1. Accounting for Engineering Trade-Offs in Decision-making Kenneth R. Stone Engineering Trade-Offs Team Leader ETO:

2. Presentation Outline Overview of Environmental and Economic Approaches Life Cycle Engineering – Precursor to Engineering Trade-Offs (ETO) The ETO Concept Program Plans

3. Pollution Prevention Tools... Raw Materials Manufacture Product Manufacture Product Use Final Disposition Energy Wastes … typically draw a boundary around one process, one facility, or one stage in the life cycle. Impacts that ripple up- or down-stream from a change are not identified.

4. Life Cycle Tools… Raw Materials Manufacture Product Manufacture Product Use Final Disposition … study the entire life cycle to identify the cross-media and cross-stage impacts from a change. Energy Wastes Reuse Product Recycling Energy Wastes

5. Economic & Environmental Tools Societal Financial Environmental Technical Raw Material Processing Manufacturing Use/Reuse Maint. End of Life Mgt. Benefit/Cost Analysis Environmental Accounting Life Cycle Mgt. Activity Based Costing PPOA Life Cycle Assessment

6. P2 to Life Cycle, Level of Rigor PPOA LCA Data Requirements, Analytical Rigor, Confidence and Cost Increase moving from P2 to LC, but Each has a Role in Achieving Source Reductions. Confidence Life Cycle Data Rigorous Co$t On-site Emphasis In-house Data Ease of Use Economical An Economical Approach to Achieve Confident Decision- Making is Needed

7. CARC is used on military vehicles & equipment to prevent penetration by a chemical agent, which allows contaminated vehicles to be cleaned in the field. CARC paints use heavy metals and volatile organic solvents. CARC

8. CARC PPOA, Ft. Eustis Upgrades to the Paint Booth Recovery of Paint Thinner Installation of HVLP Spray Guns In 1992, in support of TIPPP, NRMRL conducted a PPOA on CARC Painting operations at Ft. Eustis. The PPOA recommended:

9. Short Term Results Overspray was reduced by 60% CARC paint purchases cut by 40% Net annual savings = $6,700 Ft. Eustis switched over to commercial HVLP spray guns to reduce environmental impacts. Short term results were:

10. CARC LCE, Ft. Eustis Decision Environment Cost Performance LCA LCC T&E In 1993, NRMRL instituted the Life Cycle Engineering & Design (LCED) Program and in 1994 revisited Ft. Eustis. Because the LCE Approach inherently captures Trade-Offs – due to the emphasis on integrating Performance, Cost and Environment – a new picture had emerged.

11. Actual Trade-Offs HVLPs were harder to use & maintain Topcoat had to be thinned (up to 20%) Solvent use & VOC emissions increased Labor increased & Operations suffered CARC is a DoD-specialty paint, more viscous and has higher solids content than commercial paints. It clogged up the HVLPs:

12. Additional Trade-Offs Two DoD Bases were Using the Wrong Thinner Direct Impact: Shortened Topcoat Lifespan Operations Changed Dramatically Among Sites MILSPECs & Tech Orders Ignored Safety Gear Varied

13. Problem Statement P2 Tools can Fall Short Process Inefficiencies can be Missed Trade-offs among Critical Areas not Highlighted Full Environmental Effect not Assessed LCA Tools cannot be Internalized High Level of Effort and Cost Data Uncertainties Off-site Information & Externalities not Valued

14. Research Needs Target Middle Ground of P2/LCA Illustrate True Efficiencies Capture Trade-offs Identify Environmental Issues with Confidence Focus on Lower Tier Decision-makers Moderate Cost Exploit Data in Hand Emphasize Site Issues

15. Common Trade-Off Decisions Buying a Car: Capacity, Power, Utility, Comfort, Color, Cost, MPG, Emissions, Status, etc. Purchasing a House: Location, Lot Layout, Structure, Condition, Cost, Cosmetics, Amenities, School System, Shopping, Congestion, Police & Fire Service, Ethnicity, Social Status, Environment, etc.

16. Engineering Trade-Offs Does it work better? Does it save/make money? Does it release the least? Does everyone comprehend and support it? Does it work better? Does it save/make money? Does it release the least? Does everyone comprehend and support it?

17. Performance Development & Demonstration Verify Physical Attributes Prove Results are Achievable Must be able to Demonstrate an Improvement: Level of Performance A Good Substitute is not Good Enough Contributes to a Competitive Product

18. Environment Release the Least Follow Releases Do not Develop Impact Categories Focus on Smallest Environmental Footprint: Quantify and Qualify Quantify On-site Releases Qualify Up- and Down-stream Issues

19. Economics Dollar Value Increased Profit Lowered Cost A Measurable Economic Benefit: Intangible Value Reputation/Goodwill Internal Effects/Morale

20. Acceptance Human Error Personal Limitations Poor Information, Training or Judgment Individual Technical Belief The Impact of Human Error and Will: Human Will Agreement/Support Disagreement/Passivity Resentment/Resistance Indifference/Independence

21. How Does ETO Relate to LCE? Evolved From the LCE Program Integrated Cost & Performance with Environment Case Studies Emphasized the Value of Trade-offs Based on LCE Lessons Learned Many of the P2 “Ripples” were On-site Emphasize Site Issues Highlighted Human Factors Human Potential to Avoid Perverse Outcomes Human Contribution to Perverse Outcomes

22. HVLP Trade-Offs by ETO Issue Performance Transfer Efficiency was Good Operational Efficiency was Poor Environment Increased VOC Emissions Economics Reduced Topcoat Purchases Increased Solvent Purchases, Net Loss Acceptance Painters did not report Problems, made In-house Fixes Painters Typically Ignore “Unsound” Policies

23. ETO Issues Performance Requires Access to Technology or Product for Testing On-site or Vendor’s Site Environment Up to Date Data on Environmental Characteristics Known Circumstances under which Data was Collected Economics Quantitative On-site Cost Impacts Life Cycle Qualitative Evaluation of Enviro/Economic Risk Acceptance Identification and Characterization of User Community Development of Implementation Strategy with Community

24. Engineering Trade-Offs Small Business, Community or Facility-level Support Informed Decision-making Comparative Assessment Releases-based, not Impacts-based Quantify Gate-to-Gate Operations & Releases Qualify Releases Outside Gates

25. Level of Rigor Redux PPOA LCA Derived from LCE, ETO Seeks to Provide an Approach for Decision-makers that can be Internalized. ETO On-site Emphasis Inhouse & LC Data Rigor Economical

26. Information Collection Identify Products/Processes/Activities/Users Collect Data, Conduct Interviews & Follow-up Information Collection Identify Products/Processes/Activities/Users Collect Data, Conduct Interviews & Follow-up Define Objective& Measures of Success Set Project Scope &Boundaries Revisit Objective & Project Scope During Assessment Define Objective& Measures of Success Set Project Scope &Boundaries Revisit Objective & Project Scope During Assessment If findings offer new P2 opportunities... Then collect new data & re-assess If implementation does not meet expectations... Then evaluate barriers & design solutions ETO Method Assess Operations Identify Environmental Risks and Calculate Costs Evaluate Performance Assess Operations Identify Environmental Risks and Calculate Costs Evaluate Performance Determine Acceptance Select Prospective Alternatives & Present Evaluate Feasibility with Impacted Communities Determine Acceptance Select Prospective Alternatives & Present Evaluate Feasibility with Impacted Communities Implement Decision Present Findings & Obtain Funding Provide Orientation & Training Implement Decision Present Findings & Obtain Funding Provide Orientation & Training Validate Decision Monitor Implementation & Confirm Performance Re-evaluate for Human Error & Will Validate Decision Monitor Implementation & Confirm Performance Re-evaluate for Human Error & Will

27. ETO Range Societal Financial Environmental Technical Raw Material Processing Manufacturing Use/Reuse Maint. End of Life Mgt. Engineering Trade-Offs QuantitativeQualitative

28. The Questions PPOA can Answer How can I Improve Housekeeping Habits? Low-hanging fruit, Simple Improvements Where can I Find Ways to Refine Operations? Seeks out P2 Techniques and Technologies How can I Identify Hazards & Avoid MOVs? Problems Often come to Light During a PPOA How can I Develop Higher ESOH Awareness? Identifies Needs, Communicates Priorities What can I Do to Change Staff Perspectives? Creates Inhouse Capability, Recognizes Results

29. The Questions ETO can Answer: Which Product/Process should I Purchase? Provides an Integrated Evaluation, Capturing Trade-offs How should I Redesign or Retrofit an Existing System? Illustrates Trade-offs, Anticipates Perverse Outcomes How Do I Implement a P2 Technology Solution? Emphasizes On-site Issues, Operator Acceptance Where should We Site the Recycling Center? Identifies Enviro/Economic Issues and Human Factors What Services/Product/Process Choices Do We Face? Illustrates the Local Effects of a Decision

30. The Questions LCE can Answer: How should I Design Long Term Systems? Identifies Lowest Life Cycle Impact, Lowest Cost What Purchasing Guidelines should I Set? Provides Basis for Integrated Management How can I Reduce Liability Risk? Captures Downstream Impacts, Risk Exposure How can I Ensure No Future Surprises? Captures Up-stream Risk that May Later Raise Costs How can I Validate an Environmental Success? Provides a Data-based Rationale for “Green-ness”

31. Placing the Approaches by Level of Rigor PPOA LCA ETO is a Midpoint between P2 and LC Approaches, Addressing Decisions that PPOAs cannot Inform and for Which LCEs are More Intensive than Necessary. ETO Choosing Product/Process Retrofit System Implementing Solutions Understanding Human Factors Housekeeping Finding Opportunities Addressing Hazards Changing Culture Designing for Lifespan Guiding Procurement Reducing Total Risk Validating Green-ness

32. Contact: Kenneth R. Stone ETO Team Leader N ATIONAL R ISK M ANAGEMENT R ESEARCH L ABORATORY 26 W. Martin Luther King Cincinnati OH 45268 513-569-7474 Kenneth R. Stone ETO Team Leader N ATIONAL R ISK M ANAGEMENT R ESEARCH L ABORATORY 26 W. Martin Luther King Cincinnati OH 45268 513-569-7474 stone.kenneth@epa.gov