Center for Environmental Finance (CEF)

Introduction: The Environmental Financial Advisory Board (EFAB) of the Environmental Protection Agency (EPA) is chartered under the Federal Advisory Committee Act tprovide advice and recommendations tthe EPA on environmental finance issues, options, ideas, and trends. Created in 1989, EFAB is part of EPA's Center for Environmental Finance dedicated tassisting the regulated community in identifying practical ways of lowering costs and increasing investments in public purpose environmental facilities and services. EFAB is located in the Office of the Chief Financial Officer headed by Sallyanne Harper. The Chair is Robert . Lenna, Executive Director of the Maine Municipal Bond Bank. EFAB's Executive Director and Designated Federal Official is John C. Wise of EPA, Region 9 in San Francisc, California.

Background: At the beginning of each fiscal year, EFAB updates its Strategic Action Agenda, outlining projects that have been completed in the past year and those projects that are either tbe continued or initiated in the coming twyears.

Each citation gives the project title, timeline, lead committee, the Agency's strategic plan goal, and the primary customer tbe served. Given the number, scope, and nature of the issues the Board is considering this year, three kinds of committees will dthe work.

Several issues are considered by the Board acting as a "Committee of the Whole."

Clean Water Action Plan. Robert Lenna, Maine Municipal Bond Bank.

Stewardship of Environmental Resources. John Wise, Environmental Protection Agency.

Corporate Environmental Performance. Linda Descan, Salomon SmithBarney.

International Environmental Finance. Michael Curley, General Trade Assistance.

Sustainable Economic Development on Tribal lands. Joe Young, Forest County Potawatomi Tribe.

Financial Tools Guidebook. Tim McProuty, EFAB staff.

EFAB has four Standing Workgroups:

Brownfields/Smart Growth. Chaired by Evan Henry, Bank of America.

State Revolving Funds. Chaired by Sonia Toled, Lehman Brothers.

Cost-Effective Environmental Management. Chaired by Michael Deane, Independent Consultant.

Emerging Issues. Chaired by Michael Finnegan, J.P. Morgan Securities.

Additionally, there are four Targeted Workgroups:

Environmental State Revolving Funds. Chaired by Stephen Mahfood, Missouri Department of Natural Resources.

Total Maximum Daily Loads Finance Issues. Chaired by Langdon Marsh, Oregon Department of Environmental Quality.

Capital Access for Small Businesses. Chaired by Sarah Diefendorf, Environmental Finance Center, Region 9.

Clean Air Financing Mechanism's. Chaired by Heather Himmelberger, Environmental Finance Center, Region 6.

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Projects Completed in FY 1999:

Stewardship of Environmental Resources. White Paper, February 1999. Full Board.

Review of Coordination Between EPA and the Agency for Toxic Substances Disease and Registry Risk Assessment Programs. Review w/nfurther action, March 1999. Brownfields/Smart Growth Workgroup.

Revisions tthe Guidebook for Financial Tools, done in partnership with the Environmental Finance Center Network. Available on the website at http://www.epa.gov/efinpage/guidebook.htm Report, April 1999. Full Board.

Ways the SRFs Could Assist the Better America Bonds Initiative. Report, June 1999. SRF Workgroup.

Review of Financing Opportunities for the Clean Water Action Plan. Report, June 1999. SRF and Emerging Issues Workgroup. Generic Applications of the Bond Guaranty Fund Concept tInternational Environmental Infrastructure Financing. Report, July 1999. Full Board.

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Ongoing Projects:

Assistance tthe Capital Markets Committee of the National Advisory Council on Environmental Policy and Technology (NACEPT) on the role of the financial services industry in accounting for corporate environmental performance. Liaison Activity, Full Board.

Agency Strategic Goal: Greater Innovation tAddress Environmental Problems

Primary Customer: NACEPT

Advice & Recommendations tthe Office of International Activities (OIA) on the proposed Cooperative Environmental Bond Guaranty Fund and related technical assistance program in the newly independent states of the former Soviet Union. Activity w/OIA, Full Board.

Agency Strategic Goal: Reduction of Global and Cross-Border Environmental Risks

Primary Customer: Office of International Activities

Stewardship: Monitor, Assess Opportunity for Specific Advisories. Internal Report, Full Board.

Agency Strategic Goal: Community-Based Environmental Protection Program

Primary Customer: Office of Water

Encouraging Environmentally and Economically Sustainable Businesses on Tribal Lands. First project - Technical assistance tSt. Regis Mohawk Tribe on financing their environmental laboratory. Report, EFC-2, Full Board.

Agency Strategic Goal: Greater Innovation tAddress Environmental Problems, Indian Program

Primary Customer: Region 2

Advice & Recommendations on Analysis of Potential Superfund/Brownfields Federal Legislation. Letter Report, Brownfields/Smart Growth Workgroup.

Agency Strategic Goal: Better Waste Management, Restoration of Contaminated Waste Sites, and Community-Based Environmental Protection Program

Primary Customer: Office of Solid Waste & Emergency Response

Tax Provisions tEnhance Better America Bonds. Report, Brownfields/Smart Growth Workgroup.

Agency Strategic Goal: Community-Based Environmental Protection Program

Primary Customer: Office of the Administrator

Pace of Lending in the Clean Water Act SRF Program. Draft Letter Report, SRF Workgroup.

Agency Strategic Goal: Clean and Safe Water

Primary Customer: Office of Water

Review of Tax Provisions and Recommendations Affecting Pollution Prevention and Environmental Infrastructure Financing. Report, Emerging Issues Workgroup.

Agency Strategic Goal: Preventing Pollution and Reducing Risk

Primary Customer: Agency

How Financial Structures and Assistance Can Help Meet Federal Clean Air Objectives (e.g., Clean Air Partnership Fund). Report, Emerging Issues Workgroup.

Agency Strategic Goal: Clean Air

Primary Customer: Office of Air & Radiation

Advice & Recommendations on Technical Assistance tthe SBA Metal Finisher's Loan Program in Southern California (coordinated through the Environmental Finance Center in Region 9). Activity w/Region 9, Capital Access Workgroup.

Agency Strategic Goal: Greater Innovation tAddress Environmental Problems, Customer Service Program

Primary Customer: Office of Pollution & Prevention

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New Projects (other projects may be added during the year):

Fee Based Revenues for EPA Operations. Board Review, Full Board.

Agency Strategic Goal: Effective Management

Primary Customer: Office of the Chief Financial Officer

Capacity Development Environmental Finance in NIS & PRC and Appropriations Mechanisms. Consultation, Full Board.

Agency Strategic Goal: Reduction of Global and Cross-Border Environmental Risks

Primary Customer: Office of International Activities

Emerging Opportunity: OIA Convene Conference on International Finance. Letter and EFAB Endorsement. Preliminary Review, Full Board.

Agency Strategic Goal: Reduction of Global and Cross-Border Environmental Risks

Primary Customer: Office of International Activities

Disadvantaged Communities Affordability Issues: Survey of How States are Handling Bench Marking in Other Countries. Report, Full Board.

Agency Strategic Goal: Community-Based Environmental Protection Program

Primary Customer: Office of Water

Security Exchange Commission in Environmental Disclosures. Preliminary Review. Full Board.

Agency Strategic Goal: Expansion of Americans Right tKnow About Their Environment

Primary Customer: Agency

Futures "Environmental Finance." Consultation, Full Board.

Agency Strategic Goal: Effective Management

Primary Customer: Office of the Chief Financial Officer

Consultation on Gap Analysis: Methods tClose Gaps. Consultation, Full Board.

Agency Strategic Goal: Clean and Safe Water

Primary Customer: Office of Water

Continuing Consultation on CWAP: Spin-off New Ideas. Report, Full Board.

Agency Strategic Goal: Clean and Safe Water

Primary Customer: Office of Water

Long-Term Financing Strategy for Clean Water with Scoping. Report, Full Board.

Agency Strategic Goal: Clean and Safe Water

Primary Customer: Office of Water

Comparative Costs for New vs Replacement Drinking Water & Wastewater Treatment Facilities. Preliminary Review, Full Board.

Agency Strategic Goal: Clean and Safe Water

Primary Customer: Office of Water

Tribal/Indian Needs. Preliminary Review, Full Board.

Agency Strategic Goal: Greater Innovation tAddress Environmental Problems

Primary Customer: Region 2

Analysis of Brownfields Legislation with Smart Growth Perspective. Report, Brownfields/Smart Growth Workgroup.

Agency Strategic Goal: Better Waste Management, Restoration of Contaminated Waste Sites

Primary Customer: Office of Solid Waste & Emergency Response

Expand Use and Scope of Tax Incentives for Brownfields. Report, Brownfields/Smart Growth Workgroup.

Agency Strategic Goal: Better Waste Management, Restoration of Contaminated Waste Sites

Primary Customer: Office of Solid Waste & Emergency Response

Federal Bank Reg's Land Use Density Advisory on "Real Estate," Instruments tInfluence Smart Growth, i.e. (Mix-Use Mortgage, Live-Work, Standardization). Report, Brownfields/Smart Growth Workgroup.

Agency Strategic Goal: Community-Based Environmental Protection Program

Primary Customer: Office of Policy & Reinvention

Capacity Development Under the Safe Drinking Water Act. Report, SRF Workgroup, EFC-6, EFC-10.

Agency Strategic Goal: Clean and Safe Water

Primary Customer: Office of Water

Consultation on Clean Water Act Reauthorization. Consultation, SRF Workgroup.

Agency Strategic Goal: Clean and Safe Water

Primary Customer: Office of Water

Cost-Effective Environmental Management: Targeted Focus Group on Critical Issues. Public Meeting, Cost-Effective Environmental Mgmt. Workgroup.

Agency Strategic Goal: Community-Based Environmental Protection Program

Primary Customer: Agency

Capital Financing Access Program for Small Environmental Businesses. Report, Capital Access Workgroup.

Agency Strategic Goal: Greater Innovation tAddress Environmental Problems

Primary Customer: Agency

Clean Air Investment Fund: El PasDel Norte. Consultation, EFC-6, Clean Air Financing Mechanism's Workgroup.

Primary Customer: Office of Air & Radiation

E-SRF "Next Level" Concept Development, Inter-State/Water Basin Financing "How T." Report, ESRF Workgroup.

Agency Strategic Goal: Clean Air, Clean and Safe Water, Preventing Pollution and Reducing Risk, and Better Waste Management, Restoration of Contaminated Waste Sites

Primary Customer: Office of Water

Incentives and Green Taxes for States "Syracuse Study." Report, EFC-2.

Agency Strategic Goal: Clean Air, Clean and Safe Water, Preventing Pollution and Risk, and Better Waste Management, Restoration of Contaminated Waste Sites

Primary Customer: Office of Policy & Reinvention

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Notes:

The strategic action agenda is a flexible planning tool, and occasionally during the fiscal year, it is revised and updated. Any revisions will be shown on the Board's home page at: http://www.epa.gov/efinpage/efab.htm.

The next full Board meeting is March 7-8, 2000 at the National Press Club in Washington, D.C. The primary purpose of the winter meeting is tassess progress with the strategic action agenda and make any necessary revisions theret.

In addition tthe above projects, EFAB members contribute their time tassisting other EPA initiatives, most notably the Environmental Finance Center (EFC) Network. The EFC Executive Directors serve as expert witnesses tthe Board, and along with other experts, they provide key assistance tEFAB. The Board gratefully acknowledges the valuable contribution of its expert witnesses.

The home page for the EFC Network is: http://www.epa.gov/efinpage/efc.htm.

Your comments are important and welcome. Please call or e-mail Vanessa Bowie, EFAB Coordinator, at (202) 564-5186 or Bowie.Vanessa@epa.gov.