Michigan Factsheet

EPA

State Innovation Grant Program: Michigan
Environmental Results Program (MERP) – Dry Cleaning Sector
(2004 Competition)

The State Innovation Grant Program
In 2002 EPA introduced the State Innovation Grant Program to support
efforts led by state environmental agencies to test innovative approaches
for achieving better environmental results and improved efficiency in
permitting programs. Between 2002 and 2007, the State Innovation Grant
program competition awarded over six million dollars to support 35 state
projects that test permitting innovation for a variety of regulated entities
including several small business sectors. A summary of the awards by year
appears in the table below.
State Innovation Grant Program Statistics, 2002-2007
Competition
Year

Proposals
Submitted

Proposals
Selected

Total Program
Funding ($)

2002/2003

29

6

$618,000

2004

33

9

$1.425 Million

2005

26

7

$1.479 Million

2006

25

6

$1.243 Million

2007

17

7

$1.611 Million

Cumulative
Total

130

35

$6.376 Million

“Innovation in Permitting” has been the theme of the State Innovation Grant
competition since its inception. In the last three competition cycles states
received awards for projects in the following three categories:

• The Environmental Results Program (ERP) is an innovative
approach to improving environmental performance based on a system
of the interlocking tools of compliance assistance, self-certification
(sometimes, where permissible, in lieu of permitting), and
statistically-based measurement to gauge the performance of an entire
business sector. The program utilizes a multimedia approach to
encourage small sources to achieve environmental compliance and
pollution prevention. (See: http://www.epa.gov/permits/erp/)

• Environmental Management System (EMS) is a system involving a
continual cycle of planning, implementing, reviewing and improving the
processes and actions that an organization undertakes to meet its
business and environmental goals. EMSs provide organizations of all
types with a structured system and approach for managing
environmental and regulatory responsibilities to improve overall
environmental performance and stewardship.
(See: www.epa.gov/ems/info/index.htm)

• Performance Track is a partnership that recognizes top
environmental performance among participating US facilities of all types,
sizes, and complexity, both public and private.
(See: http://www.epa.gov/performancetrack/)
NCEI has provided awards also for projects testing watershed-based
permitting, and for permit process streamlining in past competitions. For
more information on the history of the programs, including information on
solicitations, state proposals, and project awards, please see the EPA State
Innovation Grants website at http://www.epa.gov/innovation/stategrants

Project Background:
The dry cleaning industry in the U.S. is subject to
both federal and state environmental regulations
pertaining to air, water, and solid and hazardous
waste generation. In recent years, the Michigan
Department of Environmental Quality (MDEQ)
regulatory divisions recognized a need to work more
closely with their local dry cleaning industry to
improve understanding of and compliance with
environmental regulations, especially monitoring,
record keeping and waste characterization
requirements. So in 2004, MDEQ applied for and
received State Innovation Grant Program funding
from the EPA to create a multi-media Environmental
Results Program (ERP) focused on the dry cleaning
sector. The grant for this program is anticipated to
run through December 2008.

Project Description
Since receiving the State Innovation Grant, MDEQ
has partnered with EPA Region 5, local trade
associations (Michigan Institute of Laundering and
Dry Cleaning and the Korean Drycleaners
Association of Michigan), and the major dry cleaning
supplier in the state to develop and implement the
ERP. The resulting program, Michigan Environmental
Results Program (MERP), combines air, water and
waste requirements for the dry cleaning sector into a
multi-media, self-certification, and compliance
assistance package, with a statistically valid
performance measurement system. MDEQ has
worked with hundreds of small businesses in the dry
cleaning sector to implement MERP, which is
currently being piloted as a voluntary program.
MDEQ has taken a multi-media approach in
preparing educational and outreach materials for
MERP by addressing pollution prevention, solid and
hazardous waste generation, and air and water

pollution at dry cleaners. MERP materials include fact
sheets, a workbook for guidance on how to complete
the self-assessment checklists (in Korean and
English), and other compliance assistance tools.
MDEQ has provided additional training through industry
workshops, which were conducted in the same time
frame as self-assessments. To supplement the
industry workshops offered, MDEQ also created an
alternative on-line self-assessment tutorial to aid
industry members who did not participate in the
traditional workshop. These tools and processes will
be available as models for other states.
Implementation of MERP begins with an initial
compliance inspection assessment by MDEQ of a
randomly selected group of dry cleaners to determine
their baseline compliance rate. MDEQ then provides a
self-certification checklist and outreach materials to
participating dry cleaners, which they must complete
and submit to the agency. If a dry cleaner determines
it is out of compliance, the facility must also submit a
return to compliance (RTC) plan to MDEQ; and correct
the compliance problem(s) identified in the RTC plan
as soon as possible. The agency then conducts
inspections at a second set of randomly selected
facilities to measure changes in the group’s
compliance performance over time and gauge MERP’s
success. Both the baseline and follow-up inspections
are multi-media inspections.
The MERP is expected to produce a number of
benefits to the state and the Michigan dry cleaning
sector, including:
• A greater level of continuous compliance;
• Increased compliance rates resulting in a

reduced environmental and public health

exposures to toxic substances;

• Minimized traditional inspection times through
the use of multimedia compliance and
enforcement tools, and
• Enhanced levels of compliance assistance to all
facilities so that each facility is aware of its
compliance status.

Overall, this program empowers the owners of dry
cleaning establishments to become more
knowledgeable about their compliance requirements,
and better understand how they can reduce pollution
from their operations.

Connection to EPA’s Goals
This program directly supports EPA’s Strategic Goal
#5, focused on compliance and environmental
stewardship, by promoting an innovative approach to
improve compliance and pollution prevention. It also
supports several Cross-Goal Strategies through
exploration of improved compliance assistance
approaches and promoting innovation and
collaboration with states.

Project Contacts:
For more specific information on the
Michigan State Innovation Grant, please
contact one of the individuals below:

Jim Ostrowski
Michigan Department of Environmental Quality
Lansing, MI
517.241.8057
[email protected]

Program Contact:

Sherri Walker
State Innovation Grant Program
U.S. Environmental Protection Agency
Washington, DC 20460 (MC1807T)
(202)-566-2186; FAX (202) 566-2220
[email protected]

Shari Holloway
U.S. Environmental Protection Agency
Region 5
Chicago, IL
312.886.6778
[email protected]
Scott Bowles
U.S. Environmental Protection Agency
National Center for Environmental Innovation
Washington, DC
202-566-2208
[email protected]

United States
Environmental Protection
Agency

Office of Policy,
Economics and Innovation
(1807T)

May 2008
EPA-100-F-08-036