[Federal Register Volume 64, Number 64 (Monday, April 5, 1999)] [Notices] [Pages 16450-16452] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-8338] ----------------------------------------------------------------------- ENVIRONMENTAL PROTECTION AGENCY [FRL-6320-2] Notice of Process Improvements Under Project XL AGENCY: Environmental Protection Agency (EPA). ACTION: Notice; clarification and streamlining of the process used for developing XL projects. ----------------------------------------------------------------------- SUMMARY: What is Project XL? Project XL, which stands for eXcellence and Leadership, is a national initiative that tests innovative ways of achieving better and more cost-effective public health and environmental protection. XL pilot projects must meet certain criteria (see Supplementary Information section of this Notice), but are built around three key elements: (1) Stronger environmental performance; (2) meaningful stakeholder involvement; and (3) flexibility in EPA regulations, policies, or procedures. Project XL challenges the regulated community--facilities, business sectors, government agencies, and communities--to find cleaner, cheaper and smarter ways of protecting the environment. As of February 1999, ten projects are being implemented and over 20 more are in development. Project sponsors have already achieved a number of significant benefits by participating in Project XL, including increased environmental protection, substantial cost savings, improved operational flexibility, and better stakeholder relations. What Is the Purpose of This Notice? EPA is announcing new operating guidance for XL's project development process. Project XL is an evolving program where EPA applies ``lessons learned'' in a timely way. Comments are always welcome. This guidance will not be ``finalized'' through additional notices, but will be revised, when necessary, based on comments and input. This Notice provides a very brief description of the new guidance and announces the availability of three specific documents that describe the key changes in greater detail. These documents are available on Project XL's website: www.epa.gov/ProjectXL as well as from XL's information line at 202-260-5754. Why Is This New XL Guidance Needed? When Project XL was launched in 1995, there were no models to draw upon for such an innovative effort. Since that time, EPA has learned a great deal about how to carry out cross-media, cross-Agency experiments and can now be more specific on what a quality proposal should contain, how decisions should be made, and what a stakeholder process should entail. Building on that practical experience, EPA has worked hard with representatives from industry, environmental organizations, states, and other interested groups over the last several months to improve how XL pilot projects are developed and implemented. These improvements have already led to reductions in the ``transaction costs'' of all participants in projects where they have been utilized. How Has the New Process Produced Better Results? After a step-by-step evaluation of the old process, the ``re- engineering'' work group created a new process that is faster and clearer, and spells out the roles and responsibilities not only for EPA, but also project sponsors and stakeholders. Improvements have been seen in several XL projects currently under development where these changes have been utilized. For example, in one recent project several of the new techniques were applied resulting in a quality proposal that will have an agreement signed nine months after initial discussions began. What Changes Have Been Made? The old process needed-- --Greater clarity in determining what makes a good proposal and how to involve and assist stakeholders more effectively; --Better management of proposal development activities and decision-making in EPA, the states, and other regulators outside of EPA; and --More commitment to an expeditious process by all parties at all levels. The new process is now-- --clearer, more predictable, and faster and is described in detail in the following documents: (1) A Best Practices Guide for Proposal Development This guide is designed to help project sponsors submit Project XL proposals that will go through the review process as quickly and smoothly as possible. The guide is intended to: (a) let project sponsors know in clear terms what information to put into a proposal; (b) help sponsors understand why EPA needs this information from project sponsors; and (c) give sponsors some initial sense of whether their idea is a likely candidate for Project XL. [[Page 16451]] (2) A Stakeholder Involvement Guide Surveys of project sponsors have indicated that the stakeholder involvement process has been very beneficial to them, but that the process could benefit from clear guidance on how to do it and what's involved. This XL-specific guide to stakeholder involvement is designed to clarify the roles and responsibilities of sponsors and stakeholders, enumerate guiding principles, and provide ideas and tools to help develop, negotiate, and implement successful XL projects. (3) Manual for EPA XL Project Teams XL projects require expeditious coordination among several organizations within EPA. This manual guides the internal EPA process, and improves the Agency's ability to make decisions quickly and move XL projects effectively through the development process. It consists of two parts: (a) Ground Rules for EPA XL Teams, outlining ground rules found to be essential for EPA project teams to perform effectively; and (b) The XL Process Steps for EPA's XL Teams, which provides a step-by- step breakdown of the process and delineates internal responsibilities for each step. EPA has developed additional tools and techniques to assist during proposal development: --Project management schedules with milestones are now developed and tracked for every project; --EPA senior management participate early during proposal development; --The roles and responsibilities for all participants are now clearer; --Training is available for new EPA XL project teams; --Assistance is available through an EPA contractor to project sponsors who would like to use an impartial facilitator to help get the stakeholder involvement process off to an open, well-organized, and productive start. --Task-specific technical assistance can also be provided for stakeholder groups under certain conditions through the Institute for Conservation Leadership (telephone number 301-270-2900). How Fast is ``Faster''? The revised XL process is divided into shorter, more focused project phases, with estimated time frames of six months to a year, compared to 18 months or more for the old process. The New Phases of the XL Proposal Process ---------------------------------------------------------------------------------------------------------------- Estimated Phase number of Description days* ---------------------------------------------------------------------------------------------------------------- Pre-Proposal 20-30 Informal discussions between EPA, State(s), and potential sponsors. Proposal Development 50-75 EPA and the relevant State(s) help the sponsor develop proposal concepts into complete proposal package. EPA & State Proposal Review 40-60 States and EPA decide whether the project is acceptable for developing a Final Project Agreement (FPA). Final Project Agreement Development, and a 90-180 EPA, the sponsor, the State(s), and the stakeholders Federal Register Notice to solicit work to develop the Final Project Agreement (FPA). comments, with the appropriate legal mechanism, where necessary (such as a permit or site specific rule) Total: 200-345* ---------------------------------------------------------------------------------------------------------------- Provided the project sponsor and the State agree with the proposed schedules. DATES: April 5, 1999. FOR FURTHER INFORMATION CONTACT: (1) For XL projects: Contact Christopher Knopes, Office of Reinvention Programs, United States Environmental Protection Agency, Room 1029, 401 M Street SW, Mail Code 1802, Washington, DC 20460. The telephone number for the Office is (202) 260-5754; the facsimile number is (202) 401-6637. (2) For general information, including documents referenced in this document, other EPA policy documents related to Project XL, EPA regional contacts, application information, and descriptions of existing XL projects and proposals, please turn to Project XL's website--http://www.epa.gov/ProjectXL for private and federal facilities, states, and business sectors; and for communities, turn to http://www.epa.gov/ProjectXLC. SUPPLEMENTARY INFORMATION: How are XL Projects Selected? Much information on Project XL has been provided in previous Federal Register documents. In Project XL's first Federal Register Notice on May 23, 1995 (60 FR 27282), EPA described Project XL as a program that offers a balanced set of benefits to the environment, the regulated community and the public, and issued a general solicitation for proposals. In that Notice, EPA also defined the eight criteria by which proposals are selected for participation. In addition to these criteria, a project sponsor must have a solid record of compliance. The criteria help evaluate whether the project can: (1) Produce superior environmental results; (2) Produce benefits such as cost savings, paperwork reduction, and operational flexibility; (3) Garner stakeholder involvement and support; (4) Achieve innovation and multi-media pollution prevention; (5) Be transferable to other facilities, sectors, communities, etc.; (6) Be feasible (technically and administratively); (7) Identify monitoring, reporting, accountability, and evaluation methods; and (8) Avoid shifting of risk burden. In addition to these criteria, there are three criteria that are specific to community-sponsored XL projects: (9) Build capacity for community participation; (10) Create economic opportunity; and (11) Promote community planning. How Can You Get More Information? For more detailed definitions of the XL criteria, please refer to the Federal Register documents of May 23, 1995 (60 FR 27282) and April 23, 1997 (62 FR19872), which provide further guidance and clarification. Additional information on XL (program policy, projects, project ideas, publications, and legal questions) can be obtained from the Federal Register document of June 23, 1998, from Project XL's websites http://www.epa.gov/ProjectXL and http://www.epa.gov/ ProjectXLC, and by calling 202-260-5754. [[Page 16452]] Dated: March 23, 1999. Jay Benforado, Acting Associate Administrator, Office of Reinvention. [FR Doc. 99-8338 Filed 4-2-99; 8:45 am] BILLING CODE 6560-50-P