[Federal Register Volume 65, Number 130 (Thursday, July 6, 2000)]
[Notices]
[Pages 41655-41663]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17070]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-6730-5]


Program Description of the National Environmental Achievement 
Track

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: On June 26, 2000, EPA announced the design of its National 
Environmental Achievement Track (Achievement Track). The Achievement 
Track is the first of a two-tier EPA program that is designed to 
recognize and encourage top environmental performers. In the spring of 
2001, EPA intends to announce the design of the second tier, the 
National Environmental Stewardship Track. This notice provides a 
detailed description of the Achievement Track.

FOR FURTHER INFORMATION CONTACT: Julie Spyres, Office of Policy and 
Reinvention, 202-260-6787 or by email at [email protected].

ADDRESSES: Office of Policy and Reinvention, U.S. Environmental 
Protection Agency, Ariel Rios Building, Mailcode 2129, 1200 
Pennsylvania Avenue, Washington, DC 20460. Additional information may 
also be found at the Performance Track Information Center (toll free) 
1-888-339 PTRK (7875) or at the EPA Performance Track website at http://www.epa.gov/performancetrack.

SUPPLEMENTARY INFORMATION:
    Title: National Environmental Achievement Track Program Description
    Abstract:

The National Environmental Achievement Track Program Description

I. Introduction
II. The National Environmental Achievement Track
    A. Entry Criteria
    1. Environmental Management System (EMS)
    2. Demonstrated Environmental Achievements and Commitment to 
Continued Improvement
    3. Public Outreach and Performance Reporting
    4. Record of Sustained Compliance with Environmental 
Requirements
    B. Incentives for Participation
    C. Implementation
    1. Application and Notification Process
    2. Continued Compliance
    3. Protocol for Site Visits
    4. Annual Performance Report
    5. Removal from the Achievement Track
    D. The State Role and Relationship
    E. Small Business Participation

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III. The National Environmental Stewardship Track
IV. The EPA Administrator's Environmental Awards Program

I. Introduction

    The National Environmental Performance Track program is designed to 
recognize and encourage top environmental performers--those who go 
beyond compliance with regulatory requirements to attain levels of 
environmental performance and management that benefit people, 
communities, and the environment.
    Our system of environmental protection continues to evolve. There 
is a growing recognition that government should complement existing 
programs with new tools and strategies that not only protect people and 
the environment, but also capture opportunities for reducing costs and 
spurring technological innovation.
    Over the last several years, EPA has joined states, businesses, and 
community and environmental groups in experimenting with new approaches 
that achieve high levels of environmental protection with greater 
efficiency. EPA's Common Sense Initiative was designed to improve 
environmental results by tailoring strategies for six industry sectors. 
Project XL offers an opportunity to test alternative management 
strategies that promise better results. The national Environmental 
Leadership Program and EPA Region I's Star Track program offer new ways 
to encourage businesses to do better than required. Likewise, many 
states have developed innovative programs for improving environmental 
performance.
    This program builds upon the lessons EPA has learned from several 
state leadership programs and from its own efforts. We learned that 
innovations in environmental management can be used to create strategic 
business opportunities and advantages while maximizing the health and 
productivity of our ecosystems and communities. We learned the 
importance of keeping innovation programs simple and their transaction 
costs low. We know that we must focus on performance, not just the 
means of achieving it, and derive measurable results from our programs.
    The Performance Track program is the culmination of these efforts. 
It will recognize innovation, motivate others to improve, and 
complement existing regulatory activities. It has been designed so that 
criteria for participation are proportional to the benefits. It will 
encourage participation by small, medium, and large facilities. It also 
emphasizes the importance of effective state/EPA partnerships and the 
need to inform and involve citizens and communities.
    EPA will be implementing the National Environmental Performance 
Track program at two levels. The first level, the National 
Environmental Achievement Track (Achievement Track), is designed to 
recognize facilities that consistently meet their legal requirements 
and have implemented high-quality environmental management systems, as 
well as to encourage them to achieve more by continuously improving 
their environmental performance and informing and involving the public.
    The second level, the National Environmental Stewardship Track 
(Stewardship Track), is still under development. It is being designed 
to recognize and encourage broader and higher levels of voluntary 
environmental performance than those expected under the Achievement 
Track. These may include improvement in several categories of 
environmental performance; a focus on environmental management and 
performance with regard to customers, suppliers, and transporters; 
attention to product stewardship; and even better community engagement 
and public outreach.
    In developing the Achievement Track, EPA has consulted extensively 
with stakeholders and state environmental agencies. EPA initially 
proposed to develop a Performance Track program in its report, Aiming 
for Excellence, which it published in July 1999. In March of this year, 
EPA released a draft program description and held five public meetings 
across the country on this proposal. In addition, EPA has consulted 
closely with state officials, including a national forum to discuss 
state programs, issues, and participation.
    This notice announces the National Environmental Achievement 
Track.\1\ EPA plans to launch the Stewardship Track in May 2001. 
Although this notice focuses on the Achievement Track, a later section 
describes the concept of the Stewardship Track and the process EPA will 
use to develop it.
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    \1\ EPA will also use this program to implement Section 403(a) 
of Executive Order 13148, which directs EPA to establish a federal 
government leadership program ``to promote and recognize outstanding 
environmental management performance in agencies and facilities.''
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II. The National Environmental Achievement Track

    This section describes the criteria a facility will voluntarily 
meet to qualify for the Achievement Track, the incentives EPA intends 
to provide, the approach EPA intends to take to implement the program, 
and how EPA will manage this program with the states.

A. Entry Criteria

    To qualify for the Achievement Track, a facility will demonstrate 
that it:
     Has adopted and implemented an environmental management 
system (EMS) that includes the elements specified below;
     Is able to demonstrate specific environmental achievements 
and commit to continued improvement;
     Commits to public outreach and performance reporting; and
     Has a record of sustained compliance with environmental 
requirements.
1. Environmental Management System (EMS)
    A facility will certify that it has an EMS in place.\2\ The EMS 
will include the elements listed below and will have gone through at 
least one full cycle of implementation (i.e., planning, setting 
performance objectives, EMS program implementation, performance 
evaluation, and management review). A facility that has adopted systems 
based on EMS models with a Plan-Do-Check-Act framework would meet most 
of these elements.
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    \2\ For purposes of the Achievement Track, an EMS represents an 
organization's systematic efforts to meet its environmental 
requirements, including maintaining compliance and achieving 
performance objectives that may be related to unregulated aspects of 
the organization's activities.
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    EPA recognizes that the scope and level of formality of the EMS 
will vary, depending on the nature, size, and complexity of the 
facility. EPA's experience with a variety of programs suggests that 
these EMS elements are within the capability of small facilities and 
can be met through a variety of approaches. To help small facilities 
implement an EMS, EPA will make guidance documents and assistance 
materials available.
    A facility will certify that it has implemented an EMS that 
includes these elements:
Policy
     A written environmental policy, defined by top facility 
management, that includes commitments to: (1) Compliance with both 
legal requirements and voluntary commitments; (2) pollution prevention 
(based on a pollution prevention hierarchy where source reduction is 
the first choice); (3) continuous improvement in environmental

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performance, including areas not subject to regulations; and (4) 
sharing information about environmental performance and the operation 
of the EMS with the community.
Planning
     Identification of significant environmental aspects \3\ 
and legal requirements, including procedures for integrating 
anticipated changes to the facility's requirements or commitments into 
the EMS.
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    \3\ An environmental aspect is an ``element of an organization's 
activities, products, or services that can interact with the 
environment. Facilities are asked to use their list of significant 
environmental aspects in selecting performance commitments under 
this program (see Section A.2).
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     Measurable objectives and targets to meet policy 
commitments and legal requirements, to reduce the facility's 
significant environmental impacts, and to meet the performance 
commitments made as part of the facility's participation in the program 
(under Section A.2). In setting objectives and targets, the facility 
should consider the following criteria: preventing non-compliance, 
preventing pollution at its source, minimizing cross-media pollutant 
transfers, and improving environmental performance.
     Active, documented programs to achieve the objectives, 
targets, and commitments in the EMS, including the means and time-
frames for their completion.
Implementation and Operation
     Established roles and responsibilities for meeting 
objectives and targets of the overall EMS and compliance with legal 
requirements, including a top management representative with authority 
and responsibility for the EMS.
     Defined procedures for: (1) Achieving and maintaining 
compliance and meeting performance objectives; (2) communicating 
relevant information regarding the EMS, including the facility's 
environmental performance, throughout the organization; (3) providing 
appropriate incentives for personnel to meet the EMS requirements; and 
(4) document control, including where documents related to the EMS will 
be located and who will maintain them.
     General environmental training programs for all employees, 
and specific training for those whose jobs and responsibilities involve 
activities directly related to achieving objectives and targets and to 
compliance with legal requirements.
     Documentation of the key EMS elements, including the 
environmental policy, significant environmental aspects, objectives and 
targets, a top management representative, compliance audit program, EMS 
audit program, and overall EMS authority.
     Operation and maintenance programs for equipment and for 
other operations that are related to legal compliance and other 
significant environmental aspects.
     An emergency preparedness program.
Checking and Corrective Action
     An active program for assessing performance and preventing 
and detecting non-conformance with legal and other requirements of the 
EMS, including an established compliance audit program and an EMS audit 
program.
     An active program for prompt, corrective action of any 
non-conformance with legal requirements and other EMS requirements.
Management Review
    Documented management review of performance against the established 
objectives and targets and the effectiveness of the EMS in meeting 
policy commitments.
    Although a third-party audit of the EMS is not necessary to qualify 
for the Achievement Track, a facility is asked in the application form 
if it has undergone such an audit. If it has not, it will have 
conducted a self-assessment. A facility will retain EMS documentation 
and provide a summary of its performance, including performance against 
objectives and targets, and a summary of the results of compliance and 
EMS audits, in its Annual Performance Report (discussed in Section 
C.4).
2. Demonstrated Environmental Achievements and Commitment to Continued 
Improvement
    A facility will demonstrate specific environmental achievements and 
commit to continued improvements in its environmental performance. The 
framework for reporting on perfor-mance is based on the Global 
Reporting Initiative (GRI), which EPA also has used in Region I's 
StarTrack program. This framework distinguishes two levels of 
performance: Categories and aspects. A category is a class of 
environmental impacts (e.g., water discharges). An aspect is an element 
of an organization's activities, products, or services that can 
interact with the environment (e.g., discharges of heavy metals). EPA's 
approach to reporting is consistent not only with the GRI but with 
generally accepted EMS practice.
    The categories and aspects for use in the Achievement Track program 
are listed in the Application Instructions for the Achievement Track 
(the Environmental Performance Table) and are available on the 
Performance Track web site (http://epa.gov/performancetrack). Three of 
the categories in the Table relate to the use of resources. They are 
energy use, water use, and materials use. Four of the categories relate 
to the negative effects of activities or processes. These include air 
emissions, waste generation, water discharges, and accidental releases. 
The final two categories relate to efforts to preserve or restore 
resources and to the environmental performance of products. Within each 
category, EPA has listed one or more environmental aspects that a 
facility may choose from in reporting on its performance.
    EPA will not specify which categories and aspects a facility should 
select in making its performance commitments. However, the facility's 
future performance commitments need to be closely tied to the 
significant environmental aspects and the related objectives and 
targets as identified in its EMS. In addition, the facility should take 
the following factors into account in selecting categories and aspects 
for future performance commitments:
     Local or regional environmental concerns or priorities;
     Cross-media impacts of performance improvements; and
     Progress that can be made through pollution prevention.
    Each applicant will demonstrate past achievements and commit to and 
report on future improvements. To demonstrate past performance, a 
facility is asked to select at least two environmental aspects from any 
of the categories in the Environmental Performance Table and to 
describe the improvements in its performance during the current and 
preceding one year. Small facilities have the option of documenting 
improvement for at least one environmental aspect from any category.\4\ 
Facilities are encouraged to

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document performance achievements beyond the minimum.
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    \4\ EPA recognizes that, depending on the nature and extent of a 
facility's operations, a small facility may have fewer environmental 
aspects as well as more limited resources for measuring and 
committing to specific improvements in performance. For purposes of 
this program, a facility will be considered to be a ``small'' 
facility if the company as a whole is a small business as defined by 
the Small Business Administration (see FR 30386, Vol. 65, No 94, May 
15, 2000) and if the facility itself employs fewer than fifty full-
time equivalent employees. A facility will self-certify as to its 
status as a small business in the application for admission to the 
Achievement Track. If a facility is part of a larger company, it is 
the larger company as a whole that needs to meet the Small Business 
Administration definition.
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    In making future performance commitments, facilities should select 
at least four environmental aspects, drawn from two or more categories. 
Small facilities should select at least two aspects from two or more 
categories. Again, facilities are encouraged to commit to more than the 
minimum. These commitments should cover the three years that the 
facility will participate in the Achievement Track (the standard term 
for participation). The aspects selected for past and future 
performance may or may not be the same, depending on the facility's 
priorities and the status of its performance improvement efforts.
    In documenting past achievements and committing to continued 
improvement, a facility will not rely on any actions that represent 
compliance with existing legal requirements at the federal, state, 
tribal, or local levels. These improvements will represent actions 
taken by a facility that go beyond existing legal requirements. A 
facility will be asked to describe its progress in meeting these 
commitments in an Annual Performance Report (See Section C.4).
    There will be no absolute or relative level of improvement in 
either past or future performance needed to qualify for the program. 
EPA is asking each facility to document and commit to a level of 
performance that is consistent with its own situation, capabilities, 
and goals. However, each facility is encouraged to commit to 
significant improvements that it is willing to justify publicly as a 
participant in the Achievement Track.
    EPA encourages each facility to use the results of its 
participation in EPA, state, and other partnership programs to document 
its achievements in improving performance. Participation in a 
partnership program would not on its own qualify a facility, but 
improvements that occur in the context of such a program would. For 
example, as a result of participation in EPA's WasteWise, ClimateWise, 
WAVE (Water Alliances for Voluntary Efficiency), Design for the 
Environment, or Metal Finishing Strategic Goals programs, a facility 
may be able to document past performance and commit to future 
improvement. EPA's Partnership Programs coordinators will advise 
facilities on the best ways to link efforts in these programs with 
participation in the Achievement Track.
3. Public Outreach and Performance Reporting
    A facility will demonstrate its commitment to public outreach and 
report periodically on its performance. There is no standard set of 
outreach activities, beyond what is required in the Annual Performance 
Report. Each facility's approach to community reporting beyond this 
Report will depend on its size, scale of operations, and setting.
    EPA expects that applicants will already have established a public 
outreach program. For example, participants in the Responsible Care 
program or endorsers of the CERES (Coalition for Environmentally 
Responsible Economies) principles typically have outreach programs that 
may include a community advisory panel, newsletters, performance 
reporting, sponsorship of community activities, and other outreach 
activities. Many small facilities have adopted lower-cost but effective 
outreach programs.
    In the application, each facility will be asked to describe its 
activities and plans in three areas: identifying and responding to 
community concerns; informing community members of important matters 
that affect them; and reporting on the performance of its EMS and other 
performance commitments. The facility also will be asked to provide a 
short list of community/local references who are familiar with the 
facility and to list any ongoing citizen suits against the facility.
    During its evaluation process, EPA will list the facility as an 
applicant on the Performance Track web site. If a facility is accepted, 
EPA will list it as a participant and make a copy of its application 
available to the public.
Identifying and Responding to Community Concerns
    A facility should be able to demonstrate that it has established 
mechanisms for identifying and responding to local concerns regarding 
the environmental effects of its operations. Examples are concerns 
about emissions, odors, traffic congestion, water discharges, and 
emergency warnings. At a minimum, a small facility should be able to 
document that it has designated a point of contact with direct access 
to facility management and has adopted procedures for responding to 
questions or concerns of local residents.
    Other typical efforts could include a designated community liaison 
official, periodic public meetings or open houses, and similar 
mechanisms. The level of public outreach would depend not only on the 
size of the facility, but also on the degree of community interest and 
the environmental effects of the facility's operations.
Informing Community Members of Important Matters That Affect Them
    Each applicant should describe the mechanisms it uses to inform the 
community of important issues related to the facility's environmental 
performance. Many of the mechanisms for identifying and responding to 
local concerns may meet this objective as well. Open houses, community 
meetings, web pages, advisory panels, or customer displays could be 
especially appropriate. Again, these efforts should be appropriate to a 
facility's size, operations, and setting.
Reporting on the Facility's Performance Commitments
    Whatever means a facility employs for community outreach, it should 
explain specifically how it provides the public with the environmental 
performance information that it is committed to reporting (described in 
Section A.2 above). Each facility will provide this information to the 
local community in its Annual Performance Report.
4. Record of Sustained Compliance With Environmental Requirements
    A facility will have a record of compliance with environmental laws 
and be in compliance with all applicable environmental requirements at 
the time of application. The facility will maintain its compliance for 
the duration of its participation in the Achievement Track.
    In evaluating the compliance record of an applicant, EPA, along 
with its state partners, will consult available databases and 
enforcement information sources. The scope of this screen and the 
screening criteria are based on the guidelines presented in the 
Agency's Compliance Screening for Partnership Programs Guidance, \5\ 
with certain design changes appropriate for this program. EPA may later 
add to or modify these criteria, as needed, and as it develops the 
National Environmental Stewardship Track.
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    \5\ This guidance is available at http://es.epa.gov/oeca/oc/polover.pdf.
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    Participation in the Achievement Track will not be appropriate if 
the compliance screen shows any of the following, under federal or 
state law.
Criminal Activity
     Corporate criminal conviction or plea for environmentally-
related

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violations of criminal laws involving the corporation or a corporate 
officer within the past 5 years.
     Criminal conviction or plea of employee at the same 
facility for environmentally-related violations of criminal laws within 
the past 5 years.
     Ongoing criminal investigation/prosecution of corporation, 
corporate officer, or employee at the same facility for violations of 
environmental law.
Civil Activity
     Three or more significant civil violations at the facility 
in the past 3 years.\6\
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    \6\ The term ``significant'' with respect to violations or non-
compliance refers to how the violation is characterized under the 
applicable media enforcement response policy, available at http://www.epa.gov/oeca/main/strategy/.
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     Unresolved, unaddressed Significant Non-compliance (SNC) 
or Significant Violations (SV) at the facility.
     Planned but not yet filed judicial or administrative 
action at the facility.
     Ongoing EPA- or state-initiated litigation at the 
facility.
     Situation where a facility is not in compliance with the 
schedule and terms of an order or decree.
    In addition, EPA may also consider whether there are significant 
problems or a pattern of non-compliance in an applicant's overall civil 
or criminal compliance history.
    EPA encourages each facility to assess its own compliance record 
under these criteria as it makes a decision regarding application to 
the Achievement Track.

B. Incentives for Participation

    To promote participation in the program and the environmental and 
other benefits that will come with it, EPA intends to offer several 
incentives and is considering others.
    In EPA's March proposal on the Performance Track program, which was 
the subject of several public meetings and written comment, EPA 
outlined considerations that would influence its choice of incentives 
for the Achievement Track. EPA has continued to rely on these 
considerations. EPA has excluded incentives that would involve a 
relaxation of substantive standards of performance or that would 
require statutory change. Many comments indicated a preference for 
incentives that apply broadly to different types of facilities; that 
reduce the reporting, monitoring, and other operating costs of the 
current system; and that can be implemented nationally.
    EPA believes it is important to offer the kinds of incentives 
described here for several reasons. First, the achievements of these 
facilities deserve public recognition. Second, some of the reporting 
and other administrative requirements that are necessary for other 
facilities may not be needed for participants that have met the entry 
criteria for the Achievement Track. Third, these incentives may offer 
the opportunity for qualifying facilities to apply their resources to 
achieving even better environmental performance. And finally, the 
availability of these incentives should encourage other facilities to 
make environmental improvements that will enable them to qualify for 
participation.
    EPA intends to offer several incentives that will be available to 
participants at the time they enter the program. These include 
recognition, access to information sources, and program incentives that 
do not require revision of existing guidance documents or rulemaking. 
Specifically, these include:
     An Achievement Track facility will be a low priority for 
inspection targeting purposes.
     As a discretionary factor in the assessment of penalties, 
EPA will consider a facility's good faith participation in the program 
as an indication of its good faith efforts to comply.
     Use of the Achievement Track logo at a participating 
facility, in communications with outside parties about the facility, 
and in other ways (although not in endorsing products).
     Listing on the Performance Track web site and other EPA 
sites, in promotional materials related to Partnership Programs, in 
feature articles, and in case studies that profile accomplishments.
     Special recognition for Charter Members at an event to be 
held in late fall of 2000.
     Participation in Achievement Track peer exchanges, 
including special invitation conferences, workshops, and networks, in 
which facilities share successful practices and receive recognition.
     Opportunities to be featured in a Performance Practices 
Database EPA is developing.
     Information sessions with senior EPA officials to share 
lessons learned, help design the Stewardship Track, and improve the 
Achievement Track.
    Some incentives that EPA is considering would require actions by 
the Agency to modify existing guidance documents or administrative 
procedures; the incentives will be available when those steps have been 
completed. In some cases, other steps also must be taken before a 
facility may take advantage of the incentives being considered. For 
example, responsibility for implementing parts of many environmental 
programs is delegated to states. In such cases, states may need to 
revise regulations, agree on a revised delegation package, reissue 
permits, or take other actions.
    EPA would make the following incentives available to facilities in 
the Achievement Track through administrative actions (other than 
rulemaking) or by issuing or amending guidance documents:
     More direct access to the reduced reporting and monitoring 
available under the Discharge Monitoring Reports (DMRs) provisions of 
the Clean Water Act. EPA intends to modify the current (1996) burden 
reduction guidance for DMRs to allow Achievement Track membership to 
substitute for certain screening requirements set out in that document.
     Greater flexibility under the Best Available Control 
Technology (BACT) requirement of the Clean Air Act. For Achievement 
Track facilities that may not be able to begin construction within 18 
months of their BACT determination, EPA would encourage states to 
extend the applicability period through a simplified control technology 
review. EPA intends to recommend that the states adopt this simplified 
review.
     More advantageous terms for Achievement Track facilities 
under the State Revolving Funds (SRF) program of the Clean Water Act, 
such as reduced loan rates and extended payback terms. EPA intends to 
provide materials to states that will encourage them to incorporate 
this change into their SRF policies.
     A greater opportunity for expedited review of new reduced 
risk pesticide products under the Federal Insecticide, Fungicide and 
Rodenticide Act. If all of a pesticide registrant's U.S. pesticides 
manufacturing facilities are participants in the Achievement Track, 
this participation would become an additional factor that EPA would use 
in granting an expedited review. EPA would add participation to the 
list of factors through administrative action.
    EPA also is considering changes to its current regulatory programs 
to offer incentives to Achievement Track facilities. These incentives 
will be developed under a coordinated Performance Track rulemaking. 
They include:
     Reducing the frequency of reports required under the 
Maximum Achievable Control Technology (MACT) provisions of the Clean 
Air Act. In this incentive, EPA intends to reduce significantly the 
frequency of required

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MACT reporting for all Achievement Track facilities. EPA also intends 
to further reduce reporting reductions for Achievement Track facilities 
that achieve MACT or better emission levels through pollution 
prevention methods such as process changes. EPA intends to accomplish 
this through a single generic rulemaking covering all MACT standards.
     Streamlined monitoring, reporting, and other procedural 
requirements for Publicly-Owned Treatment Works (POTWs) in the 
Achievement Track.
     Reducing the reporting costs for POTWs in the Achievement 
Track that must publish notices of violations by facilities that use 
their services. These POTWs would be allowed to use the Internet rather 
than paid newspaper notices.
     The opportunity for Achievement Track facilities to 
consolidate reporting under various environmental statutes into a 
single report. EPA expects that this consolidated reporting would be 
phased in with a pilot program, and potentially followed with a larger 
program. This incentive may require rulemaking.
    Finally, EPA is determining the feasibility of an additional set of 
incentives or activities. These include the following provisions:
     The opportunity for expedited review for companies that 
submit Premanufacturing Notifications (PMNs) under the Toxic Substances 
Control Act, if the substance is manufactured in an Achievement Track 
facility and the applicant uses EPA's Pollution Prevention Framework in 
preparing the PMN submission. This incentive would require rulemaking.
     Granting authority for Achievement Track facilities to 
accumulate wastes for up to 180 days (double the current limit of 90 
days) before triggering the requirement for obtaining a Resource 
Conservation and Recovery Act (RCRA) Part B storage permit. This 
incentive would require rulemaking.
    EPA will identify and evaluate other incentives that may be made 
available to participants in the Achievement Track, and later in the 
Stewardship Track, as the program matures. These would be implemented 
through the required administrative processes, including notice and 
comment rulemaking when that is appropriate.

C. Implementation

    Application materials are available either from the Performance 
Track web site or from the Performance Track Information Center.\7\ The 
implementation process is based on the following principles:
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    \7\ The Performance Track Information Center can be contacted 
through email at [email protected] or by telephone at 1-888-339-
PTRK (7875).
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     Fair, effective, and timely evaluation of applications;
     Timely response to concerns of participants and community 
stakeholders;
     Close cooperation among EPA offices and with state and 
tribal agencies;
     Ongoing evaluation of the Achievement Track, with the goal 
of continuous improvement as it matures; and
     Low transaction costs, consistent with achieving the goals 
of the Achievement Track.
    This section provides an overview of EPA's approach to implementing 
the Achievement Track. It covers: (1) The application and notification 
process; (2) continued compliance; (3) the protocol for site visits; 
(4) the Annual Performance Report; and (5) removal from the program.
1. Application and Notification Process
    A facility formally applies for the Achievement Track by submitting 
the application form. EPA uses the information on the form (with the 
appropriate self-certifications), the results of the compliance 
screening, and information from consultations with EPA regional offices 
and state agencies in evaluating a facility's qualifications. EPA will 
not conduct site visits as a part of the formal selection process. 
However, EPA regional offices and state agencies may, on occasion, 
request a program site visit with an applicant when more information on 
a facility's qualifications is needed.
    EPA will first review the application for completeness and notify 
the facility when the substantive review has begun. An EPA committee, 
made up of representatives from headquarters and regional offices, will 
conduct a substantive review. Through the appropriate regional office, 
EPA will consult with the state in which the facility is located to 
help determine the facility's eligibility for the Achievement Track. As 
part of this review, EPA will also conduct a compliance screen to 
evaluate the facility's past performance record.
    A facility that is accepted into the Achievement Track will receive 
written notification from EPA. EPA will announce that a facility has 
been accepted through the Performance Track web site. A facility will 
be accepted for participation in the program for a period of three 
years. A facility that is not accepted will receive a brief explanation 
for EPA's decision.
    Once a facility is accepted, it becomes eligible for the incentives 
offered in the Achievement Track. It will become eligible for other 
incentives as they are formally added to the program. EPA's standard 
acceptance letter will define the specific incentives available at the 
time of acceptance and the conditions under which they are granted or 
may be used (e.g., the conditions for the use of the program logo). EPA 
will notify participants of other incentives as they become available.
    A facility should understand that its participation in the 
Achievement Track program is discretionary with EPA, that it may not 
challenge a decision to be rejected or removed from the program, and 
that the fact of its participation is not relevant to any issue of law 
or fact in any legal enforcement proceeding for violations of 
environmental requirements.
    The first application period for the Achievement Track will begin 
on July 5, 2000 and end on September 30, 2000. Facilities that submit 
applications by September 1, 2000 and are accepted will qualify as 
Charter Members of the Achievement Track. These will be announced in a 
special recognition ceremony in late November 2000. All other 
selections from the first application period will be announced in 
December 2000. EPA plans to open a second application period in the 
first quarter of 2001.
2. Continued Compliance
    This program recognizes and promotes improved environmental 
performance, but is built on a foundation of sustained compliance. 
There are several components of this program that help to assure 
continued compliance, such as an EMS that meets specified criteria 
(including compliance with legal requirements), compliance self-audits, 
and an annual certification that the facility is meeting the program 
entry criteria and is continuing to maintain compliance. In recognition 
of these and other program elements, and of good faith participation in 
this program, facilities will not be subject to greater enforcement 
scrutiny solely as a result of their participation in the Achievement 
Track.
    Compliance issues may arise from time to time at an Achievement 
Track facility. This notice describes how Achievement Track facilities 
can quickly and efficiently address these instances. In fact, EPA 
expects that a vigorous, performance- and compliance-

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focused EMS will identify for prompt correction any instances of actual 
or potential non-compliance. In general, facilities are rewarded for 
their self-identification, correction and prompt disclosure of 
violations through penalty mitigation under EPA's Audit Policy, and 
Achievement Track participants will likewise be able to avail 
themselves of this compliance incentive, under the conditions specified 
in the Policy. In addition, EPA recognizes that violations may be 
discovered during the course of an on-site Achievement Track program 
visit. EPA similarly will allow the application of the Audit Policy to 
violations discovered in this manner, provided that the facility could 
not reasonably be expected to have known about or identified the 
violation prior to the on-site visit. Finally, in the unlikely event 
that an Achievement Track facility becomes subject to an enforcement 
action, EPA will consider, as a discretionary factor in the assessment 
of penalties, the facility's good faith participation in the program as 
an indication of the facility's good faith efforts to comply.
3. Protocol for Site Visits
    To evaluate the effectiveness of the Achievement Track program, EPA 
will conduct program site visits with a limited number of facilities 
each year. During a program site visit, a facility will make available 
materials that directly support its participation in the Achievement 
Track, including the EMS, progress on performance commitments, and 
information on community outreach. The protocol for arranging and 
conducting these site visits is:
     A facility will receive notice in advance of the visit and 
have an opportunity to schedule the timing with EPA to accommodate 
facility production schedules and deadlines.
     The scope of the visit will be to assess the facility's 
implementation of the Achievement Track program, including its EMS, its 
progress in meeting its performance commitments, and its public 
outreach efforts.
     The visit may include representatives from EPA 
headquarters, the EPA regional office, the state environmental agency, 
and (subject to the approval of the facility) possibly from the local 
community and other Achievement Track facilities.
     The visit will be conducted according to a written 
protocol that will be made available to the facility well in advance of 
the visit. EPA expects that the visits would take from a few hours to a 
full working day, depending on the size and complexity of the facility.
     EPA will visit up to twenty percent of participants in a 
given year. Facilities may request a program site visit from EPA.
4. Annual Performance Report
    To remain in the Achievement Track, a participant will complete and 
submit an Annual Performance Report to EPA and the public. The purposes 
of this report are to provide information on the effectiveness of the 
program, to demonstrate the facility's progress toward its performance 
commitments, and to ensure that the facility is maintaining its 
qualifications under the program. This brief summary report may be 
submitted electronically or in writing. A draft format will be 
available on the Performance Track web site. The public will have an 
opportunity to comment on the format before it becomes final.
    The Annual Performance Report will include the following categories 
of information:
     Summary of the EMS performance (based on objectives and 
targets), including a summary of the EMS and compliance audits 
performed and any corrective action taken;
     Brief progress report on the facility's performance 
commitments;
     Summary of the facility's public outreach activities; and
     Self-certification that the participant continues to meet 
the Achievement Track criteria.
    The report will be due approximately one year after acceptance into 
the program, and annually thereafter. EPA will notify the facility of 
the due date in the acceptance letter. EPA is not planning to prescribe 
a means for public transmission of the report but will provide a menu 
of options from which participants may choose (e.g., company web site, 
publication in local press, mailings). EPA is considering providing 
specialized assistance in this area for small facilities.
    A facility should maintain on-site the supporting documentation 
used to prepare its Annual Performance Report and make this 
documentation available to EPA upon EPA's request.
5. Removal From the Achievement Track
    There may be cases when a facility encounters significant 
performance problems that may warrant its removal from the Achievement 
Track. At EPA's discretion, a participant may be removed from the 
Achievement Track for such reasons as falsifying information in the 
application or Annual Performance Report, failing to file an Annual 
Performance Report, misrepresenting environmental performance in 
advertising or marketing claims, or for compliance problems that would 
be seen as inconsistent with the Achievement Track entry criteria.
    EPA expects that a participating facility will continue to meet the 
Achievement Track criteria, such as maintaining its EMS and conducting 
appropriate public outreach, while it is in the program. Failure to 
meet the EMS and public outreach commitments could constitute grounds 
for removal. EPA also expects that a facility will strive to meet the 
performance goals stated in its application to the program. However, 
facilities are encouraged to establish ambitious goals, which they may 
not always be able to meet. Inability to meet the facility's 
performance commitments (as discussed under Section A.2) will not, in 
and of itself, be a cause for removal from the program. However, an 
inability to make any progress or a decline in facility performance 
could result in removal from the Achievement Track.
    Should EPA decide that it may be necessary to remove a facility 
from the Achievement Track, EPA intends to provide the facility with 
notice of its intention. The facility will be allowed thirty days to 
respond by taking corrective measures. If corrective measures resolve 
the issues, EPA will withdraw its notice of intention. A facility may 
also withdraw from the program at any time by notifying EPA of its 
intent in writing. Once an entity leaves the Achievement Track, 
voluntarily or at EPA's discretion, it must relinquish the continued 
use of any and all incentives associated with participation in the 
Achievement Track.

D. The State Role and Relationship

    The National Environmental Achievement Track will rely on EPA's 
partnership with state environmental agencies (and, where applicable, 
Indian tribes) for its long term success. State agencies run many 
federally-delegated programs and are responsible for important 
incentives (e.g., changes in permitting, reporting, and inspection 
policies). States are likely to have more frequent contact with 
facilities, making each state's relationship with program participants 
key to overall success. In addition, many states have programs with 
similar objectives--such as a commitment to improved environmental 
performance (beyond what is required by law), EMS use, public 
involvement, and a strong compliance history. Several state programs 
start with tiers that may serve as an ``on-ramp'' to the Achievement 
Track.

[[Page 41662]]

    EPA has consulted extensively with the states sponsoring programs 
similar to the Achievement Track, and with many other states that do 
not have such a program but that are interested in the concept. In May 
2000, EPA brought 20 state officials together in a national forum to 
discuss program design and implementation. Senior EPA officials have 
also visited or spoken with commissioners from states that are leading 
the way in offering recognition and incentives to top performers.
    EPA will form a joint committee of selected state and EPA officials 
to monitor and improve this program as it is implemented. Based on 
discussions with state leaders, EPA has developed specific principles 
to guide this relationship. EPA will:
     Work closely with designated state contacts, and include 
states in decisions on facilities within their jurisdiction, with the 
objective of having no surprises between EPA and the state;
     Minimize duplication with state efforts and build on 
existing state programs to the extent possible;
     Respect state programs with different policy and 
environmental objectives, and work with states to minimize 
inconsistencies with national objectives and actions;
     Encourage participation by all the states, tailored to 
state interests and capabilities; and
     Work jointly with the states to monitor implementation and 
seek continuous improvement in the program.
    All states will be affected in some way by this program. However, 
the degree of involvement by each state will vary, based on the number 
of applicants and the level of state interest. EPA assumes, at a 
minimum, that states will want to be informed of actions relating to 
facilities under their jurisdiction and to have the opportunity to 
conduct their own compliance screening. Conducting even minimal 
screening and providing a central point of contact poses a new workload 
on state programs. EPA will seek to provide financial and technical 
assistance to states.
    EPA has been working closely with states that have similar 
programs, and will continue to work with them to align and integrate 
national and state programs as much as possible. EPA envisions 
establishing a form of reciprocity for all equivalent state and 
national elements. For each element designated as equivalent, 
qualification at the state level would mean automatic qualification at 
the national level, and vice versa. EPA welcomes the interest expressed 
by many states that want to participate actively in the national 
program. These states can also play a major role in informing 
participants in existing programs of the opportunities and eligibility 
requirements of the Achievement Track, as well as in evaluating and 
monitoring the national program over time.
    EPA will work closely with states that are establishing new 
programs, to achieve maximum compatibility between state and national 
efforts. For example, EPA could facilitate peer exchanges among states, 
and facilitate contact with EPA Performance Track and program office 
personnel. EPA will work with these states to develop complementary 
application procedures.
    EPA will invite all states, including those without similar 
programs, to support the national program as much as they are able. In 
these cases, EPA will consider providing support for compliance 
screening and selected site visits in the event that a state cannot 
perform these activities. At a minimum, these states will be asked to 
designate a contact to receive notification of EPA actions.
    In the near term, after consulting with states, EPA will decide 
which applicants qualify for the national program. As the program 
matures, EPA will work with the states to determine the most 
appropriate long term state role in implementing the program.

E. Small Business Participation

    Any program for improving environmental performance must aim for 
participation by small businesses and other small entities, such as 
local governments. EPA is making every effort to make the Achievement 
Track accessible for small entities. This effort is reflected in 
several aspects of the design. For example, depending on the nature and 
extent of a facility's operations, the EMS for a small facility may be 
simpler than one for a larger, more complex facility. For the same 
reason, a small facility may have fewer environmental aspects. In 
addition, a small facility is not asked to make as many performance 
commitments as other participants.
    EPA has held numerous discussions with representatives of small 
business interests and is encouraging participation by qualified small 
businesses and their facilities. In addition, EPA may create a more 
active and focused developmental program for small businesses and other 
small entities, with the goal of helping to expand their capacities for 
participation in the Achievement Track and, later, in the Stewardship 
Track. This program would build upon existing EPA activities, such as 
the Sustainable Industry Program, Design for the Environment, EMS 
projects with local governments, other partnership programs, and 
compliance assistance programs for small entities.

III. The National Environmental Stewardship Track

    In the National Environmental Stewardship Track, to be implemented 
in 2001, EPA envisions a higher level of performance and commitment 
than in the Achievement Track. The Stewardship Track would also involve 
more substantial recognition and flexibility for participating 
facilities and companies. Applicants for the Stewardship Track would be 
expected to have met the qualifications of the Achievement Track but 
also to have demonstrated their qualifications in other areas.
    EPA considers it appropriate to develop a Stewardship Track that 
allows for participation by companies as well as individual facilities 
within a company. These could be designed as two related but separate 
programs or as an integrated one that links facility- and company-level 
performance.
    The Stewardship Track could also differ from the Achievement Track 
by incorporating differences among economic sectors in the program's 
design. In this aspect, EPA will build upon sector-based initiatives 
already underway, such as Design for the Environment and the 
Sustainable Industry Program.
    EPA intends to develop the Stewardship Track while it is 
implementing the Achievement Track. In developing the Stewardship 
Track, EPA intends to follow these steps:
     Hold focus group discussions with stakeholders to discuss 
design elements, including appropriate incentives.
     Assess existing sector initiatives focused on improving 
environmental performance among sectors to determine their 
applicability.
     Hold public meetings to present and discuss the 
preliminary program design.
     Release a draft document for public comment.
     Make a formal announcement of the Stewardship Track 
program.
     Solicit the initial round of applications.

IV. The EPA Administrator's Environmental Awards Program

    Concurrent with the launch of the National Environmental 
Performance Track program, EPA is establishing an Administrator's 
environmental awards program to recognize the highest level of 
environmental performance and

[[Page 41663]]

leadership in the business sector. The awards will be given once a year 
to a select number of organizations whose exemplary environmental 
accomplishments deserve special attention and recognition. Building on 
the tenets of the Performance Track, the Administrator's environmental 
awards will spotlight companies whose innovations, technological 
advancements, or integrated management systems achieve significant 
breakthroughs in environmental performance and management. The criteria 
for determining winners and the selection process will be announced in 
the spring of 2001, with the first award presented approximately six 
months later.

    Dated: June 28, 2000.
Richard T. Farrell,
Associate Administrator, Office of Policy and Reinvention.
[FR Doc. 00-17070 Filed 7-5-00; 8:45 am]
BILLING CODE 6560-50-P