Pollution Prevention in Enforcement POLLUTION PREVENTION SUPPLEMENTAL ENVIRONMENTAL PROJECTS (P2 SEPs) -Information for companies-

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1 January 1998 Number 61 Pllutin Preventin in Enfrcement POLLUTION PREVENTION SUPPLEMENTAL ENVIRONMENTAL PROJECTS (P2 SEPs) -Infrmatin fr cmpanies- Many cmpanies are realizing substantial envirnmental and financial benefits frm incrprating pllutin preventin int their standard perating practices r envirnmental management systems. Cmpanies have used P2 t mre effectively meet cmpliance requirements and even reduce their regulatry burden. This handut is designed fr cmpanies invlved in an enfrcement actin with Ohi EPA (administratively, r judicially thrugh the Ohi Attrney General s Office) and prvides infrmatin n pllutin preventin (P2) supplemental envirnmental prjects (SEPs). P2 SEPs may be included as part f the settlement, at the discretin f Ohi EPA. Intrductin Many cmpanies are realizing substantial envirnmental and financial benefits frm incrprating pllutin preventin int their standard perating practices r envirnmental management systems. Pllutin preventin (P2) avids r reduces generatin f waste at the surce. Using P2 techniques t evaluate a facility s waste requires the cmpany t lk further up-the-pipe, instead f fcusing n treatment and dispsal f waste. Cmpanies have used P2 t mre effectively meet cmpliance requirements and even reduce their regulatry burden. Pllutin preventin can be incrprated int envirnmental enfrcement settlements via P2 supplemental envirnmental prjects (SEPs). SEPs are envirnmentally beneficial prjects that a cmpany agrees t undertake when settling an enfrcement actin. P2 SEPs use P2 techniques t reduce waste generatin r releases t the envirnment beynd what is required by law. The Ohi EPA Office f Pllutin Preventin (OPP) can assist Ohi EPA divisins and cmpanies in selecting apprpriate P2 SEPs. P2 and surce reductin are defined in detail in Attachment 1. This paper cntains 100% pst-cnsumer recycled fiber and was printed using sy-based inks Office f Pllutin Preventin, Ohi Envirnmental Prtectin Agency P.O. Bx 1049, Clumbus, Ohi, , (614)

2 POLLUTION PREVENTION SEPs 1. Is yur facility a gd candidate fr a P2 SEP? Where apprpriate, P2 SEPs may be suggested by Ohi EPA r the cmpany during settlement negtiatins. The decisin f which enfrcement cases are apprpriate fr the inclusin f a P2 SEP will be made by Ohi EPA. P2 SEPs are nt apprpriate in sme enfrcement cases. The fllwing examples may indicate that yur facility is a gd candidate fr a P2 SEP: l l Yur peratins r prcesses lend themselves t pllutin preventin. Fr example, facilities that have cleaning r painting peratins, r use certain raw materials, ften have gd P2 pssibilities. Ptential P2 prjects, r waste streams that are likely t be reduced thrugh P2, have been identified at yur facility. l Yur cmpany has the resurces (financial, persnnel, r therwise) t cmplete the P2 activity. are nt limited t: manufacture f fabricated metal prducts, electrplating, manufacture f printed circuit bards, manufacture f fiberglass/plastic prducts, paint/cating peratins r frmulatin, pesticide frmulatin, pht prcessing, printing, mechanical equipment repair, and autmtive refinishing. Lcal gvernments can als perfrm P2 activities invlving their wastewater treatment plants, drinking water plants and water distributin systems, fleet maintenance, public transprtatin, building and grunds maintenance, utilities, ffice waste r cmmunity recycling prgrams, wellhead prtectin prgrams, r land use planning. 2. What is invlved in a P2 SEP? P2 SEPs include three different types f P2 activities that may be perfrmed by the cmpany: P2 prjects, P2 assessments, and third party prjects (defined belw). These P2 activities are negtiated by the parties invlved in the enfrcement case. Once the P2 SEP is included in the settlement, the cmpany is required t cmplete the P2 activity. Ohi EPA prefers P2 SEPs that address the waste stream that created the mst significant vilatins r are the mst envirnmentally beneficial. Occasinally the mst beneficial prject may include a P2 SEP that addresses waste streams r envirnmental media nt directly assciated with the vilatins. Once Ohi EPA has determined that a P2 prject is apprpriate, OPP can help identify pssible prjects at yur facility. Replacing a slvent degreaser with an aqueus cleaning unit r imprving the transfer efficiency f painting peratins are examples f P2 prjects. If yu already have a frmal P2 prgram established at yur facility, r have a number f P2 prjects identi- P2 prjects are specific activities perfrmed at a facility that avid r decrease generatin f waste. Prjects ften invlve imprving efficiency f peratins, material substitutins, changes in prcesses r equipment, r water and energy cnservatin. l Yur cmpany is interested in implementing a P2 activity. Prcesses that cmmnly lend themselves t P2 include, but P2 assessments invlve setting up a P2 prgram at yur cmpany. A team frmed t review waste generatin and manufacturing prcesses in rder t identify pprtunities t reduce r wliminate waste at yur facility. 2

3 Pllutin Preventin in Enfrcement fied, a P2 prject may be mre apprpriate than a P2 assessment. P2 assessments help a cmpany lk at its primary waste generating prcesses, then develp P2 ptins t avid r reduce waste generatin at the surce. Perfrming an assessment can demnstrate the many advantages f P2 t yur cmpany, and may change the way yu view waste generatin; waste represents lst raw materials. Assessments can be well wrth the effrt in identifying mney-saving P2 ptins. P2 prjects and assessments ften shw measurable reductins in the use f txic raw materials, decreased generatin f hazardus and nn-hazardus waste, and subsequent decrease in the release f pllutants t the envirnment. If yur facility s peratins r prcesses d nt lend themselves t perfrming a P2 prject r assessment, a third party prject may be cnsidered. Hwever, preference will be given by Ohi EPA t P2 prjects r assessments perfrmed at yur facility that are aimed at waste reductin r eliminatin; third party prjects are cnsidered t be less desirable because they generally have less direct envirnmental benefit. P2 prjects at a given facility are nt always bvius, and Third party prjects are P2 activities spnsred by yur cmpany, but perfrmed elsewhere. These types f prjects may include, but are nt limited t, establishments f trust funds r prvisins f grants t third parties, establishing a cmmunity recycling prgram, dnatins t waste exchanges r envirnmental rganizatins (fr prjects with direct envirnmental benefit) r spnsrship f training r educatinal materials fr third parties (such as custmers r cmmunities). prjects such as energy efficiency audits, lighting upgrades, and ther less apparent prjects shuld be cnsidered carefully befre a third party prject is prpsed. As stated previusly, prpsed prjects will be apprved r denied at the discretin f Ohi EPA. 3. What abut Penalty mitigatin? In exchange fr perfrming a P2 SEP, the Ohi EPA may cnsider reductin f civil penalties assessed thrugh administrative r judicial rders. Hw much f the civil penalty is mitigated depends n a number f factrs, including details f the enfrcement case and the cst f the P2 SEP t the cmpany. Hwever, the prtin f the civil penalty that represents an ecnmic benefit realized by yur cmpany thrugh its nncmpliance will nt be mitigated. Any mitigatin f penalties will be at the discretin f Ohi EPA. Fr P2 prjects, a cmpany generally receives credit nly fr capital csts fr the implementatin f the prject, nt fr perating csts. Depending n factrs such as prject quality, effectiveness, benefit t the envirnment, and timing, the penalty may be ffset by nly a percentage f the capital cst, r the full capital cst f the prject. Fr P2 assessments, factrs taken int accunt when calculating credit generally include the size f a facility, the cmplexity f peratins, and the ptential fr envirnmental benefit frm P2. Ohi EPA s gal fr including P2 SEPs in enfrcement settlements is t gain additinal envirnmental benefit, in additin t the cmpliance and deterrence aspects f enfrcement. While P2 prjects are generally gd business practices, Ohi EPA uses P2 SEPs t encurage activities that are nt therwise likely t be implemented by a cmpany in the nrmal curse f business due t factrs such as: lng payback perids, cnsiderable technical risk, adverse effects n prductin scheduling, r 3

4 Pllutin Preventin in Enfrcement availability f capital. Fr example, P2 SEP credit may make an innvative prject lk mre desirable t a cmpany, r shrten the calculated payback fr a prject. Ohi EPA may review prject payback r return n investment fr prpsed prjects t determine the apprpriateness f the prject and the amunt f credit fr the prject. If the prject has a shrt payback perid, P2 SEP credit may nt be available. Likewise, a cmpany typically will nt receive credit fr a P2 activity that was cmpleted befre settlement, r fr activities that were apprved r initiated befre the cmmencement f negtiatins. If a cmpany has made a significant effrt t address P2 in direct respnse t the vilatins and inspectin(s) that led t the enfrcement actin, an exceptin may be cnsidered. 4. Hw lng d I have t cmplete the P2 SEP? Prject time lines will be determined thrugh the curse f negtiatin. Cmpletin times fr P2 SEPs are based n reasnable amunts f time t cmplete the effrt (all required P2 activities will have clearly defined beginning and ending pints). Length f time t cmplete a P2 SEP prject will vary depending n cmplexity f the prject. Length f time t cmplete a P2 SEP assessment is usually ne year, but will vary depending n size f the facility and cmplexity f peratins. 5. Hw d I dcument cmpletin? P2 assessments and prjects culminate in a written reprt t Ohi EPA. A schedule with milestne reprts will be established fr any lengthy activity. In additin, measurable reductins f pllutants in the facility s emissins r discharges may be used t define prject cmpletin. Resurce Dcuments Pllutin Preventin in Ohi s Envirnmental Enfrcement Settlements. Ohi EPA. April Pllutin Preventin in Ohi Enfrcement Settlements, Analysis and Update. Ohi EPA. September Ohi Pllutin Preventin and Waste Minimizatin Planning Guidance Manual. Ohi EPA. September Interim Revised EPA Supplemental Envirnmental Prjects Plicy. Federal Register, vl. 60 n. 90. Wednesday, May 10, p Fr mre infrmatin cntact the Ohi EPA Office f Pllutin Preventin at (614)644-4

5 Appendix Defining Pllutin Preventin POLLUTION PREVENTION SUPPLEMENTAL ENVIRONMENTAL PROJECTS (P2 SEPs) Appendix 1 Pllutin preventin is the use f surce reductin techniques in rder t reduce risk t public health, safety, welfare and the envirnment and, as a secnd preference, the use f envirnmentally sund recycling t achieve these same gals. Pllutin preventin avids crss-media transfers f wastes and/ r pllutants and addresses all types f waste and envirnmental releases t the air, water, and land. Pllutin preventin alternative is defined in Ohi Administrative Cde (OAC) Rule (A) (19). The Pllutin Preventin Act f 1990 established a natinal hierarchy fr managing wastes: surce reductin (highest pririty) recycling treatment dispsal r release (lwest pririty). Surce reductin is any effrt t reduce, at the surce, the quantity f waste generated, txic chemical use, r any release t the envirnment. Surce reductin prevents the generatin f waste thrugh measures such as prduct r prcess changes. Prduct changes invlve redesign fr less envirnmental impact r increased prduct life (extended life cycle). Prcess changes include, but are nt limited t: input material changes: Ø material purificatin; Ø substitutin f less-txic r less-hazardus materials; Ø substitutin f nn-txic r nn-regulated materials; technlgy changes: Ø layut changes; Ø increased autmatin; Ø imprved perating cnditins; Ø imprved equipment; Ø increased efficiency; Ø new technlgy; imprved perating practices: Ø perating and maintenance prcedures; Ø management practices; 5

6 Appendix Ø waste stream segregatin; Ø material handling imprvements; Ø prductin scheduling; Ø inventry cntrl; Ø emplyee training. Recycling means t use, reuse, r reclaim a material. Recycling des nt include burning waste as fuel. Water cnservatin and energy efficiency als cnstitute pllutin preventin. Examples f activities which d nt cnstitute pllutin preventin may include, but are nt limited t, the fllwing: sending waste r txic chemicals ff-site fr management (ther than envirnmentally sund recycling); incineratin r ther thermal treatment; treatment t reduce vlume; treatment t reduce txicity; reductin in prductin vlume; use f equipment t reduce water cntent and vlume f waste; installatin f equipment t cmply with pllutin cntrl regulatins; de-listing f a hazardus waste r txic chemical; energy recvery; bankruptcy. End f the pipe slutins (generally treatment and cntrl devices) are nt cnsidered t be P2. Treatment and cntrl devices include equipment and prcesses such as air scrubbers, wet scrubbers, and bag huses. Resurce Dcuments: Ohi Pllutin Preventin and Waste Minimizatin Planning Guidance Manual. Ohi EPA. September What is Pllutin Preventin? Fact sheet N.1. Ohi EPA. December Facility Pllutin Preventin Guide. (dcument n. EPA/600/R-92/088). US EPA This is ne in a series f dcuments Ohi EPA has prepared n pllutin preventin. The Office f Pllutin Preventin was created t encurage multi-media pllutin preventin activities in Ohi t reduce risk t public health, safety, welfare and the envirnment. Pllutin preventin stresses surce reductin and, secndarily, envirnmentally sund recycling while aviding crss media transfers. This dcument represents anther step in the nging effrt t integrate pllutin preventin within Ohi EPA prgrams. 6 Office f Pllutin Preventin WWW address:

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