EPA’s Performance Track: An Opportunity for Leadership Daniel J. Fiorino U.S. Environmental Protection Agency

July 18, 2007FOOTER The Idea of Performance Track  use carrots as well as sticks  address problems not covered by regulations  promote continuous improvement  align environmental & economic success  recognize & drive environmental excellence

July 18, 2007FOOTER Performance Track Basics  launched in 2000 by Carol Browner  450 facility members in 46 states  four Corporate Leaders  open to private and public facilities  close collaboration with state programs  high level of satisfaction from members  “top 50” innovation in government in 2006

July 18, 2007FOOTER Performance Track Criteria  commitment to measurable improvement  environmental management system (EMS)  record of sustained compliance  community outreach

July 18, 2007FOOTER Some Performance Track Members  Johnson & Johnson  Baxter Healthcare  Rockwell Collins  Coca Cola  3M  Toyota  Xerox  Intel  United Technologies  Xanterra Resorts  Dallas/Ft. Worth Int. Airport  Swiss Re Insurance  Ft. Benning, GA  Kent Co. DE Wastewater  NASA  Hewlett Packard  Michelin NA

July 18, 2007FOOTER Note: Where there are multiple facilities in the same zip code, they are represented by a single dot. Performance Track has 453 members across the country. Updated June 2007

July 18, 2007FOOTER Members represent diverse sectors and industries PrimarySecondary TertiaryQuaternary Members’ Relationship to Sector: Electrical Equipment Chemical Products Wood, Paper, and Printing Products Metal Products Pharmaceutical Products Transportation Equipment Medical Equipment Machinery Equipment Textile Products Mining & Construction Miscellaneous Manufacturing Manufacturing Rubber & Plastics Products Updated June 2007

July 18, 2007FOOTER Member Obligations  manage EMS and compliance effectively  make progress toward meeting goals  Inform the local community  meet member obligations for: Annual Performance Reports site visits annual recertification of compliance and EMS apply for renewal after three years

July 18, 2007FOOTER Member Benefits  improved environmental performance  better relationships with government  recognition and enhanced reputation  streamlined transactions  flexibility (permits, storage time)  part of a network of environmental leaders

July 18, 2007FOOTER Members commit to reducing waste, conserving energy and water, and cutting emissions. Number of Members Increase Land and Habitat Work with Supplier Reduce Noise Green Products Other Reduce Discharges to Water Modify Material Procurement Reduce Material Use Reduce Air Emissions Reduce Water Use Reduce Energy Use Reduce Waste Commitment Category Updated June 2007

July 18, 2007FOOTER Environmental Results (air)  Members have reduced ( ) SOx by 42,700 tons NOx by 13,400 tons VOCs by 3,100 tons GHGs by 69,300 tons of CO2 equivalent

July 18, 2007FOOTER Environmental Results (water & waste)  Members have reduced ( ): water use by 4.7 billion gallons conventional water discharges by 10,000 tons water toxics by 5,600 tons hazardous waste by 133,000 tons non-hazardous waste by 1.5 million tons, and conserved or restored 14,000 acres of habitat

July 18, 2007FOOTER Benefits of Air Reductions ( cumulative, )  NOx$ 6-59 million  SOx $ million  PM 10 $ 3-28 million  VOCs$ 2-10 million

July 18, 2007FOOTER Avoided Cost of Waste Reductions ( cumulative, )  Hazardous waste $42 million  Non-hazardous waste $ million

July 18, 2007FOOTER Examples of Cost Savings ( individual members)  $200,000 by reducing hazardous waste generation  $1.5 million in avoided costs for energy reductions  $320,000 from reducing solid waste generation  $120,000 annual saving from reduction in BOD demand

July 18, 2007FOOTER Effects on Member Behavior  54% led to innovative environmental solutions  56% resulted in cost savings at their sites  40% led to reduced environmental impacts  30% improved EMS to qualify, of which: 55% set more aggressive targets 47% expanded community outreach 62% re-evaluated existing list of environmental impacts

July 18, 2007FOOTER Aligned State Programs Include:  Virginia Environmental Excellence  Georgia P2 Partnership  Indiana Environmental Stewardship  Arizona Performance Track  Colorado Environmental Leadership  New York Environmental Leaders (in progress)

July 18, 2007FOOTER States With Environmental Performance Programs ► Active State Program ► Developing State Program ► No State Program Updated 7/26/2007

July 18, 2007FOOTER Performance Track-State Memorandum of Agreement ► State with MOA ► State without MOA Updated 7/26/2007

July 18, 2007FOOTER Corporate Leaders  encourage corporate commitment  enlist visible and recognized firms  create a forum for EPA and leaders  provide a benchmark for others  current Corporate Leaders Include: Johnson & Johnson Baxter Rockwell Collins Xanterra Parks and Resorts

July 18, 2007FOOTER Goals for the Next 5 Years  expand membership & ownership  increase the environmental value  increase the business value  integrate into agency programs  demonstrate value of effective partnerships