Promoting Innovative Environmental Technologies EPA’s New ‘Path Forward’ Strategy

1. March 30, 2012 12:00 – 1:15 PM EST Promoting Innovative Environmental TechnologiesEPA’s New ‘Path Forward’ Strategy In partnership with Hostedby

2. About This Webinar Recording Available Following today’s webinar, a recording will be made available on Vita Nuova’s website at www.vitanuova.netand linked to from The Horinko Group’s website at http://www.thehorinkogroup.org. Download Presentation A PDF version of today’s slideshow will also be available on both websites following the conclusion of today’s webinar. Submitting Questions Audience members can submit questions to the presenters throughout the webinar using the chat feature within the GoTo Meeting toolbar.

3. Webinar Overview Today’s Agenda • Introduction of Topic • Meet Today’s Featured Presenter • Main Presentation • Audience Question & Answer • Contacts

4. Introduction of Topic Environmental Technology & U.S. EPA • History and Current Landscape • Opportunities • Challenges Marianne L. HorinkoPresident, The Horinko Group Former U.S. EPA Acting Administrator

5. Meet Today’s Featured Presenter Walter W. Kovalick, Jr., Ph.D.Founder, 8th Avenue Consulting Former Director , Office of Technology InnovationU.S. Environmental Protection Agency

6. Main Presentation Outline • Background • Previous Initiatives – the context • 2011 Strategy • Related Developments • Comparing “Now” and “Then” • What’s Next?

7. Background • Name of policy document: “Technology Innovation for Environmental and Economic Progress: An EPA Roadmap” • Oct. 27th – Issued by the Deputy Administrator as a game plan for EPA to foster environmental technology commercialization • Product of 18 month effort by career staff with leadership from three political appointees – AA for research, AA for policy, and Chief Financial Officer

8. Background (Cont.) • Most implementation is still pending, but several specific activities are imminent • Documents and references cited in this briefing available on the Vita Nuova web site

9. Previous Initiatives • 1995-96 • Clinton Administration created Environmental Technology Initiative • $136M funding over two years to facilitate technology innovation • Managed by AA for Policy • ½ all funds had to be spent with/through other Federal agencies • Projects in four areas • Policy/ Regulation • Assistance for Technology Developers • Strategic Funding • Domestic/International Diffusion • Internal Innovative Technology Council created for coordination

10. Previous Initiatives (cont.) • 2003 In response to Congressional committee request to rationalize EPA’s technology presence: • Website consolidated EPA technology related programs • Environmental Tech Council (ETC) set priorities and sponsored Action Teams to facilitate various stages of technology commercialization (from research thru demo) • ETC commissioned review of EPA’s role in technology commercialization by external group: National Advisory Committee on Env. Policy and Technology

11. Previous Initiatives (cont.) • 2006-2009 • Three NACEPT Advisory Committee reports to the Administrator • First two reports’ recommendations included: • Organizational--affirming a Senior Environmental Technology Officer • Partnering with Feds/States/Private sector • Encouraging Market Demand via permits, enforcement, SEPs, preferred purchasing • International diffusion thru EPA involvement in int’l standards, verification, partnering with other overseas Feds. • Focus on EPA roles in climate change technology challenges • Embrace technology continuum (next slide)

13. Previous Initiatives (cont.) • 2006-2009Third NACEPT report: focused on EPA connections to VC community including – • Drive market for climate change with long-term regulations • Engage early stage investment community Plus additional recs: • Strengthen financial support – loans, grants • Streamline permitting for commercial scale up • Enforce regs consistently • Support metrics including a verification program plus other recs related to market definition

14. Summary of Previous Initiatives • Both Administration and career led • Until recently, focused on funding and regulatory role of EPA • No statutory or programmatic drivers – with exceptions (e.g. demo programs for Superfund and small drinking water plants, diesel retrofit grants) • No organizational locus or on-going budget commitment • More of a mission/policy “supplement” than mission “necessity”

15. EPA Roles in Environmental Technology Marketplace • Funding agent + • Technology developer + • Regulator/enforcer ++ • Information broker • Neutral ++ • Verification agent ++ • Partner in deployment + • User of “first resort” +

16. 2011 Strategy – Prelude The kickoff – Administrator Jackson in April 2010: • National Press Club – “Innovation is the ‘sweet spot’ where our economic and environmental interests meet….America is home to a world-leading environmental technology industry.” • Assn. of Metro. Water Agencies – “…our (drinking water) system is deeply stressed; our financial and our natural resources are limited; and our needs are not negotiable.” So, what do we do?

17. Prelude (cont.) • “I believe our answer lies in innovation—innovation in the ways we approach drinking water management, and innovation in the technologies we employ”: • Address water contaminants in groups • Engage innovators, entrepreneurs, and small businesses to improve DW technologies • Leverage (other authorities—pests. and chemicals) to pre-empt DW contaminants • Share up-to-date info with states/locals on monitoring and analysis

18. Prelude (cont.) • Follow on: • EPA Science Policy Council (senior career members: HQ and regions) • Renamed Science and Technology Policy Council (STPC) • Tasked to develop a road map for the future • Overseen by AAs for Research, Policy, and Chief Financial Officer • STPC work group from across Agency; many ideas incorporated from previous work • Approved and issued by Deputy Administrator 10/2011

19. 2011 Strategy – Overview • “Technology Innovation for Environmental and Economic Progress – An EPA Roadmap” embraces: • Environment and economy • Partnering • Seamless engagement of policy with finance, R&D, commercialization, and more sustainable approach • Special attention to role of private capital markets— new EPA engagement

20. Overview (cont.) • Strategy recognizes several classes of current and emerging technology opportunities: • Specific technologies for straightforward problems (e.g. improved monitoring devices) • New technology for significant problems (e.g. indoor air in schools) • Major technology development initiatives (e.g. carbon capture storage) • Technology for a future state—”game changing” vs. incremental (e.g. fertilizer from bio solids)

21. Overview (cont.) • Main objectives: • Design policies/regs/stds./permits to leverage innovation • Catalyze technology development/ commercialization/finance thru partnerships • Stimulate cross-agency development/ commercialization of break-through technologies • Organizational recs include hiring of Senior Env. Tech. Officer/Steering Committee/ Agency-wide “network”/establish ”finance” point of contact

22. 2011 Strategy – Content • Institutionalize technology “conscience” by – • Incorporate innovation in basic processes of Agency: • Agency policy statement re: innovative approaches • Highlight “technology push” language in reg. pkgs. • Leverage state/tribal grant funds • Exploit Supplemental Env. Projects under enforcement • Review voluntary programs for innovation opportunities • Conduct pilot innovative tech/market assessments for two regs

23. 2011 Strategy – Content 2. Develop new relationship with technology development and finance communities: • Issue annual list of priority needs and regs with technology challenges • Conduct an “opportunities conference” with technology developers and finance communities, more later • ORD create new verification partnership and dedicate staff at each lab to help promote innovation

24. 2011 Strategy – Content • Work with Fed/state/local govt. to speed institutionalization and leverage resources: • Reach out regularly to state orgs. (ECOS) and other natl. orgs of states/locals on innovation • Execute MOUs and cooperate with other Feds (DOE, Commerce, SBA) on 1-3 significant environmental problems needing solutions—use ”OPM” • Work with GSA/others to solicit products to solve discrete environmental problems in order to help developers acquire financing for Fed. market

25. 2011 Strategy – Content 4. Facilitate public-private partnerships that bring new technologies to the marketplace: • South Coast/CA Technology Initiative • Water Technology Innovation Cluster more later • Commerce’s Green Technology Innovation Centers • Chief Financial Officer engagement with VC • Explore “open innovation” for new technologies 5. Develop strategy to exploit export promotion authorities

26. Related Developments Policy/Legislation • E.O. 13563—1/21/11 requires review schedule for regs; EPA’s response includes criteria related to innovative technology promotion • America Competes Reauthorization Act – 2010: Authority for Feds to promote technology innovation and award prizes • “Open innovation” movement in private and public sector with prizes – www.challenge.gov and OMB policy

27. Developments (cont.) Implementation • Water Technology Innovation Cluster • Convened by EPA, now led by consortium • Based on the “cluster” concept--in South Central Ohio, KY, IN; 14 months old • Endorsed by Administrators of EPA & SBA • Four areas for water technology development support • Testing sites • Interface with several states leading to joint recognition • Technology policy forum with EPA • Business advisory council • See www.watercluster.org ; contact Alan Vicory alan.vicory@stantec.com

28. Developments (cont.) • Technology opportunities conference • May 14 at American Univ. in DC • Bringing vendors and finance interests together • Covering three “problem” topics: • Fence line air toxics monitoring • Automotive supply chain • Biogas/biodigesters for energy • EPA has collaborated with NSF to “nest” its small SBIR program within the huge NSF one to assure more awards – leveraging has been “piloted”

29. “Now vs. then…” • Operational “imperative” – too many pollutants to regulate seriatim • Statutory/Administration permission to innovate • Political and career support aligned • Strategy is concerned with institutionalizing, not just “programs” • Appointment of organizational “lead” imminent? – senior entrepreneur • Collaboration and leveraging are recognized as “key”

30. “Now vs. then…” (cont.) Although… • Budget context couldn’t be worse • It’s month 39 of the Administration • EPA’s brand continues to be the regulator vs. innovator – inside and outside • EPA staff/culture need to be mobilized

31. EPA Roles in Environmental Technology Marketplace • Funding agent/partner ++ • Technology developer + • Promotion thru regs/enforcement +++ • Information broker • Neutral ++ • Market identification ++ • Verification agent + • Partner in deployment ++ • User of “first resort” +1/2

32. Possible Next Steps • Public announcement of (elements of) strategy • Actions tied to May conference • WTIC “rollout” in 2012 • Announcement of SETO • Visible engagement in joint programs with DOE, Commerce and others • Selected proposed regulations with a “stated” technology interest

33. Audience Q&A Submitting Questions Audience members can submit questions to the presenters using the chat feature within the GoTo Meeting toolbar. We will answer as many questions as time permits. Thank you!

34. Contacts Featured Presenter Walter KovalickFounder, 8th Avenue ConsultingFormer Director, EPA’s Office of Technology InnovationE-Mail: 8thavenueconsulting@gmail.com Partner The Horinko GroupContact: Marianne Horinko, President E-Mail:info@thehorinkogroup.org Visit http://www.thehorinkogroup.org/ to download past webinars, register for upcoming webcasts, sign-up for our monthly newsletter, and RSS Feed Thank you for joining us! Host Vita Nuova Sustainability Webinar SeriesE-Mail: info@vitanuova.net with feedback and for continuing education credits Visit www.vitanouva.net to download the webinar recording/presentation and register for upcoming webcasts