[Federal Register Volume 60, Number 211 (Wednesday, November 1, 1995)]
[Notices]
[Pages 55569-55572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27141]



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ENVIRONMENTAL PROTECTION AGENCY
[FRL-5322-9]


Regulatory Reinvention (XL) Pilot Projects: XL Community Pilot 
Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Solicitation of proposals and request for Comment.

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SUMMARY: Today, EPA is announcing the XL Community Pilot Program to 
demonstrate community-designed and directed strategies for achieving 
greater environmental quality consistent with community economic goals. 
In partnership with states, local governments, communities, tribal 
governments, and other local entities (either public or private), EPA 
will provide an opportunity to test flexible and innovative strategies 
in the implementation of environmental regulatory requirements in 
exchange for a commitment to achieve greater environmental quality than 
would have been realized under traditional approaches.
    This document responds to one of President Clinton's March 16, 1995 
initiatives listed in the report, Reinventing Environmental Regulation. 
In that report, the President stated that EPA would implement four 
pilot programs to give a limited number of regulated entities and 
communities an opportunity to demonstrate eXcellence and Leadership 
(XL) in environmental protection. An earlier Federal Register Notice, 
published on May 23, 1995 (60 FR 27282), discusses the XL pilot 
programs for facilities, industry sectors, and government agencies. 
This Federal Register Notice addresses the XL Community Pilot Program 
and is a solicitation for comments and an invitation for proposals from 
public and private entities interested in initiating XL community pilot 
projects. The XL Community Pilot Program is not a grant program and is 
limited to alternative and innovative strategies for increased 
environmental protection. EPA has set a goal of implementing a total of 
fifty projects in the four program areas.
    In the section on ``Alternative strategies for communities'' in the 
President's March 16, 1995 report, the President stated that the Agency 
would undertake an additional program for communities unable to meet 
existing requirements. For more information on this program, see the 
section below on other community-based reinvention efforts.

DATES: The period for submission of proposals will begin on November 1, 
1995 pursuant to the Information Collection Request (ICR No. 1755.2) 
approved by the Office of Management and Budget (OMB Approval No. 2010-
0026) under the Paperwork Reduction Act. This will be an open 
solicitation with no set end date. Project sponsors wishing to be 
considered for these pilots should submit proposals in response to this 
Federal Register Notice. EPA will take proposals on a rolling basis for 
selection of a limited number of pilots. Prior to the end of 1995, EPA 
plans to 

[[Page 55570]]
invite a small number of project proponents to begin development of 
Final Project Agreements. The period for comment on all aspects of the 
program will begin with publication of this Notice and extend for 
thirty days.

SUBMISSION OF COMMENTS AND PROJECT PROPOSALS: Project proposals and all 
comments on the pilot program should be sent to: Regulatory Reinvention 
Pilot Projects: XL Community Pilot Program, FRL-5322-9; Water Docket, 
Mail Code 4101; U.S. Environmental Protection Agency; 401 M Street, 
S.W.; Washington, D.C., 20460. This docket accepts no faxes. Project 
proposals should include a one-page cover sheet that summarizes: the 
environmental problems that the project addresses; a brief description 
of the project identifying the regulatory flexibility being requested; 
and the project's anticipated results. Cover sheets should also include 
the applicants' names, addresses, and phone numbers. Project proposal 
narratives should explain the relationship of the proposal to the first 
nine criteria for project selection described in this Notice. In their 
proposals applicants should also identify any current initiatives in 
the project area upon which the proposed project could build. An 
original and three copies should be submitted to the Docket. Proponents 
of projects are invited, but by no means required, to submit other 
useful materials in paper, audio/visual, or electronic formats.
    Documents referenced in this Federal Register Notice are available 
for review at EPA's Water Docket; 401 M Street, S.W., Washington, D.C. 
For access to the Docket materials, call 202-260-3027 between 9 a.m. 
and 3:30 p.m. for an appointment.

FOR FURTHER INFORMATION CONTACT: The XL Community Pilot Program at 703-
934-3241.

Description of the Program

    Through the XL Community Pilot Program, EPA will respond to 
requests for regulatory flexibility to support local communities' 
efforts to create innovative, alternative environmental management 
strategies that are supportive of community economic goals. To this 
end, EPA is inviting proposals from local entities capable of 
demonstrating alternative approaches for achieving greater 
environmental results than would have been obtained under existing 
approaches to environmental protection. Ideally, XL community pilot 
projects should be consistent with and help to establish long-range 
community environmental goals and bring together groups such as 
facilities, community organizations, and governments at all levels to 
achieve the goals of greater environmental quality consistent with 
economic development. As such, proposals that demonstrate the greatest 
support from community stakeholders and are consistent with a broader 
community vision or plan will be given preference in the selection 
process.
    Proposals are invited from a range of community entities and should 
be designed around a defined geographic area. Community entities 
include, but are not limited to, local governments, tribal governments, 
regional area consortia/governments, councils of government, private 
non-profit citizen/neighborhood/community organizations, non-profit 
educational institutions, Empowerment Zones and Enterprise Communities 
designated under the Administration's Community Empowerment Initiative, 
and other local entities either public or private.
    Geographic areas could include: Urban and rural areas; political 
jurisdictions; tribal lands; and ecologically-defined areas such as 
watersheds and ecosystems, among others. EPA encourages community 
groups within the same geographic area whose project objectives are 
similar to consolidate their proposals.
    In many cases states, federally-recognized tribal agencies, or 
other agencies, are responsible for administering environmental 
regulations. Therefore, to be designated an XL Community, a project 
must have the support and approval of the agency that has regulatory 
responsibility within the scope of the project. In addition, where 
possible, state or tribal environmental agencies will be the lead 
agency working with communities to implement the XL Program. 
Accordingly, support for the project by the responsible agency should 
be obtained as the applicant, assisted by EPA if necessary, develops 
the final project agreement.

Selection Process

    EPA will screen proposals submitted in response to this notice 
(considering the criteria listed below) to select those that do the 
most to advance the purposes of this program, and will then work 
cooperatively with a subset of the applicants to further refine 
proposals, as necessary. The Agency retains the ultimate authority to 
select projects based on a qualitative consideration of these criteria. 
Given the pilot nature of the program, and the limited number of 
projects that will be selected, proposals that satisfy many or all of 
the criteria may not be selected if, in the Agency's judgment, other 
proposed projects better serve the objectives of the program. Moreover, 
no person is required to submit a proposal or obtain approval as a 
condition of commencing or continuing a regulated activity. 
Accordingly, there will be no formal administrative review available 
for proposals that are not selected, nor does EPA believe there will be 
a right to judicial review. Although EPA will work with the most 
promising applicants, the ultimate responsibility for developing 
detailed project plans will be with the project proponents. Proposals 
not chosen may be referred for additional review to other EPA programs 
which have other community-based activities underway or may be deferred 
for development at a later time.

Final Project Agreements

    After a second review a final group of selected project proponents 
will be invited to join EPA, state, or tribal environmental agencies, 
and other co-regulators to develop a Final Project Agreement. Only the 
signing of a Final Project Agreement will constitute the acceptance of 
a full-fledged pilot project. Parties to the Final Project Agreement 
will include at least EPA, project participants, state or tribal 
environmental agencies, as well as other co-regulators. These 
agreements will deal with project-specific issues such as legal 
authority for project implementation, resource commitments to the 
project, and provision for regulatory flexibility and technical or 
other support if requested, public involvement, specific time 
commitments to environmental progress, and expected environmental 
results. Each Final Project Agreement will clearly set forth 
requirements that the project participants have agreed to meet 
including measurable performance objectives and should include an 
explicit statement concerning what data and analyses are needed to 
evaluate project results. To address regulatory flexibility, EPA 
anticipates that the Agreements will be structured so that any 
enforcement relief EPA has provided with respect to applicable 
requirements will be conditioned on the project participants' 
compliance with the terms of the Agreements. EPA invites project 
proponents to include in their proposals suggestions for additional or 
alternative approaches to enforcing the commitments made in the Final 
Project Agreements. Unless otherwise agreed to by both EPA and the 
proponent, the time to negotiate and sign a Final Project Agreement 
should be limited to six months from the date of initial project 
acceptance. The final 

[[Page 55571]]
phase of the program involves implementation, monitoring and evaluation 
of the agreement terms.

Project Selection Criteria

    EPA will consider the following criteria in evaluating pilot 
project proposals:

I. Environmental Results

    Projects should demonstrate, within a defined geographic area, 
environmental results that are superior to what would be achieved under 
existing and reasonably foreseeable future national regulations. 
Project proponents should explain in clear and common sense terms how 
the environmental results from the alternative strategy for their 
specific project will be better than present routine compliance. 
Although EPA is open to a qualitative demonstration of results, project 
proponents are encouraged to provide, where possible, a quantitative 
comparison between anticipated environmental results under current 
requirements and projected results under the proposed alternative 
approach. Improved environmental quality can be achieved either 
directly through the environmental activities of the project or through 
cost savings resulting from the project which are invested in follow-up 
activities that produce greater environmental results. The XL Community 
Pilot Program is not an opportunity to propose exchanges of regulatory 
flexibility for non-environmental benefits or to seek waivers or 
reductions from national environmental goals. The Final Project 
Agreement should include explicit goals, benchmarks, and requirements, 
including measurable performance objectives. For example, a variety of 
environmental measures may be used--from waste stream sampling and 
ambient air quality monitoring to rougher measures such as acres of 
habitat preserved, greater bio-diversity, and/or more open space 
created--depending on the project.

II. Stakeholder Involvement, Support, and Capacity for Community 
Participation

    EPA encourages proposals for projects that will build, support, and 
promote cooperation among citizens, businesses, government, and non-
profit organizations at the community level for the purposes of 
formulating effective environmental strategies and economic 
sustainability. Project proposals that incorporate processes for 
building and supporting a framework for community participation will be 
given greater consideration. Project proposals should at a minimum 
identify key stakeholders for the project, drawn from affected sectors 
of the community. Depending on the nature of the project, stakeholders 
will likely include one or more of the following: Local government 
agencies; members of environmental and other public interest groups; 
businesses in the community; community development corporations; 
citizens or officials from communities near or adjacent to the project; 
or other affected people or entities. Where available, project 
proposals should present evidence of support from key stakeholders 
including partnerships with individuals, community groups, and 
regulated entities.

III. Economic Opportunity

    Pilots which demonstrate ways of creating economic opportunity 
through, or in conjunction with, improved environmental quality are 
encouraged. For example, recent experience with restoration of 
greenways to reduce runoff to waterways has led to revitalization and 
development of commercial and recreational waterfront activities and 
created new industries providing the community with jobs and resources.

IV. Feasibility

    Project proponents should demonstrate the technical, 
administrative, and financial capability to implement project 
proposals.

V. Transferability

    EPA will favor project proposals that demonstrate potential to 
serve as models for EPA, states, tribes, local governments, regional 
entities, and other communities nationwide.

VI. Monitoring, Reporting and Evaluation

    Projects should have clear environmental objectives that will be 
measurable in order to allow EPA and the public to evaluate the success 
of the project. The project proposal should clearly identify the entity 
which will be accountable for project results. The project sponsor 
should state the time frame within which results will be achieved, and 
propose interim dates and the means by which progress could be 
measured, evaluated and shared with stakeholders.

VII. Equitable Distribution of Environmental Risks

    The project should not subject anyone to unjust or disproportionate 
environmental degradation. Implementation of project proposals should 
not significantly transfer pollution to, or add to environmental 
degradation of, a jurisdiction outside of a project area. Additionally, 
project proposals that lessen the burden of environmental degradation 
to people and places that have traditionally shouldered a 
disproportionate share of the burden will be given greater 
consideration.

VIII. Community Planning

    EPA encourages proposals for projects that use participatory 
community planning and consensus-based goals to build constituencies 
and marshall resources for community improvement. Projects which 
facilitate the creation of community plans and/or promote the use of 
existing community goals and plans are encouraged. Projects should be 
consistent with any existing community plans or goals.

IX. Innovative Approaches/Multi-Media Focus/Pollution Prevention

    EPA is looking for projects that test innovative strategies for 
achieving environmental results. These strategies may include 
innovative community planning or a process for articulating a community 
vision, new facility technologies, or environmental management 
practices such as source water protection. EPA also encourages project 
proposals that test alternatives to current, single-media environmental 
management programs (i.e., improvements in more than one environmental 
medium). EPA has a preference for protecting the environment by 
preventing the generation of pollution rather than by controlling 
pollution once it has been created.

X. Enforcement and Compliance History

    Although applicants are not requested to address this criterion in 
their proposals, EPA will consider the enforcement and compliance 
history of regulated entities that are proposed to be subject to final 
project agreements. A perfect compliance history is not a prerequisite 
to participation in the XL Community Pilot Program. At the same time, 
this program is designed to demonstrate excellence and leadership by 
providing regulatory flexibility to entities that are committed to 
achieving superior environmental performance. In addition, regulatory 
flexibility may mean that regulated entities are subject to less 
oversight, or alternative kinds of oversight, as compared with existing 
schemes. Accordingly, as part of the selection process, EPA will 
consider the entities' prior compliance history. 

[[Page 55572]]


Relationship of XL Community Pilots to Other Community-Based 
Reinvention Efforts

    EPA is undertaking several other community-based initiatives as 
part of its regulatory reinvention efforts. Under the Compliance 
Incentives for Small Communities Initiative EPA intends to issue a 
small community enforcement flexibility policy later this year. This 
policy will provide guidance to states and tribes that want to offer 
compliance flexibility to small local governments that, unlike XL 
communities, are struggling to meet existing requirements, and that 
employ a rational process for setting priorities based on local 
conditions and needs (for information on the Flexibility Policy contact 
Kenneth Harmon; Office of Enforcement and Compliance Assurance; 202-
564-7049).
    In several instances, states, with varying degrees of EPA 
involvement, have negotiated or are in the process of negotiating 
compliance flexibility with small communities that seek to achieve and/
or maintain compliance with existing environmental requirements. These 
programs exist in Oregon (Environmental Partnerships for Oregon 
Communities), Idaho (Idaho Small Community Mandates Pilot Project) and 
Nebraska (Nebraska Mandate Initiative). For more information on these 
programs contact the individual state environmental agencies.
    A second EPA community-based initiative, the Community-Based Risk 
Assessment project, is designed to promote risk-based decision making 
in communities, States, and tribes and to provide communities with a 
better understanding of human health and ecological risks. In this 
project, EPA will work with communities to identify available risk 
tools that meet specific community needs. EPA will initially focus on 
the provision of risk assessment and comparative risk software, 
databases, training courses, and information materials, but is also 
interested in providing more focused technical assistance in a few 
pilot communities. EPA believes that risk assessment and comparative 
risk are important tools to help communities develop goals, determine 
priorities, and demonstrate results. For more information about this 
project contact Jane Metcalfe; Office of Research and Development; 202-
260-7669.
    A third reinvention initiative, the Sustainable Development 
Challenge Grant Program will be announced in a Federal Register Notice 
later this year. For information on the Sustainable Development 
Challenge Grant Program contact the Office of Regional Operations and 
State and Local Relations; 202-260-4719.

Legal Mechanisms for Pilot Projects

    EPA will seek to use a variety of administrative and compliance 
mechanisms to provide regulatory flexibility where necessary for final 
project agreements. Regulatory flexibility will be conditioned on the 
pilot project meeting the alternative requirements specified in the 
project plan. In particular circumstances, EPA may consider changes in 
underlying regulations or may seek changes in underlying statutes. EPA 
recognizes that these questions raise issues of importance both to the 
Government and to potential participants in pilot projects that seek 
regulatory flexibility. Applicants are invited to present EPA with 
proposed approaches tailored to provide the flexibility for their pilot 
projects.

Request for Comment on Pilot Program

    Interested members of the public are invited to comment on all 
aspects of the pilot project program. EPA requests specific comment on 
the legal mechanisms for implementing project agreements, and the data 
requirements for determining both existing environmental conditions and 
the level of environmental quality that would result from selected 
projects.

Paperwork Reduction Act

    The information collection provisions in this Notice, for 
solicitation of proposals, have been approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act, 44 
U.S.C. 3501 et seq. (ICR No. 1755.2 and OMB Approval No. 2010-0026). 
Copies of the ICR (ICR No. 1755.2) may be obtained from Sandy Farmer; 
U.S. Environmental Protection Agency; Information Policy Branch, Mail 
Code 2136; 401 M Street, S.W.; Washington, D.C. 20460; or by calling 
(202) 260-2740. Public reporting burden for this collection of 
information is estimated to total 133,800 hours annually for all 
respondents combined, and an additional 27,760 hours annually for all 
co-regulators combined. These estimates cover all information burdens 
associated with Project XL including application, selection, 
development of Final Project Agreement, tracking of project progress, 
determination of bottom-line environmental results, evaluation of 
project outcome, and all information required by Project XL for these 
activities.

    Dated: October 26, 1995.
Fred Hansen,
Deputy Administrator.
[FR Doc. 95-27141 Filed 10-31-95; 8:45 am]
BILLING CODE 6560-50-P