safe to drink,

Revitalizing brownfields and contaminated sites, and

Using collaborative problem-solving to address environmental and public health
concerns.

Cr ee

Research

In order to adequately protect or restore the health of communities and
ecosystems, environmental policy and regulatory decisions must be based on sound
science. 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 continue to conduct high priority,
multidisciplinary research in the areas of human health, ecosystems, mercury, global

45


United States Environmental Protection Agency
Office of the Chief Financial Officer (2701A)
Publication Number: EPA-205-S-07-001
February 2007
www.epa.gov/ocfo

Recycled/Recycleable Printed on 100% Postconsumer, Process Chlorine Free Recycled Paper


Appendix C: Trust Funds

500 major military installations representing the Army, Navy, Air Force, and Defense
Logistics Agency were slated for realignment or closure. Under the first four rounds of
BRAC, 107 of those sites were identified as requiring accelerated cleanup. EPA’s
participation in the acceleration process of the first four rounds of BRAC has been
funded by an interagency agreement which expires on September 30, 2008. The
accelerated cleanup process strives to make parcels available for reuse as quickly as
possible, by transfer of uncontaminated or remediated parcels, lease of contaminated
parcels where cleanup is underway, or “early transfer” of contaminated property
undergoing cleanup. Seventy-two Federal facilities currently listed on the NPL were
identified under BRAC 2005 as closing, realigning, or gaining personnel. This FY 2008
request does not include support for BRAC-related services to DoD at BRAC V facilities;
if EPA services related to activities generated by implementation of BRAC V actions are
required, the Agency will require reimbursement from DoD for the costs the Agency
incurs.

Leaking Underground Storage Tanks

The FY 2008 President's Budget requests $72 million and 75 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 2006 backlog of
113,915 cleanups not yet completed. Since the beginning of the Underground Storage
Tank (UST) program, EPA has cleaned up almost 75 percent (or 350,813) of all
reported releases. In FY 2008, the LUST program will achieve 30 cleanups in Indian
Country that meet risk-based standards for human exposure and groundwater
migration.

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Appendixes


Appendix B: Infrastructure Finance

Infrastructure / STAG Project Financing

(Dollars in Millions)
FY 2007 FY 2008
President’s Budget | President’s Budget
Infrastructure Financing:
Clean Water State Revolving Fund (CWSRF) $687.6 $687.6
Drinking Water State Revolving Fund (OWSRF) $841.5 $842.2
STAG Projects:
Brownfields Environmental Projects $89.1 $89.3
Diesel Emissions Reduction Program $49.5 $35.0
Mexico Border Projects $24.8 $10.0
Alaska Native Villages $14.9 $15.5
Targeted Projects - Puerto Rico $1.0 $0.0
TOTAL $1,708.4 $1,679.6

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

Infrastructure and Special Projects Funds

The President’s Request includes a total of $1,679 million in 2008 for EPA's
Infrastructure programs and State and Tribal Assistance Grant (STAG) projects.
Approximately $1.545 billion will support EPA’s Goal 2: Clean and Safe Water,
$99.3 million will support EPA’s Goal 4: Healthy Communities and Ecosystems and
$35.0 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
counties) the necessary tools, information, and strategies for promoting a unified

B-1


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 FY 2008
President’s President’s

10% of Budget Request Request Difference
1 - Achieve Environmental Protection through

Improved Compliance $491,949 $508,148 $16,200

2 - Improve Environmental Performance through
Pollution Prevention and Innovation $113,158 $108,613 -$4,545

3 - Improve Human Health and the Environment
in Indian Country $74,074 $74,304 $230

4 - Enhance Societies Capacity for Sustainability
through Science & Research $55,163 $52,767 -$2,397
Goal 5 Total** $734,343 $743,832 $9,488
Workyears * 3,485.6 3,481.7 -3.9

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

The Environmental Protection Agency will work to improve the nation’s
environmental protection practices and 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 multi-media approaches to environmental stewardship and safeguarding human
health.

In addition, EPA will assist Federally-recognized Tribes in assessing
environmental conditions in Indian country, and will help build their capacity to

5-1


Goal 2: Clean and Safe Water

Drinking Water

During FY 2008, EPA, the states and community water systems will build on past
successes while working toward the FY 2008 goal of assuring that 90 percent of the
population served by community water systems receives drinking water that meets all
applicable health-based standards. To promote compliance with drinking water
standards, states carry out a variety of activities, such as conducting onsite sanitary
surveys of water systems and working with small systems to improve their capabilities.
EPA will work to improve compliance rates by providing guidance, training, and
technical assistance; ensuring proper certification of water system operators; promoting
consumer awareness of drinking water safety; maintaining the rate of system sanitary
surveys and onsite reviews; and taking appropriate action for noncompliance. To help
ensure that water is safe to drink, the FY 2008 President's Budget requests $842 million
for the Drinking Water State Revolving Fund.

Clean Water

In FY 2008, EPA will work with states to continue progress toward the clean
water goals to implement core clean water programs, including innovations that apply
programs on a watershed basis, and to accelerate efforts to improve water quality, also
on a watershed basis. Building on the progress toward clean water achieved over the
past 30 years, EPA is working with states and Tribes to implement the Clean Water Act
by focusing on: scientifically sound water quality standards; effective water monitoring;
strong programs for controlling nonpoint sources of pollution; and strong discharge
permit programs.

The Agency’s request continues the monitoring initiative begun in 2005 to
strengthen the nationwide monitoring network and complete the baseline water quality
assessment of lakes and streams. These efforts will result in scientifically defensible
water quality data and information essential for cleaning up and protecting the nation’s
waters. Progress in improving coastal and ocean waters documented in the National
Coastal Condition Report will be maintained by focusing on: assessing coastal
conditions; reducing vessel discharges; implementing coastal nonpoint source pollution
programs; managing dredged material; and supporting international marine pollution
control. EPA will continue to provide annual capitalization to the Clean Water State
Revolving Fund (CWSRF). The FY 2008 President's Budget provides $688 million and
will allow EPA to meet the Administration’s Federal capitalization target of $6.8 billion
total for 2004-2011 and enable the CWSRF to eventually revolve at a level of
$3.4 billion.

Private Activity Bonds

Included in the President's Budget is a proposal to exempt Private Activity Bonds
(PABs) used to finance drinking water and wastewater infrastructure from the private
activity bond unified state volume cap. PABs are tax-exempt bonds issued by a State
or local government, the proceeds of which are used by another entity for a public
purpose or by the government entity itself for certain public-private partnerships.

2-2


Appendix D: Budget Tables

Summary of Agency Resources by Appropriation
(Dollars in Thousands)

Science & Technology (S&T) ' $788,274 $754,506
Environmental Programs and Management (EPM) $2,306,617 $2,298,188
Rescission of Prior Year's EPM Funds

Office of Inspector General ' $35,100 $38,008
Buildings & Facilities $39,816 $34,801
Oil Spill Response $16,506 $17,280
Superfund (SF) $1,258,955 $1,244,706
- Superfund Program $1,217,828 $1, 211,431
- Inspector General Transfer $13,316 $7,149
- Science & Technology Transfer $27,811 $26, 126
Rescission of Prior Year's SF Funds

Leaking Underground Storage Tanks $72,759 $72,461
State & Tribal Assistance Grants (STAG) $2,797,448 $2,744,450
Rescission of Prior Year's STAG Funds $0 -$5,000
Agency Total: $7,315,475 $7,199,400

* Does not include Superfund transfers--see the Superfund line items below for annual amounts.

D-1


Appendix D: Budget Tables

Resources By Program Project

(Dollars in Thousands)

FY 2007 FY 2008
Program / Project PresBud PresBud
Acquisition Management $49,293 $54,802
Administrative Law $4,861 $5,260
Alternative Dispute Resolution $2,117 $2,012
Audits, Evaluations, and Investigations $48,416 $45,157
Beach / Fish Programs $2,654 $2,830
Brownfields $24,637 $23,450
Brownfields Projects $89,119 $89,258
Categorical Grant: Beaches Protection $9,900 $9,900
Categorical Grant: Brownfields $49,495 $49,495
Categorical Grant: Environmental Information $14,850 $12,850
Categorical Grant: Hazardous Waste Financial Assistance $103,346 $103,346
Categorical Grant: Homeland Security $4,950 $4,950
Categorical Grant: Lead $13,563 $13,564
Categorical Grant: Nonpoint Source (Sec. 319) $194,040 $194,040
Categorical Grant: Pesticides Enforcement $18,711 $18,711
Categorical Grant: Pesticides Program Implementation $12,969 $12,970
Categorical Grant: Pollution Control (Sec. 106) $221,661 $221,664
Categorical Grant: Pollution Prevention $5,940 $5,940
Categorical Grant: Public Water System Supervision (PWSS) $99,099 $99,100
Categorical Grant: Radon $8,074 $8,074
Categorical Grant: Sector Program $2,228 $2,228
Categorical Grant: State and Local Air Quality Management $185,180 $185,180
Categorical Grant: Targeted Watersheds $6,930 $0
Categorical Grant: Toxics Substances Compliance $5,099 $5,099
Categorical Grant: Tribal Air Quality Management $10,940 $10,940
Categorical Grant: Tribal General Assistance Program $56,925 $56,925
Categorical Grant: Underground Injection Control (UIC) $10,890 $10,891
Categorical Grant: Underground Storage Tanks $37,567 $22,274
Categorical Grant: Wetlands Program Development $16,830 $16,830
Central Planning, Budgeting, and Finance $110,104 $100,368
Children and Other Sensitive Populations: Agency Coordination $6,064 $6,203
Civil Enforcement $123,487 $129,594
Civil Rights / Title VI Compliance $11,054 $11,240
Clean Air Allowance Trading Programs $28,386 $27,647
Climate Protection Program $104,393 $101,031
Commission for Environmental Cooperation $4,137 $4,022
Compliance Assistance and Centers $30,032 $30,548

D-3



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 FY 2008

9 President’s President’s
23% of Budget Budget Budget __ Difference
1 - Preserve Land $242,511 $231,575 -$10,936
2 - Restore Land $1,397,706 $1,382,939 -$14,767
3 - Enhance Science and Research $50,170 $48,607 $1,563
Goal 3 Total ** $1,690,386 $1,663,120 -$27,266
Workyears * 4,693.5 4,582.0 -111.5

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

Land is one of America’s most valuable resources. Uncontrolled, hazardous and
non-hazardous 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.

To address these issues, EPA implements the Land Preservation and Restoration goal
utilizing a three pronged approach—prevention, protection, and response activities to
address immediate needs; enforcement and compliance assistance to determine what
needs to be done and who should pay; and sound science and research to address risk
factors and new, innovative solutions.

Prevention, Protection, and Response Activities

EPA leads the country’s activities to prevent and reduce the risks posed by
releases of harmful substances and to preserve and restore land with effective waste
management and cleanup methods. In FY 2008, the Agency will continue to apply the
most effective approach to controlling these risks by developing and implementing
prevention programs, improving response capabilities, and maximizing the effectiveness

3-1