Environmental Leadership Program: Request for Pilot Project Proposals; Notice ENVIRONMENTAL PROTECTION AGENCY

SUMMARY: This notice requests proposals for Environmental Leadership

Program pilot projects, and outlines the criteria facilities must meet

to be considered for participation. These pilot projects will explore

ways that EPA and States might encourage facilities to develop

innovative auditing and compliance programs and to reduce the risk of

non-compliance through pollution prevention practices. In addition, the

pilots will help EPA design a full-scale leadership program, and

determine if implementing such a program can help improve environmental

compliance. Any future full-scale leadership program based in the

Office of Compliance will be consistent with the goals of the

Administrator's Common Sense Initiative, which focuses on comprehensive

environmental protection strategies for entire industry sectors.

These voluntary pilot projects will benefit the public by

encouraging industry to take greater responsibility for self-

monitoring, which will lead to improved compliance, pollution

prevention, and environmental protection. The projects will benefit

industry by providing an opportunity to receive recognition for

outstanding environmental management practices and to address barriers

to self-monitoring and compliance efforts. Finally, the projects will

benefit government by strengthening Federal-State partnerships and

allowing EPA to gather empirical data on environmental compliance

methodology and measures.

EPA plans to select three to five (3-5) pilot projects. The pilots

will be selected from the pool of proposals received based on how

completely they address the seven criteria outlined in this notice, and

their potential to demonstrate possible components of a full-scale

leadership program. Depending on the level of interest in the projects,

the quality of the proposals received, and available resources, the

Agency may be willing to expand the pilot project phase to include

additional projects.

DATES: Proposals for pilot projects will be accepted until August 22,

1994. Proposals will be reviewed on a rolling basis as they are

received, with selection of the finalists in the fall of 1994.

ADDRESSES: Applicants should mail three (3) copies of their proposal

and all required documentation to: U.S. Environmental Protection Agency

(1102), Attn: Ira R. Feldman, ELP Pilot Project Director, 401 M Street,

SW., Washington, DC 20460. Facilities may submit their proposals

directly to EPA after discussions with their State environmental

agency, or to their State agency for forwarding to EPA.

FOR FURTHER INFORMATION CONTACT: Ira R. Feldman, ELP Pilot Project

Director, U.S. Environmental Protection Agency (1102), Office of

Compliance, 401 M Street SW., Washington, DC 20460, phone (202) 260-

7675, fax (202) 260-8511 or Mike Schiavo, U.S. Environmental Protection

Agency (1102), 401 M Street, SW., Washington, DC 20460, phone (202)

260-2824, fax (202) 260-8511.

I. Introduction

A. Original ELP Proposal

On January 15, 1993, EPA published a Federal Register notice (58 FR

4802) requesting comment on the possible creation of a national

voluntary program to encourage and publicly recognize environmental

leadership and to promote pollution prevention in the manufacturing

sector. The Agency requested responses to 56 specific questions about

the structure of such a program, possible goals and measures, the need

for incentives, the role of compliance screening, and other related

issues. Two basic components were proposed for the ``Environmental

Leadership Program'' (ELP)--a ``Corporate Statement of Environmental

Principles'' and a ``Model Facility'' Program.

The Agency received a wide variety of comments on the original

proposal from industry, States, environmental groups, and other non-

governmental organizations. In addition, the Agency held a public

meeting on May 6, 1993 in Washington, DC and received additional

comment from 30 groups. While no true consensus emerged on the best

structure or goals for the program, the comments clearly indicated an

interest in a voluntary program to recognize environmental excellence.

(A summary of public comments is available from EPA upon request.)

After extensive review and analysis of the comments by the Office of

Enforcement, the Office of Pollution Prevention and Toxics, and the

Administrator's Pollution Prevention Policy Staff, the Agency refined

the goals and the immediate focus of the project.

B. Model Facility Pilot Projects

In the January 28, 1994 Federal Register (59 FR 4066), the

Administrator announced EPA's intent to further develop the ELP

concept, initially through a small number (3-5) of voluntary, facility-

based pilot projects. The new Office of Compliance (OC), within the

reorganized Office of Enforcement and Compliance Assurance (OECA), will

coordinate the ``model facility'' pilot project effort with significant

Regional and State partner involvement. At the same time, EPA opted not

to further develop its own ``Corporate Statement of Environmental

Principles,'' but rather to work cooperatively with organizations that

have developed their own corporate or industry-specific codes. (The

Office of Pollution Prevention and Toxics will continue to lead any

future Agency involvement in this area.)

This pilot project effort is distinguished from a possible future,

full-scale Environmental Leadership Program. A major goal of the pilot

projects is to further explore possible components of a full-scale

program. Options were raised during public comment last year on various

program elements, including the review and selection process,

recognition mechanisms, and other possible incentives for facilities.

The pilot projects will explore these options, and will have a definite

life span of about 12-18 months. At the end of this time, EPA will

determine if a full-scale program is feasible, and if implementing such

a program can help improve environmental compliance.

The pilot projects, therefore, represent the experimental first

step in the evolution of the ELP. The pilot phase is also an excellent

opportunity to strengthen partnerships between government, industry

groups, and regulated entities as a prelude to more extensive emphasis

by the Agency on voluntary compliance initiatives. The pilot projects,

and any future leadership program, will be a vehicle for facilities to

continue building positive, proactive relationships with EPA and State

and local agencies.

C. Benefits to Pilot Project Participants

EPA foresees a number of potential benefits to facilities that are

selected for pilot projects. The Agency will publicly recognize these

facilities that demonstrate outstanding environmental management

practices, and also provide them with an opportunity to help shape the

possible future, full-scale leadership program. EPA will use the pilot

projects to evaluate recognition mechanisms and other incentives that

could be offered in a full-scale program. While mechanisms for

recognition will be determined in discussions with each facility, they

may include press releases, letters to community groups, local and

State agencies, and/or site visits by EPA officials. It is important to

note that any future program would offer recognition and other

incentives on a continuing basis (similar to the OSHA Voluntary

Protection Program), not as a one-time award.

The pilots represent an opportunity for facilities to inform and

directly participate in EPA's effort to reassess its environmental

auditing policy. In addition, it is anticipated that the projects

selected will generate empirical data useful for evaluating EPA's

compliance policies and spur the development of methodologies for

evaluating compliance behavior. Finally, EPA is interested in

discussing possible policy modifications and other incentives that

could help facilities overcome barriers to self-monitoring and

compliance efforts. Facilities should address this issue in their

proposals for pilot projects. Proposals should focus on incentives that

can be offered by EPA's Office of Enforcement and Compliance Assurance

under existing law using administrative authority or policies that lie

clearly within OECA's jurisdiction. Proposals to change statutory

deadlines, amend environmental standards, or that require actions by

other agencies are not appropriate for this program.

The remainder of this notice will outline the criteria facilities

must address in their proposal to be considered for a pilot project,

briefly outline the role of States and EPA Regions, and discuss the

proposal review and selection process.

II. Criteria for Facility Pilot Projects

The following criteria for pilot projects were developed in

response to extensive public comment on the original ELP proposal. In

this phase of the ELP, facilities of all types, including small

businesses, municipalities, and Federal facilities,\1\ are encouraged

to submit proposals for pilot projects that address these criteria.

Each criterion must be addressed in some way in the proposal; however,

facilities may choose to emphasize individual criteria that are

appropriate to their unique situation in setting specific goals for a

pilot project.

---------------------------------------------------------------------------

\1\The Federal Facilities Enforcement Office (FFEO) is

developing a ``Federal Government Environmental Challenge Program,''

as required under Section 4-405 of Executive Order 12856. This

section of the Executive Order requires EPA to develop a Code of

Environmental Management Principles for Federal agencies, a program

to recognize individual Federal facilities as ``Model

Installations,'' and an award system for individual leadership in

pollution prevention. For more information on the Model Installation

Program, please contact Louis Paley at (703) 308-8723, or (202) 260-

8790.

Since the Federal facility Model Installation program is still

in its early stages, Federal facilities may submit proposals for ELP

pilot projects. The Office of Compliance and FFEO will work together

to use these proposals, and any subsequent Federal facility pilot

projects, to help develop the Model Installation program and to

ensure that it is consistent with any future, full-scale ELP.

---------------------------------------------------------------------------

A. Compliance History

EPA believes that the greatest potential for the pilot projects is

to demonstrate ``state-of-the-art'' environmental management systems

that establish and maintain compliance with environmental statutes and

regulations. These systems, when combined with an emphasis on pollution

prevention, can lead to improved efficiencies that help facilities

exceed minimum compliance standards. To be selected to participate in a

pilot project, facilities must demonstrate a commitment to compliance.

Therefore, facility proposals must describe their local, State, and

Federal compliance history, explain how they have resolved compliance

issues in the past, what they are doing to address any outstanding

compliance issues, and how they are trying to position themselves to go

beyond compliance.

B. Environmental Management and Auditing Programs

Industry leaders have long recognized the value of self-auditing

for environmental compliance and the need to have processes and

personnel in place to achieve compliance goals. Facilities applying to

the ELP must describe their existing or proposed environmental

management and auditing programs, their systems to resolve issues

raised by these programs in a timely manner, and their systems to

evaluate and adjust these programs on a regular basis. One of the major

goals of implementing these management systems and auditing programs

should be to move the facility into compliance and position it to go

beyond compliance.

Guidance on environmental auditing and state-of-the-art

environmental management practices is available from many sources. As a

starting point, EPA refers potential pilot participants to the

following sources:

The EPA Environmental Auditing Policy Statement (Federal

Register, July 9, 1986) which includes a discussion of elements of an

effective auditing program;

The ``Draft Corporate Sentencing Guidelines for

Environmental Violations,'' (BNA Environment Reporter, 11/26/93), which

includes a discussion of ``Minimum Factors for Demonstrating a

Commitment to Environmental Compliance'' in Part D.

Voluntary standards on environmental management systems and

environmental auditing may also provide guidance to facilities

interested in preparing pilot project proposals. EPA is participating

in work groups organized by the International Organization for

Standards (ISO) and the National Sanitation Foundation (NSF

International). The American Society for Testing and Materials (ASTM)

is coordinating U.S. participation in ISO Technical Committee 207 (TC-

207) on environmental management systems (EMS). Contacts for these

organizations are listed at the end of this notice.

Similarly, EPA is aware that initiatives such as the Global

Environmental Management Initiative (GEMI), the Responsible Care

Program, and the CERES Principles have been developed in the private

sector and by non-governmental groups. These and other private sector

efforts may be useful for facilities interested in submitting pilot

proposals, and facilities are encouraged to develop proposals with

industry and trade association involvement and support.

C. Disclosure of Audit Results

EPA is currently reevaluating its environmental auditing policy,

and will take an empirical approach so that any decision to either

reinforce or change existing policy is informed by fact. The ELP pilot

projects may generate useful data on auditing methodology and measures,

and may serve as a vehicle for experimenting with policy-driven

incentives.

EPA is particularly interested in examining how disclosure of audit

results could improve the public's confidence in and acceptance of

industry's self-monitoring efforts, and how disclosure could help

facilitate the flow of information to the personnel responsible for

implementing audit recommendations. Facilities applying to the ELP must

demonstrate a willingness to disclose in some manner the results of

their audits. EPA recognizes the controversial nature of this issue,

and for that reason wants to explore the potential benefits and

perceived risks of disclosure in the context of the pilot projects.

As part of their proposals, therefore, facilities should suggest

the type and extent of information they would be willing to disclose,

the mechanisms they would use to disclose the information, the parties

to whom they would disclose the information, and finally, any

conditions they would seek from regulators in order to make the

disclosure. Proposed incentives should be limited to items that can be

offered by EPA's Office of Enforcement and Compliance Assurance under

existing law using administrative authority or policies that lie

clearly within OECA's jurisdiction. Proposals to change statutory

deadlines, amend environmental standards, or that require actions by

other agencies are not appropriate for this program.

D. Pollution Prevention Activities

EPA's new Office of Compliance is organized principally around

economic sectors, in order to support integrated approaches to

compliance that promote pollution prevention as a means of meeting

environmental requirements and realizing environmental improvements.

Facilities must describe their existing or proposed comprehensive,

multimedia pollution prevention program that is integrated into their

overall operations. In describing this program, facilities should

include descriptions of their pollution prevention planning process,

their State pollution prevention plan (if required, see ``Other

Required Documentation'' below), their systems for implementing

pollution prevention projects, how resources are allocated to pollution

prevention, and how they measure pollution prevention progress. At a

minimum, facilities should include the two-year projection of waste

generation required by the Pollution Prevention Act and their RCRA

waste minimization certification (see ``Other Required Documentation''

below).

E. Setting an Example

Facilities must show that they are currently using, or would be

willing to use, their auditing, pollution prevention, and/or other

environmental management programs as models or benchmarks for other

facilities within their company or industry, or for their customers,

suppliers, and contractors. EPA recognizes that there may be many

mechanisms for doing this, and that confidentiality issues may limit

the amount of information and technology facilities are able to share.

Given these conditions, facilities must propose how they would help

others learn from their experiences and the type and extent of

information they would be willing to share.

F. Performance Measures

Good environmental management systems set performance objectives,

and measure and report on progress toward those goals. While EPA

recognizes that there are many possible measures of environmental

performance, at the pilot project stage the Office of Compliance is

primarily interested in developing methodology that can demonstrate and

measure compliance success and pollution prevention results, as

complements to the traditional enforcement measures of actions and

penalties. Therefore, facilities must propose quantitative and/or

qualitative measures that will track the compliance improvements and

pollution prevention results that would accrue from their participation

in a pilot project. Facilities must also include brief descriptions of

additional performance objectives that they are striving to meet, and

of the systems they use to track and monitor progress toward these

goals. Any future, full-scale leadership program will attempt to

incorporate overall measures of environmental management performance,

in addition to measures of compliance and pollution prevention.

G. Employee and Community Involvement

Sensitivity and responsiveness to employee and community concerns

is a key component of environmental leadership. In proposals for the

ELP, facilities must demonstrate that their employees and their

communities are involved in developing and implementing their

environmental management programs, and should suggest mechanisms (for

example, employee interviews, interviews with local Emergency Planning

Commission (LEPCs), etc.) which can be used to verify this involvement.

III. Other Required Documentation

Facilities should include in their proposal the information they

deem necessary to address the criteria outlined above, and the

following required information:

Contact person, mailing address, telephone number, and fax

number.

Company and/or facility environmental policy statement.

State pollution prevention plan, if required under State

law, in summary form.

RCRA waste minimization certification, in summary form.

Toxic Release Inventory (TRI) and Pollution Prevention Act

(PPA) data, all available years, in summary form.

A brief summary of participation in other EPA or State

voluntary programs.

While not required to do so, facilities may attach

additional summary information related to the criteria outlined above

that may help EPA evaluate their proposal.

IV. Suggested Proposal Format

In order to expedite the proposal review and selection process, EPA

suggests that facilities use the following format to organize their

proposals:

Section 1--Table of Contents, 1 page.

Section 2--Executive Summary, 1-2 pages.

Section 3--Main Narrative, organized by the seven criteria and

containing a clear statement of pilot project goals, 25-30 pages

maximum.

Section 4--Exhibits and Attachments, 25-30 pages.

Section 5--Bibliography of Supporting Material, including a list of

local, State, and Federal permits, and a list of applicable Federal

technology-based standards, 3-5 pages.

V. Role of the States

States have been invited to work in partnership with EPA in the

pilot project phase; the pilots will be more likely to succeed if EPA

and States work in concert. EPA recognizes that States' level of

involvement may vary according to available resources. The Agency

strongly encourages candidate facilities to contact their State

environmental agency as soon as possible to express their intention to

prepare a pilot project proposal, and to begin discussions about the

State's role, including opportunities to build on existing partnerships

and programs. Strong proposals will include documentation showing that

the proposal has been reviewed, sponsored, or endorsed by the

appropriate State agency.

Recognizing the valuable role of States as laboratories for new

approaches to environmental protection, EPA is eager to have

significant State participation in the pilot effort. A number of States

have already expressed interest in working with EPA to further develop

the ELP concept. As of the date of this notice, the following States

have approached EPA and offered to work as partners in the pilot

project effort:

Alaska

Arizona

Massachusetts

New York

North Carolina

Washington

Contact people for these States are listed below.

EPA has invited all States to participate in the ELP, and is

actively working to build additional partnerships. Facilities in States

not listed here are encouraged to contact their State environmental

agency as soon as possible to express their intention to prepare a

pilot project proposal, and to begin discussions about the State's

role, including opportunities to build on existing partnerships and

programs. EPA recognizes that States may not be able to, or may choose

not to, become involved in the pilot project phase. The Agency will

keep all States informed of the status of the pilot projects on a

regular basis, and, during the next phase of the projects, will convene

a workshop to discuss the pilot experience, ideas for launching a

possible full-scale leadership program, and other ideas for further

expanding the leadership/excellence concept.

VI. Role of EPA Regions

EPA Regions have also been invited by the Office of Compliance to

participate in the pilot project effort. In this phase of the ELP,

Regional involvement may vary according to available resources. At a

minimum, Regions will play a role in the screening and review of

proposals. Through the pilot projects, EPA hopes to more accurately

gauge the level of resources necessary for Regional participation in

any future full-scale program.

Each Region's ELP contact is listed below. Interested facilities

should contact their Region as soon as possible to express their

intention to prepare a pilot project proposal, and to begin discussions

about the Region's role, including opportunities to build on existing

partnerships and programs. More general questions about the ELP pilot

project phase should be directed to the Headquarters contacts listed at

the beginning of this notice.

VII. Proposal Review and Selection Process

Facilities may submit their proposals directly to EPA after

discussions with their State environmental agency, or to their State

agency for forwarding to EPA. The ELP pilot project team will be using

an expedited process--in partnership with EPA Regional Offices, State

environmental agencies, and other OECA offices--to review proposals and

to select the pilot participants. Pilot projects will be selected from

the pool of proposals received based on how completely they address the

seven criteria outlined above, and their potential to demonstrate

possible components of a full-scale leadership program.

Proposals for the initial group of pilots will be accepted for 60

days from the publication of this notice, and reviewed on a rolling

basis. Final selections will be announced in the Fall of 1994. The

pilot projects will have a definite life-span, most likely 12-18

months. At the end of this time, EPA will evaluate their success and

determine if a full-scale leadership program is feasible, and if such a

program can help improve environmental compliance.

Dated: June 14, 1994.

Steven A. Herman,

Assistant Administrator, Office of Enforcement and Compliance

Assurance.

EPA Region Contacts for ELP Pilot Project Proposals

Region 1

Joel Blumstein, Office of Regional Counsel, Phone (617) 565-3693.

Region 2

Gary Nurkin, Office of the Deputy Regional Counsel, Phone (212) 264-

5341.

Region 3

Bill Reilly, Office of Program Integration, Phone (215) 597-9302.

Region 4

Shelia Hollimon, Enforcement Planning and Analysis Staff, Phone (404)

347-7109.

Region 5

To be determined.

Region 6

To be determined.

Region 7

To be determined.

Region 8

Mike Gaydosh, Office of the Regional Administrator, Phone (303) 294-

7005.

Region 9

Fred Leif, Office of the Regional Administrator, Phone (415) 744-1017.

Region 10

Barbara Lither, Office of the Regional Administrator, Phone (206) 553-

1191.

State Contacts for ELP Pilot Project Proposals

(As of the date of this notice.)

Alaska

David Wigglesworth, Pollution Prevention Office, Alaska Department

of Environmental Conservation, 3601 C Street, Suite 1334, Anchorage, AK

99503, Phone (907) 273-4303; Fax (907) 562-4026.

Arizona

Beverly Westgaard, Arizona Department of Environmental Quality,

3033 N Central Ave., Phoenix, AZ 85012, Phone (602) 207-4249; Fax (602)

207-4346.

Massachusetts

Patricia Deese Stanton, Assistant Commissioner, Massachusetts

Department of Environmental Protection, One Winter Street, Boston, MA

02108, Phone (617) 292-5765; Fax (617) 292-5500.

New York

Frank Bifera, Division of Environmental Enforcement, New York

Department of Environmental Conservation, 50 Wolf Road, Albany, NY

12233, Phone (518) 457-2286; Fax (518) 485-8478.

North Carolina

Linda Bray Rimer, Assistant Secretary for Environmental Protection,

North Carolina Department of Environment, Health, & Natural Resources,

3825 Barnett Drive, P.O. Box 27687, Raleigh, NC 27611-7687, Phone (919)

715-4140; Fax (919) 715-3060.

Washington

John Williams, Agency Enforcement Officer, Washington Department of

Ecology, P.O. Box 47703, Olympia, WA 98504-7703, Phone (206) 407-6968;

Fax (206) 407-6902.

Other Contacts

National and International Standard Setting Efforts

Mary McKiel, Director, EPA Voluntary Standards Network, Office of

Pollution Prevention and Toxics (7401), U.S. EPA, 401 M Street, SW.,

Washington, DC 20460.

International Organization for Standards (ISO), U.S. SubTAG for

ISO-TC-207: Environmental Auditing. Write to: Mr. Cornelius C. (Bud)

Smith, Principal, ENVIRON Corporation, 210 Carnegie Center, Princeton,

NJ 08540.

International Organization for Standards (ISO), U.S. SubTAG for

ISO-TC-207: Environmental Management Systems. Write to: Mr. Joel Charm,

Director: Health, Safety and Environmental, Allied Signal, Inc., P.O.

Box 1013, Morristown, NJ 07962.

National Sanitation Foundation (NSF). Write to: Mr. Gordon Bellen,

Vice President, NSF International, 3475 Plymouth Road, P.O. Box 130140,

Ann Arbor, MI 48113-0140.

American Society for Testing and Materials (ASTM). Write to: Rose

Tomasello, 1916 Race Street, Philadelphia, PA 19103.

Federal Government Environmental Challenge Program: Model Installation

Program

Louis Paley, Office of Federal Facilities Enforcement (2261), U.S.

EPA, 401 M Street SW., Washington, DC 20460. Phone (703) 308-8723, or

(202) 260-8790.

EPA Common Sense Initiative

Steve Harper, Office of Air and Radiation (6101), U.S. EPA, 401 M

Street SW., Washington, DC 20460. Phone (202) 260-8953.

Vivian Daub, Office of Water (4101), U.S. EPA, 401 M Street SW.,

Washington, DC 20460. Phone (202) 260-6790.

[FR Doc. 94-14949 Filed 6-20-94; 8:45 am]

BILLING CODE 6560-50-P