Oregon Green Permits Program

The Oregon Department of Environmental Quality (DEQ) has developed a voluntary, incentive-based program to reward facilities that go beyond compliance and achieve superior environmental performance. The 1997 Oregon Legislature authorized DEQ to issue Green Permits that may waive regulatory requirements and provide other benefits for facilities within this "performance track".

Program Description
A Green Permit modifies regulatory requirements after a facility has demonstrated that it can meet certain requirements. Rules adopted in 1999 require a facility to: (1) demonstrate that they have achieved or will achieve superior environmental performance, (2) develop a public performance report and (3) plan and implement a program for ongoing communication with interested stakeholders to provide input into the facility's environmental program. A "tiered" approach offers different types of Green Permits, in which increasing performance receives increasing benefits.

"Green Environmental Management System Permits", or GEMS Permits, require the implementation of a formal environmental management system to achieve results. Three types of GEMS permits may be issued--ranging from the entry-level Participant permit to the highest level Leader permit--to allow a wide range of participants in the program. Benefits include public recognition; enforcement discretion that focuses on the environmental management system to continually improve performance; technical assistance as requested by the facility; and regulatory modifications or efficiencies through consolidated reporting, flexible permits, and other waivers requested by the facility. The GEMS Leader Permit rewards demonstrated leadership in applying sustainable development principles to the environmental life cycle aspects of a facility's activities, products and services.

"Custom Waiver Permits" allow limited waivers of regulatory requirements if the waiver is needed to help the facility perform significantly better than otherwise required. Custom Waiver Permits do not require an environmental management system, but they do require annual performance reports and ongoing stakeholder involvement.

Program Status
DEQ's Green Permits Guidance Manual explains the mechanisms of the Green Permits program (available upon request or at the web address below). Three GEMS Achiever Permits (the middle tier) have been issued to LSI Logic, Louisiana Pacific Corporation, and Epson Portland Inc. Three more applications are under review (Oregon Air National Guard Kingsley Field, Wacker Siltronics, and PacifiCorp). More than a dozen additional facilities have expressed serious interest in the program. Facilities may apply to the program at any time, and acceptance will be based on the facility's compliance history and readiness toward meeting the requirements of the Green Permit, and availability of agency staff resources to develop and administer the Green Permit.

The program is funded through cost recovery, where the applicant submits a $5000 deposit with their Green Permit application. During the permit application process, the agency estimates a budget and may require additional cost recovery funds to cover agency expenses in reviewing, developing, administering and monitoring the Green Permit. the actual cost will vary with each facility. After the Green Permit is issued, DEQ staff implement requested incentives, such as recognition, consolidated reporting and enforcement discretion. The 2001 Oregon Legislature amended the Oregon Pollution Control Facilities Tax Credit Program to include a tax incentive for facilities that have a Green Permit, have an environmental management system that is certified as meeting the ISO 14001 standard , or have an equivalent environmental management system.

Lessons Learned
Broad input: The program began with focus groups in 1995, involving hundreds of people throughout the development and implementation of the program. Outreach methods included frequent mailings, meetings and other conversations. Potential participants, non-governmental organizations, agency staff, EPA staff, and other interested persons were invited to participate at all phases of the program. Frequent communication is essential to success.

Collaboration: DEQ has established a close working relationship with EPA that implements the program through a problem-solving approach. A formal Memorandum of Agreement clearly defines the roles and responsibilities of the agencies. These partnerships, along with a broad cross-media approach, effect a culture change that focuses on outcomes rather than administrative details.

Teamwork: DEQ and EPA have assigned cross-media teams to work with the applicants and develop a holistic approach to the facility's environmental performance. Key staff have been appointed as "single points of contact" to facilitate dialogue among the players.

Balance of Certainty and Flexibility: The program elements have enough detail to assure participants of some degree of certainty, thereby lowering transaction costs, while allowing for flexibility in individual circumstances.

4/8/03

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