[Federal Register Volume 63, Number 48 (Thursday, March 12, 1998)]
[Notices]
[Pages 12094-12097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6389]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-5976-6]


EPA Position Statement on Environmental Management Systems and 
ISO 14001 and a Request for Comments on the Nature of the Data To Be 
Collected From Environmental Management System/ISO 14001 Pilots

AGENCY: Environmental Protection Agency.

ACTION: Position statement; request for comment on information 
gathering.

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SUMMARY: This document communicates the EPA's position regarding 
Environmental Management Systems (EMSs), including those based on the 
International Organization for

[[Page 12095]]

Standardization (ISO) 14001 standard. This document also describes the 
evaluative stage EPA is entering concerning EMSs. Further, it solicits 
comments on proposed categories of information to be collected from a 
variety of sources that will provide data for a public policy 
evaluation of EMSs.

FOR FURTHER INFORMATION CONTACT:
Office of Reinvention--EMS, Environmental Protection Agency, 401 M St., 
SW, mail code 1803, Washington, D.C. 20460, Telephone: (202) 260-4261. 
E-mail: [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    A diverse group of organizations, associations, private 
corporations and governments has been developing and implementing 
various EMS frameworks for the past thirty years. For example, the 
Chemical Manufacturers Association created its own framework called 
Responsible Care. In addition, the French, Irish, Dutch, and Spanish 
governments developed their own voluntary EMS standards.
    The possibility that these diverse EMS frameworks could result in 
barriers to international trade led to a heightened interest in 
formulating an international voluntary standard for EMSs. To that end, 
the International Organization for Standardization (ISO), consisting of 
representatives from industry, government, non-governmental 
organizations (NGOs), and other entities, finalized the ISO 14001 EMS 
standard in September 1996. The intent of this standard is to produce a 
single framework for EMSs, which can accommodate varied applications 
all over the world. ISO 14001 is unique among the ISO 14000 standards 
because it can be objectively audited against for internal evaluation 
purposes or for purposes of self-declaration or third-party 
certification of the system.
    EPA participation in the development of voluntary standards, 
including the ISO 14000 series of standards, is consistent with the 
goals reflected in section 12(d) of the National Technology Transfer 
and Advancement Act of 1995 (NTTAA) (Pub. L. No. 104-113, s. 12(d), 15 
U.S.C. 272 note). The NTTAA requires federal agencies to use voluntary 
consensus standards in certain activities as a means of carrying out 
policy objectives or other activities determined by the agencies, 
unless the use of these standards would be inconsistent with applicable 
law or otherwise impractical. In addition, agencies must participate in 
the development of voluntary standards when such participation is in 
the public interest and is compatible with an agency's mission, 
authority, priority, and budget resources. Agency participation in the 
development of EMS voluntary standards does not necessarily connote 
EPA's agreement with, or endorsement of, such voluntary standards.
    On December 16, 1997, EPA Deputy Administrator Fred Hansen asked 
EPA's newly chartered Office of Reinvention ``to take lead 
responsibility for policy coordination of all EMS pilots, programs, and 
communications.'' (Full text of memo available at www.epa.gov/
reinvent.) This notice initiates the Office of Reinvention's effort to 
ensure public input in that endeavor.

II. Statement

    Implementation of an EMS has the potential to improve an 
organization's environmental performance and compliance with regulatory 
requirements. EPA supports and will help promote the development and 
use of EMSs, including those based on the ISO 14001 standard, that help 
an organization achieve its environmental obligations and broader 
environmental performance goals. In doing so, EPA will work closely 
with all key stakeholders, especially our partners in the States.
    EPA encourages the use of EMSs that focus on improved environmental 
performance and compliance as well as source reduction (pollution 
prevention) and system performance. EPA supports efforts to develop 
quality data on the performance of any EMS to determine the extent to 
which the system can help bring about improvements in these areas. EPA 
also encourages organizations that develop EMSs to do so through an 
open and inclusive process with relevant stakeholders, and to maintain 
accountability for the performance outcomes of their EMSs through 
measurable objectives and targets. EPA encourages organizations to make 
information on the actual performance of their environmental management 
systems available to the public and governmental agencies. In addition, 
through initiatives such as Project XL and the Environmental Leadership 
Program, EPA is encouraging the testing of EMSs to achieve superior 
environmental performance. At this time, EPA is not basing any 
regulatory incentives solely on the use of EMSs, or certification to 
ISO 14001.
    The Commission for Environmental Cooperation (CEC) Council issued 
on June 12, 1997, a resolution (#97-05) signed by EPA Deputy 
Administrator Fred Hansen on behalf of the United States concerning 
``future cooperation regarding environmental management systems and 
compliance.'' The CEC Council was formed pursuant to the North American 
Agreement on Environmental Cooperation, an environmental side agreement 
to the North American Free Trade Agreement, and is comprised of the 
environmental ministers for Canada, Mexico and the United States. The 
declarative and directive paragraphs of the Council's resolution #97-05 
read as follows:

The Council * * * Declares That:
Governments must retain the primary role in establishing 
environmental standards and verifying and enforcing compliance with 
laws and regulations. Strong and effective governmental programs to 
enforce environmental laws and regulations are essential to ensure 
the protection of public health and the environment. Voluntary 
compliance programs and initiatives developed by governments can 
supplement strong and effective enforcement of environmental laws 
and regulations, can encourage mutual trust between regulated 
entities and government, and can facilitate the achievement of 
common environmental protection goals; Private voluntary efforts, 
such as adoption of Environmental Management Systems (EMSs) such as 
those based on the International Organization on Standardization's 
Specification Standard 14001 (ISO 14001), may also foster improved 
environmental compliance and sound environmental management and 
performance. ISO 14001 is not, however, a performance standard. 
Adoption of an EMS pursuant to ISO 14001 does not constitute or 
guarantee compliance with legal requirements and will not in any way 
prevent the governments from taking enforcement actions where 
appropriate;

Hereby Directs:
The Working Group to explore (1) the relationship between the ISO 
14000 series and other voluntary EMSs to government programs to 
enforce, verify and promote compliance with environmental laws and 
regulations, and (2) opportunities to exchange information and 
develop cooperative positions regarding the role and effect of EMSs 
on compliance and other environmental performance. The Working Group 
shall, no later than the 1998 Council Session, report its results to 
the Council and provide recommendations for future cooperative 
action in this area. The review and recommendations shall recognize 
and respect each Party's domestic requirements and sovereignty.

III. Evaluative Phase

    EPA is working in partnership with a number of states to explore 
the utility of EMSs, especially those based substantially on ISO 14001, 
in public policy innovation. The goal of this partnership is to gather 
credible and compatible information of known quality adequate to 
address key public policy issues. The primary mechanism

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to generate this information will be pilot projects. Valid, compatible 
data from other sources will also be used whenever possible. To make 
efficient use of resources, and to ensure more robust research, EPA and 
states will work together on the creation of a common data base. The 
data base will be open and usable, while recognizing the need to insure 
the appropriate level of confidentiality for participants.
    A group of federal and state officials involved in EMS pilot 
projects have been working together to set up a common national 
database of information gathered through the pilot projects. As part of 
that process, EPA and states are developing a series of data protocols 
which provide instructions and survey instruments to guide the actual 
collection of data for the data base. That document will be available 
at http://www.epa.gov/reinvent.
    This document will serve to solicit comments on the categories of 
information to be collected. From the following general categories of 
information (and possibly others), EPA and participating states will 
develop the above mentioned protocols.
    The following categories are designed to provide a general idea as 
to the types of information that EPA believes should be collected to 
evaluate the effectiveness of EMSs from the perspective of regulators. 
EPA further believes that collection of data in all categories will 
allow the fullest understanding and evaluation of the benefits of an 
EMS. The data categories which appear in this document were, to the 
extent possible, developed around the kinds of data we believe will or 
could be generated by an ISO 14001 EMS.

1. Environmental Performance

    The impact a facility has on the environment is of paramount 
importance to regulators' assessment of EMSs. Thus, it is critical to 
measure any change in a facility's environmental performance that might 
be attributable to implementation of an EMs. Information would be 
collected as to the types, amounts, and properties of pollutants that 
are released to air, surface water, groundwater, or the land. 
Information on these pollutants would need to be normalized to a 
facility's production levels. Information relating to recycling, reuse, 
and energy requirements could also be included. This inquiry could 
include both regulated and non-regulated pollutants.

2. Compliance

    Implementation of an EMS has the potential to improve an 
organization's environmental compliance with regulatory requirements. 
The goal of collecting compliance information is to be able to measure 
the relationship between an EMs and compliance with local, state and 
federal environmental regulations. The types of data to be collected 
would include: information on whether the facility has a recent history 
of regulatory violations; the number, and seriousness of the 
violations; how quickly violations were discovered and corrected; and 
measurements of any changes in regulatory compliance status.

3. Pollution Prevention

    Pollution prevention is a significant goal for both federal and 
state regulators. Therefore, better understanding the relationship 
between an organization's overall performance and the role of pollution 
prevention in the organization's EMs is important to regulators. In the 
federal context, pollution prevention is defined as ``* * * any 
practice which--(l) reduces the amount of any hazardous substance, 
pollutant, or contaminant entering any waste stream, or otherwise 
released into the environment (including fugitive emissions) prior to 
recycling, treatment, or disposal; and (ii) reduces the hazards to 
public health and the environment associated with the release of such 
substances, pollutants, or contaminants.'' \1\ This definition will 
likely serve as a basis for helping an organization identify measures 
that it might have taken towards pollution prevention. Data collected 
would include a description of the type of pollution prevention and 
source reduction techniques used, including good operating practices, 
inventory control, spill and leak prevention, raw material 
modification/substitution, process modification, and product 
reformulation or redesign.
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    \1\ Pollution Prevention Act of 1990 Section 6603, 42 U.S.C. 
13102 (1990).
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4. Environmental Conditions

    In order to understand the impact of an EMs on the environment, it 
is necessary to know something about the status of the ambient 
environment surrounding the facility prior to implementation of an EMS. 
An analysis of this nature will not only help regulators evaluate EMs, 
it should also help facility mangers prioritize their environmental 
aspects and shape the policies and objectives of their EMSs. 
Environmental conditions data will assist all parties in determining 
the sustainability of certain human activities from an environmental, 
economic and social perspective. It is difficult, of course, to collect 
accurate and comparable information about environmental conditions. The 
time and expense needed for a facility to collect and report such data 
could be prohibitive. Also, the selection of an appropriate geographic 
focus--local, regional, or global--will be challenging. One way to 
minimize this burden would be to utilize available governmental or 
other surveys (e.g., the 1990 U.S. Census, hydrogeologic reports). 
Nevertheless, to the degree that these obstacles can be overcome, the 
analysis conducted by federal and state regulators will benefit.

5. Costs/Benefits to Impelementing Facilities

    There has been much speculation and assertion about the relative 
costs and benefits associated with the implementation of an EMS. Data 
collected in this category should help provide answers to questions 
concerning possible net financial benefits that might accompany 
improved compliance and increased environmental performance, or that 
might result from being able to achieve compliance in less costly ways. 
The data may also shed light on the costs associated with higher levels 
of environmental performance. It is important to recognize some of the 
limitations inherent in traditional approaches to cost/benefit 
analysis. To address these limitations, organizations could be 
encouraged to identify intangible costs and benefits associated with 
the implementation of an EMS, even if they are difficult to quantify. 
Also, a list of usually ``hidden'' costs and benefits could be used to 
help organizations identify and understand costs and benefits that are 
traditionally overlooked.

6. Stakeholder Participation and Confidence

    Community participation has become an increasingly important 
component of federal and state efforts to increase environmental 
performance and protect human health. Both federal and state regulators 
are interested in understanding the involvement of local communities 
and other stakeholders in the EMS process. Data could be collected to 
assess the amount and degree of stakeholder participation in both the 
development and implementation of an organization's EMS, or the effect 
that such participation has on the public credibility of the facility's 
EMS implementation.
    More information concerning the pilot projects as well as other 
federal, state and international initiatives relating to

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EMSs and ISO 14000 can be found in the ISO 14000 Resource Directory 
(copies can be obtained through EPA's Pollution Prevention Information 
Clearinghouse at 202-260-1023, e-mail: [email protected]).

    Dated: March 6, 1998.
Fred Hansen,
Deputy Administrator.
[FR Doc. 98-6389 Filed 3-11-98; 8:45 am]
BILLING CODE 6560-50-M