Promoting Innovative Environmental Technologies

EPA’s New ‘Path Forward’ Strategy

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March 30, 201212:00 – 1:15 PM EST

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Introduction of Topic

Meet Today’s Featured Presenter

Main Presentation

Audience Question & Answer

Contacts

Today’s Agenda

Webinar Overview

Environmental Technology & U.S. EPA

History and Current Landscape

Opportunities

Challenges

Introduction of Topic

Marianne L. HorinkoPresident, The Horinko Group

Former U.S. EPA Acting Administrator

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

Main Presentation Outline

Background

Previous Initiatives – the context

2011 Strategy

Related Developments

Comparing “Now” and “Then”

What’s Next?

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

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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

Background (Cont.)

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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

Previous Initiatives

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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

Previous Initiatives (cont.)

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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)

Previous Initiatives (cont.)

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– 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

Previous Initiatives (cont.)

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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”

Summary of Previous Initiatives

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Funding agent +

Technology developer +

Regulator/enforcer ++

Information broker– Neutral ++– Verification agent ++

Partner in deployment +

User of “first resort” +

EPA Roles in Environmental Technology Marketplace

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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?

2011 Strategy – Prelude

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“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

Prelude (cont.)

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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

Prelude (cont.)

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“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

2011 Strategy – Overview

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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)

Overview (cont.)

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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

Overview (cont.)

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Institutionalize technology “conscience” by –

1. 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

2011 Strategy – Content

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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

2011 Strategy – Content

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3. 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

2011 Strategy – Content

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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

2011 Strategy – Content

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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

Related Developments

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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 Vicoryalan.vicory@stantec.com

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”

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Developments (cont.)

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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”

“Now vs. then…”

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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

“Now vs. then…” (cont.)

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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

EPA Roles in Environmental Technology Marketplace

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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

Possible Next Steps

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!

ContactsFeatured Presenter

Walter KovalickFounder, 8th Avenue ConsultingFormer Director, EPA’s Office of Technology InnovationE-Mail: 8thavenueconsulting@gmail.com

Partner

The Horinko GroupContact: Marianne Horinko, PresidentE-Mail: info@thehorinkogroup.org

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