News: Industry group study hits environmental incentive programs

The reports say programs in. New Jersey, the United Kingdom, and the Netherlands have worked best because they offer the clear- est substantive incent...
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The initial meeting, added NRDC attorney Jessica Landman, presented "a way for all these groups to be friends again. There has been a historical lack of comfort between hunting and traditional environmental groups. We have a lot to learn about what makes each of us tick." Landman said hunters at the meeting were surprised to learn that most environmental groups do not oppose hunting. For instance the Sierra Club boasts some 100 000 members who hunt and fish and recently the group began a "hunter and angler outreach campaign" to work with members and sporting groups in several states "Combined, we have a lot of clout," Shupp said. "As a group we are not a political force at all in this election, but if we're not happy with the results, I'll guarantee you, by the next one we will be." —JEFF JOHNSON

33/50 program ends, EPA declares success The 33/50 program—the first in what has become a long string of EPA voluntary toxic emissions reduction programs—shut its doors in mid-September. Announcing the program's conclusion, EPA officials heralded its success in cutting 50% of emissions of 17 toxic chemicals used and generated by 1300 corporations that volunteered for the program. Begun by EPA Administrator William Reilly in 1991, 33/50 was based on data from the Toxics Release Inventory (TRI), which requires 23,000 companies to report annually on the amount of chemicals released to the environment or handled as waste. The 33/50 program, however, called for participating companies to commit to reductions that would collectively result in 33% fewer on-site releases and off-site transfers of the

17 chemicals by 1992 and a 50% reduction by 1995, using 1988 TRI reported levels as a baseline. TRI and 33/50 aimed to focus public attention and, through the glare of public scrutiny, induce companies to cut toxic wastes and emissions. Companies participating in 33/50 beat the final target by a year, mostly by cutting air emissions and shifting from organic hydrocarbons to waterbased solvents, according to EPA's final project report. The much larger universe of non-33/50 companies also cut emissions substantially, reporting a 38% reduction in releases of 316 TRIcovered chemicals. "More than 750 million pounds of pollution were cut in the time EPA would take to write a reg. And companies voluntarily made the reductions. It's awe-

Industry group study hits environmental incentive programs Government programs to give industries benefits in return for stellar compliance with environmental laws are criticized in three studies funded by GEMI, the Global Environmental Management Initiative, and released in October. Although GEMI, a nonprofit organization of 21 large corporations, strongly supports such programs, its studies find that with current state and federal programs, environmental and economic gains are marginal. It urges that these pro crams be made bolder clearer and more measurable with greater incentives The GEMI studies look at EPA programs, such as the Common Sense Initiative, Project XL, emissions trading, and 33/50, as well as a few state and European incentive programs. The programs share the goal of offering companies "flexibility" in how they comply with environmental laws in return for superb compliance. Although critical, GEMI notes that the programs are new and sclVS its summary was inconclusive as to their overall strengths or weaknesses The reports say programs in New Jersey, the United Kingdom, and the Netherlands have worked

best because they offer the clearest substantive incentives; participants see economic benefits and competitive advantages, such as faster time-to-market; and industry is allowed greater flexibility in choosing how to reach pollution reduction goals.

The lack of significant incentives and the risk of litigation weaken existing programs. Concerning EPA's Project XL, GEMI says confusion abounds because states seem to believe that program is intended to encourage use of alternative ways to meet current compliance requirements, and EPA insists facilities must go beyond compliance. This confusion recently plagued the Minnesota program {ES&T, ,ct. 1996, p. 428A). GEMI also finds more general problems, such as EPA's dominance in setting program objectives, pervasive mistrust among participants, uncertainty about corporate and environmental benefits and an absence of a basis for XL

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Without a legal mandate, GEMI says incentive programs tend to fail because decisions must be reached by consensus among industries, regulators, and the public, which is rarely effective in contentious environmental management decisions. Also, government regulators give short shrift to voluntary programs because they must spend most time on legally mandated programs. Looking at EPA's Common Sense Initiative as well as XL, corporate volunteers say both programs are weakened by a lack of incentives and a risk of litigation by community groups and others for what industry sees as inventive compliance. And despite difficulties, the new programs draw an enormous amount of industry staff time. The end result: Participatory costs outweigh incentives. GEMI recommends that future programs provide greater freedom for industries to take advantage of process modification and other innovations, clear procedures for stakeholder participation, and tangible and significant incentives. GEMI's reports are available by calling (202) 2967449. JEFF JOHNSON