Document ID: EPA-HQ-OA-2010-0739-0006
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2011-03-03T05:00Z

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

Burden Statement	10



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 ( 
HYPERLINK "http://www.ecos.org/files/1426_file_Agreement.pdf" 
http://www.ecos.org/files/1426_file_Agreement.pdf ); and at the State
whole-regulatory 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 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). 

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.

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

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 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 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
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

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

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
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  
HYPERLINK "http://www.regulations.gov"  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.

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