[Federal Register Volume 60, Number 211 (Wednesday, November 1, 1995)]
[Notices]
[Pages 55569-55572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27141]
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ENVIRONMENTAL PROTECTION AGENCY
[FRL-5322-9]
Regulatory Reinvention (XL) Pilot Projects: XL Community Pilot
Program
AGENCY: Environmental Protection Agency (EPA).
ACTION: Solicitation of proposals and request for Comment.
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SUMMARY: Today, EPA is announcing the XL Community Pilot Program to
demonstrate community-designed and directed strategies for achieving
greater environmental quality consistent with community economic goals.
In partnership with states, local governments, communities, tribal
governments, and other local entities (either public or private), EPA
will provide an opportunity to test flexible and innovative strategies
in the implementation of environmental regulatory requirements in
exchange for a commitment to achieve greater environmental quality than
would have been realized under traditional approaches.
This document responds to one of President Clinton's March 16, 1995
initiatives listed in the report, Reinventing Environmental Regulation.
In that report, the President stated that EPA would implement four
pilot programs to give a limited number of regulated entities and
communities an opportunity to demonstrate eXcellence and Leadership
(XL) in environmental protection. An earlier Federal Register Notice,
published on May 23, 1995 (60 FR 27282), discusses the XL pilot
programs for facilities, industry sectors, and government agencies.
This Federal Register Notice addresses the XL Community Pilot Program
and is a solicitation for comments and an invitation for proposals from
public and private entities interested in initiating XL community pilot
projects. The XL Community Pilot Program is not a grant program and is
limited to alternative and innovative strategies for increased
environmental protection. EPA has set a goal of implementing a total of
fifty projects in the four program areas.
In the section on ``Alternative strategies for communities'' in the
President's March 16, 1995 report, the President stated that the Agency
would undertake an additional program for communities unable to meet
existing requirements. For more information on this program, see the
section below on other community-based reinvention efforts.
DATES: The period for submission of proposals will begin on November 1,
1995 pursuant to the Information Collection Request (ICR No. 1755.2)
approved by the Office of Management and Budget (OMB Approval No. 2010-
0026) under the Paperwork Reduction Act. This will be an open
solicitation with no set end date. Project sponsors wishing to be
considered for these pilots should submit proposals in response to this
Federal Register Notice. EPA will take proposals on a rolling basis for
selection of a limited number of pilots. Prior to the end of 1995, EPA
plans to
[[Page 55570]]
invite a small number of project proponents to begin development of
Final Project Agreements. The period for comment on all aspects of the
program will begin with publication of this Notice and extend for
thirty days.
SUBMISSION OF COMMENTS AND PROJECT PROPOSALS: Project proposals and all
comments on the pilot program should be sent to: Regulatory Reinvention
Pilot Projects: XL Community Pilot Program, FRL-5322-9; Water Docket,
Mail Code 4101; U.S. Environmental Protection Agency; 401 M Street,
S.W.; Washington, D.C., 20460. This docket accepts no faxes. Project
proposals should include a one-page cover sheet that summarizes: the
environmental problems that the project addresses; a brief description
of the project identifying the regulatory flexibility being requested;
and the project's anticipated results. Cover sheets should also include
the applicants' names, addresses, and phone numbers. Project proposal
narratives should explain the relationship of the proposal to the first
nine criteria for project selection described in this Notice. In their
proposals applicants should also identify any current initiatives in
the project area upon which the proposed project could build. An
original and three copies should be submitted to the Docket. Proponents
of projects are invited, but by no means required, to submit other
useful materials in paper, audio/visual, or electronic formats.
Documents referenced in this Federal Register Notice are available
for review at EPA's Water Docket; 401 M Street, S.W., Washington, D.C.
For access to the Docket materials, call 202-260-3027 between 9 a.m.
and 3:30 p.m. for an appointment.
FOR FURTHER INFORMATION CONTACT: The XL Community Pilot Program at 703-
934-3241.
Description of the Program
Through the XL Community Pilot Program, EPA will respond to
requests for regulatory flexibility to support local communities'
efforts to create innovative, alternative environmental management
strategies that are supportive of community economic goals. To this
end, EPA is inviting proposals from local entities capable of
demonstrating alternative approaches for achieving greater
environmental results than would have been obtained under existing
approaches to environmental protection. Ideally, XL community pilot
projects should be consistent with and help to establish long-range
community environmental goals and bring together groups such as
facilities, community organizations, and governments at all levels to
achieve the goals of greater environmental quality consistent with
economic development. As such, proposals that demonstrate the greatest
support from community stakeholders and are consistent with a broader
community vision or plan will be given preference in the selection
process.
Proposals are invited from a range of community entities and should
be designed around a defined geographic area. Community entities
include, but are not limited to, local governments, tribal governments,
regional area consortia/governments, councils of government, private
non-profit citizen/neighborhood/community organizations, non-profit
educational institutions, Empowerment Zones and Enterprise Communities
designated under the Administration's Community Empowerment Initiative,
and other local entities either public or private.
Geographic areas could include: Urban and rural areas; political
jurisdictions; tribal lands; and ecologically-defined areas such as
watersheds and ecosystems, among others. EPA encourages community
groups within the same geographic area whose project objectives are
similar to consolidate their proposals.
In many cases states, federally-recognized tribal agencies, or
other agencies, are responsible for administering environmental
regulations. Therefore, to be designated an XL Community, a project
must have the support and approval of the agency that has regulatory
responsibility within the scope of the project. In addition, where
possible, state or tribal environmental agencies will be the lead
agency working with communities to implement the XL Program.
Accordingly, support for the project by the responsible agency should
be obtained as the applicant, assisted by EPA if necessary, develops
the final project agreement.
Selection Process
EPA will screen proposals submitted in response to this notice
(considering the criteria listed below) to select those that do the
most to advance the purposes of this program, and will then work
cooperatively with a subset of the applicants to further refine
proposals, as necessary. The Agency retains the ultimate authority to
select projects based on a qualitative consideration of these criteria.
Given the pilot nature of the program, and the limited number of
projects that will be selected, proposals that satisfy many or all of
the criteria may not be selected if, in the Agency's judgment, other
proposed projects better serve the objectives of the program. Moreover,
no person is required to submit a proposal or obtain approval as a
condition of commencing or continuing a regulated activity.
Accordingly, there will be no formal administrative review available
for proposals that are not selected, nor does EPA believe there will be
a right to judicial review. Although EPA will work with the most
promising applicants, the ultimate responsibility for developing
detailed project plans will be with the project proponents. Proposals
not chosen may be referred for additional review to other EPA programs
which have other community-based activities underway or may be deferred
for development at a later time.
Final Project Agreements
After a second review a final group of selected project proponents
will be invited to join EPA, state, or tribal environmental agencies,
and other co-regulators to develop a Final Project Agreement. Only the
signing of a Final Project Agreement will constitute the acceptance of
a full-fledged pilot project. Parties to the Final Project Agreement
will include at least EPA, project participants, state or tribal
environmental agencies, as well as other co-regulators. These
agreements will deal with project-specific issues such as legal
authority for project implementation, resource commitments to the
project, and provision for regulatory flexibility and technical or
other support if requested, public involvement, specific time
commitments to environmental progress, and expected environmental
results. Each Final Project Agreement will clearly set forth
requirements that the project participants have agreed to meet
including measurable performance objectives and should include an
explicit statement concerning what data and analyses are needed to
evaluate project results. To address regulatory flexibility, EPA
anticipates that the Agreements will be structured so that any
enforcement relief EPA has provided with respect to applicable
requirements will be conditioned on the project participants'
compliance with the terms of the Agreements. EPA invites project
proponents to include in their proposals suggestions for additional or
alternative approaches to enforcing the commitments made in the Final
Project Agreements. Unless otherwise agreed to by both EPA and the
proponent, the time to negotiate and sign a Final Project Agreement
should be limited to six months from the date of initial project
acceptance. The final
[[Page 55571]]
phase of the program involves implementation, monitoring and evaluation
of the agreement terms.
Project Selection Criteria
EPA will consider the following criteria in evaluating pilot
project proposals:
I. Environmental Results
Projects should demonstrate, within a defined geographic area,
environmental results that are superior to what would be achieved under
existing and reasonably foreseeable future national regulations.
Project proponents should explain in clear and common sense terms how
the environmental results from the alternative strategy for their
specific project will be better than present routine compliance.
Although EPA is open to a qualitative demonstration of results, project
proponents are encouraged to provide, where possible, a quantitative
comparison between anticipated environmental results under current
requirements and projected results under the proposed alternative
approach. Improved environmental quality can be achieved either
directly through the environmental activities of the project or through
cost savings resulting from the project which are invested in follow-up
activities that produce greater environmental results. The XL Community
Pilot Program is not an opportunity to propose exchanges of regulatory
flexibility for non-environmental benefits or to seek waivers or
reductions from national environmental goals. The Final Project
Agreement should include explicit goals, benchmarks, and requirements,
including measurable performance objectives. For example, a variety of
environmental measures may be used--from waste stream sampling and
ambient air quality monitoring to rougher measures such as acres of
habitat preserved, greater bio-diversity, and/or more open space
created--depending on the project.
II. Stakeholder Involvement, Support, and Capacity for Community
Participation
EPA encourages proposals for projects that will build, support, and
promote cooperation among citizens, businesses, government, and non-
profit organizations at the community level for the purposes of
formulating effective environmental strategies and economic
sustainability. Project proposals that incorporate processes for
building and supporting a framework for community participation will be
given greater consideration. Project proposals should at a minimum
identify key stakeholders for the project, drawn from affected sectors
of the community. Depending on the nature of the project, stakeholders
will likely include one or more of the following: Local government
agencies; members of environmental and other public interest groups;
businesses in the community; community development corporations;
citizens or officials from communities near or adjacent to the project;
or other affected people or entities. Where available, project
proposals should present evidence of support from key stakeholders
including partnerships with individuals, community groups, and
regulated entities.
III. Economic Opportunity
Pilots which demonstrate ways of creating economic opportunity
through, or in conjunction with, improved environmental quality are
encouraged. For example, recent experience with restoration of
greenways to reduce runoff to waterways has led to revitalization and
development of commercial and recreational waterfront activities and
created new industries providing the community with jobs and resources.
IV. Feasibility
Project proponents should demonstrate the technical,
administrative, and financial capability to implement project
proposals.
V. Transferability
EPA will favor project proposals that demonstrate potential to
serve as models for EPA, states, tribes, local governments, regional
entities, and other communities nationwide.
VI. Monitoring, Reporting and Evaluation
Projects should have clear environmental objectives that will be
measurable in order to allow EPA and the public to evaluate the success
of the project. The project proposal should clearly identify the entity
which will be accountable for project results. The project sponsor
should state the time frame within which results will be achieved, and
propose interim dates and the means by which progress could be
measured, evaluated and shared with stakeholders.
VII. Equitable Distribution of Environmental Risks
The project should not subject anyone to unjust or disproportionate
environmental degradation. Implementation of project proposals should
not significantly transfer pollution to, or add to environmental
degradation of, a jurisdiction outside of a project area. Additionally,
project proposals that lessen the burden of environmental degradation
to people and places that have traditionally shouldered a
disproportionate share of the burden will be given greater
consideration.
VIII. Community Planning
EPA encourages proposals for projects that use participatory
community planning and consensus-based goals to build constituencies
and marshall resources for community improvement. Projects which
facilitate the creation of community plans and/or promote the use of
existing community goals and plans are encouraged. Projects should be
consistent with any existing community plans or goals.
IX. Innovative Approaches/Multi-Media Focus/Pollution Prevention
EPA is looking for projects that test innovative strategies for
achieving environmental results. These strategies may include
innovative community planning or a process for articulating a community
vision, new facility technologies, or environmental management
practices such as source water protection. EPA also encourages project
proposals that test alternatives to current, single-media environmental
management programs (i.e., improvements in more than one environmental
medium). EPA has a preference for protecting the environment by
preventing the generation of pollution rather than by controlling
pollution once it has been created.
X. Enforcement and Compliance History
Although applicants are not requested to address this criterion in
their proposals, EPA will consider the enforcement and compliance
history of regulated entities that are proposed to be subject to final
project agreements. A perfect compliance history is not a prerequisite
to participation in the XL Community Pilot Program. At the same time,
this program is designed to demonstrate excellence and leadership by
providing regulatory flexibility to entities that are committed to
achieving superior environmental performance. In addition, regulatory
flexibility may mean that regulated entities are subject to less
oversight, or alternative kinds of oversight, as compared with existing
schemes. Accordingly, as part of the selection process, EPA will
consider the entities' prior compliance history.
[[Page 55572]]
Relationship of XL Community Pilots to Other Community-Based
Reinvention Efforts
EPA is undertaking several other community-based initiatives as
part of its regulatory reinvention efforts. Under the Compliance
Incentives for Small Communities Initiative EPA intends to issue a
small community enforcement flexibility policy later this year. This
policy will provide guidance to states and tribes that want to offer
compliance flexibility to small local governments that, unlike XL
communities, are struggling to meet existing requirements, and that
employ a rational process for setting priorities based on local
conditions and needs (for information on the Flexibility Policy contact
Kenneth Harmon; Office of Enforcement and Compliance Assurance; 202-
564-7049).
In several instances, states, with varying degrees of EPA
involvement, have negotiated or are in the process of negotiating
compliance flexibility with small communities that seek to achieve and/
or maintain compliance with existing environmental requirements. These
programs exist in Oregon (Environmental Partnerships for Oregon
Communities), Idaho (Idaho Small Community Mandates Pilot Project) and
Nebraska (Nebraska Mandate Initiative). For more information on these
programs contact the individual state environmental agencies.
A second EPA community-based initiative, the Community-Based Risk
Assessment project, is designed to promote risk-based decision making
in communities, States, and tribes and to provide communities with a
better understanding of human health and ecological risks. In this
project, EPA will work with communities to identify available risk
tools that meet specific community needs. EPA will initially focus on
the provision of risk assessment and comparative risk software,
databases, training courses, and information materials, but is also
interested in providing more focused technical assistance in a few
pilot communities. EPA believes that risk assessment and comparative
risk are important tools to help communities develop goals, determine
priorities, and demonstrate results. For more information about this
project contact Jane Metcalfe; Office of Research and Development; 202-
260-7669.
A third reinvention initiative, the Sustainable Development
Challenge Grant Program will be announced in a Federal Register Notice
later this year. For information on the Sustainable Development
Challenge Grant Program contact the Office of Regional Operations and
State and Local Relations; 202-260-4719.
Legal Mechanisms for Pilot Projects
EPA will seek to use a variety of administrative and compliance
mechanisms to provide regulatory flexibility where necessary for final
project agreements. Regulatory flexibility will be conditioned on the
pilot project meeting the alternative requirements specified in the
project plan. In particular circumstances, EPA may consider changes in
underlying regulations or may seek changes in underlying statutes. EPA
recognizes that these questions raise issues of importance both to the
Government and to potential participants in pilot projects that seek
regulatory flexibility. Applicants are invited to present EPA with
proposed approaches tailored to provide the flexibility for their pilot
projects.
Request for Comment on Pilot Program
Interested members of the public are invited to comment on all
aspects of the pilot project program. EPA requests specific comment on
the legal mechanisms for implementing project agreements, and the data
requirements for determining both existing environmental conditions and
the level of environmental quality that would result from selected
projects.
Paperwork Reduction Act
The information collection provisions in this Notice, for
solicitation of proposals, have been approved by the Office of
Management and Budget (OMB) under the Paperwork Reduction Act, 44
U.S.C. 3501 et seq. (ICR No. 1755.2 and OMB Approval No. 2010-0026).
Copies of the ICR (ICR No. 1755.2) may be obtained from Sandy Farmer;
U.S. Environmental Protection Agency; Information Policy Branch, Mail
Code 2136; 401 M Street, S.W.; Washington, D.C. 20460; or by calling
(202) 260-2740. Public reporting burden for this collection of
information is estimated to total 133,800 hours annually for all
respondents combined, and an additional 27,760 hours annually for all
co-regulators combined. These estimates cover all information burdens
associated with Project XL including application, selection,
development of Final Project Agreement, tracking of project progress,
determination of bottom-line environmental results, evaluation of
project outcome, and all information required by Project XL for these
activities.
Dated: October 26, 1995.
Fred Hansen,
Deputy Administrator.
[FR Doc. 95-27141 Filed 10-31-95; 8:45 am]
BILLING CODE 6560-50-P
