Joint EPA/State Agreement to Pursue Regulatory Innovation

In 1998, EPA and ECOS agreed to encourage experimentation by states  with new approaches to environmental protection through their Joint  EPA/State Agreement to Pursue Regulatory Innovation. Other Avenues

In addition to Project XL and the ECOS/EPA agreement, state and EPA  officials identified several other avenues for negotiation that states have  used to obtain EPA’s approval for innovative environmental strategies. Resource Constraints Are Among the Key Obstacles at the State Level

Officials in all of the states we contacted indicated that they faced  significant obstacles—including lack of resources, cultural resistance in  the state agency, and opposition from environmental groups--even in  advance of proposing a project to EPA. Opposition to innovative approaches from environmental groups and other  stakeholders has also impeded proposals. Diversifying environmental tools and approaches. It is also consistent with EPA’s recent adoption of the  recommendations of its own Task Force on Improving EPA Regulations  which advocates, among other things, that innovative alternatives should  be considered as new regulations are developed. The Environmental Cooperation Pilot Program (ECPP) was developed by the Wisconsin Department  of Natural Resources to allow facilities to test innovative approaches to environmental protection in  exchange for superior environmental performance.
What GAO Found

The Environmental Protection Agency (EPA) issues regulations that states, localities, and private companies must comply with under the existing federal approach to environmental protection. This approach has been widely criticized for being costly, inflexible, and ineffective in addressing some of the nation's most pressing environmental problems. The states have used several methods to obtain EPA approval for innovative approaches to environmental protection. Among the primary approaches cited by the state environmental officials GAO interviewed are EPA's Project XL and the Joint EPA/State Agreement to Pursue Regulatory Innovation. Officials in most states told GAO that they faced significant challenges in submitting proposals to EPA, including resistance from within the state environmental agency and a lack of adequate resources to pursue innovative approaches. EPA recognizes that it needs to do more to encourage innovative environmental approaches by states and other entities. As a result, EPA has (1) issued a broad-based draft strategy entitled "Innovating for Better Environmental Results" and (2) adopted the recommendations of an internal task force, which advocated the consideration of innovative alternatives as new regulations are developed.