[Federal Register Volume 69, Number 95 (Monday, May 17, 2004)]
[Notices]
[Pages 27922-27924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11111]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-7663-1]


Description of Program Changes for the National Environmental 
Performance Track

AGENCY: Environmental Protection Agency(EPA).

ACTION: Notice.

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SUMMARY: This notice describes program changes for the National 
Environmental Performance Track program (``Performance Track''). These 
changes reflect experience gained during the program's first three 
years of implementation, and are intended to improve the quality and 
effectiveness of the Performance Track program.

ADDRESSES: Office of Policy, Economics, and Innovation, U.S. EPA, 
Performance Incentives Division, Ariel Rios Building, Mailcode 1808T, 
1200 Pennsylvania Avenue NW., Washington, DC 20460. Additional 
information may be found at

[[Page 27923]]

the Performance Track Web site at http://www.epa.gov/performancetrack 
or at the Performance Track Information Center 1-888-339-PTRK (7875).

FOR FURTHER INFORMATION CONTACT: Michael Branagan, Office of Policy, 
Economics, and Innovation, 202-566-2836 or by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION:
I. Introduction
II. Program Changes
    A. Defining Small Facilities
    B. Independent Assessment of the EMS
    C. Challenge Commitment Policy
III. Advanced Notice of Additional Changes
Corporate Membership

I. Introduction

    On June 26, 2000, The Environmental Protection Agency (EPA) 
launched the National Environmental Performance Track program 
(``Performance Track''). The 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. The program design was published in the Federal Register 
on July 6, 2000 (65 FR 41655).
    While initial design of the Performance Track program was 
successful during the first three years of program implementation, 
experience has shown that some aspects of the design could be improved 
to better meet program goals. These improvements include broadening and 
deepening program membership, enhancing the program's value for 
creating a standard of achievement for its members, and promoting 
innovative performance-based approaches to protecting the environment. 
The following section describes these Performance Track program 
improvements. The program changes will become effective starting with 
those facilities applying to the program during the application period 
which began on February 1, 2004.

II. Program Changes

A. Defining Small Facilities

    Currently, Performance Track defines a facility as small if the 
company, as a whole, is both a small business as defined by the Small 
Business Administration (65 FR 30386, May 15, 2000), and the facility 
itself employs fewer than fifty full-time employees. Currently the 
Small Business Administration defines a small business as having fewer 
than 500 employees. Small facilities participate in the Performance 
Track program by demonstrating past achievements in one environmental 
aspect, rather than the two required by larger facilities, and with two 
future performance commitments rather than the four required for larger 
facilities.
    To promote participation by small facilities, the EPA has changed 
the small facility designation to include any facility with fewer than 
fifty full-time employees. This provision would encourage small 
facilities in larger companies to participate in Performance Track. 
This re-definition removes the above Small Business Administration 
criterion. The requirement for small facilities to demonstrate past 
achievements in one environmental aspect and with two future 
performance commitments remains unchanged.

B. Independent Assessment of the EMS

    The EPA is adding a criterion that applicants to Performance Track 
not certified under ISO 14001 conduct an independent assessment of the 
facility's Environmental Management System (EMS) within three years 
prior to application.
    The EPA believes that an independent assessment will increase the 
public'sconfidence in the quality of the EMS, and the Performance Track 
membership, without imposing much additional work or expense on 
potential applicants.
    Independent assessments will not require formal third-party 
certification. New Performance Track facilities can select from a 
number of options for an independent party assessment of their EMS, 
including a pre-acceptance site visit conducted by the EPA, assessment 
by a qualified auditor, or a corporate audit, among others.
    More details on the independent assessment criteria are available 
on the Performance Track Web site at http://www.epa.gov/performancetrack.

C. Challenge Commitment Policy

    The EPA recognizes that environmental priorities vary by region. 
For example, water efficiency may be especially important in one 
region, while urban air quality may be a top priority in another. The 
EPA also recognizes that Performance Track facilities have the 
potential to help address local and regional environmental priorities.
    In order to challenge Performance Track member facilities to 
respond to regional environmental priorities while also addressing 
their own significant environmental aspects, renewing Performance Track 
members can receive double credit for addressing a regional 
environmental priority in their performance commitments. The EPA 
Regions will have the discretion to designate ``Challenge Commitments'' 
that correspond to regional environmental priorities.
    In deciding whether to use a ``Challenge Commitment'', the EPA 
believes that facilities should focus first on those environmental 
aspects that are affected by their individual activities. Performance 
Track applicants should then determine whether potential performance 
commitments, with related objectives and targets as identified in their 
EMS's, also align with EPA Regional environmental priorities.
    A renewing Performance Track member making a Challenge Commitment 
may, with the agreement of the relevant EPA Regional office, count that 
single commitment as two future performance commitments. Thus, such a 
facility need only make three future commitments, rather than the 
normal four, so long as one of the commitments addresses a regional 
priority.
    The Challenge commitment option will only be available to larger 
facilities, because small facilities already are allowed a reduced 
number of commitments.
    Challenge commitments will be chosen by the EPA Regional offices in 
consultation with state and local governments. Regional offices may 
choose not to establish a challenge commitment. When designating a 
challenge commitment, a Region will identify no more than one category 
(e.g. Air Emissions, Discharges to Water, etc.) and no more than two 
environmental aspects (e.g. NOX, SOX, etc.) 
within that category. The commitment must have a minimum quantitative 
target and will be memorialized in a memorandum to the EPA Headquarters 
from the Regional Administrator.

III. Advanced Notice of Additional Changes

Corporate Membership

    The EPA will enhance the current Performance Track program by 
adding a corporate recognition component for companies that participate 
substantially in the facility program and whose performance, practices, 
and policies at a corporate level meet criteria associated with 
environmental excellence.
    The establishment of a corporate designation within Performance 
Track will allow the Performance Track program to more effectively 
engage corporate leaders and promote the goals of the program, while 
giving the EPA an opportunity to encourage and recognize

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corporate leadership. Additionally, corporate membership will allow the 
EPA to explore broad and innovative approaches to achieving 
environmental benefits stemming from corporate-level decisions, such as 
supply chain management and product stewardship.
    The criteria for corporate members are expected to include: 
participation by a substantial number of their facilities in 
Performance Track or similar State programs and commitment to increase 
this participation over time. The EPA believes this link between the 
corporate and facility programs will encourage stronger corporate-level 
commitment to Performance Track and performance excellence. Other 
criteria would parallel those that Performance Track currently applies 
to facilities, with a greater emphasis on companies working with their 
suppliers and customers to achieve environmental improvements.
    EPA expects to solicit applications for this program later in 2004.

    Dated: April 27, 2004.
Jessica Furey,
Associate Administrator, Office of Policy, Economics and Innovation.
[FR Doc. 04-11111 Filed 5-14-04; 8:45 am]
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