United States
  Environmental Protection
  Agency
                                                                   Office of Water
                                                                   (4204 M)
                                                                   Washington, DC 20460
EPA 832-F-00-075
November 2001
  Environmental   Management  Systems  and   the  Clean
Water State  Revolving  Fund
                                 Several publicly owned treatment works (POTWs) have been or will
                                 shortly be certified to ISO 14001.  These include San Diego, CA,
                                 Lowell, MA, Charleston, SC, Eugene, OR and Gastonia, NC. Other,
                                 more tailored EMS programs are also underway.  For example, under
                                 the National Biosolids Partnership (NBP), the EPA's Office of Water,
                                 along with the Water Environmental Federation (WEF) and the
                                 Association of Metropolitan Sewerage Agencies (AMSA), is helping to
                                 develop and implement an EMS program tailored to the biosolids
                                 industry. EPA, AMSA and WEF are also beginning a project to analyze
                                 the feasibility of developing a utility-wide EMS template that would
                                 integrate  the  use of other utility management  tools like  asset
                                 management.  More information about the NBP' s EMS program can be
                                 found on their web site at www.biosolids.org.
The Problem

Public and private enterprises face an increasingly heavy burden of
responsibility for  the  future  condition  of  our  environment.
Wastewater treatment systems in particular are getting more complex
and face numerous environmental challenges, requiring dynamic, top
quality environmental  management.   A systematic  method for
addressing environmental consequences is often needed - not only for
current issues of legal compliance  but also to address additional
community and environmental concerns. One method of managing
environmental impacts has been codified into a series of protocols:
environmental management systems (EMS).  The EMS method holds
particular promise as an information-rich and inclusive framework for
addressing environmental issues.
This  fact  sheet will  briefly  discuss  what  an environmental
management system (EMS) actually is and how the Clean Water
State Revolving Fund may be tapped to establish an EMS program.

What is an EMS?

An EMS is a formal set of procedures and policies that define how an
organization will manage and reduce its impacts on the environment.
The basic elements of an EMS include:

        • reviewing the organization's goals;
        •   analyzing   its environmental  impacts   and   legal
        requirements;
        • setting environmental objectives and targets;
        • establishing programs to meet objectives and targets;
        • monitoring and measuring progress;
        •  ensuring employee  environmental  awareness  and
        competence;
        • reviewing progress of the  EMS and making
        improvements.

As an integrative process,  EMS is a continual cycle that involves
planning,  implementing,  reviewing  and improving  so  that  an
organization can reduce its environmental impacts.

EMSs are  increasingly  being developed in  conformance with the
voluntary International Organization for Standardization (I SO) 14001
standard for EMSs. Over 1300 organizations in the U.S. are attracted
to the  ISO EMS because it  provides a documented, externally
verifiable system. Firms adopting an ISO  14001-based EMS can
demonstrate  due diligence in regulatory compliance, a positive
statement of environmental philosophy, and a competitive advantage
in public, customer, and business partner relationships. EPA has
established a policy  of promoting the development of EMSs in key
sectors, including wastewater, because the EMS method can help
improve overall environmental performance, reduce costs, and bring
about improved facility management in many other ways. A number
of states are also promoting EMS adoption by various sectors.
                                 The Clean Water State Revolving Fund

                                 The CWSRF programs, in every state and Puerto Rico,  work like
                                 banks. Federal and state contributions are used to capitalize or set up
                                 the programs. These assets, in turn, are used to make low or no-interest
                                 loans for important water quality projects. Funds are repaid to the
                                 CWSRFs over terms as long as twenty years. Repaid funds are then
                                 recycled to fund other water quality projects. Nationally, the CWSRF
                                 has in excess of $34 billion in assets (includes loans already made and
                                 funds available to make loans).  The CWSRF is funding water quality
                                 projects at a rate of more than $3 billion per year.

                                 Potential incentives for funding CWSRF EMS projects include special
                                 recognition, such as acknowledgment onEPA's web site, opportunities
                                 to be featured in EPA publications, and participation in information
                                 exchanges such as EMS practitioner forums.

                                 Benefits in Using Environmental Management Systems
                                for CWSRF Projects

                                 EMS can help local government entities address their regulatory and
                                 non-regulatory issues in a systematic and cost-effective manner. This
                                 proactive approach can help reduce the risk of non-compliance and
                                 improve health and safely practices for employees and the public. The
                                 EMS can also  help  address non-regulatory  issues such as odor
                                 management and energy conservation.  Implementation of EMS can
                                 result in significant energy savings. The EMS can promote stronger
                                 operational control and employee stewardship.  Local government
                                 entities  are also using EMSs to manage growth.  In addition to the
                                 advantages available for local governments, state agencies benefit by
                                 extending the coverage of their CWSRF by making more efficient and
                                 effective use of their loan funds in achieving water quality benefits.

                                 Eligibility for Funding

                                 The EPA is pursuing a policy of actively promoting the adoption of
                                 EMSs.  The Clean Water State Revolving Fund can be used for
                                 developing an EMS, provided it is part of the construction,

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modification or expansion of a POTW. While CWSRF loan
funds can be used to help establish an EMS program in the context of
wastewater treatment, CWSRF funds may not be used to maintain or
operate the EMS. However, research shows that EMS development
costs usually far exceed the costs of implementing the EMS. Again,
only EMS development costs are eligible and only those costs can
only be funded as part of the construction, modification, or expansion
of a POTW.  EMS projects are not eligible for loans as a stand alone
activity.

Learning by Example

While  CWSRF funds were not used to develop and  set up the
following EMS projects, these projects would have been  eligible for
funding as part of a POTW construction, expansion or modification.
The City of Lowell, Massachusetts, Lowell Wastewater Utility
was selected  as a project participant in the USEPA EMS  Pilot
Program for Local Government Entities.  The Utility is an activated
sludge wastewater treatment facility providing primary and secondary
treatment to 170,000 users in five communities. The EMS focused on
waste  stream   management,  chemical  use management,  energy
reduction, odor control, and industrial notification. Energy reduction
alone resulted in a savings of $7,000 over a 10-month period. Other
benefits  include improved communication at all levels  of the
organization, greater participation in decision making, more creative
solutions,  employee  empowerment,  and increased operation
efficiencies and better service to customers. These improvements
resulted from a rather modest expenditure of about $42,000. Formore
information contact Mark   Young,  (978)  970-4248,   e-mail:
myoung@ci.lowell.maus.

The Wastewater Division within the City of Eugene, Oregon
has developed an EMS  for a 49 million-gallon- per-day  regional
secondary wastewater treatment plant, a biosolids processing facility,
a  land  application  site for  irrigation  using  vegetable  cannery
wastewater, and 49 local sewage pumpingstations. The EMS centers
on the Wastewater Division's core responsibilities of protecting health
and environment, and clarifies guiding policies, ensures integration of
the different  functional  components  of the regional wastewater
program to optimize environmental benefits, and helps to establish and
maintain an effective documentation system. The EMS objectives
target   reductions in  natural  resources consumption,  power
consumption, non- recyclable wastes, and improvement of the quality
of treated wastewater. For more information, contact: Peter Ruffier at
(541) 682-8606 or via e-mail at Peter. J.RUFFIER@ci.eugene.or.us
North City Reclamation Plant, and reductions of over 8% and 30%,
respectively, of their normalized process chemical use for the Point
Loma Wastewater Treatment Plant and the Metro Biosolids Center.
The EMS has also prepared the Division to effectively respond to other
regulatory and wastewater industry standards, like the US EPA's
Capacity, Monitoring, Operations,  and  Maintenance (CMOM)
Program requirements and the National Biosolids Partnership's EMS
for Biosolids Initiative. For more information contact Chris Toth at
(858)654-4265,
e-mail: CJT@sdcity.sannet.gov.

Challenges Ahead

EPA has been encouraging the states to open their CWSRFs to the
widest variety of water quality projects, while addressing high priority
projects in targeted watersheds.  EMSs are one important tool to help
this process. Those interested in establishing an EMS (in conjunction
with the construction, expansion or upgrade of a wastewater treatment
plant) should contact their state for  information on the CWSRF
application process.
For more information on Environmental Management Systems,
please contact:
The EMS web site (http://epa. gov/owmitnet/ems.htm) or Jim Home at
(202) 564-0571 or through email at
home.james@epa.gov.

For  more information on  the CWSRF  or for a  program
representative in your state, please contact:
The Clean Water State Revolving Fund Branch
U.S. Environmental Protection Agency
EPA East
1201 Constitution Avenue, NW
(Mail Code 4204M)
Washington J3.C. 20004
Phone: (202) 564-0752 Fax: (202) 501-2403
Internet: http://www.epa.gov/owm/fina i.htm
City  of San Diego, California  Metropolitan Wastewater
Department's Operations and  Maintenance  Division.  The
Department manages a regional sewer system service area of 4,560
square miles serving a population of two million people. Utilizing the
ISO 14001 standard, the Division developed and implemented the first
ISO-certified EMS for POTWs within the United States.  The EMS
established four system-wide environmental programs focusing  on
reductions in energy consumption, chemical usage,  solid waste
disposal, and potable water use. Successful implementation of the
EM Sresulted in a reduction of 10% in normalized electrical use by the

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