[Federal Register Volume 59, Number 118 (Tuesday, June 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14949]


[[Page Unknown]]

[Federal Register: June 21, 1994]


_______________________________________________________________________

Part IV





Environmental Protection Agency





_______________________________________________________________________




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

[FRL-5001-5]

 
Environmental Leadership Program: Request for Pilot Project 
Proposals

AGENCY: Environmental Protection Agency (EPA).

ACTION: Request for Environmental Leadership Program pilot project 
proposals.

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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.
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    \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.
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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