[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