i.
          EPA/744/F-89/100
                                                          An Introduction to
                                         EPA's Design for the Environment Program
                                                      Jean E. Barker and Beverly L. Boyd
                                                       with assistance from Lori E. Lacy
                                                      Design for the Environment Program
                                                     U.S. Environmental Protection Agency
                                                          401 M Street, S.W. (TS-779)
                                                            Washington D.C 20460
                   ABSTRACT- This article provides
                   efforts ained at designing pi
isflrodactio* to
                    chnotogies with environmental ubjuti** a* a f*]**llj.
                   ft  describes  the  efforts of  ETA'S  Design  tor the
                   Environment Program to atom and redace obstacles to
                   private sector environmcatal design initiatives.
                                   L .INTRODUCTION

                    1     In today^ competitive  trade  environment,  a
                   company's ability to respond to sophisticated easterner
                   demands for environmentally preferable products and react
                   to complex environmental rules and regulations can mean
                   the difference between a firm's ultimate success or failure.
                   In the future, t?H*«f!«fai  opportunities  will exist for
                   companies who can design  high-quality, environmentally
                   sound products.  Such efforts can create Jobs and provide
                   a comparative advantage in the international marketplace.

                          Previous methods of dealing with;«nvirca»enttl
                   problems, largely by controlling pollution through 'end-of-
                   the-pipe' regulatory approaches, have been expensive and
                   often  less effective than hoped. With  the advent of
                   pollution prevention philosophy, many firms have begun
                   directing their  environmental  efforts  earlier  in the
                   production cycle; from dean»up and control technologies,
                   to better management of manufacturing processes, to
                   reuse, source reduction, and ultimately to the very design
                   of their products.           ;  -

                          The design stage is the most critical and effective
                   time to address the environmental impacts of a product.
                   The National  Research   Council  has  estimated  that
                   approximately 70 percent of the costs of a product's
                   development,,manufacture, and use  is determined in the
                   initial, design of a product,  making design a  crucial
                   determinant 'of. a product's  competitiveness  [1].   In
                   addition, the design phase affords the greatest amount of
                   flexibility in choosing everything from  raw materials to
manufacturing technique. Decisions made at the design:
stage affect -a product's impact on worker and consumer
safety,  the risks and releases  to human  health and the
environment, and the characteristics of waste streams. [2].
Given the flexibility of the design stage, it is logical that
private sector efforts to "Design for the Environment* will
be increasingly important to environmental efforts  in
                                 fj. BACKGROUND

                        The term 'Design for the Environment' (DFE)
                        many **»*"p  to  many audiences.   To  the
                 mfniifc«tiirhi£ sector,  DFE is most commonly viewed as
                 an adaptation of the "Design for X" (DFx)  concept  In
                 DFx,  a desired  product  characteristic  (Le, safety,
                 durability) is integrated as a goal into the design process.
                 In DFE initiatives, therefore, environmental considerations
                 become an integral part of the design of a producb ,  —
                             Ecology
                        Many DFE concepts have evolved out of the field
                 of Industrial Ecology (BE). Industrial Ecology, introduced
                 to the general  public in 1989 by Robert A.  Frosch and
                 Nicholas E. Gallopoulos [3], is a discipline that promotes
                 a cyclical mode! of manufacturing in which resources are
                 efficiently  used and re-used.  This contrasts with  the
                 traditional linear model of manufacturing, in which
                 material are extracted, used in production, and then
                 discarded.  Industrial Ecology, on the other hand, seeks to
                 emulate natural systems so that materials and energy are
                 used and recycled efficiently in ecological cycles.

                        The basis for Industrial Ecology is actually net
                 new. For years engineers have looked to nature, to aid in
                 making man-made systems work better.  One example is
                 found in helicopter .design: dragonfly hovering mechanisms
                 have been studied meticulously in order to improve the
                 hovering ability of modern helicopters [4].

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        In the 1970s, designers began calling for m broader
look at how organisms interact in natural systems in a way
that is. 'less concerned with the form of parts or shape of
thing?, but rather with possibilities  of  examining how
nature  makes things happen.'  [6]  Distilling  business
lessons  from ecosystems became the goal since many
consider nature to be a, "great repository of wisdom about
efficiency, adaptation, competition, and sustainability." [7]

B. German Legislation

        Interest in Industrial Ecology and DFE initiatives
has become more pronounced following the adoption of
German legislative measures which require manufacturers
and retailers to collect and recycle packaging for « wide
range of products. Finns will have to recycle 80 percent
beginning  In 1995.    As  a   result,  many  product
manufacturers  are  redesigning  their  products  with
disassembly and recydabflity as design goals.

        Probably  the most well-known example of this
type .of effort is  in the automobile  industry.  In 1988,
BMW introduced » limited production edition  of a two-
seat roadster which can be quickly disassembled. The car's
plastic  body panels are coded for  easy recydinf  [8].
Although BMW  is furthest along in designing  for the
recydabflity  of  its  automobiles, some domestic  car
manufacturen (such as Ford), as well as other foreign auto
manufacturers (L e, Toyota and Volkswagen) hope to
introduce recyclable can in the  near future.

C The Montreal Protocol

        Major   redesign   efforts  in   international
manufacturing have also been initiated as a result of the
Montreal Protocol  of 1987, a  treaty which  requires
industrial nations, to discontinue  production and use of
most CFCs by 2000.  Drastic reductions in world CPC
production have challenged industries which utilize CFCs
to redesign their products and processes, in some cases to
yield even better products.  For example, new (CFOfree)
gas-fired air-conditioners may prove more economical than
current models.                     ;

D. Derigatag far Oae Ejnrironaeatal Opadrtmrim

        In  cases  of  impetus  provided  -by  German
 legislation and the Montreal Protocol, design efforts have
 focused on addressing only, one particular environmental
 consideration.    While these redesigned products  may
 create  less  waste or possess a reduced ozone depleting
 potential, their overall environmental impact has not been
 evaluated   and  they  may  create other   significant
. environmental impacts.  For example, a car designed for
recyclability  may  create  hazardous waste  while  in
production.  In addition, caution must  be exercised  to
avoid transferring an apparent reduction in pollution to a
greater impact elsewhere. [8]

E. Broad Interpretations of 'Design for the Environment'
Efforts

        There are numerous examples of what could be
deemed "Design for the. Environment" 'work, underway in
sectors  other tt»«" manufacturing.   While  traditional
manufacturing audiences concern themselves with the
design of a particular product or process, to others, DFE
can  mean a  whole variety of ambitious projects that
capitalize on the broadest interpretation of what "design"
and "environment* mean.

        One  example  to  the  soon-to-open  Denver
International Airport.   This project was designed to
employ numerous energy conservation, water conservation,
air pollution prevention, waste reduction, and recycling
measures in the facility.  [9]

        Kruger National Park in South Africa has also
been featured to numerous publications because of the
environmental  design  and  planning that  went into
developing it The park was designed for functionality, so
that visitors can participate in all desirable activities, yet
advene impact on the  land is minimiMd as much as
possible. [10]

        Other examples are plentiful.   The design of
energy conserving  houses, integrated pest management
systems,  and   even   'environmentally  sustamable
communities are also in the spirit of what many would
consider "Design for the Environment" efforts.   These
protects have all achieved some degree of success and are
good examples of results that can be achieved by objective
driven design planning.

        Many  of these ambitious design initiatives are
 forced to make decisions teased on incomplete information
 because of the lack of environmental impact data on many
 materials, chemicals, and processes and because of a tack
 of time and money.  Later  it may become evident that
 these design choices  have created other significant
 environment impacts. While such projects are important
    . . _.	*^«. •««• • ••CTtiit^y of assertive hypotheses,
                               amining  the seemingly
environment impacts. While such projects are important
models because they test a number of assertive hypotheses,
there is also a crucial role in examining  the seemingly
obvious "environmental answen/ Alternatives are rarely
as simple as they seem and the amount of environmental
data which should be incorporated into design decisions is
ciiHctantiaL
 substantiaL

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F. Caution in Defining what a DFE

        It is important to  be cautious when using'the
term 'Design for the Environment' in its broadest context
One of the reasons we continue to grapple with today's
environmental problems is the, 'consistent failure on the
pan of the public, regulators and industry to think of the
environment as a complex system, rather than just a few
relatively independent media* {11].

       If used in a broad and simplistic way, DFE can be
used to justify almost any efforts, even those that are not
in the best interests of environmental preservation. If no
control is used in defining the term, DFE am simply add
to false environmental marketing claims.
O.
to DFE
        Growing concern for environmental issues oa the
part of the public has fueled industry uxl academic efforts
to develop ways to incorporate environmental objectives
into decision making.   A variety  of  approaches to
evaluating options- has emerged, for  example, life cycle
analysis, pollution prevention audit guidelines, and efforts
to design  for a specific endpoint such as recvdabOity or
CFC substitution.

        Wriiie much has been accomplished through these
developments,  obstacles  to  implementing  pollution
prevention schemes and  to  systematically evaluating
alternatives  continue to hinder private  sector efforts.
Studies evaluating alternative prodKts, technologies and
processes  have been hampered by lack of comparative risk.
information, lack of a method for comparing unlike risks
and lack of a method for integrating risk, performance and
cost information into a decision-focused system.

        In  -addition,  many  barriers  to . DFE are
institutionalized  in  current business  practices.   For
Cample, the organization of tip****** data in a company
may «Pake it impossible to adequately characterize the
regulatory and environmental  costs  of producing  a
product  .

              ITL BPA*> DIE PROGRAM

 A. The DfE Program1! Role

        The Design for the Environment (DfE) Program
 in the Office of Pollution Prevention and Tories (OPPT)
 has been created to apply EPA's expertise and leadership
 to inform and facilitate pollution prevention efforts.   It
 harnesses the expertise for which. OPPT is best known:
 comparative and multi-media risk analysis, methods for
evaluating alternatives for risk reduction,  knowledge of
regulatory requirements, and outreach to industry and the
public on pollution prevention topics.

The DfE Program focuses on areas it is most familiar with:
pollution prevention efforts and environmental risk areas.  •
Thus, the DfE Program promotes the incorporation of
environmental  considerations,  and  especially   risk
reduction, in the u-rign and  redesign of products  and
services. The Program works on a voluntary basis through
partnerships with industry and  the public formed to apply
EPA expertise to speciic issues. It builds on the spirit of
voluntary EPA programs like Green Lights and the 33/50
Program. ~                        ,       •

B.  Levels of Imotvemeat

The DfE Program has initiated a number of wide-ranging
projects  which  operate   through  three  levels  of
involvement:

• fnfpstmctnre projects are  the broadest in scope and
limed at changing aspects of general business practices in
order to  remove barriers  to behavior change  and to
provide incentives for undertaking environmental design
and pollution prevention efforts.

• Industry projects are joint efforts with trade associations,",
and businesses in specific industry segments to evaluate
comparative risks, performance and costs  of alternatives
and to invoke behavioral change.

• Facflfty-based program activities win help  individual
bushtoses undertake environmental design efforts of their
own through the development and application of specific
methods, tools, and models.

C TheNeedfora&dntiWeFcoB

        As  regulatory pressure has increased and private
 sector  efforts  tp go  beyond mere  compliance  have
 multiplied,  there has been a demonstrated demand for
 information on substitution  as a  method  of .achieving
 pollution prevention.  For example, the DfE Program
 recently received a call from an Air Force Base engineer
 who was looking for an alternative for toluene in rubber
 molding; Similar questions are posed on a dafly basis  at
 EPA's  Pollution Prevention  Information Clearinghouse
 (PPIQ.

         Case studies available  through  many  sources,
 including PPIC, provide some helpful process modification
 information and may direct inquiring companies to leads
 on alternatives. However, there are significant barriers  to

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behavioral change because information is often missing or
fails to be organized in a decision-focused format. The
DCE Program is structured to address these problems.
   TV  ANALYTICAL
PROGRAM
A. Use dusters
                              USED IN EPAVDffi
       The DfE Program has developed a methodology
       iminin;  substitute chemicals,  processes,  and
technologies. luismetbxxtotogyisaiiTeatiybetogapplied
for
       Drop-in substitutes tend to be rare.  Therefore, it
is  essential  to systematically compare  the trade-offs
associated with different alternatives. EPA's DfE Program
has developed a format,  to  help  direct  these types of
efforts, based  on  OPPTs Risk Management review for
existing chemicals.
                                                       B. Substitutes ASM
                      att
t{7V4l frfmtjf^igj^ JL-UJ" miwiar»r*»«ir«*»|y ^ • ™~• • ™ —-y j-	^ « •
in the DfE Program's Cooperative Industry Projects. Each
project has identified, with the help of industry partners,
problem environmental areas for which companies would
like to seek substitutes. Existing risk ranking systems can
help prioritize problem areas.

       Through a process of collecting information on
currently existing alternatives and through a search  for
other promising  options,  the DfE Program Usts  all
alternatives in a "use clusar tree' for chemicals, processes,
and technologies  that can substitute for one another in
performing'a particular function.

       Sometimes, alternatives are not at all similar. For
example,  the paint  stripping function  in maintenance
applications  can  be accomplished  through the use of
chemical solvents such as methyiene chloride and NMP, or
through alternative  practices such  as sandblasting and
plastic pellet blasting, or can even be avoided all together
by using a surface preparation not needing paint.
        Cleaner Technology Substitutes Assessments, or
CTSA's for short, are intended to provide! a flexible format
for systematically comparing the trade-off issues associated
with alternatives.  Traditional trade-pffs such as cost and
performance  are  brought  together with environmental
trade-ofis'including comparative risk,  releases, energy
impact and resource conservation for each alternative. A
completed Substitutes Assessment should provide all the
information that  \ designer needs  to .decide  among
alternatives.
                                                      _om_
                                    P««lontorttn.Emf>fom
                           Printing taduMry OMMT T«chnok
                                                                       Sututttu*3
                                                                                    SuteMuMJ
                                                                                                  Sub*tiM»4
                                                               Too often  in  the past  alternatives have been
                                                        adopted without an attempt to assess the impacts that the
                                                        change will bring.   Companies also cite numerous
                                                        anecdotes in which, they have switched, from a regulated
                                                        chemical, only to find the alternative is regulated a few
                                                       •yean later. By considering the trade-ofis associated with
                                                        alternatives  through a systematic  format such as the
                                                        CTSA, such problems may be avoided, anticipated, or at
                                                        least minimized. Developing, answers to these problems
                                                        will be an ongoing process and  will occur as the EPAs
                                                        DfE Program addresses specific application problems.

                                                                The CTSA is a flexible tool It fits many types of
                                                        issues and provides an outline of information needs which

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incorporate pollution prevention, life cycle analysis, and
DFE  principles, rather  than  traditional  cnd-of-pipe
pollution control strategies into courses in engineering,
business, and natural resources.

C  Alternate Synthetic Pathways

        The moment that a chemist puts pencil to paper
ta design how to make a chemical product, he also decides
whether or not that process will use or generate hazardous
substances  that need to be treated, recycled,  transported,
or disposed.  Many of the traditional synthetic pathways
that are used to create high volume industrial chemicals
utilize toxic feedstocks, catalysts, or create hazardous and
toxic  byproducts. The  EPA  is working  to encourage.
University research into alternative methods for producing
many important chemicals which minimize or eliminate
hazardous substances, first by awarding six grants and now.
by working with the National Science Foundation to a
award additional grants.  The results of this research will
provide the chemical production industry'with important
tools  to reduce risr »ad prevent pollution.

D.  Insurance Project

        Incorporating pollution prevention principles into
the  day-to-day practice*  of insurance  underwriters,
insurance brokers,  and corporate risk managers could
provide significant opportunities to stimulate voluntary
changes in many businesses and  industries.  In the short
run, the EPA has entered into a cooperative effort with
the American Institute of Chartered Property and Casualty
Underwriters (AICPCU).   AICPCU  is  a  non-profit,
independent organization offering educational programs
and professional certification  to people in the  property
and liability insurance  business. The Institute offers a
broad array of certification programs 'for insurance
underwriters and brokers, and corporate risk managers.
EPA  is  working with AICPCU to modify the curriculum
for the associates in Risk Management (ARM) program to
incorporate pollution prevention into their  certification
program.   •                               •
                 VTL CONCLUSION
A. Challenges
              xtflf
        Large challenges still exist to widespread adoption
of environmental design initiatives in the private sector.
EPA's  DfE Program  has developed  the  Substitutes
Assessments methodology  in  an  attempt  to lay out
environmental issues that should be integrated into design
decisions and also to  provide  a model  for examining
substitutes in a systematic fashion.  Although organizing
 the  information in  this manner  will  highlight some.
 desirable choices, due to.the complexity of the trade-off
 issues involving risk, performance, and cost  (which will .
 vary from fadlir to facility), it will generally not prescribe
 one alternative. This method, however, makes all of the
 decision factors visible so that decisions can be made with
'full  knowledge of available information and  of the
 uncertainty of some of that information.

       • Companies have a challenge to .identify priority
 areas of environmental concern and to change the mindset
 of upper management and design engineers so that a
 search for alternatives in problem environmental  areas
 becomes a priority.

 R Moving in the right direction

        While  many challenges still exist, the EPA's DfE
 Program is working to provide concrete examples for how
 a company can design its products and services with the
 environment in mind.  Efforts to change the institutional
 business infrastructure that supports such efforts are also
 an important direction in which the Program focuses.

 C Opportunities tor WE

        Many  American industries are driven by  ever-
 changing technology.   Survival in  these  competitive
 industries is now mandating that firms design'flexible
 products which satisfy varying applications and consumers.
 In  addition, production methods  are  becoming more
 flexible to accommodate new technologies,  products, and
 manufacturing  techniques. High technology areas such as
 electronics, computers, and automobile manufacturing are
 particularly well suited for DFE efforts.

        Other  sectors, such as dry cleaning and printing,
 require change much less frequently.  In these cases, DFE
 efforts are  actually attempts to redesign  products and
 processes.  Yet, even in slower changing sectors, many
 companies are feting  growing pressures to dramatically
 change their products and services.

        Substantial opportunities exist for companies who
 can design high-quality, environmentally, sound products.
 Those  companies  which   are  able   to  integrate
 environmental objectives in the earliest design stages of
 their products  will  profit from savings through regulatory
 compliance,   marketing  advantages,   and  increased
 competitiveness. EPA and the DfE Program are working
 with industry partners to realize these opportunities.

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can be supplied in greater or lesser depth (or even left
out)  depending   on  the  specific   example  under
consideration.  The document lays out the trade-offs and
highlights missing information. The missing pieces can be
used to design data collection efforts or simply to inform
companies about the degree of uncertainty surrounding the
choices.

D.  Relative Risk Ranking

         Many companies rind that quality information
about the relative risks of chemical alternatives is difficult
to  access and understand.   OPPT  along  with many
companies, defense contractors, federal agencies, and other
offices within EPA  have developed  computerized  risk
ranking systems. The DfE Program is working to bring til
major   players   together  in   workshops   aimed  at
standardizing the approaches.

        Publicly accessible ' computerized relative  risk
ranking can provide  a powerful tool for DFE efforts.  It
can help prioritize problem environipental areas where a
search for alternatives may be  necessary. In  addition, it
can provide preliminary comparatne risk  information
about  different alternative chemicals Oat might serve as
substitutes.
       VT
                                                                              nfP.   PROGRAM'S
           PROGRAM
        Many difficult issue* such as how to compare
 unlike risks, how to calculate the risks of mixtures, how to
 weigh risks in different media,   and how to compare
 chemical and process change options still east.  .

        The DfE Program is presently working with three-
 industry segments who are already reevaluating their
 current production and wotting practices.

         These  projects  are working  to  apply  the
 methodology described above to specie use duster areas
 and, through practical application, wffl address many of
 the questions that must be worked out in applying this
 methodology.    Current cooperative industry projects
 include:        '            •

 • Computers and Electronics
 • printing, and
 • Dry Cleaning

         The DfE Program also hopes to establish working
  relationships with other industry segments.
INFRASTRUrri IRE PROJECTS

       Another major goal of EPA's DfE Program is 10
break down institutionalized barriers to DFE efforts.  A
number of projects have been initiated for this purpose:

A   Capital Budgeting and Environmental Accounting
Project

       Every  business collects information for its own
internal dedstonmaking, eg., cost and pricing decision,
(managerial accounting)  and  to provide  to  external
audiences such as bank stockholders, creditors, bankers,
and government (financial accounting). Every business also
must dedde how to invest its available  capital m new
equipment and products.

     -   At present, many cost accounting  systems and
capital budgeting processes  do  not provide enough
information to business  managers  to  make optimal
decisions in increasingly competitive gtobal markets.  In
the environmental arena, for  cample,  part or all
environmental  costs  for.  treatment,  disposal,  and
administration are often allocated to overhead cost polls
which in torn mask the true environmental costs of a
particular product or process. Potential future liabilities
may not be accounted for at all

        As long as this  and other cost information  is
bidden from managers, costing and pricing decisions will
underestimate the costs of some producB and overestimate
 the costs of  others. Managers  face a  similar lack of
 information when they evaluate investment alternatives in
 new  equipment  and  products.   Without  adequate
 information to indude in the financial analysis of capital
 investments,  and given  problems in the  methods of
 analysis,  managers  »N  «* .**' *»  advantages of
 investments   that  prevent   pollution  and   minimize
 environmental impacts.  EPA's DfE Program seeks  to
 promote the designand development of better accounting
 andcapital budgeting practices within firms' managerial
 --- "ring systems.
  B.  Cnrricntam Development

         EPA recognizes that many of today's companies
  have trouble implementing pollution prevention and DFE
  efforts bectfise their employees have not been educa«l or
  trainedwiththeseobjectivesasapriority. To tegu. to fill
  this «ademic vacuum,  the  EPA has f>b*h*  *e.
  National Pollution Prevention Center «JJ» U??""«JD°f
  Michigan. The Center fe developing curricula in mutaple
  disdpUnes  (ie. business, accounting, marketing) which

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m National  Research Council, Improving Engineering
Disifn:     Designing   for  Competitive  Advantage.
Washington, D.C: National Academy Press, 1991.
m  U.S  Congress, Office of Technology Assessment,
Green  Products  by Design:   Choices for  a Cleaner
Environment, OTA-E-541.   Washington D.C:   US.
Government Printing Office, pp. 144-152, September 1989.
[3]  R.  Frosch  and  N. Gallonoulos, ."Strategies for
Manufacturing,' Scientific American, VoL 261, No. 3, pp.
144-152, September 1989.
[4]  Change  Management Center, Applying Industrial
Ecology. Oakland, CA, 1993, pp. 2-3.
HV%««k, Design for the Re* World, Human
Ecology andSodal Change.  NY:  Bantam Books, 1973.
f61 Change Management Center, pp. 2.
 [71J; Hoteha, -Making Disposal Easier, by Design,' New
York Times, pp. Dl, D3,28 May, 1991.       ^
 [81 American Electronics Association, The  Howsand
 Whys  of Design  far the Jnvironmenl:  A Primff for
 Members of the Electronics Association, Wa*hingtoaD.C,
 November 1992, p. 8.              	     9^^.*
 [91  J.  McOraw,  TTie Denver  Airport:    *****
 Prevention by Design,'  Potation Engineering, pp. 61-62,
 1 January 1993.                      •...»,«                      *
 [101 W. Van Riet and J. Cooks, "PlanningjUKl Design of                      '
 Bci-en-D*l, A New  dmp in Kroger National Put,-
 EirvLnme7talMaiiag«iiait,VoL14;No.3,pp.359.365,                      *
 May-June 199a
 [11] Applying Industrial Ecology, p. 1Z

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