1. Environmental Management Systems North Carolina’s Approach By Gary Hunt DPPEA

2. EMS Model Policy Planning Implementation Checking Corrective Action Management Review

3. Benefits  Enhanced compliance  Continuous improvement  Improved environmental performance  Competitive/trade advantages  Increased efficiency/reduced costs  Enhanced employee morale  Enhanced public image  Enhanced image with regulators  Reduced insurance rates

5. KMU’s Results to Date  Formal EMS Project Savings $ Solvent recovery program ($300k / year) $ Water reclamation project (50,000 gal / day) $ Solid waste reduction / recycling ($30k / year)  Employee Awareness Project Savings $ More Water Reduction Ideas ! (~5%) $ Less Waste Generation ! (undetermined) $ Electricity Savings Ideas (~ $5000 so far)

6. Examples of BMW’s EMS Program Results  Paint waste was reduced by 145,700 pounds, saving the company $864,000  Solvent parts washers converted to aqueous, eliminating waste stream

7. Environmental Projects  Reformulated paint with Xylene & Toluene reduction of 16% per 55 gallon drum.  Changed petroleum based solvent to water based solvent in parts washers.  Ultrafiltration System for oily/water separation. Reduced cost from $36,000/yr. to $200/yr.  Working with companies on styrofoam & shrinkwrap recycling

9. Why is NC DENR Involved?  Test the credibility of EMS  Participate in public policy discussions  Encourage pollution prevention  Investigate leveraging of DENR resources  Encourage “beyond compliance”  Develop partnerships (environmental groups, trade associations, academia)

10. What is NC DENR Doing?  DENR EMS Policy (8/99)  Outreach to industry/state agencies  EMS Pilot projects (9)  Part of Multi-State Group to measure effectiveness of EMS  Internal working group on EMS

11. What Other States Are Doing  Multi-State Working Group  SEPs  EMS Incentive/Reg. Flex. Legislation  Colorado  Connecticut  Illinois  Maine  Oregon  Washington  Wisconsin

12. Basic Elements  Gate Keeper  EMS, list of requirements, agreement, stake holder involvement, etc.  Regulatory Flexibility  Equal to, beyond compliance or both  Scope  Incentives  Can be tied to level of effort (tiers)  Recognition, permitting flex, reduced reporting and inspections, tax credits, access to capital, etc  Sun Set

13. Environmental Excellence Act  Draft bill proposed by Weyerhaeuser/NCCBI  Environmental Excellence Act Work Group established (legislative research, industrial reps/trade associations, DENR, environmental groups, )  Goal to develop consensus Environmental Excellence Act  Met during last legislative session. Restart this fall

14. Basic Elements  Gate Keeper  Regulatory Flexibility  Beyond Compliance Incentives  Sun Set

15. Beyond Compliance Incentives  Proposed by DENR during negotiations  Example criteria for participation  EMS  In compliance  No significant non-compliance for 3 years

16. Beyond Compliance Incentives  Incentives  Public recognition  Tax credits  For cost of implementing EMS  Other tax credits  Reduced reporting, monitoring and/or inspections  Expedited permit processing  Re-issuance of permits if no change  Conditional pre-approved process changes

17. Beyond Compliance Incentives  Other incentives considered  plant wide emission cap  consolidated reporting  multi-media permits  single point of contact for permit assistance  priority points on state grants  Suggestions?

18. EPA  Joint EPA/State Agreement to Pursue Regulatory Innovation  Provides process to address Federal rules  Aiming for Excellence  Report of the EPA Innovations Task Force

19. Need Help on EMS?  Division of Pollution Prevention and Environmental Assistance  Design tools  Onsite Technical Assistance  Training opportunities  Web site (www.p2pays.org)www.p2pays.org  Environmental Excellence Act e-mail list  919-715-6500  gary_hunt@p2pays.org