[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3448 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 3448

To improve the management of environmental information and to encourage 
 innovation in the pursuit of enhanced environmental quality, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 18, 1999

Mr. Greenwood (for himself, Mr. Dooley of California, Mr. Boehlert, and 
Mrs. Tauscher) introduced the following bill; which was referred to the 
      Committee on Commerce, and in addition to the Committees on 
 Transportation and Infrastructure, and the Budget, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To improve the management of environmental information and to encourage 
 innovation in the pursuit of enhanced environmental quality, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Second Generation of Environmental 
Improvement Act of 1999''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) While existing environmental statutes have been 
        effective at reducing pollution even as the population and 
        economy have grown, new approaches are needed to address 
        remaining and emerging environmental problems, to make the 
        regulatory system more efficient, and to better enable 
        communities to solve their environmental problems.
            (2) Numerous studies have recommended experimenting with 
        performance-based regulatory approaches that provide regulated 
        entities with greater flexibility in determining how to meet 
        environmental standards and that, in return, require greater 
        accountability through enhanced monitoring and data reporting.
            (3) Federal performance-based approaches can take advantage 
        of many technical advances made over the past 30 years, 
        including the growth of the Internet, the creation of 
        environmental management systems and the development of 
        pollution prevention strategies, such as life-cycle management 
        and resource stewardship; and can build on successful State and 
        local initiatives.
            (4) While the Environmental Protection Agency and the 
        States have begun to experiment with such approaches, the 
        Agency's efforts have been hampered by an inadequate 
        information system, and lack of clear statutory authority and 
        congressional direction.

SEC. 3. PURPOSES.

    The purposes of this Act are to--
            (1) improve the quality of, and streamline the collection, 
        management, and dissemination of environmental performance 
        measures and other environmental information to ensure that the 
        information is a useful gauge of environmental conditions and 
        trends, is valuable to regulators and to the general public, 
        and is accurate and up-to-date; and
            (2) provide the Environmental Protection Agency with 
        additional authority and incentives to experiment with 
        performance-based regulatory approaches in dealing with States, 
        communities, and the private sector to improve the state of the 
        environment and the efficiency of the regulatory system.

SEC. 4. DEFINITIONS.

    In this Act--
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Agency.--The term ``Agency'' means the Environmental 
        Protection Agency.
            (3) Environmental performance indicator.--The term 
        ``environmental performance indicator'' means a quantitative 
        measure designed to provide data on the quality of the 
        environment over time, including measures of:
                    (A) ambient concentrations of pollutants in air, 
                water, or land;
                    (B) releases or discharges of pollutants to air, 
                water, or land from individual sources, categories of 
                sources, geographic areas or industry sectors;
                    (C) the viability of ecosystems and the health of 
                ecologically important microbe, plant, or animal 
                populations in ecosystems;
                    (D) the impact of the environment or environmental 
                programs on human health; and
                    (E) resource utilization per unit of output 
                including energy efficiency.
            (4) Innovative strategy agreement.--The term ``innovative 
        strategy agreement'' means an agreement entered into pursuant 
        to title II of this Act that allows flexibility in meeting 
        environmental standards in return for greater transparency and 
        accountability.
            (5) Person.--The term ``person'' means an individual, 
        trust, firm, joint stock company, corporation (including a 
        government corporation), partnership, or association.
            (6) State.--The term ``State'' includes the several States, 
        the District of Columbia, Guam, the Commonwealth of Puerto 
        Rico, the Northern Mariana Islands, the Virgin Islands, and 
        America Samoa.

                    TITLE I--INFORMATION MANAGEMENT

SEC. 101. CHIEF INFORMATION OFFICER.

    The Administrator shall designate a Chief Information Officer for 
the Agency at the level of an Assistant Administrator. The 
Administrator may create an additional Assistant Administrator for such 
purposes or add to the portfolio of any existing Assistant 
Administrator. The Chief Information Officer shall be responsible for 
carrying out the authorities and responsibilities of the Administrator 
under this title.

SEC. 102. ENVIRONMENTAL PERFORMANCE INDICATORS.

    (a) Preliminary Report.--The Administrator, in consultation with 
the States and other interested parties, shall prepare a report 
proposing a set of national environmental performance indicators 
designed for the following purposes:
            (1) Focusing Agency resources on the most critical 
        environmental problems.
            (2) Informing the public of progress toward meeting 
        environmental goals.
            (3) Evaluating the success of innovative environmental 
        strategies, including those conducted pursuant to title II of 
        this Act.
The report shall identify which indicators will be based on data the 
Agency will collect itself, which will be based on data collected by 
the States directly and which will be based on data reported to the 
States, the Agency, or other governmental entities. The report shall be 
submitted to the Congress and published in the Federal Register within 
1 year after the date of enactment of this Act.
    (b) National Academy of Sciences.--The Administrator shall contract 
with the National Academy of Sciences to provide recommendations 
regarding which indicators should be included in the report under 
subsection (a). The Academy shall provide its recommendations no later 
than 1 year after the date of enactment of this Act. The Academy report 
shall identify both indicators that are currently feasible and those 
that are not feasible without additional scientific research or 
development of technologies. For those that are not yet feasible, the 
report shall identify the necessary additional research or development 
and the likely time needed to conduct such research and development.
    (c) Final Report.--Within 2 years after the date of enactment of 
this Act, and after consultation with States, other Federal agencies, 
the private sector, and public interest groups, the Administrator shall 
publish in the Federal Register a final description of the 
environmental indicators to be used for the purposes specified in 
subsection (a).
    (d) Annual Report.--Beginning with the first January 31 after the 
publication of the report required by subsection (c) and at least 
annually thereafter, the Administrator shall issue a State of the 
Environment Report presenting and analyzing the measured levels of each 
environmental indicator described in the report required by subsection 
(c). The Administrator shall submit the report to Congress and shall 
make the report available to the public in print and electronic form.
    (e) Changes in Indicators.--After publication of the first report 
required by subsection (c), the Administrator may modify, add or 
eliminate indicators after publishing a notice in the Federal Register 
and allowing at least 90 days for comment.

SEC. 103. RESTRUCTURING OF ENVIRONMENTAL REPORTING.

    (a) Plan.--Within 2 years after the date of enactment of this Act, 
after consultation with the States, other Federal agencies, and other 
interested parties, the Administrator shall submit to the Congress, and 
publish in the Federal Register for comment, a unified plan for all of 
the Environmental Protection Agency's information activities. The plan 
shall be designed to provide a scientifically and technically sound 
foundation for the Agency's programs and to facilitate the development 
of a performance-based system of environmental protection and of 
innovative strategy agreements pursuant to title II of this Act. The 
plan shall take full advantage of the capabilities of available and 
reasonably anticipated information technologies. The Administrator 
shall also consult with the Agency's Small Business Ombudsman to ensure 
that the plan addresses the needs of small businesses.
    (b) Content.--The plan shall--
            (1) streamline reporting and recordkeeping requirements by 
        eliminating any redundant or unnecessary requirements and by 
        adding any requirements needed to fill data gaps, including 
        those that impede the development or compilation of 
        environmental performance indicators required by section 102;
            (2) establish standard data formats to maximize the ability 
        to manage and exchange information between and among public and 
        private entities and the public;
            (3) establish procedures to assure data quality, 
        timeliness, and accuracy, including the detection and 
        correction of errors both prior to and following public 
        dissemination;
            (4) establish a system for indexing, locating, and 
        obtaining the information the Agency has so the public can 
        retrieve it sorted by industrial sector, company, facility, 
        geography, type of emission and level of environmental 
        performance;
            (5) ensure that the public has easy access to Agency 
        information on any regulated entity along with background to 
        help the public make sense of the information;
            (6) seek to achieve maximum integration of State and Agency 
        data management systems; and
            (7) facilitate small business compliance;
            (8) recommend any Federal statutory changes needed to 
        remedy any of the following:
                    (A) Data gaps, particularly those that impede the 
                development of environmental performance indicators.
                    (B) Redundancy and overlaps.
                    (C) Conflicts among definitions.
                    (D) Inconsistencies or other weaknesses in the 
                required frequency and timing of reports, including 
                inconsistencies between requirements imposed by the 
                Agency's regions, its headquarters and the States.
                    (E) Requirements that are no longer relevant or 
                fail to contribute to public awareness or Agency 
                decisionmaking.
                    (F) Inconsistencies in the treatment of exemptions 
                from reporting;
            (9) describe how the electronic collection and 
        dissemination of data will be facilitated;
            (10) review State reporting requirements and identify any 
        State forms or procedures that could be used to fulfill Federal 
        reporting requirements;
            (11) assess the value of voluntary industry reporting 
        measures, including but not limited to those organized by the 
        International Organization for Standardization and the 
        Coalition for Environmentally Responsible Economies.
    (c) Implementation.--Within 3 years after the date of enactment of 
this Act, the Administrator shall promulgate any final regulations that 
are needed to implement the plan required by subsection (a) and shall 
take any other steps necessary to implement the plan.
    (d) Update.--After completing the activities required by subsection 
(c), the Administrator shall, periodically, but no less frequently than 
every other year, review the plan issued under subsection (a) and 
publish in the Federal Register any changes to the plan.
    (e) Consistency.--The Administrator shall ensure that actions under 
this section are consistent with, and assist with the compilation of 
the indicators required by section 102.

SEC. 104. INFORMATION MANAGEMENT.

    (a) Information Management Program.--Within 2 years after the date 
of enactment of this Act, the Administrator shall establish an 
Information Management Program, to provide financial assistance to 
States, and relevant local entities, including Publicly Owned Treatment 
Works, through grants, cooperative agreements, or contracts, to improve 
the accuracy and timeliness of environmental reporting and to meet the 
goals of the plan published under section 103(a).
    (b) Small Businesses.--Within 3 years after the date of enactment 
of this Act, the Administrator, acting through the Small Business 
Ombudsman, shall create a program to provide technical and financial 
assistance to small businesses (individually or through trade 
associations) to help them meet the requirements of the plan published 
under section 103(a). The Administrator shall publish the guidelines 
for the program in the Federal Register and shall publicize them 
widely. Any financial assistance provided under this program shall 
require a matching requirement of at least one-third from the small 
business or trade association.
    (c) Public Recognition.--The Administrator may establish a program 
to publicly recognize regulated entities that most speedily and fully 
report accurate information electronically to the Agency.

SEC. 105. BUDGET REPORT.

    Beginning with the President's second budget submission to Congress 
after the enactment of this Act and with every submission thereafter, 
the President shall include in the budget submission a comprehensive 
analysis of the activities in each Federal agency devoted to measuring 
ambient environmental conditions and trends either directly or through 
providing funds to other entities for that purpose. The analysis shall 
also examine the extent to which the activities contribute to, and are 
consistent with, the indicators published pursuant to section 102.

SEC. 106. INCENTIVES FOR IMPROVED MONITORING AND OTHER MEASUREMENT 
              METHODS.

    (a) Recognition.--The Administrator shall establish a program to 
publicly recognize persons who--
            (1) develop environmental monitoring technologies, and 
        other measurement methods that substantially improve the 
        ability to track ambient environmental conditions, facility 
        emissions, or other measures of environmental performance; or 
        substantially improve the accuracy, accessibility, or 
        reliability of such data;
            (2) deploy, or promote the use of, existing monitoring 
        technologies and other measurement methods that have not been 
        adequately deployed or commercialized;
            (3) utilize monitoring technologies, and other measurement 
        methods that are able to increase the precision, timeliness and 
        accuracy of environmental performance data; and
            (4) develop technologies and other methods that reduce the 
        costs of collecting or disseminating monitoring data.
    (b) Monitoring.--Within 6 months of the date of enactment of this 
Act, the Administrator shall submit to the Congress a report analyzing 
the length of time the Agency has taken over the 10 prior years to 
approve monitoring technologies and recommending ways--
            (1) to reduce that time to more quickly get reliable 
        monitoring information to the Agency and the public; and
            (2) to increase the deployment of existing monitoring 
        technologies, particularly those that would enable the Agency 
        to make determinations about better environmental performance 
        under section 203(c).
    (c) Implementation.--Not later than 6 months after the submission 
of the report required by subsection (b), the Administrator shall 
implement the recommendations in that report.

SEC. 107. SAVINGS PROVISIONS.

    (a) In General.--Nothing in this title shall be construed to alter 
the authority of the Administrator to obtain or make available 
information.
    (b) Confidential Business Information.--Nothing in this title shall 
be construed to change the definition of, or require the public release 
of confidential business information.
    (c) Paperwork Reduction.--The actions under this Act shall be 
consistent with the Paperwork Reduction Act.
    (d) GPRA.--The Agency's plans under the Government Performance and 
Results Act of 1993 (Public Law 103-62; 107 Stat. 285) shall include 
agency activities under this title.

SEC. 108. REPORTS TO CONGRESS ON THE MODERNIZATION OF REPORTING.

    Within 1 year after the date of enactment of this Act, the 
Administrator, in consultation other Federal agencies and interested 
parties, shall submit to the Congress a report analyzing whether the 
Administrative Procedures Act (5 U.S.C. chapters 5 and 7) should be 
amended to apply to information reporting requirements and the use of 
existing information to create new information products. In the report, 
the Administrator shall analyze whether the Act could be amended to 
require more public comment and involvement in the setting of reporting 
requirements and the development of new information products and to 
ensure that information disseminated by the Agency is widely available, 
accurate and presented in a form that is useful to the general public. 
The report shall include any specific recommendations the Administrator 
may have for amending the Act and any other statute to promote a more 
open and accurate information system.

SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary in each fiscal year through fiscal year 2005 to carry out the 
activities in this title.

                    TITLE II--INNOVATIVE STRATEGIES

SEC. 201. INNOVATIVE STRATEGY AGREEMENTS.

    (a) Authority.--The Administrator is authorized to enter into 
innovative strategy agreements under this title to experiment with new 
approaches to regulation.
    (b) Eligible Applicants.--The Administrator may enter into 
innovative strategy agreements with any person, State, Indian tribe, 
commission, political subdivision of a State, interstate body, or 
department, agency or instrumentality of the United States that the 
Administrator determines has a good overall record of meeting statutory 
environmental standards.
    (c) Time for Submission.--Applicants may submit proposals to enter 
into innovative strategy agreements beginning 270 days after the date 
of enactment of this Act.

SEC. 202. PROCEDURES.

    (a) General Guidance.--Within 180 days after the enactment of this 
Act, the Administrator, in consultation with the States and other 
interested parties, shall publish in the Federal Register each of the 
following:
            (1) A list of environmental concerns that will be given 
        priority when reviewing proposed innovative strategy agreements 
        and ensure that the list gives priority to environmental 
        problems--
                    (A) for which conventional approaches to regulation 
                have already proven to be less than fully successful, 
                such as nonpoint source pollution or reducing pollution 
                from small sources that have a large cumulative effect;
                    (B) that present significant public health or 
                ecological risks that have not yet been addressed by 
                regulation; or
                    (C) that are of particular concern to an individual 
                community.
            (2) Guidelines specifying the form and requirements for 
        submitting a proposal to enter into an innovative strategy 
        agreement, including the appropriate points of contact within 
        the Agency. At a minimum a proposal submission shall--
                    (A) identify its expected environmental benefits 
                and any other expected benefits to the public;
                    (B) identify any Agency rule, requirement, policy, 
                or practice for which a modification or waiver is 
                sought and any alternative requirement that is 
                proposed.
            (3) Guidelines as to how the Administrator will determine 
        whether the eligible applicant has consulted adequately with 
        interested national, State, and community groups and the 
        general public in developing the proposal.
    (b) Initial Review.--No later than 90 days after the submission of 
a proposal to enter into an innovative strategy agreement, the 
Administrator shall complete an initial review of the proposal to 
determine if the proposal meets the criteria in section 203 and is 
sufficiently likely to accomplish its objectives to merit further 
review. If the proposal is rejected, the Administrator shall clearly 
state the reasons for the rejection in writing to the applicant. Any 
decision the Administrator makes during the initial review under this 
subsection shall be within the Administrator's sole discretion.
    (c) Review Timetable.--Immediately upon completion of the initial 
review, if the Administrator determines the proposal merits further 
review, the Administrator shall--
            (1) enter into negotiations with the applicant with the 
        intent of bringing the agreement to completion within 120 days; 
        and
            (2) publish a notice in the Federal Register requesting 
        public comment on the proposal.
If negotiations are continuing beyond 120 days, the Administrator shall 
issue to the applicant a 1-page summary of the progress of negotiations 
and a revised schedule for the completion of negotiations.
    (d) Final Decision.--If, after negotiations, the Administrator and 
the applicant decide to enter into an innovative strategy agreement, 
the Administrator shall publish the text of the agreement in the 
Federal Register no later than 7 days after the agreement has been 
signed. If the Administrator terminates negotiations at any point, the 
Administrator shall provide an explanation in writing to the applicant 
and to the committees of jurisdiction in the Congress as to why 
negotiations were terminated.

SEC. 203. CRITERIA.

    (a) Approval.--The Administrator may enter into a proposed 
innovative strategy agreement only if the Administrator determines that 
the agreement--
            (1) can reasonably be expected to produce better 
        environmental results as defined in subsection (c);
            (2) includes a detailed, feasible monitoring plan that will 
        be used to determine if the agreement is meeting its 
        environmental goals as detailed pursuant to section 204(b)(2) 
        and will provide the Agency and the public with better data to 
        gauge the state of the environment; and
            (3) reflects the results of a stakeholder process in 
        conformance with the guidelines issued under section 202(a)(3) 
        that demonstrates that the proposal has broad support and that 
        its environmental implications are fully understood by all 
        interested parties.
    (b) Preference.--
            (1) Primary factors.--In reviewing proposed innovative 
        strategy agreements, the Administrator shall give preference to 
        those that address priorities listed in the guidelines issued 
        under section 202(a)(1) and that are most likely to produce 
        better environmental results as defined in subsection (c)(1) or 
        (2).
            (2) Additional factors.--After the Administrator has 
        determined that a proposed innovative strategy agreement meets 
        the criteria in paragraph (1), the Administrator shall also 
        weigh factors set forth in this paragraph in determining the 
        degree of preference to grant to that proposal. The 
        Administrator shall consider whether the proposed agreement--
                    (A) is designed to demonstrate the efficacy of new 
                methods of regulation, pollution prevention or 
                abatement, reducing the use of land, water, or other 
                resources, or monitoring that are most likely to have 
                wide applicability;
                    (B) would provide enhanced accountability through 
                such means as monitoring systems that will provide data 
                for the environmental performance indicators issued 
                pursuant to section 102;
                    (C) is likely to result in greater cost savings for 
                the Federal Government, States, and the applicant;
                    (D) has the broadest community support as 
                demonstrated through an inclusive and thorough 
                stakeholder process; or
                    (E) is proposed by applicants with effective 
                environmental management programs.
The Administrator shall give the greatest preference to proposals that 
meet the criteria of paragraph (1) and have the greatest number of 
characteristics enumerated in this paragraph.
    (c) Better Environmental Results.--The Administrator shall consider 
that an innovative strategy agreement can reasonably be expected to 
produce better environmental results only if the Administrator 
determines the innovative strategy agreement is likely to--
            (1) in the case of a facility, reduce the actual emissions 
        per unit of output of any pollutants covered by the agreement;
            (2) in the case of an applicant for which the condition in 
        paragraph (1) is inapplicable, reduce the actual level of 
        emissions of a pollutant or set of pollutants; or
            (3) in the case of any applicant, demonstrate effective 
        new--
                    (A) methods of pollution prevention, control of 
                nonpoint source pollution, or resource conservation; or
                    (B) monitoring and reporting measures that would 
                provide greater certainty and public information about 
                the actual levels of emissions in a more timely manner.

SEC. 204. CONTENT.

    (a) Authorities.--(1) Under innovative strategy agreements, the 
Administrator may--
            (A) modify, waive, or replace otherwise applicable agency 
        rules, requirements, policies, or practices;
            (B) allow a tiered approach under which monitoring and 
        reporting requirements are loosened initially when emissions 
        are significantly below those allowable under the agreement and 
        then those requirements increase as actual environmental 
        performance gets closer to the emission, discharge, and other 
        limitations stipulated in the agreement;
            (C) extend permit terms, expedite permit reviews, or 
        provide multi-media permits;
            (D) establish facility-wide limitations on overall 
        allowable emissions and discharges;
            (E) allow third-party or self-certification in lieu of 
        frequent inspection, provided the sponsor has a credible 
        environmental management program in place; and
            (F) employ market-based strategies, including pollution 
        trading credits.
    (2) In entering into innovative strategy agreements, the 
Administrator shall require stricter monitoring, or take other 
appropriate steps, for proposals with greater uncertainty of meeting 
their stated environmental goals.
    (b) Prohibitions.--The Administrator shall not enter into any 
innovative strategy agreement that would--
            (1) violate or waive any specific statutory provision;
            (2) waive any rule or regulation under title IV of the 
        Clean Air Act or under subtitle B of the Emergency Planning and 
        Community Right to Know Act of 1986;
            (3) result in an increase in emissions, discharges, or 
        other releases above those allowable under the otherwise 
        applicable regulatory requirements; or
            (4) address past or ongoing violations or noncompliance by 
        a participating entity.
    (c) Specifications.--A final innovative strategy agreement approved 
under section 202(d) shall specify--
            (1) any otherwise applicable rules, requirements, policies, 
        or practices modified, waived or replaced;
            (2) the specific environmental goals of the agreement and 
        the criteria for determining whether the agreement is meeting 
        those goals;
            (3) a description of how compliance with the agreement will 
        be monitored and enforced, including any penalties that may be 
        imposed for failure to carry out the terms of the agreement;
            (4) the duration of the agreement and terms for renewal or 
        extension;
            (5) a transition plan for returning to otherwise applicable 
        rules, policies, requirements, or practices if the agreement is 
        terminated by the applicant for any reason or by the 
Administrator for failure to meet the agreement's stated environmental 
goals, despite good faith efforts;
            (6) a plan for integrating into the agreement any relevant 
        regulations that are promulgated during the duration of the 
        agreement; and
            (7) a plan for integrating the innovations in the agreement 
        into the Agency's standard practices to the extent practicable, 
        if the agreement accomplishes its environmental goals.

SEC. 205. ENFORCEMENT.

    (a) Enforcement.--
            (1) Enforceability of terms of agreement.--Compliance with 
        the terms of an innovative environmental strategy agreement 
        shall be enforceable as provided in the agreement in provisions 
        included pursuant to section 204(c)(3).
            (2) Transition.--If the Administrator determines that, 
        despite compliance with the terms of the agreement, the 
        environmental goals of the agreement cannot be met, the 
        Administrator shall allow for an orderly transition back to the 
        otherwise applicable rules, policies, requirements, or 
        practices, in accordance with section 204(c)(5).
            (3) Failure to comply.--The Administrator may terminate an 
        innovative environmental strategy agreement, after 30 days' 
        notice to all parties to the agreement, if the Administrator 
        determines that there has been noncompliance with the terms of 
        the agreement. Upon termination, the parties to the agreement 
        shall be subject immediately to all Agency statutes and 
        regulations, including their enforcement provisions.
    (b) Civil Action.--
            (1) In general.--Any person may commence a civil action in 
        the United States District Court for the District of Columbia 
        against any party who is in violation of an innovative strategy 
        agreement to require compliance with such agreement.
            (2) Timing.--No action may be commenced under paragraph (1) 
        before the date that is 60 days after the date on which the 
        plaintiff gives notice to the Administrator of the intent of 
        the plaintiff to commence the action.

SEC. 206. JUDICIAL REVIEW.

    A person other than a signatory to an innovative environmental 
strategy agreement may bring an action in the appropriate United States 
Court of Appeals for judicial review of a decision by the Administrator 
to enter into an innovative strategy agreement in any case in which the 
agreement was entered into in violation of any provision of this Act. 
Such an action must be brought no later than 90 days after the 
publication of the agreement pursuant to section 202(d). A decision by 
the Administrator not to enter into an agreement shall not be subject 
to judicial review.

SEC. 207. GENERAL PROVISIONS.

    (a) Effect of Decisions by the Administrator.--A decision by the 
Administrator to enter into an agreement under this Act shall not--
            (1) affect the validity or applicability of any rule, 
        requirement, policy, or practice, that is modified or waived in 
        the agreement with respect to any entity other than the entity 
        which is subject to the agreement;
            (2) be used as a legal or equitable defense by any entity 
        not party to the agreement, or by a party to the agreement as a 
        defense in an action unrelated to any requirement imposed under 
        the agreement;
            (3) limit or affect the Administrator's authority to issue 
        new generally applicable regulations or to apply regulations to 
        the entity that is the subject of the agreement;
            (4) give rise to any claim for damages or compensation in 
        the event of a change in statutes or applicable regulations; or
            (5) be admissible for any purpose in any judicial 
        proceeding other than a proceeding to challenge, defend, or 
        enforce the agreement.
    (b) Other Authority.--Nothing in this Act shall be construed to 
affect any authority the Administrator has through other statutes to 
experiment with innovative approaches to regulation. Nothing in this 
Act shall be construed to affect any innovative approaches in place 
prior to the enactment of this Act, including those approved pursuant 
to the agreement between the Agency and the Environmental Council of 
the States and any rules promulgated under Project XL.
    (c) Other Federal Agencies.--Nothing in this Act affects the 
regulatory or enforcement authority of any other Federal agency under 
the laws implemented by the Federal agency except to the extent 
provided in an agreement to which the other Federal agency is a party.
    (d) GPRA.--The Agency's plans under the Government Performance and 
Results Act of 1993 (Public Law 103-62; 107 Stat. 285) shall include 
agency activities under this title.
    (e) Consultation.--
            (1) In general.--The Administrator shall consult with 
        States, and other interests, in carrying out each provision of 
        this Act.
            (2) Sharing of information.--For purposes of this Act, 
        Federal documents that are otherwise privileged may be shared 
        with State co-regulators without losing their privilege under 
        the Freedom of Information Act (5 U.S.C. 552).
            (3) Regional offices.--Provisions for the handling of 
        innovative strategy agreements shall be incorporated into 
        memoranda of agreement between Agency regional offices and 
        headquarters.
    (f) Confidentiality.--Information may be shared in stakeholder 
discussions, including those with nongovernmental members, subject to 
an enforceable confidentiality agreement providing that such 
information can still be claimed as confidential business information 
in other contexts.

SEC. 208. ANNUAL REPORT.

    (a) Timing.--No later than the first January 31 occurring after the 
issuance of guidance under Section 202(a), and no later than January 31 
in every year thereafter, the Administrator shall submit to the 
Congress a report evaluating innovative strategy agreements entered 
into under this Act.
    (b) Content.--At a minimum the report shall--
            (1) briefly describe and evaluate the success of all 
        innovative strategy agreements in effect at the time of the 
        report's submission;
            (2) list any innovative strategy agreements terminated 
        during the year prior to the report and the reasons for those 
        terminations;
            (3) describe how the regulatory and monitoring strategies 
        being used in the innovative strategy agreements are being 
        incorporated into the Agency's other programs;
            (4) recommend any statutory changes that would be needed to 
        allow promising innovative strategy agreements to be completed 
        or would be needed to incorporate or expand regulatory and 
        monitoring strategies being proved successful in existing 
        agreements; and
            (5) assess the degree to which innovative strategy 
        agreements are improving the nation's environmental performance 
        and ability to monitor that performance as measured by the 
        environmental indicators developed pursuant to section 102.

SEC. 209. INCENTIVES.

    (a) Employee Incentive Awards for Supporting Innovation.--Within 
120 days after the enactment of this Act, the Administrator shall 
implement an employee incentive awards program that rewards employees 
and organizational units that demonstrate leadership in the planning, 
design, implementation, and evaluation of innovative environmental 
strategies and other activities that result in better environmental 
performance, greater economic efficiency in the public and private 
sectors, and expedited delivery and improved quality of public 
services.
    (b) Fund for Innovative Strategies.--(1) The Administrator shall 
retain any permitting or other fees the Agency collects from entities 
that have entered into innovative strategy agreements and such retained 
amounts shall be available to the Agency without further appropriation 
for compliance assistance and enforcement.
    (2) Fees received by the agency under this subsection shall be 
deposited in a special fund in the United States Treasury. Amounts in 
such fund shall remain available until expended. The Administrator 
shall submit an annual report to the Congress regarding the sums 
deposited in the fund, the sources thereof, and the actual and proposed 
uses thereof.

SEC. 210. STAKEHOLDER PARTICIPATION.

    To promote a participatory process that will conform to the 
guidelines issued pursuant to section 202(a)(3), the Administrator is 
authorized to--
            (1) provide travel stipends for nongovernmental 
        participants in stakeholder processes occurring outside their 
        communities;
            (2) provide technical support to nongovernmental 
        participants in stakeholder processes; and
            (3) provide grants to nongovernmental participants in 
        stakeholder processes to enable them to consult with technical 
        experts.

SEC. 211. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary in each fiscal year through fiscal year 2005 to carry out the 
activities in this title.
                                 <all>