[Federal Register Volume 70, Number 109 (Wednesday, June 8, 2005)]
[Notices]
[Pages 33472-33474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-11383]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-7922-3]


Agency Information Collection Activities: Proposed Collection; 
Comment Request; Regulatory Pilot Projects (Project XL); EPA ICR Number 
1755.06, OMB Control Number 2010-0026

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act (44 U.S.C. 3501 
et seq.), this document announces that EPA is planning to submit for

[[Page 33473]]

renewal the following continuing Information Collection Request (ICR) 
to the Office of Management and Budget (OMB): Regulatory Pilot Projects 
(Project XL) (EPA ICR No. 1755.06) (OMB Control No. 2010-0026, current 
ICR expires August 31, 2005). Before submitting the ICR to OMB for 
review and approval, EPA is soliciting comments on specific aspects of 
the proposed information collection as described below.

DATES: Comments must be submitted on or before August 8, 2005.

ADDRESSES: The public may contact Mr. Douglas Heimlich in EPA's Office 
of Environmental Policy Innovation for a paper copy of the ICR (free of 
charge). Mr. Heimlich may be reached by mail at the U.S. EPA Office of 
Environmental Policy Innovation (Mail Code 1807T), 1200 Pennsylvania 
Avenue, NW., Washington, DC 20460; by telephone at (202) 566-2234, by 
e-mail at [email protected], or by FAX at 202-566-2220.

FOR FURTHER INFORMATION CONTACT: Mr. Douglas Heimlich in the Office of 
Environmental Policy Innovation. Mr. Heimlich may be reached by phone 
at (202) 566-2234, by e-mail at [email protected], or by FAX at 
202-560-2220. Or, contact Dr. Gerald Filbin in the Office of 
Environmental Policy Innovation. Dr. Filbin may be reached by phone at 
(202) 566-2182, by e-mail at [email protected], or by FAX at 202-
566-2211.

SUPPLEMENTARY INFORMATION: Affected entities: Entities potentially 
affected by this action include XL project sponsors, XL project 
stakeholders, state, tribal and local regulatory agencies, select 
members of the business industry, environmental organizations, industry 
trade associations, academics, and community members.
    Title: Regulatory Pilot Projects (EPA ICR No.1755.06) (OMB Control 
No. 2010-0026, current ICR expires August 31, 2005).
    Abstract: In March 1995, the U.S. Environmental Protection Agency 
initiated Project XL in response to a challenge to transform the 
environmental regulatory system to better meet the needs of a rapidly 
changing society while maintaining the nation's commitment to protect 
human health and safeguard the natural environment. Project XL, or 
eXcellence and Leadership (http://www.epa.gov/ProjectXL/), was one 
approach to innovation piloting designed to test innovative ideas by 
those who must comply with EPA regulations and policies. Through 
innovation pilots EPA is gathering data and project experience that 
will help the Agency redesign current approaches to public health and 
environmental protection. Through site-specific agreements with project 
sponsors, Project XL gives companies, communities, local governments, 
military bases, and universities flexibility from certain environmental 
regulations in exchange for commitments to achieve superior 
environmental performance at less cost. Since 1995, under Project XL, 
sponsors--private facilities, multiple facilities, industry sectors, 
Federal facilities, communities, universities, and states--have 
implemented innovative strategies that produce superior environmental 
performance, provide flexibility, cost savings, paperwork reduction or 
other benefits to sponsors, and promote greater accountability to 
stakeholders. In addition to Project XL, EPA provides other mechanisms 
for piloting new ideas such as the EPA State Innovation Grant Program 
(http://www.epa.gov/innovation/stategrants/) and the EPA/ECOS Joint 
Agreement to Pursue Regulatory Innovation (http://www.ecos.org/files/1426_file_Agreement.pdf) as opportunities for collaborative 
innovation with a variety of stakeholders. EPA is completing the 
earlier projects submitted under Project XL, and is continuing piloting 
under the other mechanisms.
    The intent of Project XL was to allow the EPA to experiment with 
untried, potentially promising regulatory approaches, both to assess 
whether they provide superior environmental performance and other 
benefits at the specific facility affected, and whether they should be 
considered for wider application. Such pilot projects allow the EPA to 
proceed more quickly than would be possible when undertaking changes on 
a nationwide basis. EPA may modify rules, on a site- or state-specific 
basis, that represent one of several possible policy approaches within 
a more general statutory directive, so long as the alternative being 
used is permissible under the statute. Similarly, the other mechanisms 
for innovation, the EPA State Innovation Grant Program and the EPA/ECOS 
Joint Agreement to Pursue Regulatory Innovation provide a process for 
States, Tribes, municipalities, and whole business sectors to test 
regulatory innovation at a broad, systemic scale.
    The adoption of such alternative approaches or interpretations in 
the context of a given project does not, however, signal EPA's 
willingness to adopt that interpretation as a general matter, or even 
in the context of other innovation projects. It would be inconsistent 
with the forward-looking nature of these pilot projects to adopt such 
innovative approaches prematurely on a widespread basis without first 
determining whether or not they are viable in practice and successful 
for the particular projects that embody them. These pilot projects are 
not intended to be a means for piecemeal revision of entire programs. 
Depending on the results in these projects, EPA may or may not be 
willing to consider adopting the alternative approach or interpretation 
again, either generally or for other specific facilities. EPA believes 
that adopting alternative policy approaches and/or interpretations, on 
a limited, site- or state-specific basis and in connection with a 
carefully selected pilot project is consistent with the expectations of 
Congress about EPA's role in implementing the environmental statutes 
(so long as EPA acts within the discretion allowed by the statute). 
Congress' recognition that there is a need for experimentation and 
research, as well as ongoing reevaluation of environmental programs, is 
reflected in a variety of statutory provisions. Also, consistent with 
the President's Management Agenda, these pilot projects are designed to 
demonstrate the performance of new approaches through environmental 
outcomes.
    Before submitting an official Project XL proposal to EPA, the 
project sponsor typically engaged in informal discussions with EPA 
about proposal design. Once a formal proposal was submitted, EPA along 
with the corresponding state environmental agency reviewed the 
proposal. EPA based acceptance of proposals on the extent to which 
proposals met the following eight criteria: (1) Superior environmental 
performance, (2) cost savings and reduced paperwork, (3) stakeholder 
involvement, (4) innovation or pollution prevention, (5) 
transferability, (6) feasibility, (7) monitoring, reporting and 
evaluation, and (8) no shifting of risk burden. If the proposal was 
accepted, EPA and the partnering state agency negotiated the conditions 
of the proposal with the project sponsor along with other interested 
stakeholders, including local and national environmental groups and 
nearby community residents. Once an agreement was reached regarding the 
conditions of the proposal and the necessary regulatory flexibility, 
the Final Project Agreement (FPA) was signed and the project sponsor 
began implementation.
    XL project proposals were collected by EPA's Office of 
Environmental Policy

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Innovation (OEPI) which has been given responsibility for 
implementation of this program. Since its inception in 1995, over 100 
Project XL proposals have been received and reviewed, and over 50 pilot 
projects have been implemented. Of these approximately nine (9) have 
been completed, thirteen (13) have been terminated prior to completion 
and thirty (30) remain to be completed. The program itself includes 
other offices within EPA headquarters, EPA regions, federal, state, 
tribal and local government agencies. The renewal of this ICR is 
important as it will allow the Agency to continue to work with sponsors 
of these innovation pilots, and to respond to additional regulated 
entities who are interested in innovation pilot projects.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations are listed in 40 CFR Part 9 and 48 CFR Chapter 15.
    The EPA would like to solicit comments to:
    (i) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (ii) Evaluate the accuracy of the agency's estimate of the burden 
of the proposed collection of information, including the validity of 
the methodology and assumptions used;
    (iii) Enhance the quality, utility, and clarity of information to 
be collected: and
    (iv) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology; e.g., permitting electronic 
submissions of responses.
    Burden Statement: This section presents EPA's estimates of the 
burden and cost to complete the information collection activities 
associated with this collection. In using this analysis, however, it 
should be remembered not only that all responses to this solicitation 
are voluntary, but also that respondents have some expected value 
attached with their participation. Fundamental to projects in this 
program will be reduced cost of compliance due to increased regulatory 
flexibility. Not unlike a contracts-based Request For Proposals, one 
would not expect a response from any entity where the burdens 
associated with preparing the response outweigh the expected benefits 
to the respondent.
    Information requests are expected for approximately 40 XL projects 
over the lifetime of this ICR as well as approximately 30 other 
projects that have been developed under the State Innovation Grants and 
other mechanisms. The State Grants Program uses a competition process 
established under 40 CFR 31 and compliant with the requirements 
established in the Agency's Assistance Agreement Competition Policy ( 
EPA E.O. 5700.5A1). Under that policy, States compete for funds by 
responding to an annual solicitation with a brief initial proposal. 
States that are selected based upon an evaluation using published 
criteria are asked to submit a more detailed proposal leading to award. 
The average number of annual awards is eight (8).
    Information will also be requested for implemented projects as part 
of periodic reporting required for grants management and for projects 
that are approaching completion, or have reached completion and for 
which information is requested to document the outcome of each project. 
In the ten years since the March 16, 1995 announcement of the program, 
EPA received over 100 Project XL proposals. In the tenth year of the 
program, EPA continues to receive inquiries about the program.
    During the lifetime of this ICR, EPA will solicit information from 
project sponsors regarding the process and outcomes for projects at 
completion. This addresses the commitment of each project sponsor 
established in the project FPA to report on the final outcomes of the 
project and to provide relevant information to allow EPA to assess the 
degree of success for each of these projects and examine the 
impediments to implementation that are relevant to potential future 
attempts to scale up successful innovations demonstrated in Project XL 
or other families of innovation to broader scale application. To 
complete a project final report and respond to a follow-up 
questionnaire, EPA estimates that each project sponsor will use forty 
(40) hours of time, and further estimates the thirty (40) XL projects 
at or approaching completion will require a total of 1600 hours (40 
hours x 40 projects). Further, EPA estimates that its own analysts will 
require an additional twenty (20) hours of time per project to read and 
extract information on project measures and outcomes, or a total of 600 
hours. EPA estimates that eighteen hundred (2200) hours of time may 
reflect a cost of $660,000. Similarly, EPA anticipates that State 
Innovation Grants Projects may require States to expend up to 40 hours 
in preparation for each pre-proposal for a total of 1000 hours as an 
annual average (40x25). The small number of States selected and asked 
to provide a more detailed proposal may expend up to 100 hours per 
proposal for a total of 800 hours (8x100) annually (1800 hours 
annually). Over the period of this ICR, States may expend up to 5400 
hours (1800x3) preparing proposals for State Innovation Grants; EPA 
anticipates expending up to 2000 hours for analysis of this 
information. In addition, quarterly reporting on projects, now required 
under assistance agreement policy may account for 64 hours of time 
annually for recipient States and 100 hours annually for EPA to 
complete analysis. The anticipated total cost of this reporting is 
estimated at $2,400,000.
    No capital or start-up costs will be associated with this effort.
    Burden means total time, effort, or financial resources expended by 
persons to generate, maintain, retain, or disclose or provide 
information to or for a Federal agency. This includes the time needed 
to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.

    Dated: May 23, 2005.
Gregory Ondich,
Acting Office Director, Office of Environmental Policy Innovation.
[FR Doc. 05-11383 Filed 6-7-05; 8:45 am]
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