incut stctnQcirQS tor hazardous waste generators, but five were in violation of state permits and one was dropped from the program because it was hauling hazardous waste to an illegal site. "Obviously this says something is wrong with a system in which companies willingly invite us in and we still have 60% noncompliance," Fine said, adding that possibly the state's regulations are too complicated or there is insufficient outreach to explain the requirements to industry. He said he believes, however, that company management that commits to self-certification will become more interested in solving these problems, rather than trying to follow state-derived orders. But to Russell the revelation that half the pilot companies are out of compliance signals that the state should go slow with implementing the program. "If these companies are willing to step up to the plate, be audited, and participate in an open process, it really
EPA wraps up two-year permit system review After two years of workshops and hearings, in May the agency completed a comprehensive evaluation of all federal permitting programs and issued a final report (Federal Register r996, 6/(92), 21856-80)) The report contained more than 70 recommendations with the overall theme of offering companies greater flexibility than a one-size-fits-all permitting system, according to Lance Miller, who led the review. The report's recommendations also looked beyond permitting and called for greater emphasis on ambient monitoring to determine the overall condition of the environment. "We need to know where the problems are and where we are," Miller said. "To encourage the public to accept a change in how we regulate, we need to show the actual condition of the environment." The recommendations are now being examined by several federal advisory committees and will go to the administrator for review this summer. If accepted, small changes could begin within a year. —JEFF JOHNSON
raises question about the other guys out there, who may not even know what the regulations are." 1'he state plans to issue draft regulations for two industrial sectors this summer, covering emissions limits and sample certification statements. Fine hopes to be open for business in the fall in a couple of sectors.
Fine noted that much will depend on the regulated community. "Some companies may want to hide out rather than join a new program. With the current system, we spend so much time writing permits that companies know we don't have much time to go out and see if they're in compliance." —JEFF JOHNSON
New Jersey, Southern California programs, agencies face cuts Budget cuts to leading state and regional environmental programs signal difficult times ahead for environmental protection—especially "devolution" of federal EPA authority—environmentalists and others fear. They point to New Jersey, where Republican Gov. Christie Whitman has reduced funding for the Department of Environmental Protection (DEP) by 30% over the past three years, and to Southern California where the South Coast Air Quality Management District (SCAQMD) has cut funding by 15% since 1991 and plans to halve its budget within a decade Both agencies are leaders in exploring new approaches to environmental science and regulation In New Jersey the latest round of cuts, effective July 1, hit many programs. Among them is the Science and Research Division, in which 11 of 28 positions are trimmed, and the Office of Pollution Prevention's facility-wide permitting program, where four of six staff members are eliminated. "There were once more than 70 people in the science division," said Robert Tucker, who led the
division for 10 years and is currently director of the Rutgers University Ecopolicy Center. "It was considered the best overall state environmental science group in the nation." Tucker said the division developed a state right-toknow reporting requirement that is now a national model, a leading-edge state environmental mapping program, the nation's first risk communication program, and the facility-wide permitting program which has issued the nation's first multimedia environmental permits (ES&T Feb 1996 D 72A) "The irony," Tucker said, "is that New Jersey's program is being severely decimated at a time when the federal government is also being downsized. Federal downsizing gives states new opportunities, but there's no way we can step up to the plate in terms of trying to take over federal obligations." NJDEP Commissioner Robert Shinn strongly disagreed with charges that the Whitman administration has reduced the DEP budget by 30% in three years, saying 20% is more accurate. Con-
cerning specific cuts, he said in an interview that funding for seven of the 11 science division positions is not being cut but is being shifted to outside contractors. Concerning Office of Pollution Prevention cuts, Shinn said the layoffs are caused by seniority-based bumping rights among 200 DEP staff, who are being terminated. The pollution prevention staff is hard hit because it has less seniority, but the positions will remain. However, DEP staff, most of whom wished to remain unnamed, said the net impact will be to weaken both programs by terminating experienced employees. They also said the layoffs show a general disregard for the programs' value. The Science and Research Division conducts research across all programs and media and is currently developing New Jerseyspecific environmental indicators for the National Environmental Performance Partnership System (NEPPS). New Jersey is one of five states taking part in the demonstration program, which has been held up as a model of future
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state-federal relationships {ES&T, May 1996, p. 109A). A key part of NEPPS is science-based assessments: setting environmental goals and measuring progress against actual environmental conditions. This research has been conducted by the science division and would be specifically shifted to outside contractors, according to Shinn. DEP staff countered, however, "We can't use contractors to develop a NEPPS plan. Every time we modify the program, we will have to hire them back. Is New Jersey going to have contractors negotiate with EPA over the quality of our assessments?" On the Pollution Prevention Office layoffs, DEP staff said, the result will be to put transferred staff with little industrial permitting experience in charge of an advanced facility-wide permitting program which will result in restructuring and stalling the program In California, SCAQMD has announced a goal of cutting its budget in half within 10 years. The district has already reduced its staff from 1200 to 750 over the past six years. During this time, the district has introduced pollution trading techniques and abatement technologies that are national models. In explaining the rationale for the cuts, district spokesperson Bill Kelly said, "We are a single-purpose air control agency, and we've turned the corner on cleaning the air. We are shrinking down to a maintenance-sized agency. We'll always be here if things change." But Linda Waade, executive director of the Southern California-based, nonprofit Coalition for Clean Air, saw the issue differently. "We've made significant progress, but we still have the dirtiest air in the country," she said. Los Angeles currently exceeds federal air standards one out of every three days, she said—an improvement over four out of five days a few years ago, but far short of the Clean Air Act's goal of air quality attainment by 2010 "Last year the district adopted two out of 28 regulations it had said were necessary to continue to meet pollution goals," Waade said. "We're not going to continue to make progress." —JEFF
NEWS SOCIETY Cities' drive to privatize water treatment may aid environmental businesses Privatization of U.S. wastewater treatment and drinking water supply systems over the next decade is expected to reinvigorate a sagging environmental market. Unlike environmental expenditures by regulated industries for compliance or Superfund cleanups, both of which have been hit by stalled legislation and regulations, water-related spending by cities is predicted to increase. Analysts say municipalities will join with corporations to upgrade equipment introduce new technologies or keep pace with increased demands
An agreement reached last year in which a Franklin, Ohio, water district sold its treatment plant (above) to Wheelabrator Technologies Inc. may be a harbinger of deals to come.
The future may hold more examples like a contract signed last year between Wheelabrator Water Technologies and a Franklin, Ohio, water district to purchase and operate the city's treatment plant and an agreement nearing completion in which Wheelabrator will upgrade and operate a Wilmington, Del., sewage treatment facility for 20 years. Analysts say cities from San Diego, Calif., to Bridgeport, Conn., are looking into privatizing water services. Currently U.S. businesses and municipalities involved in supplying drinking water and treating wastewater generate about $75 billion in annual revenues, according to Robert Anfuso, an analyst with Environmental Business International, Inc., a San Diego, Calif., research and consulting firm. This is expected to shoot up to $96 billion by 2000, he said. Other analysts believe it will go higher. Michael Gigliardo, director of the U.S. Conference of Mayors Urban Water Institute, estimated that spending could reach $200 billion within 10 years, mostly for wastewater treatment. Gigliardo's institute was created a year ago to advise cities on waterrelated matters, one of their most expensive worries. The new interest in this oldest and sleepiest of environmental sectors is being driven by drastic federal cuts to water infrastructure grants public JOHNSON fear of Cryptosporidium-like con-
tamination, declining municipal budgets and aging facilities, new regulations, growing capacity needs, and greater acceptance of "privatization." The way Anfuso sees it, there are 16,000 publicly owned treatment works in the United States, and 1200 are out of compliance. "Now that's a business opportunity. But it doesn't mean much if cities don't have the money." That money, he said, might be provided by private capital looking for a profit through a long-term service contract or an outright purchase. Currently only about 1% of facilities for wastewater treatment and about 15% of water providers are privately owned, Anfuso said. The move to privatization will begin with small steps as mayors and city council members test a system with which they are unfamiliar, said Anfuso and Gigliardo. They face sometimes strong opposition from labor unions and workers worried that cuts will come out of their paychecks and a public that often believes water should remain a municipal service Also restrictive tax codes and provisions in past federal infrastructure grant agreements have made it difficult for municipalities to sell the facilities Some of these limits however have Kopn chanppH or are being rnnsidered for modification Anfuso and Gigliardo said
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