EPA - Small Business Ombudsman - SBO Mission and Functions

Established in 1982, the Office of the Small Business Ombudsman serves as an effective conduit for small businesses to access EPA and facilitates communications between the small business community and the Agency. The Office reviews and resolves disputes with EPA and works with EPA personnel to increase their understanding of small businesses in the development and enforcement of environmental regulations. The Office of Small Business Ombudsman is managed by EPA's Office of Policy, Economics, and Innovation.

The SBO's primary customer group is the nation's small business community. Significant secondary customer groups include state and EPA regional small business ombudsmen and national trade associations serving small businesses.

In response to the identified needs of the Office's target customer groups, the SBO has undertaken a variety of major outreach efforts including:

The SBO actively seeks feedback on its responsiveness to small business' inquiries and everevolving needs, primarily in the areas of technical assistance and advocacy. The SBO can "package" relevant information for the most effective and efficient delivery through training seminars, fact sheets, or position papers to a targeted audience.

Individual outreach activities are tracked and reported by the SBO on a monthly basis. Key statistics include numbers and types of hotline calls and written inquiries; nature and results of small business advocacy efforts; and personal appearances at conferences, seminars, and training sessions. Random,informal quality checks of customer satisfaction ensure that program performance meets or exceeds customer expectations.

The SBO also began serving as the Agency's Asbestos Ombudsman in 1986. In this role, the Office focuses on asbestosinschools requirements and handles questions and complaints. Information concerning asbestos management may also be obtained through t he small business tollfree hotline at (800) 368-5888.

The Ombudsman operates a toll-free hotline for the convenience of small businesses, trade associations, and others seeking free, confidential help. A member of the Ombudsman's staff will answer between 8:30 AM and 4:30 PM EST. Message-recording device s for calls during non-business hours and overload periods are provided. All calls are personally handled on a fast turn-around basis. The toll-free hotline number is:

Increases in the number of direct-dial calls and hotline calls (from 4,000 calls per year in the early 1980s to the current level of 1,100 - 1,500 calls monthly) and the associated distribution of technical and informational literature, growth in requests for personal appearances at conferences and workshops, and an expansion in participation in policymaking activities are evidence of the customer groups' confidence in the integrity and proactive stance of the SBO.

The SBO performs a careful review of all proposed regulatory actions published in the biannual regulatory agenda to make a prima facia determination of small business impact. From the agenda, certain proposed regulations are selected that appear to have the potential for adverse impact on small businesses. In 2001, the SBO reviewed, monitored, and participated in more than 30 regulatory actions. In all instances, the SBO endeavored to minimize the requirements (especially reporting and recordkeeping) on small businesses. Equally significant is the level of voluntary compliance with EPA regulations by the small business community as a result of the rapport established between the Ombudsman and trade associations during the developmental phase of the regulations.

The SBO's efforts to assist the small business community continue at a high level. Key accomplishments and ongoing activities 2002 and 2003 include:

KAREN V. BROWN was appointed to the position of Small Business Ombudsman by the Administrator, Lee M. Thomas, on June 24, 1985. On April 4, 1988, she was named the Agency's Asbestos Ombudsman in addition to her Small Business duties. She joined the EPA in 1981 and held a series of management positions, including working with the Administrator, the Deputy Administrator and the Assistant Administrator for Solid Waste and Emergency Response. Previously, she served as a Chemist and Environmental Health Specialist with the Environmental Health Administration of the District of Columbia, Washington, D.C.

She holds a Bachelor of Science Degree from the University of the District of Columbia and has completed graduate work in Environmental Science at George Washington University and a number of special management-type training programs in the past few years.

ELSA BISHOP joined the Small Business Division as a program analyst in May 2002. Elsa is responsible for leading the Division's efforts in the areas of marketing, communication, and education. Some of these efforts include working with the National Compliance Advisory Panel, facilitating Compliance Advisory Panel Training, and organizing the annual Report to Congress. Elsa came to EPA from Florida's Department of Environmental Protection (DEP), where she served as the Small Business Ombudsman and Small Business Technical Assistance Director. In addition to her small business-related duties, Elsa served as the Administrator of the Office of Air Programs Communication & Outreach, and was responsible for media relations, outreach, communication, education, pollution prevention and the "Partnership for Ecosystem Protection (PEP) Program." Elsa also has over twenty years of experience in the environmental field, mostly in private industry. Prior to joining the Florida DEP, she was the Manager of Air Permitting and Programs for the Environmental Affairs Department of the Florida Power & Light Company, and served as Chair of the Florida Electric Power Coordinating Group Air Subcommittee. [Contact: 202-566-2814]

DANIEL EDDINGER joined the Small Business Division as a program analyst in May 2001. Dan coordinates the Division's small business innovation activities, which includes Environmental Management System Workshops and Practical Guide, Environmental Management Plans, Best Environmental Management Practices, and Expert Systems for Small Business. He has over 16 years of environmental management experience, has served as an Army Officer and Senior Environmental Manager with the Nebraska National Guard, and retired from the Army after 26 years of service. Dan was the first Public Advocate for the State of Nebraska Department of Environmental Quality and provided site-visits, technical assistance and Ombudsman services to over 250 small businesses in Nebraska. In 1993, Dan was elected as the first National Chairperson for the Small Business Assistance Program Steering Committee. Dan is a graduate from Doane College with a degree in Human Relations and Biology. Dan is a Vietnam, Combat Infantry vet, and SCUBA Dive Master. [Contact: 202-566-2820]

JAMES MALCOLM, has been a Staff Assistant in the Office of the Asbestos and Small Business Ombudsman (OASBO) since early August 1986. Mr. Malcolm has over 40 years experience in a number of technical programs, which have included support of the NASA lunar landing program, design of a coal conversion plant to produce clean burning fuels, and Halon 1301 fire extinguish agent development, among others. He was previously employed in the Department of Energy, and its precursors, and Headquarters of the Corps of Engineers. His education and experience has been for the most part in Chemical Engineering, and it is in this field that he provides primary support in the OASBO Program. Before joining OASBO, he served as Assistant Director, Research and Development, Laboratory Operations for the U.S. Corps of Engineers.

THOMAS J. NAKLEY joined the staff of OASBO in May 1995 as a Staff Assistant and provides assistance on water related matters and other issues. Mr. Nakley is a Civil Engineer with over 30 years of experience in civil and hydraulic engineering (Army Corps of Engineers, Tippetts-Abbett-McCarthy-Stratton, Federal Energy Regulatory Commission); pressure vessel, environmental and water studies related to coal conversion plants (Department of Energy); support of the environmental restoration and waste management program of the Department of Energy (Belfort Engineering and Environmental Services, Inc.); and project management for submersible vehicles (Navy Department). He holds a B.E. degree in Engineering and a M.S. degree in Environmental Systems Management.

ANGELA SUBER joined the Small Business Division as a program analyst in January 1999. She has over twenty-five years of experience working with EPA. Angela serves as the Chief of Staff and coordinator for the Division's outreach, information and assistance activities. She is also responsible for managing the Division's budget needs and making recommendations on projects that will increase compliance assistance and incentives to the small business community. Prior to joining the Small Business Division, Angela served as Special Assistant to the Director of the Office of Regulatory Management and Information. She has also worked as a desk officer for regulatory activities developed within the program offices, was involved in managing and improving the Agency's regulatory development process, and providing analytic support to senior management and staff on regulatory management issues. [Contact: 202-566-2827]

LARRY O. TESSIER, P.E., joined OASBO in December 1991 as a Staff Assistant and provides assistance to the Ombudsman on asbestos, lead, and radon relating to schools, homes and buildings. Mr. Tessier is a Civil Engineer with over 40 years of experience in the petroleum, chemical and transportation industries. He has been involved in construction, maintenance, logistics, marketing, small business consulting and brokering and has extensive experience in hazardous materials packaging, storage, and transportation.

CATHERINE TUNIS joined the Small Business Division as a regulatory impact analyst in June 2002. Catherine will work on small business issues in the areas of performance measurement and environmental performance assistance. She has been with the EPA since 1987, and most recently worked on the Performance Track Program and managed the New Jersey Chemical Industry Project. Her work at EPA has included project management and stakeholder relations, related analysis on environmental risk assessment and priority-setting, strategic planning, budgeting, and American Indian policy. In addition, she has worked in EPA's Office of Water and Region 8. Before coming to EPA, Catherine was employed at the US Forest Service and Resources for the Future. She earned a BA degree in Science Education with majors in Biology and Chemistry and minors in Physics and Earth Science from Kean College in New Jersey. She has a master's degree in Forestry and Public Policy (ABM) from Duke University. She has completed the US Office of Personnel Management's Executive Potential Program. [Contact: 202-566-2830]

An Ombudsman is an objective problem resolver, an independent and objective source of reliable information for the general public or a specific public (Like the small business community). The current Asbestos and Small Business Ombudsman (ASBO) is Karen V. Brown.

The EPA ASBO serves as the liaison for the small business community in the development of Agency regulations and standards, communicating the needs and concerns of affected small businesses to the Working Groups writing regulations.

The ASBO or her representative serve on a number of Working Groups. During the regulation development process, the ASBO carries on a dialogue with the working group regarding the impact or potential impact of the proposed regulation.

When the notice of proposed rulemaking is published in the Federal Register, the ASBO alerts appropriate trade associations and proprietary business organizations that the Agency is requesting comments on the proposed regulatory action. We urge them to respond as this is the appropriate time to express themselves for the record.

Why do small businesses need an Ombudsman? Can't they read the Federal Register themselves?

They can, but probably not one in 500 "Main Street" type small businesses are familiar with or subscribes to the Federal Register.

What action does the OASBO take following the publication and comment period?

We analyze the response to the Docket to determine common concerns of small business. We also analyze the Regulatory economic Impact Studies (if any) to determine the extent of impact on our constituency and reconcile these impacts with the comments to the Docket.

At this point, we serve as an advocate for legitimate small business issues and attempt to ameliorate the impact to the extent possible considering the potential environmental consequences. We have found the Working Groups to be reasonably concerned with the problems of small businesses and willing to make changes and modifications to remedy serious problems.

What follows after the Regulation is published in final form in the Federal Register?

We work to bring about 100 percent voluntary compliance. For example, we go back to the same associations and organizations and ask them to cooperate to get the word out on new regulations and urge their members to comply. If they (members) need information on how to comply, where to go to get help, etc., they are asked to call the ASBO's Hotline ((800) 368-5888).

Yes, in increasing numbers they are calling to get information on (among others):

Inquiries via letter and telephone are coming at the rate of approximately 1,500 per month. Most of them seek information that will enable compliance with a regulation.

If you can put a dollar value on voluntary compliance, it is. In fact, cost savings are tremendous. Enforcement and legal action are expensive and should be saved for major polluters. The cost of one or two lengthy legal actions could exceed the entire cost of maintaining the Small Business Ombudsman function.

The Offices main objective is to promote an atmosphere between the agency and the regulated small business community that will enhance Voluntary Compliance with our regulations. We think we have been successful to this end.

How many regulations does the Asbestos and Small Business Ombudsman track, review, and analyze?

We do a cursory review of all proposed regulatory actions published in the biannual regulatory agenda to make a prima facia determination of small business impact. From the agenda, certain proposed regulations are selected that appear to have the potential for adverse impact on small business. During the past year, we have reviewed, monitored and participated in more than 30 regulatory actions with some significant degree of intensity. In all instances, we have endeavored to minimize the requirements (reporting and recordkeeping especially) on small business. In at least eight to ten instances, we have made what we consider significant input which has resulted in a tangible benefit to the small business community.

Equally significant is the level of voluntary compliance with EPA regulations by the small business community as a result of the rapport established between the Ombudsman and the trade associations in the developmental phase of the regulation. While it would be difficult to place a dollar value on this increased level of voluntary compliance, it would be significant in comparison to the relatively low budget ombudsman function (less than $200,000 total).

The ASBO staff consists of four senior environmental personnel who assist the Ombudsman with inquiries from small businesses needing information to comply with Agency regulations.

The Offices hotline receives up to 1,500 calls per month for small businesses seeking help with many issues. In addition, EPA published in its March 1988 Journal a review of the Ombudsman function as an indicator of our public recognition.

IFRA, RCRA, CERCLA, NEPA. Do these and the many other environmental rules and regulations have you confused?

You'll reach Karen Brown, small business ombudsman for the United States Environmental Protection Agency (EPA). It's Brown's job to facilitate communication between the EPA and small business owners such as NFSA dealers.

Brown, in turn, calls on a staff of individual experts, including three engineers and an economist, to answer specific questions. There's a chemical engineer to handle toxic substances and hazardous materials concerns; a civil engineer dealing with asbestos, radon and air pollution; and a mechanical engineer to answer questions regarding waste water and pollution problems.

EPA's staff economist assists with general regulation matters. "We want to ensure the public has access to all the EPA rules and regulations that affect them," says Brown. "We're an information source as well as a facilitator for regional programs for environmental compliance."

Dealers looking for funds to expand or remodel fertilizer and pesticide facilities can also turn to the EPA hotline for information or assistance. Even when an agricultural facility looks good on paper, many lenders are balking at funding such projects due to liability concerns. This has been the experience of several NFSA members trying to finance updated bulk fertilizer and chemical handling facilities recently.

The Small Business Administration (SBA) 7(a) loan program might provide the necessary financial assistance, suggests Brown. This program provides loans of up to $1 million to businesses with fewer than 500 employees that meet their criteria.

For information on this program, start with the EPA hotline. They'll provide the address and phone number of the nearest SBA field office to call for an appointment.

In all, the EPA hotline handles over 1000 calls per month on issues as diverse as hazardous waste disposal, pesticide registrations and toxic inventory release reports. Specifically pertaining to agriculture, inquires to the tollfree number have covered underground storage tank notification, waste minimization and registration fee schedules. Most inquiries seek information to aid in compliance with specific regulations.

The office also serves as an advocate for small businesses facing EPA regulations and works towards voluntary compliance with existing rules. Cursory reviews of all proposed regulatory actions impacting small businesses are performed by this office and, in at least eight to ten instances, the ombudsman has made significant input benefiting small businesses.

By the way, FIFRA is the Federal Insecticide, Fungicide and Rodenticide Act. It provides for registration, labeling, distribution and use of pesticides. RCRA stands for Resource Conservation and Recovery Act, establishing national standards for hazardous waste management. This includes generating, transporting, storing, treating and disposing of hazardous waste.

NEPA is the National Environmental Policy Act, which serves as the charter for environmental protection. It established the Environmental Protection Agency to make policy, set goals and provided a means for carrying out policy.

The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), also known as Superfund, deals with the cleanup of contaminated sites.

So next time you've got an environmental or regulatory question, call the EPA at (800) 368-5888. It's toll-free and confidential.

by Karen V. Brown

The classification of the drycleaning industry and automotive service shops as potential generators of hazardous waste profoundly shocked thousands of small "Main Street" business proprietors, many of whom represent second and third generation owners of familyoperated businesses. For the most part they grew up in the business, learning their trade from fathers, relatives, or friends. They work long hours doing everything from sweeping the floor to bookkeeping.

A typical owner of a drycleaning establishment must not only operate the huge cleaning and drying machines, the washer/dryers and finishing equipment, but also does the tagging, garment spotting, garment repair, and/or alterations along with cash accounting, tax reporting, buying, hiring, firing, deliveries, etc. The typical proprietor works 10 to 12 hours a day, grosses $150,000 per year, employs six people, and (after salaries and expenses) makes a profit of $5,000 to $7,000 annually.

Automotive repair shops and servicestations boast an even greater range of diverse responsibilities that occupy the owner/operator from dawn to dusk and often beyond. Their profit margin is usually less than $6,000 per year, and the average workday exceeds 12 hours.

It is against this backdrop of long hours of labor and marginal profits that the small business community received the news that some of them might now be subject to new federal environmental regulations. One can well appreciate their reluctance to assume another reporting responsibility along with the higher costs of liability insurance that follow the designation "generator of hazardous wastealbeit small in quantity. Any new and unforeseen expenditure to comply with environmental regulations would have to come from current revenues or directly out of the owner's pocket.

These and other business entities falling under the new regulatory umbrella began to seek out answers to their questions and help with their problems. The Small Business Ombudsman's tollfree hotline began to ring and ring and it's been ringing ever since! The small businessman wants to know, is my company a small quantity generator? What wastes are hazardous? What regulations apply to me? What must I do to comply? Where can I get help and more information?

Of course, the Resource Conservation and Recovery Act (RCRA) isn't the only federal environmental legislation affecting small business. The Ombudsman's Office has provided assistance to hundreds of businesses and industries affected by water quality standards under the Clean Water Act, drinking water testing requirements authorized by the Safe Drinking Water Act, and automotiveimport emissioncontrol requirements and conversions under the Clean Air Act, to name a few.

During a week, the Small Business Ombudsman (SBO) may receive requests for information and assistance from placar gold mines, photo finishing companies, metal finishing companies, pesticide formulators, waste recyclers, laundries, dry cleaners, service stations, muffler installers, meat packing houses, chicken farms, poultry processors, hot springs mineral spas, paint stores, chemical plants, hospitals, and drug stores. A number of these enterprises are required to comply with several environmental acts and numerous federal regulations.

For example, one such enterprise is agribusiness--which often includes formulation and application of farm chemicals, grain warehousing, storage and sale of petroleum products, livestock buying stations, and general farmrelated commercial sales. A typical agribusiness could be regulated under RCRA as a generator of hazardous waste and as an operator of underground storage tanks for petroleum and chemical productsthe Superfund Amendments and Reauthorization Act (SARA) of 1986, which requires community RighttoKnow reporting; the Clean Water Act, which regulates liquid wastes, livestock feed lots, organic chemical production, etc; the Clean Air Act regulating atmospheric emissions from chemical and fertilizer production, grain drying (blowers), etc.; the Toxic Substance Control Act (TSCA) requiring compliance with reporting toxic chemicals and premanufacturing product notices; and, the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) requiring pesticide registration and approval, applicator training and certification, and worker protection standards for commercial farmers.

In addition agribusinesses would be subject to any future Agency regulation on used oil, fuel additives, and "user charges" for pesticide registrations, and waste minimization requirements among others. The agribusiness sector is not atypical. Hundreds of small businesses and industries are subject to multiple environmental acts and regulations. The typical "Main Street" dry cleaner may be impacted by provisions of RCRA, CWA, and CAA while the vehicle repair shops are subject to the same Acts along with guidance on brake asbestos exposure under the authority of the TSCA. The list goes on.

Considering that only a handful of these tens of thousands of business entities has ever heard of the Federal Register, the government's traditional means of outreach, and that fewer than half of them belong to national trade associations, EPA must greatly expand its efforts to get the word out. Effective educational outreach is imperative because, with the numbers of entities involved, voluntary compliance is an absolute necessity if the Agency is to achieve its environmental goals!

Though environmental consideration may be a burden on the entrepreneurial spirit, EPA pledges to work with small businesses to make the nation--and the small business workplace--safer and more salubrious than ever.

Considering the Impacts

The regulatory Flexibility Act of 1980 requires federal agency decisionmakers to take into account the affect of regulations upon small businesses before choosing among regulatory alternatives. "Regulatory impact analyses," which are performed for most major regulations, often include a discussion of effects on small businesses, and arguments for or against relaxing controls for some or all categories within the affected industries. However, impacts on small business are almost always weighed against relaxing controls for some or all categories within the affected industries. However, impacts on small business are almost always weighed against estimates of the environmental benefits that would result from imposing controls on these entities. Consequently, small businesses in different industries can end up being treated differently. For instance, when the effluent guidelines for metal foundries were promulgated, magnesium foundries were exempted from regulations and some iron foundries received reduced controls. On the other hand, the effluent guidelines formulated for the electroplating industry did not include any exemptions, even though most of this industry is composed of small plants.

SBO Mission and Functions

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by Karen V. Brown

Considering the Impacts