96-23218. Regulatory Reinvention (XL) Pilot Projects  

  • [Federal Register Volume 61, Number 177 (Wednesday, September 11, 1996)]
    [Notices]
    [Pages 47929-47930]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-23218]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    [FRL-5608-5]
    
    
    Regulatory Reinvention (XL) Pilot Projects
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Solicitation of proposals for and request for comment on 
    Project XL.
    
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    SUMMARY: EPA is today augmenting its continuing solicitation of 
    proposals for the Project XL (excellence and leadership) program with a 
    specific request for proposals that feature innovative environmental 
    technologies.
    
    DATES: The period for submission of proposals began on May 23, 1995 
    with the publication of a solicitation in the Federal Register at (60 
    FR 27282) [FRL-5197-9]. It is an open solicitation with no set end 
    date, and project proponents may submit more than one project proposal. 
    The period for submission of comments on aspects of the program 
    discussed here shall extend for at least sixty (60) days from the date 
    of publication of this notice. However, as the issues discussed in this 
    notice will not necessarily be resolved by these comments, the docket 
    will remain open to additional comments until further notice.
    
    ADDRESSES: Project proposals and all comments should be sent to: 
    Regulatory Reinvention Pilot Projects, FRL-5197-9, Water Docket, Mail 
    Code 4101, US EPA, 401 M Street, S.W., Washington, DC 20460. The docket 
    accepts no faxes. Project proponents should submit four (4) copies of 
    all materials sent to the docket. In addition to providing general 
    information about the proposed project, project proponents are 
    encouraged to comment on the relationship of their proposals to the 
    criteria for project selection described in the Federal Register on May 
    23, 1995 [FRL-5197-9] and on November 1, 1995 [FRL-5322-9]. Proponents 
    of projects are invited, but by no means required, to submit other 
    useful materials in paper or other audio/visual or electronic formats.
    
    FOR FURTHER INFORMATION CONTACT:
    For information on projects featuring environmental technology, contact 
    Pasky Pascual. For information on Project XL and all other aspects of 
    this notice contact Christopher Knopes. Both can be reached at the 
    following address: Emerging Sectors and Strategies Division; United 
    States Environmental Protection Agency; 3202 Mall; 401 M Street, S.W.; 
    Mail Code 2129; Washington, DC 20460. The telephone number for the 
    Division is (202) 260-2220. The facsimile number is (202) 401-6637. 
    Additional information on Project XL, including documents referenced in 
    this notice, other EPA policy documents related to Project XL, regional 
    XL contacts, application information, and descriptions of existing XL 
    projects and proposals, is available via the internet at ``http:/
    www.epa.gov/ProjectXL'' and via an automated fax-on-demand menu at 
    (202) 260-8590.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        Since publication of the Clinton Administration's Bridge to a 
    Sustainable Future in April, 1995, the Federal government has been 
    committed to strengthening incentives for technological innovation 
    within its regulatory, permitting, compliance and enforcement programs. 
    EPA's regulatory reinvention efforts--replacing prescriptive 
    regulations with performance-based environmental management strategies, 
    building partnerships, setting priorities based on sound science, 
    cutting red tape, improving access to environmental information, 
    ensuring better accountability, compliance and enforcement--are part of 
    this commitment. Project XL, created by President Clinton on March 16, 
    1995, as part of his Reinventing Environmental Regulation initiative, 
    provides a limited number of companies and other regulated entities an 
    opportunity to test performance-based alternatives to current 
    requirements that achieve superior environmental performance, cost 
    savings, and greater accountability to the local community. EPA has 
    committed to implement a target of 50 XL projects in four categories: 
    XL for Facilities, XL for Sectors, XL for Federal Facilities and XL for 
    Communities. Solicitation of proposals in the first three XL categories 
    was announced in the Federal Register on May 23, 1995 [FRL-5197-9]. A 
    similar notice for XL for Communities proposals appeared on November 1, 
    1995 [FRL-5322-9]. EPA has received over 50 XL proposals, has selected 
    15 for project development, and on July 8, 1996, approved its first XL 
    Final Project Agreement.
        In an effort to improve the potential demonstration value of XL 
    projects, EPA is for the first time issuing an XL ``request for 
    proposals'' (RFPs) of a specific type--in this case proposals that 
    encourage innovative environmental technologies. The Agency will 
    periodically issue additional XL RFPs for other kinds of projects that 
    in more specific ways address the basic XL criteria laid out in the May 
    23, 1995, Federal Register. XL RFPs should provide a sense of the types 
    of proposals that are of greatest interest to EPA and other 
    participants in national dialogue on the future of environmental 
    policy. With this notice, EPA brings together more formally its 
    commitment to strengthen incentives for innovative environmental 
    technologies and its commitment to test alternative environmental 
    management strategies in Project XL. This notice solicits proposals for 
    the demonstration of innovative technologies in the XL program.
    
    Areas of Greatest Interest
    
        Environmental technologies include any technology that helps 
    control, monitor, reduce, or remediate the environmental impact 
    associated with economic activity. This definition covers products used 
    for exclusively environmental purposes as well as infrastructural 
    changes or products that ultimately minimize the impacts of industry 
    and federal facilities on the environment. Examples of such 
    technologies include:
         Equipment that controls, mitigates, or remediates 
    environmental pollution;
         Tools that improve the ability to monitor environmental 
    conditions, emissions and discharges more accurately and more 
    frequently and that make this information available and understandable 
    to communities and the general public;
         Information systems that facilitate the collection, 
    analysis, and distribution of environmental data in a way that 
    optimizes economic and environmental performance; and
         operational or process changes that reduce material 
    inputs, reduce the use of toxic substances, or reduce energy use while 
    maintaining equal or better productivity levels and environmental 
    protection.
    
    How Can An XL Project Help?
    
        An XL project can spur the development of innovative environmental 
    technology by.
         Removing a specific regulatory or other barrier to the 
    development, testing or deployment of a technology;
         Creating a general regulatory climate for a facility 
    (e.g., a performance-based system with ambitious targets) that provides 
    incentives for innovation;
         Fostering a test-bed for monitoring requirements that go 
    beyond or are different from conventional requirements that favor 
    existing measurement concepts;
    
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         Creating cost savings through regulatory efficiency that 
    are reinvested in innovative technology development and deployment.
        XL provides the climate in which technical innovation can thrive 
    and flourish. A company or federal facility seeking to develop 
    processes that minimize the impact of its activities and products or 
    other technologies that help in the monitoring of these impacts may be 
    thwarted by a legal requirement, regulatory infrastructure, policy or 
    other procedure that treats individual environmental problems in 
    isolation, or that imposes a particular solution based on prior 
    technological constraints. Project XL can provide an innovative 
    industrial or federal facility with the site-specific flexibility 
    needed to surmount these barriers.
        By facilitating discussions among various stakeholders during 
    project development, Project XL provides the innovative industrial or 
    federal facility with a forum to dialogue with technology suppliers, 
    regulators, users and customers to exchange information and generate 
    ideas that simulate new approaches to environmentally-responsible 
    manufacturing.
        EPA is soliciting proposals that prototype technological 
    applications that lower compliance costs, that minimize the risk of 
    environmental liability, or that enhance operational flexibility. By 
    demonstrating the competitive advantage that facilities obtain through 
    the use of innovative environmental technologies, Project XL can 
    strengthen the demand for those technologies while allowing the 
    collective wisdom or individual facilities to determine which 
    technology options best optimizes the twin objectives of economic and 
    environmental performance.
    
    Procedures for Application
    
        Basic procedures for submission and review of an XL for Facilities, 
    Sectors, or Federal Facilities proposal and for submission of an XL for 
    Communities proposal are contained in the May 23, 1995, and November 1, 
    1995, Federal Register, respectively. Additionally, project proponents 
    are encouraged to state why they believe the projects they are 
    submitting are particularly innovative. EPA intends to work 
    cooperatively with project proponents to develop and refine acceptable 
    approaches. At the same time, the Agency and its partners in the State 
    and Tribal environmental agencies must retain the ultimate authority to 
    select projects based on a qualitative consideration of the project 
    relative to XL selection criteria. Moreover, given the limited and 
    pilot nature of XL, projects that satisfy many or all of the criteria 
    may nonetheless 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.
    
    Supplementary Information on Process Streamlining
    
        Project XL, since its inception on March 16, 1996 by President 
    Clinton, has been implemented by a process developed by EPA with the 
    help of potential sponsors, stakeholders, and state and tribal 
    environmental agencies. This process was outlined in the May 23, 1995, 
    Federal Register and further explained in EPA's December 1, 1995, draft 
    Principles for Development of Project XL Final Project Agreements. That 
    process has five stages: solicitation, selection, development, 
    implementation and evaluation. Today EPA is announcing its intent to 
    revise the process to respond to many concerns voiced during the 
    initial round of project negotiations. While the Agency is not yet 
    prepared to provide a detailed account of these changes, EPA believes 
    is important to signal our willingness to make some mid-course 
    corrections designed to streamline and improve the XL process. These 
    changes will be aimed at several different aspects of the process, but 
    will include:
         Improving the quality of XL project proposals by asking 
    project proponents to include a clear statement how the proposal meets 
    the XL criteria, including a discussion of the regulatory flexibility 
    requested, the environmental benefits to be achieved, and the proposed 
    plan for stakeholder involvement;
         Defining some principles of superior environmental 
    performance to consider when developing proposals;
         Defining some principles for including local community 
    members and other stakeholders in the project development process;
         Management of the XL program and the project development 
    process;
         Strengthening internal EPA management of the XL program 
    and the project development process;
         Promoting internal cultural change among regulators toward 
    a new, more participatory approach to environmental protection; and
         Providing national and local level stakeholders with 
    expanded opportunities for participation and input through greater 
    access to information and resources.
    
        Dated: September 6, 1996.
    Jon Kessler,
    Acting Assistant Administrator for Policy, Planning, and Evaluation.
    [FR Doc. 96-23218 Filed 9-10-96; 8:45 am]
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