Renewal of an 

Information collection request

for

Regulatory Pilot Projects

OMB Control No. 2010-0026

EPA ICR No. 1755.09

The United States Environmental Protection Agency

February 2011
Table of Contents

Title Page

1. Identification of the Information Collection ..................................................................1

1(a) Title of the Information Collection ........................................................................1

1(b) Short Characterization/Abstract ............................................................................1

2. Need for and Use of the Collection

2(a) Need/Authority for the Collection ........................................................................ 3

2(b) Practical Utility/Users of the Data .........................................................................3

3. Nonduplication, Consultations, and Other Collection Criteria 

3(a) Nonduplication....................................................................................................3

3(b) Public Notice Required Prior to ICR Submission to OMB .......................................4

3(c) Consultations......................................................................................................4

3(d) Effects of Less Frequent Collection.......................................................................4

3(e) General Guidelines..............................................................................................4

3(f) Confidentiality.................................................................................................... 4

 3(g) Sensitive Questions .............................................................................................4

4. The Respondents and the Information Requested 

4(a) Respondents/NAICS Codes..................................................................................4

4(b) Information Requested........................................................................................ 4

(I) Data items, including record keeping requirements 

(II) Respondent Activities 

5. The Information Collected--Agency Activities, Collection Methodology, 

and Information Management 

5(a) Agency Activities................................................................................................5

5(b) Collection Methodology and Management .............................................................6

5(c) Small Entity Flexibility ........................................................................................6

5(d) Collection Schedule.............................................................................................6

6. Estimating the Burden and Cost of the Collection 

6(a) Estimating Respondent Burden and Cost..............................................................6

6(b) Estimating Agency Burden and Cost .....................................................................9

6(c) Estimating the Respondent Universe and Total Burden and Costs...........................10

6(d) Reason for Burden Hour Change.........................................................................10

7. Burden Statement.....................................................................................................10
1

U.S. ENVIRONMENTAL PROTECTION AGENCY

 

Regulatory Innovation Pilot Projects (ICR) No. 1755.09

1. Identification of the information collection

1(a) Title and Number of the Information Collection

Title: Regulatory Innovation Pilot Projects, ICR No. 1755.09, OMB Control No. 2010-0026.

1(b) Short Characterization

This is a request for renewal of currently approved ICR No. 1755.08, which authorizes the 

solicitation of proposals for innovative pilot projects. A 60-day comment period for this ICR 

renewal in the Federal Register concluded on December 6, 2010, during which one comment was

received. 

In 1995, the U.S. Environmental Protection Agency (EPA) began to solicit innovative pilot 

projects in response to a challenge to transform the environmental regulatory system to better 

meet the needs of a rapidly changing society while maintaining the nation’s commitment to 

protect human health and safeguard the natural environment. Since then, through a number of 

mechanisms including: site-specific agreements with project sponsors at the facility or community

level; broader agreements under the Joint EPA – State Agreement to Pursue Regulatory 

Innovation (http://www.ecos.org/files/1426_file_Agreement.pdf); and at the State wholeregulatory program-level through the Agency’s State Innovation Grant Program, EPA has been

working effectively with partners to test innovative approaches to environmental regulation that 

focus on better environmental outcomes and better efficiency. Under prior Information Collection 

Requests (ICRs), EPA has been gathering data on performance under the earlier, facility-specific 

innovation projects identified under Project XL (http://www.epa.gov/projctxl/). Project experience

gained in these earlier projects is helping the Agency redesign current approaches in pursuit of 

improved public health and environmental protection and more efficient use of limited resources. 

Through these projects, sponsors private facilities, multiple facilities, industry sectors, Federal 

facilities, communities, universities, Tribes and States are implementing innovative strategies that 

produce superior environmental performance, provide flexibility, cost savings, paperwork 

reduction or other benefits to sponsors, and promote greater accountability to the public. 

The intent of conducting and supporting innovative pilot projects is to allow EPA to experiment 

with untried, potentially promising regulatory approaches, both to assess whether they provide 

superior environmental performance or other benefits, and whether they should be considered for 

wider application. Using this piloting approach, EPA can rely on carefully controlled, but smaller 

scale tests to evaluate methodically the broader applicability of any specific regulatory innovation. 

This piloting approach provides EPA with a structured, applied policy laboratory where tests of 

innovation at a manageable scale can be controlled and evaluated carefully much the same as 
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engineering innovations require component-by component tests and evaluation to bring an 

innovation to implementation. The piloting, or applied policy laboratory approach allows EPA to 

propose and adopt changes based upon an actual assessment of success at a small scale. Thus, the 

careful piloting of a regulatory innovation allows EPA to identify possible new policy approaches 

within the general statutory directive, and suggest alternative regulatory approaches aimed at 

better results and better efficiency, so long as the alternative proposed is permissible under statute.

The adoption of such alternative approaches or interpretations in the context of a pilot project 

does not, however, signal EPA's willingness to adopt that interpretation as a general matter, or 

even in the context of other pilot projects. It would be inconsistent with the forward-looking 

nature of these pilot projects to adopt such innovative approaches prematurely on a widespread 

basis without first determining whether or not they are viable in practice and successful for the 

particular projects that embody them. These pilot projects are not intended to be a means for 

piecemeal revision of entire programs. Depending on the results of these projects, EPA may or 

may not be willing to consider adopting the alternative approach or interpretation again, either 

generally or for other specific facilities. EPA believes that testing alternative policy approaches 

and/or interpretations, on a limited basis (e.g., in a site-specific circumstance or within a specific, 

state-managed permitting program) and under the tight control of a carefully selected pilot project 

is consistent with the expectations of Congress about EPA's role in implementing the 

environmental statutes (so long as EPA acts within the discretion allowed by the statute). 

Congress' recognition that there is a need for experimentation and research, as well as ongoing 

reevaluation of environmental programs, is reflected in a variety of statutory provisions.

EPA’s Office of Policy (OP) has tested and evaluated innovative approaches in collaboration 

with state environmental agencies and directly with regulated entities through pilot projects 

supported through formal mechanisms such as the State Innovation Grant Program which ran 

from 2002 through 2009 and under Project XL which ran from 1995 through 2003,. The Office of 

Policy historically has managed a careful program to pilot test, evaluate and implement select 

innovations in support of the Agencies regulatory programs. Since 1995, EPA has implemented 

pilot projects to test innovative ideas working with EPA headquarters, EPA regions, Federal, 

State, and local government agencies, as well as individual facilities and whole business sectors. 

The renewal of this ICR is important as it will allow the Agency to continue to monitor and 

present the outcomes of the projects still remaining from those earlier programs even though they

are no longer creating new pilot projects. It will also allow the Agency to continue its 

commitment to testing and evaluating innovative approaches for better environmental results as a 

partner with States, Tribes and communities. The renewal of this ICR will allow EPA to continue 

to collaborate with the states as co-regulators to test innovative approaches for addressing 

emerging environmental issues such as climate change adaptation. In addition, the renewal of this 

ICR is necessary to allow EPA to continue information collection supporting its commitments to 

current projects under previous approved ICR amendments (1755.03-1755.08). 
3

2. Need for and Use of the Collection

2(a) Need/Authority for the Collection

The information is needed to allow the Agency to continue its ongoing work with states, regulated 

entities, and other stakeholders that are already engaged in innovative regulatory piloting projects. 

The information is of value to the Agency in meeting its commitment to document and transfer 

practical innovation and regulatory flexibility for attainment of compliance and superior 

environmental results in partnership with regulated facilities, communities, states and tribes. The 

information will support the reporting of improved environmental results and the analysis of pilot 

projects to determine their efficacy and potential for broader use. States implementing innovative 

regulatory pilot tests in projects funded by a State Innovation Grant are required to report on 

progress during the operation of a project and to provide a final project report summarizing 

outcomes and major findings of each project. EPA’s policy on performance measurement in 

assistance agreements is an implementation outcome under the Government Performance and 

Results Act (GPRA § 1115 (a)(4) and §1116(c) ). The renewal of this ICR will allow OEPI to 

continue to receive and work with project sponsors on proposals for innovation as well as 

document results from those projects.

Responses related to inquiries by EPA about Project XL pilot projects are voluntary, as are any

responses by state environmental agencies to EPA’s request for input for the design of the annual 

competition. Under this ICR, EPA would be allowed to solicit its co-regulators and the regulated 

entities for their best ideas on pilot projects to test and evaluate innovative practices, and for 

information that will document the processes and environmental outcomes of pilot testing. . 

2(b) Practical Utility/Uses of the Data

Information collected under this ICR renewal will have two purposes. First, EPA seeks to 

document the results of regulatory innovation pilot projects: to provide accountability reflected in 

environmental results; to understand the circumstances under which these innovative approaches 

work best; and to fully document the projects and their outcomes in a way that allows other states 

or tribes to work with regulated entities to adopt successful approaches. Second, EPA will be 

allowed to consult with state and local environmental regulatory agencies on development and 

testing of novel approaches to addressing emerging environmental issues 

3. Nonduplication, Consultations, and Other Collection Criteria

3(a) Nonduplication

The information to be obtained under this ICR has not been collected by EPA or any other Federal 

agency.
4

3(b) Public Notice Required Prior to ICR Submission to OMB

In compliance with the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), EPA solicited

comments on this ICR. A Federal Register (F.R.) notice for this ICR package was first published 

in the Federal Register on October 5, 2010, (Volume 75, Number 192, page 61483 – 61485).

One public comment was received in the 60-day first notice in the Federal Register. This 

comment, from the Wisconsin Department of Commerce provided a reminder to the EPA Office 

of Policy that EPA Region 5 had committed to providing technical assistance in the form of 

inspections for a State Innovation Grant supported project for the state’s inspection of facilities 

participating in the auto body sector Environmental Results Program pilot. In response to that 

comment, the annual and total burden for EPA has been recalculated in the support document to 

include a total (over the lifetime of this ICR amendment additional burden of 100 hours by EPA.

3(c) Consultations

This notice was developed by the Office of Policy in consultation with EPA Regional personnel. 

3 (d) General Guidelines

This ICR complies with OMB’s general guidelines for the collection of information.

3(e) Confidentiality

The nature of the data being requested as part of this information collection is not confidential.

3(f) Sensitive Questions

The information gathering activities discussed in this ICR do not involve any sensitive questions.

4. The Respondents and the Information Requested

4(a) Respondents/NAICS Codes

EPA historically has worked with states, tribes, local governments, businesses and other regulated 

entities on regulatory innovation piloting. Potential respondents include the states and tribes as 

well as entities regulated by EPA and its co-regulators in state and tribal agencies pursuant to its 

authority under the various environmental statutes who are participating in innovative pilot 

projects.

4(b) Information Requested
5

No new proposals are being accepted through Project XL or the State Innovation Grant program 

Therefore the information collection activities fall generally into two categories within this ICR: 

(1) progress reporting and final reporting for all projects in implementation under Project XL and 

the existing State Innovation Grant Program; (2) occasional consultation with state, tribal and 

local environmental agencies related to pilot testing and evaluation of innovative approaches to 

address emerging environmental issues.

For projects in implementation under Project XL, EPA anticipates collection of information to 

allow the Agency to document and evaluate the outcomes of the remaining fourteen (14) pilot 

projects, including measurements of environmental outcomes including collection of final project 

reports, as identified in the Final Project Agreement or a project workplan that will provide the 

information required to assess the success and outcomes of each project. For the remaining twenty

(20) projects sponsored under the now-closed State Innovation Grant Program, EPA anticipates 

collection of quarterly progress reports and a final project report for each project to summarize 

results and provide evaluative information to describe the success and broader applicability of the 

piloted innovative approach. EPA will also provide direct technical assistance to the State of 

Wisconsin for a project supported under the State Innovation Grant Program by providing 

inspections for up to one hundred and forty (140) facilities participating in the State’s auto body

repair shop Environmental Results Program (ERP) pilot. Information collection for the 

compliance part of these inspections is addressed in ICRs supporting the compliance program but, 

because this pilot project, typical of other ERP projects provide measures of beyond-compliance 

performance by small facilities intended to indicate more effective environmental stewardship 

through waste and energy minimization, some information requested for these inspections by

EPA personnel would not be covered in existing ICRs for the compliance inspection program.

EPA also anticipates needing the opportunity for occasional consultation with state and tribal 

environmental regulatory agencies to identify potential partnership areas for piloting and 

evaluating innovative solutions to emerging environmental issues such as climate change 

adaption.

5. The Information Collected. Agency Activities, Collection Methodology, and Information 

Management.

5(a) Agency Activities 

Agency activities associated with the collection of information for innovative pilot projects 

include:

 Gather information from project sponsors and participants on progress and results from 

existing innovation pilot tests initiated under Project XL and the State Innovation Grant 

Program.

 Occasional consultation with state and tribal environmental agencies through Federal 

Register Notices and responses, email, or written correspondence as well as through 
6

symposia and other meetings to gather ideas for pilot testing of innovative ideas focused 

on addressing emerging environmental issues.

5(b) Collection Methodology and Information Management

For projects implemented through Project XL and the State Innovation Grant program: progress 

reports, correspondence, and final reports are submitted by each project sponsor by email or mail 

and following review these reports are kept in project files by EPA project personnel. For the 

occasional consultation with states and tribes on pilot testing innovative approaches to address 

emerging environmental issues, EPA anticipates using Federal Register Notices and responses, 

email, or written correspondence as well as through symposia and other meetings 

5 (c) Small Entity Flexibility. 

Facilities participating in innovation projects under all projects under Project XL and State 

Innovation Grant projects: participate on a voluntary basis and entities can choose not to 

participate at any time if undue burden exists. 

5(d) Collection Schedule.

No new proposals are being accepted through Project XL or the State Innovation Grant Program. 

For regulatory innovation projects in implementation, progress reporting generally occurs 

quarterly and as a final project report for grant-supported projects and annually and a final project 

report for XL projects.

6. Estimating the Burden and the Cost of the Collection

6(a) Estimating Respondent Burden and Cost

This section presents EPA’s estimates of the burden and costs necessary to complete the 

information collection activities associated with this collection. Burden hours and costs were 

based upon estimates provided by EPA staff with extensive experience working with innovative 

pilot project sponsors and States to assess innovative pilot project ideas and proposals.

EPA estimates average hourly respondent labor cost (including fringe and overhead) of $82.23 for 

legal staff, $68.90 for managerial staff, $42.09 for technical staff, and $19.98 for clerical staff. To 

derive these estimates, EPA referred to the National Employment Cost Indexes developed by the 

U.S. Bureau of Labor Statistics (http://www.bls.gov/oes/current/oes_nat.htm).

In using this analysis it should be remembered not only that all responses to this solicitation are 
7

voluntary, but that sponsors have some expected value attached with their participation. Not 

unlike a contracts-based Request For Proposals, one would not expect a response from any entity

where the burdens associated with preparing the response outweigh the expected benefits to the 

sponsor.

Facilities participating in projects implemented by states supported under the State Innovation 

Grant Program will be required to report on their environmental performance in order to allow 

states to meet their obligation under the assistance agreements to measure the environmental 

outcomes of their projects. The nature of the metrics and reports vary with the type of projects 

proposed. They may range from pre- and post-implementation compliance reporting which is 

generally covered under programmatic ICR to reporting with innovative measures such as the 

adoption of best environmental business practices that result in pollution prevention through 

elimination of waste and business process change. This ICR is intended to allow the collection of 

this type of information which provides a more reliable measure of the results of innovative 

practice. EPA anticipates that up to 800 facilities annually may be asked to provide information 

on performance measures related to adoption of innovation requiring 3,200 hours annually at an 

estimated cost of $ 188,248.

For activities related to the preparation and submission of progress and final reports related to 

State Innovation grant projects, EPA estimates that States would expend up to 1,340 hours 

annually, costing approximately $62,427.

EPA anticipates requesting final project reports from 12 XL Projects during the lifetime of this 

ICR as a means of closing out and documenting the results of these projects and evaluating the 

further applicability of the ideas tested in these demonstrations. 

No capital expenditures are needed by the respondent to complete the interview since the 

responses can be made using existing equipment (e.g., telephone). Moreover, no operating and 

maintenance costs are needed since the activities (reviewing instructions, writing, discussions, and 

submissions of proposals) can be conducted in with existing equipment (e.g., phone, computer).

For progress and final reporting on XL Projects, EPA projects that each project will require up to 

20 hours to compile, compose and edit material to fulfill the commitment made by project 

sponsors in the Final Project Agreement to report fully on the outcomes of these voluntary

projects. Thus, approximately 240 hours will be required over the lifetime of this ICR (80 hours 

annually) for these reports. The cost of this is estimated to be $4,154.88 annually.

For activities related to the collection of State input into the design of the innovation pilots, EPA 

anticipates that States and Tribes may expend up to 3 hours each to develop and submit comment 

to the Agency for a total annual burden of 60 hours costing approximately $3,864.40. 

Staff in the EPA Office of Strategic Environmental Management (formerly the National Center 

for Environmental Innovation) that work on the development of innovative pilot projects have 

reviewed the cost findings of the report and found them to be reasonable and sound estimates of 
8

current and future costs. 

Table 1. Average Annual Burden and Cost to Respondents

Table 1. Average Annual Burden and Cost to Respondents

Collection Activity

Burden Hours and Individual Costs per 

Recipient

Total Costs

Hours per Respondent per 

Activity

Costs per

Respondent

per Activity

Total Hours

for all

Respondents

Total Costs

for all

Respondents

Legal Mgmt Tech Cler

STATE INNOVATION GRANT 

SPONSORS: PROGRESS AND OUTCOME 

REPORTING PHASE

Collection of Annual Compliance and Other 

Performance Information By Participating 

Facilities to Report to State Agencies (Assumes 

800 Facilities Annually)

 1 1 2 $235.31 3,200 $188,248.00

Quarterly Project Reporting on State Innovation 

Grant Projects (80 annually)

 1 2 8 2 $596.71 1,040 $47,736.80

Final Project Reports on State Innovation Grant 

Projects (5 annually)

 4 16 32 8 $2,938.04 300 $14,690.20

TOTAL

 6 19 42 10 $3,770.06 4,540 $250,675.00

PROJECT XL FINAL REPORTING

Compile project information and develop final 

project report and closeout (assume 4 annually)

2 6 8 2

$954.54

72 $3,818.16

Consult with EPA to resolve any questions on 

final report and respond to brief evaluation 

survey for closeout activities (assume 4 annually)

2 $84.18 8 $336.72

TOTAL 2 6 10 2 $1,038.72 80

$4,154.88

CONSULTATION WITH STATES ON 

INNOVATION PILOTING

Solicitation of Input from State Environmental 

Agencies (Assume 20 Respondents) 1

 

 1 1

$193.22

 60 $3,864.40

TOTAL 1 1 1 $193.22 60 $3,864.40

EXTERNAL BURDEN TOTAL 9 26 53 12 4,680

$258,694.28
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6(b) Estimating Agency Burden and Cost

Agency burden hours and costs were based upon estimates provided by EPA staff with extensive 

experience working with innovative pilot project sponsors and States to assess innovative pilot 

project ideas and proposals. The rate EPA used to estimate agency hourly wage was based upon 

2010 GS-13/01 salary (Baltimore-DC) of $89,033 (or $42.66) with overhead of 110% factored in, 

resulting in approximately $90/hour. 

To perform the necessary activities associated with this information collection, EPA estimates that 

it will require the Agency 315 hours and cost the Agency $20,250 per year. 

Staff in the Office of Environmental Policy Innovation that work on the development of innovative 

pilot projects have reviewed the cost findings of the report and found them to be reasonable and 

sound estimates.

Table 2. Annual Average Burden and Cost to Agency

Collection Activity

Costs

Labor Total Hours Total

Costs

Hours Costs

EPA

Evaluation of State Innovation Grant Project Progress Reports 

(assume 80 quarterly reports)

 1 $ 90 80 $7,200

Evaluation of State innovation Grant Final Reports (assume 5

annually) 8 $720 40 $ 3,600

Technical Assistance for Wisconsin State Innovation Grant Pilot 

project Inspections

 

 33 $ 90 33 $2,970

Evaluate Project XL Final Reports (assume 4 annually) 8 $720 32 $ 2,880

Solicit state input on innovation piloting and develop 

recommendations report 40 $3,600 40 $3,600

INTERNAL BURDEN TOTAL 90 $5,220 315 $20,250
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6(c) Bottom Line Total Burden and Costs

EPA anticipates a total annual burden to all entities (states and tribes, participating private facilities 

and the Agency itself) of 4,995 hours at an estimated annual cost of $278,944.

Table 3. Summary of ICR Burdens for Respondent Universe

Summary of ICR Burdens and Costs

Entity Annual Hours 

Required

Annual Costs Total Hours 

Over ICR 

Lifetime (3 yr)

Total Costs Over 

ICR Lifetime 

(3yr)

States and 

Tribes

 1,400 $ 66,291.40 4,200 $ 198,874.20

Private Facility 

Participants

 3,280 $ 192,402.88 9,840 $ 577,208.64

PUBLIC BURDEN 4,680 $ 258,694.28 14,040 $ 776,082.84

EPA 315 $ 20,250 945 $ 60,750

TOTAL BURDEN 4,995 $ 278,944.28 14,985 $ 836,832.84

6(d) Reasons for Burden Hour Change

With the renewal of this ICR, total annual hours needed to conduct information collection activities

described in this ICR will be decreased by 3,068 hours. This difference is largely a result of the 

reduced number of Project XL and State Innovation Grant projects reporting as those programs 

come to a close as well as our improved ability to refine the estimates based upon the number of 

projects coming to completion and almost 15 years of experience promoting regulatory innovation 

and a better understanding of the burden requirements necessary to develop and submit proposals 

for innovative pilot projects, and an improved understanding of innovative pilot projects and how 

to develop them.

7. Burden Statement

The annual public reporting and recordkeeping burden for this collection of information is 

estimated to average 5 hours per response. Burden means the total time, effort, or financial 

resources expended by persons to generate, maintain, retain, or disclose or provide information to 

or for a Federal agency. This includes the time needed to review instructions; develop, acquire, 

install, and utilize technology and systems for the purposes of collecting, validating, and verifying 
11

information, processing and maintaining information, and disclosing and providing information; 

adjust the existing ways to comply with any previously applicable instructions and requirements; 

train personnel to be able to respond to a collection of information; search data sources; complete 

and review the collection of information; and transmit or otherwise disclose the information. An 

agency may not conduct or sponsor, and a person is not required to respond to, a collection of 

information unless it displays a currently valid OMB control number. The OMB control numbers 

for EPA's regulations are listed in 40 CFR part 9 and 48 CFR chapter 15. 

To comment on the Agency's need for this information, the accuracy of the provided burden 

estimates, and any suggested methods for minimizing respondent burden, including the use of 

automated collection techniques, EPA has established a public docket for this ICR under Docket 

ID Number EPA-HQ-AO-2010-0739, which is available for online viewing at 

www.regulations.gov, or in person viewing at the Office of Administrator (OA) Docket in the EPA 

Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Avenue, NW, Washington, 

D.C. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday

through Friday, excluding legal holidays. The telephone number for the Reading Room is (202) 

566-1744, and the telephone number for the OA Docket is (202) 566-1752. An electronic version 

of the public docket is available at www.regulations.gov. This site can be used to submit or view 

public comments, access the index listing of the contents of the public docket, and to access those 

documents in the public docket that are available electronically. When in the system, select 

“search,” then key in the Docket ID Number identified above. Also, you can send comments to the 

Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, 

NW, Washington, D.C. 20503, Attention: Desk Officer for EPA. Please include the EPA Docket 

ID Number EPA-HQ-AO-2010-0739 and OMB Control Number 2010-0026 in any

correspondence.