1. Sustainability Programs
How It’s Done
New York Harbor Case Study
April 2009

2. Who We Are AlterEcho Overview
25 years as experts in environmental and business consulting
U.S. EPA’s senior oversight consultants for resource management and regulatory expertise
Efficient and effective “green” consulting has been our business for decades

3. Sustainability
Being “green” is a hot topic, but what does it mean for an organization?
A successful sustainability program is a culture built on:
[ - ] Environmental Performance
[ - ] Economic Benefit/ROI
[ - ] Regulatory Management
[ - ] Social Responsibility

4. Sustainability
Sustainability is about managing resources and operations for maximum efficiency and effectiveness with minimal environmental impact.
[ - ] Strive to eliminate waste
[ - ] Protect the environment and future business resources
[ - ] Increase operational efficiency, while decreasing costs
[ - ] Benefits spread beyond initial process improvements

5. New York Harbor Case Study
Welcome to the oil business in New York Harbor in the early 1990’s . . .
[ - ] Loss of money due to poor inventory/product control
[ - ] Facing multiple city, state and Federal regulatory violations
[ - ] Daily negative publicity impacting brand value
[ - ] Facilities predominantly located in disadvantaged areas

6. New York Harbor
Consortium of oil companies seeking to improve performance and receive regulatory relief
Objectives - reduce costs, eliminate wastes, re-engineer processes, increase operational efficiency, improve regulatory effectiveness, manage their image, bolster community relations
Restated project goal:
STOP SPILLING OIL

7. First Steps
This situation required an integrated sustainability solution before we knew what sustainability really meant
Assembled the Team
Learned the Business
[ - ] Experts, Client representatives, stakeholders (regulators, politicians, community members)
[ - ] Do the homework
[ - ] Regulations as well as technical, operational, and financial

8. Customized facility evaluation protocol
Assess Value Drivers
Identified and evaluated what drives value in the oil terminal business
Customized facility evaluation protocol
[ - ] Origin of our proprietary sustainability tool
Policies, practices, requirements and reality

9. Findings
[ - ] Catalogued a wide range of best and worst practices, as well as regulatory violations at over 40 facilities
[ - ] Most effective way to protect environment was to more efficiently manage the facilities for greater ROI - high costs of wasted resources and inefficient use of time
[ - ] Culture change needed to move from reactive problem solving to creating value
[ - ] “Value every drop” culture

10. Management Commitment
Implementation
Management Commitment
Cost Benefit Analysis
Focused on areas where biggest positive benefits could be achieved
Communication and Reporting
[ - ] Internal and with stakeholders
[ - ] Brand/reputation building value
[ - ] Regulatory relief
[ - ] Equipment upgrades
[ - ] Training
[ - ] Supply management/ Inventory Control

11. Results
When was the last time you heard about a major New York Harbor oil spill?
Operating cost reductions
[ - ] Product loss
[ - ] Spill clean-up
[ - ]Regulatory fines and inspections
Reputation and public perception
Led the way for improvements throughout the harbor
[ - ] Relationships with regulators
[ - ] Role in the community