# Presentation: 366769

## National Environmental Performance Track Program 

- David W. Guest, Esq.September 2003
- Washington, DC

## Outline

- Program overview
- Member performance results to-date
- Site visit results
- New independent assessment requirement and auditor qualifications

## What is Performance Track?

- 	An EPA voluntary program that recognizes and rewards top environmental performers that go beyond legal requirements.

## Key Points on PT

- Focus is on measurable improvement in environmental performance
- EMS is an important component but not enough by itself
- Currently use self-certification combined with EPA oversight (changing in 2004)
- Environmental improvements in areas that regulations don’t address
- Allows EPA and States to focus resources on other problems

## Performance Track Entry Criteria

- Environmental Management System
- Demonstration of continuous improvement in _environmental performance_
- Community outreach and engagement
- Sustained record of compliance

## Obligations of Membership

- Maintain EMS & compliance
- Conduct community outreach
- Make good faith efforts toward meeting performance commitments
- Submit an annual report

## Membership Benefits

- Public recognition
- Networking with other high performers
- Positive relationship with regulators
- Low inspection priority
- Regulatory & administrative flexibility

## Annual Report

- Summarizes EMS & compliance audits
- Reports performance for prior year
- Describes community outreach efforts
- Re-certifies EMS & compliance status

## Performance Commitments

- Large facilities – 4 commitments
- Small facilities – 2 commitments
- Must be above and beyond legal requirements
- Quantifiable with a normalization factor to account for changes in production, etc.

## Commitment Categories

- Solid waste
- Water discharges
- Air emissions
- Energy use
- Water use
- Material use
- Product performance
- Accidental release
- Habitat preservation/restoration

## Current Application Process

- Facility submits application with self-certification of EMS and compliance
- EPA & States conduct compliance screen
- EPA checks references

## Term of Membership

- Membership is for 3 years
- Facilities can be withdrawn for EMS deficiencies, compliance problems, or for failing to submit an annual report
- Facilities must reapply with new performance commitments at the end of 3 years

## Current Oversight Process

- Facilities self-certify EMS in application
- EPA asks additional questions of facilities without independent EMS verification – may conduct pre-acceptance audit
- EPA & States audit up to 20% of the facilities each year
- All of the facilities without independent EMS verification will be audited before 2004

## Membership Statistics

- 455 Applications
- 370 Acceptances
- 50 Facilities Left the Program
- 23 withdrew because of EMS problems discovered at site visits
- 7 withdrew because they did not produce an annual performance report
- 10 facility closures/sales
- 10 other
- 320 Current Members

## The Performance Track Map Slide

## Sectors Represented

- _Manufacturing_
- Electronic and Electrical Equipment
- Chemical Products
- Medical Equipment & Supplies
- Metal Products
- Wood Products, Paper, & Printing
- Pharmaceutical Products
- Transportation Equipment
- Machinery Equipment
- Rubber & Plastics Products
- Textile Products

- _Non-Manufacturing_
- Public Facilities
- Energy, Utilities, & Sanitary Services
- Wholesale, Retail, & Shipping
- Mining & Construction
- Agriculture, Livestock, & Food

## Size of Member Facilities

**Size of Member Facilities**

## Overview of Members by

- Environmental Commitment Category

**Commitment Categories**

**Number of Members**

**Waste**

**Materials**
**Use**

**Air**
**Emissions**

**Water**
**Use**

**Energy**
**Use**

**Discharges**
**to Water**

**Accidental**
**Releases**

**Preservation/**
**Restoration**

**Product**
**Performance**

**Other**

**0**

**50**

**100**

**150**

**200**

**250**

**213**

**142**

**134**

**117**

**110**

**40**

**21**

**15**

**4**

**21**

## First-Year Reductions in Solid Waste Reported by Members

**Baseline**

**Year 1**

**Millions of Tons of**
** ****Solid Waste**

**0.0**

**0.5**

**1.0**

**1.5**

**1.8 million**

**1.6 million**

**Goal for Third Year:**

-  **6 Percent Reduction**

**1.7**

**Members reduced solid waste by 149,000 tons, **
**the amount generated annually by 185,000 Americans.**

**1.8 million**

## First-Year Changes in Total Materials Use

**Baseline**

**Year 1**

**Thousands of Tons**
** ****of Materials**

**0**

**50**

**100**

**150**

**200**

**250**

**300**

- 315.3

- 317.4

**Goal for Third Year:**

-  **302.9**

**(4% Reduction From Baseline)**

**Members’ total use of materials increased by 2,150**
**tons due to increased production.**

## First-Year Reductions in Hazardous Waste

**Baseline**

**Year 1**

**Tons of Hazardous Waste**

**0**

**2000**

**4000**

**6000**

**8000**

**9,100**

**8,400**

**Goal for Third Year:**

**(5,800 tons)**

**36% Reduction From Baseline**

**Members cut their generation of hazardous waste by 700 tons.**

## First-Year Reductions in VOC Emissions

**Baseline**

**Year 1**

**Tons of Volatile Organic**
** ****Compounds (VOCs)**

**0**

**500**

**1000**

**1500**

**2000**

**2500**

**3000**

- 2,970

- 2,641

**Goal for Third Year:**

-  **2,591**

**(13% Reduction From Baseline)**

**Members reduced  emissions of volatile organic compounds by 329 tons.**

## First-Year Reductions in Water Use

**Baseline**

**Year 1**

**Billions of Gallons of**
** ****Water Used**

**0**

**2**

**4**

**6**

**8**

**10**

**10.1 billion**

**9.6 billion**

**(8.6 billion)**

**Goal for Third Year:**

**15% Reduction From Baseline**

**Members reduced their water use by 500 million gallons, enough water to fill 500 Olympic-size swimming pools.**

## First-Year Reductions in Energy Use Reported by Members

**Baseline**

**Year 1**

**Millions of Btus**

**0**

**5**

**10**

**15**

**20**

**19.8**

**18.7**

**18.1**

**Goal for Third Year:**

** ****Nine Percent Reduction**

- Members reduced energy use by 1.1 million MMBTUs ,
- enough energy to supply 10,500 households for a year.

## Nature of EMS Assessment for NEPT Facilities Overall

**ISO 14001**

**Self**

**Third**

## NEPT Site Visits

## Site Visits Uncovered Some Issues

## Most EMS Issues Found at Non-ISO Facilities

## Most EMS Issues Related to Planning

## Results of Site Visits Have Prompted...

- Withdrawal of 23 facilities from the program
- Need to consider new entry criterion requesting a third party assessment
- Revision of site visit protocol
- Development of site visit leader qualifications
- Development of site visit training program

## New NEPT Entry Criterion

- Prior to applying to the Program, facilities will need to have had an independent assessment of their EMS
- Will not apply to existing facilities; these will be targeted for site visits in 2003.

## New NEPT Entry Criterion (Cont’d.)

- Facilities can select from options:
- 	-	pre-acceptance assessment
- 	-	pilot program participant
- 	-	audits conducted by: ISO certified 	auditor, trained consultant, corporate 	audit team, trade assoc. auditors, 	members of NEPT mentor program.

## New NEPT Entry Criterion (Cont’d.)

- Acceptable protocols:
- 	-	NEPT site visit protocol
- 	-	ISO 14001 protocol
- 	-	state protocol
- 	-	others approved on case-by-case 	basis

## Oversight

- EPA will not accredit nor approve independent auditors
- Applicants must certify that the audits and auditors are acceptable
- EPA/States will continue to audit up to 20% of the facilities each year
- The goal is to shift the focus of our audits to performance rather than the EMS

## Conclusions

- Independent review of an EMS leads to a stronger system
- EMSs combined with performance goals and public reporting can be a powerful tool to complement regulatory programs
- For now, EPA will not approve the independent auditors used by applicants