The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Thursday, October 31, 1996            TAG: 9610310323
SECTION: FRONT                   PAGE: A1   EDITION: FINAL 
SOURCE: BY SCOTT HARPER, STAFF WRITER 
                                            LENGTH:   79 lines

EPA BLOCKS GRANT TO VIRGINIA, CITING DELAY ON REPORTS WHY IT HAPPENED: THE STATE: A COMPUTER ERROR CAUSED THE SLOWDOWN. CONSERVATIONISTS: THE ALLEN ADMINISTRATION HAS PUT ENVIRONMENTAL CONCERNS ON THE BACK BURNER.

The U.S. Environmental Protection Agency is withholding a $1.6 million grant from Virginia because the state has been up to two years late in releasing information on water pollution from industries and sewage plants.

The Virginia Department of Environmental Quality on Wednesday attributed its tardy water-pollution reports to computer problems.

``It was one of those things that happened gradually, and eventually got big enough that someone here started taking notice,'' said Bob Burnley, the DEQ's director of program support and evaluation.

The EPA's action comes after the agency warned Virginia this summer that the grant was in jeopardy. In addition, the EPA offered to send staff to Richmond to help the state catch up on paperwork.

Burnley said he expects to correct the computer error within 30 days. After that, he said, Virginia should get its $1.6 million grant, which helps the state monitor big companies and utilities that discharge wastes into creeks and rivers.

Conservationists, however, said the delays are further evidence that the Republican administration of Gov. George F. Allen has put environmental issues on the back burner.

They noted that a computer glitch also was blamed this month when the Pagan River was left off a state list of contaminated waterways. Much of the river, which flows through Isle of Wight County and feeds the Chesapeake Bay, has been closed to shellfish harvesting for 26 years because of bacteria.

``If the Sierra Club was run like DEQ, we wouldn't have any members,'' said Albert Pollard, chief lobbyist for the Sierra Club in Virginia. ``The current administration talks about running government more efficiently; we'd like to see that with DEQ.''

The grant delay is the latest joust between Virginia and the EPA, which have consistently sparred since Allen took office in 1994. Virginia views the EPA as intruding into state matters; the EPA is concerned that Allen is relaxing environmental standards to encourage economic development.

Most recently, the regional head of the EPA, W. Michael McCabe, accused the DEQ of going soft on polluters by not pursuing enforcement against them. DEQ officials have responded that much of McCabe's comments are political bluster, coming on the eve of national elections.

The reports in question Wednesday, called ``discharge monitoring reports,'' describe the amount and type of contaminants that a particular industry, power plant or sewage treatment plant is releasing into public waters each month.

State officials rely on these reports to determine whether industries are complying with the Clean Water Act, or whether pollution violations are occurring.

The information is supposed to be relayed to the EPA so the federal agency can check to see if states are doing a good job regulating companies in their back yards.

The EPA expects to receive 95 percent of these reports; Virginia averages about 76 percent - the worst rate in the Mid-Atlantic, said Alvin R. Morris, the EPA's regional director of water protection.

Morris wrote to Thomas L. Hopkins, director of DEQ, in July to warn him that grant money would be withheld if Virginia did not improve its performance.

``Several months ago . . . it was believed that the missing data concerns would be remedied by now,'' Morris wrote in his July 17 memo. ``Unfortunately, that is not the case despite repeated assertions that a remedy was close at hand.''

Morris said Wednesday that the EPA's action was not unprecedented. But, he noted, states usually will improve their records once the EPA threatens to withhold money.

``The thing is, Virginia was doing a good job with this for years,'' he said in a phone interview from Philadelphia. ``Then, sometime around October 1994, we stopped getting their information.''

Burnley said that about that time, DEQ's director of informational services accepted a buyout package offered by the incoming governor as a way to downsize state government.

Since then, DEQ has hired a computer specialist to try to iron out the bugs, Burnley said. ``Believe me, we want this fixed as much as EPA.''

KEYWORDS: WATER POLLUTION ENVIRONMENTAL PROTECTION AGENCY

GRANTS VIRGINIA by CNB