Date: 1993-04-27
Speaker: JAMES L. DEAN (democrat)
Chamber: S

Director. Committee Management Secretariat. General Services Administration (GSA). K Street. NW. Washington. DC DEAR MR. DEAN: I am writing to advise you that the Environmental Protection Agency (EPA) Is renewing the charter of the Environmental Financial Advisory Board (EFAB). Consistent with the Federal Advisory Committee Act and the GSA Final Rule on Federal Advisory Committee Management. this letter satisfies the requirements for Agency consultation prior to the renewal of this Advisory Board. I have enclosed a statement which provides information on the reasons for: (1) our determination that EFAB Is essential to the conduct of Agency business and in the public interest. (2) why the functions of the Board cannot be performed by other Agency staff or by an existing committee. and (3) our view that we have achieved a balanced membership. I have also enclosed the EFAB charter and a copy of the Boards membership roster. EFAB was created in 1969 to provide advise and analysis to the Administrator on how to pay for the increasing costs of environmental protection and to increase investment in environmental infrastructure through greater leveraging of public and private resources. The Agency recognized that we had spent billions of dollars in the last twenty years on environmental improvements. While much progress had been made. much remains to be done. Indeed. we marshaled an impressive array of cost data that shows that we face a shortfall between the need for environmental dollars and the resources available to meet that need. and that the greatest burden will fall on states and localities. It became apparent that if new means to pay for environmental services and infrastructure were not found. we would not be able to maintain and build upon the significant environmental gains made to date. Administrator Reilly recognized and acknowledged that the issue of who pays and how to pay is. and will remain. central to the success of the Agencys mission. He also noted that the complexity and magnitude of the challenge required outside expertise from both the public and private sectors and. accordingly. he convened the Board. The Board has made significant contributions to EPA by addressing the critical environmental challenges of the 1990s. producing several advisories and other "blueprints for action" at the request of Agency leadership. as well as working with other advisory groups to provide the synergy necessary to achieve Agency goals. It has helped establish the framework for a national environmental financing policy within EPA by proposing actions to: lower the costs of environmental services and infrastructure as a vital necessity in closing the gap between limited resources and increasing mandates. build state and local capacity as the only viable means of securing gains made to date and assuring further progress. increase public and private infrastructure Investment as a spur to job creation. produotivity. and tax revenues. link risk and finance to ensure that scarce financial resources are flowing into problems having the highest environmental and public health risks. and focus on economic incentives to address urban environmental policy and equity to reduce exposure to inordinate risks and to employ urban youth in environmental prevention and cleanup projects. Specific products include a Clean Air Act finance guide on ways states can help pay for implementation of their clean air programs. advisories on ways to improve financing options for small communities. linkages of investments in pollution control to economic growth and development. and an advisory on private sector incentives that anticipated the Presidents Executive Order on Infrastructure Privatizatlon and helped shape the Agencys response. The Board also reviewed a unique EPA compendium of alternative financing options for state and local governments. The Board remains essential to the conduct of the Agency mission. It will continue to devote Its energies to the uniquely important issue of national environmental finance policy. Products anticipated over the next year include: (1) an urban environmental policy advisory that is in. the final stages of review. (2) a border initiative to access private capital markets via a credit pooling mechanism to help pay for environmental facilities on the U.SJMexican border.(3) helping in the establishment and work of newly created Environmental Finance Centers. and (4) working with the prestigious Science Advisory Board on a case study to be used as a model for riskbased decisionmaking. The advice and counsel that EFAB has provided to the Administrator cannot be performed by the Agency or another advisory committee. We do not have the resident expertise in such highly complex areas as state and federal legislative analysis. investment banking. capital planning and fee setting. and socioeconomic issues. Other advisory boards have come to EFAB to use their unique expertise. It is essential that the Agency continue to have this talent available. We will also continue to have a balanced membership from the following sectors the U.S. Congress. state and local government. including elected officials. business and industry. the finance. banking. and legal community. academia. and national organizations and associations. The membership is reflective of local and regional municipal finance matters and recognizes the needs of communities of varying sizes. The magnitude of the environmental financing challeng the extent of Congressional interest in these matters and from national experts in serving on the Board. and the increasing public concern over the future direction of environmental protection programs have demonstrated the continuing need for independent expert financial advice. The role of EFAB in providing timely and significant recommendations will greatly help the Agency carry out Its environmental mandates. Since the EFAB charter terminates on February 25. 1963. it will be necessary for us to proceed by February 11. 1963. with preparations for publication of a notice in the Federal Register ahd the filing of the renewal charter with the appropriate Congressional committees and the Library of Congress. Any assistance you can provide to help meet that date will be greatly appreciated. If you have any questions concerning the Environmental Financial Advisory Board. please contact George Ames at 2202901020. Sincerely.