The DEP is currently developing a new alternative regulatory approach called the "Silver and Gold Track Program for Environmental Performance." This program will ultimately consist of three "tiers" or "levels" of participation-the Silver Track, Silver Track II, and the Gold Track.

The Silver Track tier provides a moderate level of operational flexibility that does not require changes in the regulated structure. Facilities meeting the eligibility criteria and committing to "going beyond" standard regulatory compliance can receive more operational flexibility. While this program requires facilities to have good environmental performance records, provisions are made to accept those with less than stellar environmental performance, provided they are willing to achieve a pre-determined baseline performance standard. In addition to the basic regulatory incentives that are currently available to all entities such as general permits, open market and greenhouse gas emissions trading, and effluent trading; additional incentives have been identified for participants that have demonstrated above average environmental performance. These incentives include recognition, single point of contact, expedited permit processing, and consolidated reporting. The Silver Track tier, which is open to all regulated entities in New Jersey was instituted in September 1999.

A Silver Track II tier, which should be available in March 2000 with the release of the DEP's Silver Track II Solicitation of Interest for Participation document, also has been developed. This tier requires greater environmental commitments in exchange for an even higher level of operational/regulatory flexibility. The Silver Track II tier is based upon the establishment of de minimus air emission threshold values. These values have been reviewed by the DEP to ensure that no adverse human health or environmental impacts will occur. Equipment at Silver Track II facilities emitting less than the threshold values would not be required to obtain certain air pollution control pre-construction approvals from the DEP. Silver Track II participants would, in return, commit to achieving reductions in greenhouse gas (GHG) emissions over time by implementing measures including but not limited to the implementation of a GHG emission reduction plan, agreement to reduce or maintain current emission levels of GHGs per unit of output, and the annual submittal of their GHG emissions (both actual and per unit of output). This tier will also be open to all regulated entities in New Jersey.

The Gold Track tier, currently being developed via a stakeholder process, is envisioned as an enhancement of the Silver Track and Silver Track II tiers. This tier will offer the greatest operational/regulatory flexibility and require the greatest environmental commitments. To participate, regulated entities would have to meet additional requirements such as having an environmental management system and community outreach program in place prior to acceptance into the Gold Track tier, and a willingness to commit to criteria and hazardous air pollutant (HAP) emission reductions over time, as measured by a declining emissions cap.

In exchange for these additional environmental improvements, participants would be eligible for the greatest operational/regulatory flexibility. The DEP and a stakeholder group are currently discussing a significant expansion of the de minimus concept to establish facility-wide emission caps to provide greater permit pre-approval flexibility.

The DEP is also working closely with the USEPA to obtain Project XL status for the Gold Track tier. This would allow Gold Track participants to obtain flexibility under federal regulations. It is envisioned that the Gold Track tier will be conducted initially as a limited pilot study.

A covenant will be the instrument used to memorialize the environmental commitments between the DEP and all entities participating in each tier of the program. This covenant will contain environmental goals and milestones agreed upon by the DEP and a regulated entity. It will also document the specific measures used to track progress and measure performance in meeting goals and milestones. Failure to meet the basic requirements of entry into any of the tiers and/or failing to meet the agreed upon goals in the covenant may result in a facility's removal from the program.

The initial term of a covenant will be five years, with the first year to be used to evaluate whether the applicable tier is achieving the desired environmental improvements and/or providing the anticipated regulatory flexibility.

To obtain additional information regarding this program, including the Silver Track Guidance document dated September 1999, contact the Office of Pollution Prevention and Permit Coordination at (609) 777-0518 or access the DEP's Internet address at www.state.nj.us/dep/special/silver/index.html.