96-26451. Code of Environmental Management Principles

[Federal Register Volume 61, Number 201 (Wednesday, October 16, 1996)]
[Notices]
[Pages 54062-54066]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26451]



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Part VIII





Environmental Protection Agency





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Code of Environmental Management Principles; Notice

Federal Register / Vol. 61, No. 201 / Wednesday, October 16, 1996 / 
Notices

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-5636-4]


Code of Environmental Management Principles

AGENCY: Environmental Protection Agency.

ACTION: Announcement of EPA's Issuance of the Code of Environmental 
Management Principles for Federal Agencies.

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SUMMARY: This notice serves as a public announcement of the issuance of 
the Code of Environmental Management Principles or the CEMP developed 
by EPA in consultation with other Federal Agencies as mandated by 
Executive Order 12856 (``Federal Compliance With Right-to-Know Laws and 
Pollution Prevention Requirements'') signed by President Bill Clinton 
on August 3, 1993. On September 3, 1996, EPA transmitted the CEMP to 
Federal agency executives who signed the Charter for the Interagency 
Executive Order 12856 Pollution Prevention Task Force in September 
1995, requesting written commitment to the principles contained in the 
CEMP. EPA also is asking Federal agency executives to provide a written 
statement declaring their agency's support for the CEMP principles 
along with a description of the agency's plans for implementation of 
the CEMP at the facility level.

DATES: EPA has asked for written responses from Federal agency 
executives by October 1, 1996.
    Extensions to requesting agencies have been granted to October 18, 
1996. EPA plans to issue a summary of agency responses in January 1997.

FOR FURTHER INFORMATION CONTACT: James Edward, Acting Associate 
Director, Federal Facilities Enforcement Office, Office of Enforcement 
and Compliance Assurance, United States Environmental Protection 
Agency, 401 M Street, SW., Washington DC 20460, telephone [phone] 
or Andrew Cherry, U.S. Environmental Protection Agency, 401 M Street, 
SW., Washington, DC. 20460, phone [phone], fax [phone]

SUPPLEMENTARY INFORMATION:

I. Explanation of the CEMP

A. Background

    EPA believes that leadership opportunities in environmental 
management should be fully realized for the Federal agencies and 
departments throughout the U.S. Government. American citizens and other 
stakeholder groups have increasingly sought a more responsible standard 
of care toward the environment from various sectors of industry and 
other private organizations. In response, more and more companies and 
trade associations have begun initiatives that call for identifying 
their environmental impacts, measuring their successes in meeting 
environmental objectives, sanctioning shortcomings, recognizing 
accomplishments, and making continuous improvement. Recently the 
growing popularity of national and international consensus based 
environmental management standards among industry demonstrates this 
trend. However, the public has also demanded that the Federal 
Government and its agencies and departments, also demonstrate a 
commitment to a common environmental ethic. EPA believes that if the 
Federal Government is willing to make a public commitment to 
voluntarily adopt an appropriate code of environmental ethics or 
conduct, which is at least equivalent to the commitment demonstrated by 
environmental leaders in the private sector, and hold itself 
accountable for implementing these principles, then significant 
progress can be made toward improving public trust and confidence 
toward Federal facility environmental performance.
    On August 3, 1993, President Clinton signed Executive Order No. 
12856, which pledges the Federal Government to implement pollution 
prevention measures, and publicly report and reduce the generation of 
toxic and hazardous chemicals and associated emissions. Section 4-405 
of Executive Order 12856 requires the Administrator of the 
Environmental Protection Agency (EPA), in cooperation with Federal 
agencies, to establish a Federal Government Environmental Challenge 
Program. Similar to the ``Environmental Leadership'' program proposed 
in 1993 by EPA's Office of Enforcement, the program is designed to 
recognize and reward outstanding environmental management performance 
in Federal agencies and facilities. As required under the Executive 
Order, the program shall consist of three components to challenge 
Federal agencies to: (1) Agree to a code of environmental principles 
emphasizing pollution prevention, sustainable development, and ``state 
of the art'' environmental management programs; (2) submit applications 
to EPA for individual Federal facilities for recognition as ``Model 
Installations''; and (3) encourage individual Federal employees to 
demonstrate outstanding leadership in pollution prevention. The program 
is geared toward recognizing those departments, agencies, and Federal 
installations where mission accomplishment and environmental leadership 
become synonymous and to highlight these accomplishments as models for 
both Federal and private organizations.
    On September 12, 1995, senior agency representatives signed the 
Charter for the Interagency Pollution Prevention Task Force committing 
the Federal Government to achieve, among other items, environmental 
excellence through various activities including: (a) Active agency and 
facility participation in the Federal Government Environmental 
Challenge Program and, (b) participation in the establishment of an 
agency Code of Environmental Management Principles.
    EPA has been working to develop the CEMP through the Interagency 
Pollution Prevention Task Force, which was created by the Executive 
Order, since January 1995. In June 1995, a subcommittee of Federal 
agency representatives was formed by the Task Force to work directly 
with EPA in the development of the CEMP. Through this process, several 
drafts of the CEMP were forwarded to Federal agencies by the 
subcommittee for formal review and comment. This version of the CEMP 
represents the final version as approved by the subcommittee and 
incorporates comments from members of the Interagency Task Force.
    On September 3, 1996, Steve Herman, the EPA Assistant Administrator 
for Enforcement and Compliance Assurance, signed a letter transmitting 
the CEMP to the Federal agency executives who had signed the Charter 
for the Interagency Executive Order 12856 Pollution Prevention Task 
Force in September 1995, requesting written commitment to the 
Principles contained in the CEMP. In this letter, EPA also asked each 
agency to provide a written statement declaring their support for the 
CEMP principles at the agency level along with a description of their 
plans for implementation of the CEMP at the facility level.
    EPA is seeking endorsement of the CEMP Principles on an agency wide 
basis, with flexibility as to how the Principles themselves are 
implemented at the facility level. For example, agencies can choose to 
directly implement the CEMP Principles at the facility level or use 
another alternative environmental management system (e.g., ISO 14001). 
This flexible approach is in recognition that of the fact that 
individual Federal facilities and installations may already have 
environmental management systems in

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place or are considering adoption of the ISO 14001 Environmental 
Management Standard.
    It is also important to point out that the term ``agency'' is used 
throughout the CEMP to represent the participation of individual 
Federal Government entities. It should be recognized that many Cabinet-
level ``agencies'' have multiple levels of organization and contain 
independently operating bodies (known variously as bureaus, 
departments, administrations, services, major commands, etc.) with 
distinct mission and function responsibilities. Therefore, while it is 
expected that a ``parent agency'' would subscribe to the CEMP, each 
parent agency will have to determine the most appropriate level(s) of 
explicit CEMP implementation for its organization. Regardless of the 
level of implementation chosen for the organization, it is important 
that the parent agency or department demonstrate a commitment to these 
principles.
    With respect to the other two components of the Federal Government 
Environmental Challenge Program, EPA will merge the E.O. 12856 Model 
Installation Program with EPAs Environmental Leadership Program (ELP), 
which is also open to private facilities, when the ELP becomes a full-
scale program in 1997. One of the prerequisites for Federal facility 
participation in the ELP will be agency endorsement of the CEMP 
principles. In addition, EPA will also the individual employee 
recognition component of the Challenge Program with the Executive Order 
12873 Closing the Circle Awards Program beginning in 1996.

B. Overview of the CEMP

    Five broad environmental management principles have been developed 
to address all areas of environmental responsibility of Federal 
agencies. More discussion of the intent and focus of each principle and 
supporting elements may be found in the next section, ``Implementation 
of The Code of Environmental Management Principles.'' The five 
Principles are as follows:
1. Management Commitment
    The agency makes a written top-management commitment to improved 
environmental performance by establishing policies which emphasize 
pollution prevention and the need to ensure compliance with 
environmental requirements.
2. Compliance Assurance and Pollution Prevention
    The agency implements proactive programs that aggressively identify 
and address potential compliance problem areas and utilize pollution 
prevention approaches to correct deficiencies and improve environmental 
performance.
3. Enabling Systems
    The agency develops and implements the necessary measures to enable 
personnel to perform their functions consistent with regulatory 
requirements, agency environmental policies and its overall mission.
4. Performance and Accountability
    The agency develops measures to address employee environmental 
performance, and ensure full accountability of environmental functions.
5. Measurement and Improvement
    The agency develops and implements a program to assess progress 
toward meeting its environmental goals and uses the results to improve 
environmental performance.

II. Implementation of the Code of Environmental Management 
Principles

    Each of the five principles, which provide the overall purpose of 
the step in the management cycle, is supported by Performance 
Objectives, which provide more information on the tools and mechanisms 
by which the principles are fulfilled. The principles and supporting 
Performance Objectives are intended to serve as guideposts for 
organizations intending to implement environmental management programs 
or improve existing programs. It is expected that each of these 
principles and objectives would be incorporated into the management 
program of every organization. The degree to which each is emphasized 
will depend in large part on the specific functions of the implementing 
organization. An initial review of the existing program will help the 
organization to determine where it stands and how best to proceed.

Principle 1: Management Commitment

    The agency makes a written top-management commitment to improved 
environmental performance by establishing policies which emphasize 
pollution prevention and the need to ensure compliance with 
environmental requirements.
Performance Objectives
    1.1 Obtain Management Support. The agency ensures support for the 
environmental program by management at all levels and assigns 
responsibility for carrying out the activities of the program.
    Management sets the priorities, assigns key personnel, and 
allocates funding for agency activities. In order to obtain management 
approval and support, the environmental management program must be seen 
as vital to the functioning of the organization and as a positive 
benefit, whether it be in financial terms or in measures such as 
regulatory compliance status, production efficiency, or worker 
protection. If management commitment is seen as lacking, environmental 
concerns will not receive the priority they deserve.
    Organizations that consistently demonstrate management support for 
pollution prevention and environmental compliance generally perform at 
the highest levels and will be looked upon as leaders that can mentor 
other organizations wishing to upgrade their environmental performance.
    1.1.1 Policy Development. The agency establishes an environmental 
policy followed by an environmental program that complements its 
overall mission strategy.
    Management must take the lead in developing organizational goals 
and instilling the attitude that all organization members are 
responsible for implementing and improving environmental management 
measures, as well as develop criteria for evaluating how well overall 
goals are met. The environmental policy will be the statement that 
establishes commitments, goals, priorities, and attitudes. It 
incorporates the organization's mission (purpose), vision (what it 
plans to become), and core values (principles by which it operates). 
The environmental policy also addresses the requirements and concerns 
of stakeholders and how the environmental policy relates to other 
organizational policies.
    1.1.2 System Integration. The agency integrates the environmental 
management system throughout its operations, including its funding and 
staffing requirements, and reaches out to other organizations.
    Management should institutionalize the environmental program within 
organizational units at all levels and should take steps to measure the 
organization's performance by incorporating specific environmental 
performance criteria into managerial and employee performance 
evaluations.
    Organizations that fulfill this principle demonstrate consistent 
high-level management commitment, integrate an environmental viewpoint 
into planning and decision-making

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activities, and ensure the availability of adequate personnel and 
fiscal resources to meet organizational goals. This involves 
incorporating environmental performance into decision-making processes 
along with factors such as cost, efficiency, and productivity.
    1.2 Environmental Stewardship and Sustainable Development. The 
agency strives to facilitate a culture of environmental stewardship and 
sustainable development.
    ``Environmental Stewardship'' refers to the concept that society 
should recognize the impacts of its activities on environmental 
conditions and should adopt practices that eliminate or reduce negative 
environmental impacts. The President's Council on Sustainable 
Development was established on June 29, 1993 by Executive Order 12852. 
The Council has adopted the definition of sustainable development as; 
``meeting the needs of the present without compromising the ability of 
future generations to meet their own needs''.
    An organization's commitment to environmental stewardship and 
sustainable development would be demonstrated through implementation of 
several of the CEMP Principles and their respective Performance 
Objectives. For example, by implementing pollution prevention and 
resource conservation measures (see Principle 2, Performance Objective 
2.3), the agency can reduce its negative environmental impacts 
resulting directly from its facilities. In addition, by including the 
concepts of environmental protection and sustainability in its 
policies, the agency can help develop the culture of environmental 
stewardship and sustainable development not only within the agency but 
also to those parts of society which are affected by the agency's 
activities.

Principle 2: Compliance Assurance and Pollution Prevention.

    The agency implements proactive programs that aggressively identify 
and address potential compliance problem areas and utilize pollution 
prevention approaches to correct deficiencies and improve environmental 
performance.
Performance Objectives
    2.1 Compliance Assurance. The agency institutes support programs to 
ensure compliance with environmental regulations and encourages setting 
goals beyond compliance.
    Implementation of an environmental management program should be a 
clear signal that non-compliance with regulations and established 
procedures is unacceptable and injurious to the operation and 
reputation of the organization. Satisfaction of this performance 
objective requires a clear and distinct compliance management program 
as a component of the agency's overall environmental management system.
    An agency that fully incorporates the tenets of this principle 
demonstrates maintainable regulatory compliance and addresses the risk 
of non-compliance swiftly and efficiently. It also has established a 
proactive approach to compliance through tracking and early 
identification of regulatory trends and initiatives and maintains 
effective communications with both regulatory authorities and 
internally to coordinate responses to those initiatives. It also 
requires that contractors demonstrate their commitment to responsible 
environmental management and provides guidance to meet specified 
standards.
    2.2 Emergency Preparedness. The agency develops and implements a 
program to address contingency planning and emergency response 
situations.
    Emergency preparedness is not only required by law, it is good 
business. Properly maintained facilities and trained personnel will 
help to limit property damage, lost-time injuries, and process down 
time.
    Commitment to this principle is demonstrated by the institution of 
formal emergency-response procedures (including appropriate training) 
and the appropriate links between health and safety programs (e.g., 
medical monitoring for Federal employees performing hazardous site 
work).
    2.3 Pollution Prevention and Resource Conservation. The agency 
develops a program to address pollution prevention and resource 
conservation issues.
    An organization committed to pollution prevention has a formal 
program describing procedures, strategies, and goals. In connection 
with the formal program, the most advanced organizations have 
implemented policy that encourages employees to actively identify and 
pursue pollution prevention and resource conservation measures, and 
instituted procedures to incorporate such measures into the formal 
program. Resource conservation practices would address the use by the 
agency of energy, water, and transportation resources, among others. 
Pollution prevention policies and practices should follow the 
environmental management hierarchy prescribed in the Pollution 
Prevention Act of 1990: (1) Source reduction; (2) recycling; (3) 
treatment; and (4) disposal.
    Section 3-301(b) of Executive Order 12856 requires the head of each 
Federal agency to make a commitment to utilizing pollution prevention 
through source reduction, where practicable, as a primary means of 
achieving and maintaining compliance with all applicable Federal, State 
and local environmental requirements.

Principle 3: Enabling Systems

    The agency develops and implements the necessary measures to enable 
personnel to perform their functions consistent with regulatory 
requirements, agency environmental policies and it's overall mission.
Performance Objectives
    3.1 Training. The agency ensures that personnel are fully trained 
to carry out the environmental responsibilities of their positions.
    Comprehensive training is crucial to the success of any enterprise. 
People need to know what they are expected to do and how they are 
expected to do it. An organization will be operating at the highest 
level when it has an established training program that provides 
instruction to all employees sufficient to perform the environmental 
aspects of their jobs, tracks training status and requirements, and 
offers refresher training on a periodic basis.
    3.2 Structural Supports. The agency develops and implements 
procedures, standards, systems, programs, and objectives that enhance 
environmental performance and support positive achievement of 
organizational environmental and mission goals.
    Clear procedures, standards, systems, programs, and short- and 
long-term objectives must be in place for the organization to fulfill 
its vision of environmental responsibility. A streamlined set of 
procedures, standards, systems, programs, and goals that describe and 
support the organization's commitment to responsible environmental 
management and further the organization's mission demonstrate 
conformance with this principle.
    3.3 Information Management, Communication, Documentation. The 
agency develops and implements systems that encourage efficient 
management of environmentally-related information, communication, and 
documentation.
    Information management, communication, and documentation are 
necessary elements of an effective environmental management program. 
The need for advanced information management capabilities has grown 
significantly to keep pace with the

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volume of available information to be sifted, analyzed, and integrated. 
The ability to swiftly and efficiently digest data and respond to 
rapidly changing conditions can be key to the continued success of an 
organization.
    Organizations adopting this principle have developed a 
sophisticated information gathering and dissemination system that 
supports tracking of performance through measurement and reporting. 
They also have an effective internal and external communication system 
that is used to keep the organization informed regarding issues of 
environmental concern and to maintain open and regular communication 
with regulatory authorities and the public. Those organizations 
operating at the highest level ensure that employees have access to 
necessary information and implement measures to encourage employees to 
voice concerns and suggestions.

Principle 4: Performance and Accountability

    The agency develops measures to address employee environmental 
performance, and ensure full accountability of environmental functions.
Performance Objectives
    4.1 Responsibility, Authority and Accountability. The agency 
ensures that personnel are assigned the necessary authority, 
accountability, and responsibilities to address environmental 
performance, and that employee input is solicited.
    At all levels, those personnel designated as responsible for 
completing tasks must also receive the requisite authority to carry out 
those tasks, whether it be in requisitioning supplies or identifying 
the need for additional personnel. Similarly, employees must be held 
accountable for their environmental performance. Employee acceptance of 
accountability is improved when input is solicited. Encouraging 
employees to identify barriers to effective performance and to offer 
suggestions for improvement provides a feeling of teamwork and a sense 
that they control their own destiny, rather than having it imposed from 
above.
    4.2 Performance Standards. The agency ensures that employee 
performance standards, efficiency ratings, or other accountability 
measures, are clearly defined to include environmental issues as 
appropriate, and that exceptional performance is recognized and 
rewarded.
    Organizations that identify specific environmental performance 
measures (where appropriate), evaluate employee performance against 
those measures, and publicly recognize and reward employees for 
excellent environmental performance through a formal program 
demonstrate conformance with this principle.

Principle 5: Measurement and Improvement:

    The agency develops and implements a program to assess progress 
toward meeting it's environmental goals and uses the results to improve 
environmental performance.
Performance Objectives
    5.1 Evaluate Performance. The agency develops a program to assess 
environmental performance and analyze information resulting from those 
evaluations to identify areas in which performance is or is likely to 
become substandard.
    Measurement of performance is necessary to understand how well the 
organization is meeting its stated goals. Businesses often measure 
their performance by such indicators as net profit, sales volume, or 
production. Two approaches to performance measurement are discussed 
below.
    5.1.1 Gather and Analyze Data. The agency institutes a systematic 
program to periodically obtain information on environmental operations 
and evaluate environmental performance against legal requirements and 
stated objectives, and develops procedures to process the resulting 
information.
    Managers should be expected to provide much of the necessary 
information on performance through routine activity reports that 
include environmental issues. Performance of organizations and 
individuals in comparison to accepted standards can also be 
accomplished through periodic environmental audits or other assessment 
activities.
    The operation of a fully-functioning system of regular evaluation 
of environmental performance along with standard procedures to analyze 
and use information gathered during evaluations signal an 
organization's conformance with this principle.
    5.1.2 Institute Benchmarking. The agency institutes a formal 
program to compare its environmental operations with other 
organizations and management standards, where appropriate.
    ``Benchmarking'' is a term often used for the comparison of one 
organization against others, particularly those that are considered to 
be operating at the highest level. The purpose of Benchmarking is 
twofold: first, the organization is able to see how it compares with 
those whose performance it wishes to emulate; second, it allows the 
organization to benefit from the experience of the peak-performers, 
whether it be in process or managerial practices.
    Benchmarking against established management standards, such as the 
ISO 14000 series or the Responsible Care program developed by the 
Chemical Manufacturers Association (CMA), may be useful for those 
agencies with more mature environmental programs, particularly if the 
agencies' activities are such that their counterparts in the private 
sector would be difficult to find. However, it should be understood 
that the greater benefit is likely to result from direct comparison to 
an organization that is a recognized environmental leader in its field.
    5.2 Continuous Improvement. The agency implements an approach 
toward continuous environmental improvement that includes preventive 
and corrective actions as well as searching out new opportunities for 
programmatic improvements.
    Continuous improvement is approached through the use of performance 
measurement to determine which organizational aspects need to have more 
attention or resources focused upon them.
    Continuous improvement may be demonstrated through the 
implementation of lessons learned and employee involvement programs 
that provide the opportunity to learn from past performance and 
incorporate constructive suggestions. In addition, the agency actively 
seeks comparison with and guidance from other organizations considered 
to be performing at the highest level.

IV. Responses From Federal Agencies and Departments

    EPA is requesting Federal agencies to provide a brief written 
statement declaring the agency's support for the CEMP Principles along 
with a concise explanation of how the agency plans to implement the 
CEMP at the facility level. To implement the CEMP the agency may choose 
to employ voluntary environmental management standards developed by 
national or international consensus groups or by industry trade 
associations as long as the spirit of the CEMP is evidenced by those 
chosen standards. At this time, EPA is seeking agency level commitment 
to the CEMP.
    EPA recognizes that many Federal agencies may have already begun 
development of environmental management systems or have chosen to 
implement a particular environmental

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management standard at their facilities. EPA recommends that these 
agencies leverage the work that has already been accomplished, and 
perform some comparative or gap analysis between the existing 
environmental management system, program or standard and the CEMP to 
ensure that the principles of the CEMP are fully implemented. Therefore 
the CEMP can be implemented concurrently and not in addition to the 
work that is already being performed at the agency.

    Dated: September 23, 1996.
Steven A. Herman,
Assistant Administrator for Enforcement and Compliance Assurance.
[FR Doc. 96-26451 Filed 10-15-96; 8:45 am]
BILLING CODE 6560-50-P