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This document was prepared
   by the Federal Facilities
Enforcement Office {2261} in
the Office of Enforcement and
   Compliance Assurance.
  Consulting assistance was
    provided by Science
  Applications International
     Corporation (SA1C).
 For additional copies of this
  document, please contact:

     Pollution Prevention
  Information Clearinghouse

      U,a EPA (3404)"
      401 M Street, SW
   Washington, DC 20460
    Tel:   (202)260-1023
    Fax:  . (202) 260-0178

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                                ACKNOWLEDGMENTS
 EPA's Federal Facilities Enforcement Office, Planning, Prevention, and Enforcement Division gratefully
 acknowledges the contributions of the following agencies and individuals that provided information and
 comments:
 Department of Defense

 Colonel. L. Dean Fox
 Major Alec Earle
 Major Al Trivette
 U.S. Air Force Civil Engineering

 Mary Grafton
 Defense Analysis and Studies Office

 CDR Marc McConahy
 Office of Assistant Secretary of Navy
 (Installations & Environment)

 Dr. Get Moy
 Assistant Deputy Under Secretary of Defense
 (Pollution Prevention)

 David Price
 Office of the Chief of Naval Operations

 Research Triangle Institute Center for
 Economics Research

 Keith A. Weitz

 Tellus Institute for Resource and
 Environmental Strategies

 Dr. Deborah  Savage
 Dr. Allen White

 U.S. Department of Energy

Jane Powers

Staff from Department of Energy Office of
Defense Programs,
Idaho National Engineering Laboratory,
Lawrence Berkeley Laboratory, and Sandia
National Laboratories
 U.S. Environmental Protection Agency
 James Bridges
 Maryanne Curran
 Paul Shapiro
 Office of Research & Development/Risk
 Reduction Engineering Laboratory

 Jim Craig
 Holly Elwood
 Eun-sook Goidel
 Dr. Martin Spitzer
 Office of Pollution Prevention and Toxics

 Maureen Sullivan

 Lynn Vendinello
 Office of Enforcement and Compliance
Assurance

 Lee Otis
Region 10

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                        TABLE OF CONTENTS
CHAPTER 1:       INTRODUCTION TO PROJECT ANALYSIS OF POLLUTION
                  PREVENTION PROJECTS

Background	1
Purpose of This Document	2
What is Pollution Prevention?	3
Benefits of Pollution
Prevention	5
How Do You Evaluate Pollution Prevention Investments?	6
      Estimating Economic Performance	'.	7
      Estimating Environmental Consequences	7
Format of This Guidance Manual	8
CHAPTER 2:      TOTAL COST ASSESSMENT FOR POLLUTION PREVENTION

Introduction	9
What is Economic Analysis?	9
      Definitions and Terms	10
      Expanding Cost/Savings Inventories	11
      Expanding Time Horizons	14
      Comparing Financial Performance	'.	14
Getting Started	17
Instructions For Completing The Investment Analysis Worksheet	18
CHAPTER 3:      ESTIMATING ENVIRONMENTAL CONSEQUENCES

Introduction	23
What is a Life Cycle Assessment	24
Applications of a Life Cycle Assessment	26

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 Beginning to Apply LCA Concepts in Project Analysis	27
       Life Cycle Checklist.	28
       Conducting a More Detailed Investment Review	29
 Instructions For Completing The Life Cycle Assessment Worksheet	32
CHAPTER 4:       INCENTIVES AND CHALLENGES TO EXPANDING PROJECT
                    ANALYSIS PRACTICES
Introduction	..35
Existing Incentives	35
       Executive Branch Initiatives	35
       Office of Management and Budget Guidance	36
       Specific Agency and Facility Initiatives	36
       Department of Defense	36
       Department of the Interior	'.	,	37
       United States Postal Service	37
Overcoming Existing Challenges	37
       Proper Allocation of Cost Categories	38
       Placing Value On Future Costs and Benefits	39
       Availability of Process Specific Resources	39
APPENDIX A:  GLOSSARY OF TERMS	A-1

APPENDIX B:  ADDITIONAL INFORMATION SOURCES	B-1

APPENDIX C:  READER FEEDBACK SURVEY	C-1

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                                Chapter 1
             INTRODUCTION TO PROJECT ANALYSIS
            OF POLLUTION PREVENTION PROJECTS
            "...Federal facilities will set the example for the rest of the country and
            become the leader in applying pollution prevention to daily operations,
            purchasing decisions and policies... By stopping pollution at its source
            the Federal government can make a significant contribution to protecting
            the public health and our environment."
                                   President Bill Clinton
BACKGROUND


      On August 3, 1993, President Clinton signed Executive Order 12856, entitled
Federal Compliance With Right-to-Know Laws and Pollution Prevention Requirements.
This order requires each Federal Agency to:


•     Develop an Agency-wide pollution prevention strategy which commits the
      agency to source reduction and emphasizing pollution prevention as the primary
      means of achieving and maintaining compliance with Federal, State, and local
      environmental requirements.


•     Establish a voluntary goal to reduce total releases and off-site transfers of toxic
      chemicals or toxic pollutants by 50 percent.
•     Develop facility-level pollution prevention plans.


*     Apply Life Cycle Analysis and 'Total Cost Accounting principles, to the greatest
      extent practicable, when evaluating pollution prevention opportunities.


      By signing this Executive Order (EO) and emphasizing the importance of
pollution prevention in environmental  management, President Clinton has challenged
the Federal government to publicly lead by example by applying pollution prevention in

                                      1

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the management of its facilities and in its acquisition practices. By preventing pollution,
the Federal government not only protects the environment and the public's health, but
also saves the taxpayers' money by reducing pollution control costs and long-term
liability for expensive cleanups.
PURPOSE OF THIS DOCUMENT
      This guidance manual is designed to assist decision makers at Federal facilities
in complying with the requirements of Section 4-404 of EO 12856. That section
requires Federal facilities to apply Total Cost Accounting and Life Cycle Analysis, to
the greatest extent practicable, when evaluating pollution prevention opportunities.
Specifically, this manual introduces and describes several analytical tools that can be
used to help users identify and quantify the financial and environmental benefits of
pollution prevention  projects and alternative opportunities.  This information can then
be used to evaluate  and justify pollution prevention projects.


      This manual is written primarily for the individual who makes decisions regarding
project funding at Federal facilities and for those who recommend and evaluate
potential alternatives.  However, any Federal employee involved in the procurement
process can use the concepts in this manual to more accurately evaluate the full
economic and environmental impacts of projects under consideration.


      The information provided in this document will help Federal facility managers
choose the best pollution prevention practices and support projects amid competing
resource demands. The analytical tools to evaluate and  support pollution prevention
opportunities described in this manual fall into two categories: Economic Analysis and
Environmental Analysis. These two categories are discussed separately, but in reality
they are two integral components of any project review process.


      The financial  and environmental techniques discussed in this manual expand
upon traditional project analysis to include:


«  Associated direct and indirect cost and environmental impacts;
   Associated financial and environmental consequences occurring both "upstream"
   and "downstream;" and

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   The environmental impacts throughout all media (air, water, soil) resulting from
   competing project alternatives.
      Finally, this manual is not intended to be a comprehensive "how-to" text
presenting new research on financial and environmental project review concepts.
Rather, it provides an introduction and a framework for using these important and
evolving tools. Readers who seek more detailed information should refer to the
documents listed in Appendix B.
WHAT IS POLLUTION PREVENTION?
      Over the past several years, a new environmental protection concept and
strategy has been developed that focuses on eliminating or modifying activities that
result in adverse environmental impacts. This concept, known as pollution prevention,
has gained widespread support, especially in Federal agencies, as a means to meet or
exceed environmental goals and standards and to reduce resources being spent to
clean up pollution. Pollution prevention is defined in the Pollution Prevention Act of
1990 as:
      ...any practice which reduces the amount of a hazardous substance, pollutant, or
      contaminant entering any waste stream or otherwise released into the
      environment (including fugitive emissions) prior to recycling, treatment, or
      disposal; and any practice which reduces the hazards to public health and the
      environment associated with the release of such substances, pollutants, or
      contaminants.
      Pollution prevention, referred to here
as source reduction, represents the first step
in a hierarchy of options for managing waste.
Exhibit 1-1 depicts this Environmental
Management Hierarchy. Source reduction is
assigned the highest priority because it
eliminates or reduces wastes at the source of
generation. Recycling  is the next preferable
approach, because it invplves the reuse or
regeneration of materials that would
otherwise become wastes into usable
products. Treatment and disposal are viewed
as last-resort measures, since they do not
        Exhibit 1>1
     ENVIRONMENTAL
 MANAGEMENT HIERARCHY
SOURCE REDUCTION
       RECYCLING
         TREATMENT

          DISPOSAL

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involve the reduction or reuse of wastes.
      Pollution prevention refers to the use of materials, processes, or practices that
eliminate or reduce the quantity and/or toxicity of wastes at the source of generation. It
includes practices that eliminate the discharge of hazardous or toxic chemicals to the
environment and protect natural resources through conservation and improved
efficiency. Further, pollution prevention encourages reduction in the use of hazardous
materials, energy, and water as the best approach to reducing environmental impacts.
Exhibit 1-2 lists the major types of pollution prevention activities.
                                     Exhibit 1-2

                        POLLUTION PREVENTION ACTIVITIES
    Process Efficiency Improvements

    •   Perform the same task with less energy or materials by designing new systems or
       modifying existing ones.
    Material Substitution

    •   Replace hazardous chemicals with less toxic alternatives of equal performance.


    Inventory Control

    •   Improve materials management practices to prevent product expiration or damage.


    Preventive Maintenance

    •   Routinely check storage areas and containers for leaks and spills.

       Maintain equipment in good working order to extend useful life.


    Housekeeping

    •   Keep work areas neat and organized to reduce the chance of spills or releases of
       chemicals.


    Training

    •   Train employees in pollution prevention techniques.

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       Pollution prevention differs from the traditional approach to waste management
 not only because it seeks to avoid the generation of waste or environmental releases,
 but also because it stresses the relationship between air, land, and water to view the
 environment as a whole, rather than as individual segments.  Within this framework,
 pollution prevention aims to eliminate or reduce waste released to  land, air, and/or
 water without transferring or shifting pollutants between environmental media.
 BENEFITS OF POLLUTION PREVENTION
       Practicing pollution prevention may result in a number of economic benefits
These benefits can include fewer Notices of Violation (NOVs) and fewer costs
associated with reporting, compliance, penalties, and environmental liability associated
with hazardous waste generation and use.  Pollution prevention can also reduce the
costs associated with waste management.  Costs that may be reduced include
expenditures for raw materials, waste handling and storage, transportation and
disposal, training, management overhead, and emergency response. The likelihood of
incurring significant future environmental costs, such as remediation activities, can also
be reduced by using  pollution prevention approaches.
       In addition, pollution prevention can produce positive health and environmental
benefits. Minimizing the use of hazardous materials creates a safer work place and
reduces the need for expensive health and safety protection devices. A safer work
place will also improve employee morale. In addition, the reduction in hazardous
materials use can decrease the volume of toxic substances released to the
environment from spills, leaks and air emissions that affect human health  and the
environment. Exhibit 1-3 presents a list of the most significant pollution prevention
benefits.
      Although pollution prevention techniques can result in many benefits, many
Federal facilities have not yet embraced pollution prevention projects. This is due, in
part, to facility environmental funding historically being focused upon regulatory
compliance activities.  In addition, traditional governmental economic and
environmental analysis tools do not always consider the total costs, savings, and
environmental benefits from pollution prevention. In short, these traditional analysis
tools often do not provide adequate justification to recommend pollution prevention
opportunities. This manual introduces tools for evaluating and justifying pollution
prevention projects to overcome this barrier.

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                                     Exhibit 1-3
                         POLLUTION PREVENTION BENEFITS
    Operating Costs
    •  Reduced waste storage, handling, treatment, and disposal costs
    •  Avoided costly alternative treatment technologies
    •  Reduced raw material and feedstock purchasing costs
    •  Lowered housekeeping costs
    •  Reduced operating costs through better management and production efficiencies
    •  Reduced usage of energy, water and other resource needs

    Liability/Risk
    •  Decreased regulatory reporting requirements and compliance costs
       Reduced liability for environmental problems at both on-site and off-site treatment,
       storage, and disposal locations
    •  Reduced work related injuries and worker exposure to hazardous materials

    Facility Image
    •  Improved community relations
       Perceived public health/environmental benefits
HOW DO YOU EVALUATE POLLUTION PREVENTION PROJECTS?
      This guidance manual introduces Federal facility environmental managers to the
tools necessary to more fully evaluate both the environmental effects and economic
impacts of current operations, pollution prevention opportunities, and competing project
alternatives.  Specifically, the manual outlines the key concepts and procedures
involved in using economic and environmental project review tools. While these tools
can be used to evaluate current operations and virtually any type of project, they are

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described in this manual in the context of evaluating and supporting pollution
prevention projects.


      To effectively use the economic and environmental analysis tools described in
this document when evaluating pollution prevention opportunities, it is necessary to
apply these tools to current operations as well as other project options under
consideration. In this way, greater understanding of the financial and the
environmental effects can be gained and can be compared on an equal basis.
Estimating Economic Performance
      Economic analysis is the most commonly used method to determine how scarce
resources should be allocated. An accurate estimate of the costs associated with the
development and use of a product or process is central to the internal decision making
and strategic planning process.  Pollution prevention projects must compete on equal
footing with other funding requests.
      The easiest and most common economic evaluation is one that compares the
up-front purchase price of competing project alternatives.  However, the up-front
purchase price is typically a poor measure of a project's total cost.  Costs such as those
associated with maintainability, reliability, disposal/salvage value, and
training/education must also be accounted for in the financial decision making process.
      This guidance manual provides Federal facility decision makers and their
advisors with an introduction to the tools to expand upon traditional economic analysis
processes to identify more of the costs associated with a particular operation or
process at a facility. The approach discussed in this guidance manual is designed to
allow Federal facility managers to expand their traditional economic analysis framework
by adding new cost elements to existing modeling techniques.  This approach gives
flexibility to the economic analysis process and allows each analysis to be tailored in
scope and detail to reflect both available data and specific project review needs.
Further, basic cost data already embedded in existing facility-level models can be used
to minimize the effort needed to secure required data.
Estimating Environmental Consequences


      In addition to economic performance, the environmental consequences of
current practices and alternative opportunities should be factored into project review
                                       7

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processes.  When environmental consequences are considered, the pollution
prevention alternatives can be assigned appropriate weight. Through this process,
project opportunities that reduce one type of pollution by transferring the environmental
impacts to another media (e.g., from water to atmospheric releases) can be identified
and eliminated.
      Environmental analyses can be used to examine environmental impacts along
various points in the life cycle of the product, process, or activity. This may include
extraction and processing of raw materials, manufacturing, transportation and
distribution, use/re-use/maintenance, recycling, and final disposal. Environmental
analyses, like economic analyses, can be tailored in scope and detail to reflect both
available data and specific project review needs.
FORMAT OF THIS GUIDANCE MANUAL


      The remainder of this guidance manual provides more specific guidance and
application examples using each of the pollution prevention tools discussed above.
Chapter 2 presents economic analyses, and Chapter 3 discusses environmental
analyses. Both of these chapters provide an introduction to the basic analysis
procedure and include worksheets that illustrate how the concepts can be applied.
Chapter 4 discusses incentives, potential challenges and possible solutions to
expanding investment analysis practices. A glossary of terms,  a list of additional
resources, and a reader response survey are located at the end of the  manual in
Appendices A, B, and C, respectively.
                                       8

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                                Chapter 2
                     TOTAL COST ASSESSMENT
                   FOR POLLUTION PREVENTION
INTRODUCTION
      This chapter is designed to assist Federal facility managers in identifying a
broader and more accurate array of economic costs associated with current operations
and with alternative project opportunities. These tools will help uncover areas of cost
savings that result from pollution prevention projects that are often overlooked in
traditional costing processes.  With these tools, managers will be better equipped to
answer the questions: "Does pollution prevention pay? And if so, how much?"


      The chapter first discusses how traditional project analysis procedures can be
expanded upon to more accurately reflect the economic costs  and benefits of pollution
prevention activities. Next, a worksheet with step-by-step instructions is provided to
illustrate how these new concepts can be used. Together, this discussion will provide
facility managers with the framework necessary to begin using economic analysis
principles to more accurately evaluate the financial viability of pollution prevention
projects.


WHAT IS ECONOMIC ANALYSIS?


      Economic analysis involves tabulating the financial costs, revenues, and savings
that a project is expected to generate. These estimates provide the data necessary to
evaluate the economic advantages of competing projects. All  Federal agencies require
some form of financial performance analysis as part of the investment decision making
process.


      Unfortunately, economic analysis methods historically have minimized or ignored
the economic benefits of pollution prevention projects by incorporating too few cost
areas in the analysis and by examining costs over too short of a period of time. Not
surprisingly, methods to improve economic justification for pollution  prevention projects
involve addressing these shortcomings.

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Definitions And Terms
      Over the last few years, researchers and managers
working to promote pollution prevention have been
developing techniques to evaluate projects that account
for the economic benefits of pollution prevention.  Several
systems and models have been developed, and
numerous terms are currently used to define these
systems.  These systems and models all involve
expanding the traditional project evaluation methods to
address the issues stated in this chapter. For the sake of
clarity, the following  section provides a short description
of three approaches currently being advocated  in the
Federal government. These definitions were developed by
the United States Environmental Protection Agency
(EPA). Many facility managers may be familiar with these
approaches, yet call them by a different name.


      Total Cost Accounting. Total Cost Accounting,
also referred to as Full Cost Environmental Accounting, is
used in management accounting to represent the
allocation of all direct and indirect costs to specific
products, product lives, or operations.
       Total Cost Assessment. Total Cost Assessment
has come to represent the process of integrating
environmental costs into capital budgeting analyses. It
has been defined as the long-term, comprehensive
financial analysis of the full range of costs and savings of an investment experienced
by the organization making the investment.
                                                                 P2/Finance
P2/Finance is a pollution prevention
financial analysis and cost
evaluation software program and
users guide designed to help
managers identify and calculate the
costs associated with existing
operations and potential
investments. The spreadsheets
contained within P2/Finance prompt
users to enter cost and savings
data in a broad range of categories.
 Once data is entered, P2/Finance
calculates and reports cost data,
annual cash flows, and projected
financial performance using a
variety of performance indicators.
P2/Finance is designed to run with
Lotus 1-2-3., or Excel. The
software and users guide is
available at no charge to all
Federal, state  and local government
agencies from the EPA's Pollution
Prevention Information
Clearinghouse (MC 304), 401  M
Street SW, Washington, DC,
20460. Phone: (202) 260-1023.
       Life Cycle Cost Assessment. Life Cycle Cost Assessment represents a
 systematic process for evaluating the life cycle costs of a product, product line,
 process, system, or facility from raw material acquisition to disposal by identifying
 environmental consequences and assigning monetary value.


       Additional definitions for commonly used terms can be found in Appendix A.
                                       10

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 Expanding Cost/Savings Inventories
       For pollution prevention projects to
 compete fairly with pollution control and
 competing alternatives, more potential costs
 and savings must be considered.  In addition
 to including direct costs, the cost inventory
 should also include indirect costs, liability
 costs, and less tangible benefits.  Exhibits 2-1
 and 2-2 provide a list of capital and operating
 costs that environmental managers can use to
 determine the financial costs and savings
 associated with a particular project
 opportunity.
       The challenge for any Federal facility
 decision maker or project analyst seeking to
 use an expanded cost/savings inventory for
 investment analysis is that some of the cost
 data associated with a particular piece of
 equipment or process may be difficult to
 obtain. Quantifying some of these costs may
 be a challenge because they may be grouped
 with other cost items in existing overhead
 accounts. For example, waste disposal costs
 for existing processes are often placed into a
 facility overhead account, whereas an
 expanded cost inventory would call for these
 costs to be directly allocated to the product or
 process that produces them. Consequently, it
 is not expected that information for all the
 cost categories will be identified during
 analyses. Managers and analysts should  use
the list of categories contained in Exhibits  2-1
and 2-2 to incrementally expand their existing
financial analyses whenever possible.
       Total Cost Assessment
             Pilot Study
The Postal Service recently completed
a financial analysis using TCA to
evaluate pollution prevention projects
for the vehicle painting and oil handling
processes at the USPS Vehicle
Maintenance Facility in Hartford, CT.
Financial data concerning existing and
alternative oil handling and painting
processes were tabulated and
compared. Costs associated with
existing painting operations
(conventional spray guns and low
solids, high VOC paint) were compared
to five alternatives using high volume,
low pressure (HVLP) spray guns,
water-based primers, and/or paints with
varying levels of solids and VOCs.
Costs associated with existing oil
handling practices (using virgin oil and
disposing waste oil through a vendor)
were compared against alternatives
involving using virgin oil and disposing
of waste oil via an on-site waste oil
burner, and using re-refined oil
purchased from a vendor that takes
USPS waste oil for re-refining.  In both
cases, the financial analysis indicated
that various alternatives to existing
operations could provide substantive
 conomic benefit. The study used
P2/Finance, a computerized
spreadsheet to help track costs and
measure financial performance.
Ordering information for P2/Finance is
contained in Appendix B.
                                       11

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                                      Exhibit 2-1
                   INVENTORY OF POTENTIAL CAPITAL COSTS1
 Purchased equipment
 •   Equipment
 •   Delivery
 •   Sales tax
 •   Insurance
 •   Price for initial spare parts

 Materials
 •   Piping
 •   Electrical
 •   Instruments
 •   Structural
 •   Insulation
 •   Other materials (e.g.,
    painting, ducting)

 Utility systems and
 connections
 •   General plumbing
 •   Electricity
 •   Steam
 •   Water (e.g., cooling,
    process)
 •   Fuel (e.g., gas, oil)
 •   Plant air
 •   Inert gas
•   Refrigeration
•   Sewerage
Site preparation (labor.
supervision, materials)
•   Site studies
•   Demolition and clearing
•   Old equipment/rubbish
    disposal
•   Grading, landscaping
•   Equipment rental
 Start-up/Training (labor.
 supervision, materials)
 •   In-house
 •   Contractor/vendor/
    consultant fees
 •   Trials/manufacturing
    variances
 •   Training
Construction/Installation (labor. Regulatory/Permitting (labor.
supervision, materials)
•   In-house
•   Contractor/vendor/
    consultant fees
•   Equipment rental

Planning/Engineering (labor.
supervision, materials)
•   In-house
    planning/engineering (e.g.,
    design, drafting,
    accounting
•   Contractor/vendor/
    consultant fees
•   Procurement
supervision, materials)
•   In-house
•   Contractor/vendor/
    consultant fees
•   Permit fees

Working Capital
•   Raw materials
•   Other materials and
    supplies
•   Product inventory
    Protective equipment

Contingency
•   Future Compliance Costs
•   Remediation

Back-End
•   Closure/ decommissioning
•   Disposal of inventory
•   Site survey
      Adapted from An Introduction to Environmental Accounting as a Business Management Tool: Key
      Concepts and Terms, USEPA, and P2/Finance Users Manual, Teilus Institute, Boston, MA. 1993.
                                         12

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                                    Exhibit 2-2
                 INVENTORY OF POTENTIAL OPERATING COSTS2
 Direct Materials
 •  Raw materials (e.g.,
    wasted raw materials
    costs/savings)
 •  Solvents
 •  Catalysts
 •  Transport
 •  Storage

 Direct Labor
 •  Operating (e.g., worker
    productivity changes)
 •  Supervision
 •  Manufacturing clerical
 •  Inspection/QA/QC

 Utilities
 •   Electricity
 •   Steam
 •   Water (e.g., cooling,
    process)
 •   Fuel (e.g., gas, oil)
 •   Plant air
 •   Inert gas
•   Refrigeration
•  Sewerage
 Waste Management (Labor.
 Supervision. Materials)
 •  Pre-treatment
 •  On-site handling
 •  Storage
 •  Treatment
 •  Hauling
 •  Insurance
 •  Disposal

 Regulatory Compliance
 (Labor. Supervision,
 Materials)
 •  Permitting
 •  Training (e.g., Right-To-
    Know training)
 •  Monitoring/inspections
 •  Notifications
 •  Testing
 •  Labeling
 •  Manifesting
 •   Recordkeeping
 •   Reporting
 •   Generator fees/taxes
 •   Closure/postclosure care
 •   Financial Assurance
 •  Value of marketable
   pollution permits (e.g.,
   SOx)
•  Avoided future regulation
   (e.g., Clean Air Act
   amendments)
 Insurance
 Future Liability
 Fines/penalties
 Cost of legal proceedings
 (e.g.. transaction costs)
 Personal injury
 •   Property damage
 •   Natural resource
    damage
 •   Superfund

 Revenues
 •   Sale of product (e.g.,
   from changes in
   manufacturing
   throughput, market
   share,  corporate image)
•  Marketable by-products
•  Sale of recyclables
      Adapted from An Introduction to Environmental Accounting as a Business Management Tool: Key
      Concepts and Terms, USEPA.. and P2/Finance Users Manual, Tellus Institute, Boston, MA. 1993.
                                      13

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 Expanding Time Horizons
       Another concept that is helpful in uncovering more of the true economic benefits
 of pollution prevention projects is to expand the evaluation of costs and savings over a
 longer time horizon, usually five or more years. This is because many of the costs and
 savings from pollution prevention take years to materialize, and because the savings
 from pollution prevention projects often occur every year for an extended period of time.
 For example, some pollution prevention projects may result in recurrent savings as a
 result of less waste requiring management and disposal every year. Conventional
 project analysis, however, often confines costs and savings to a'three to five year time
 period. Often, this time horizon is shorter than the useful life of the item or equipment
 being evaluated.  Using this traditional time frame in project evaluation will exclude
 some of the areas of savings generated by pollution prevention projects.
Comparing Financial Performance
      While expanding cost inventories and time horizons can greatly enhance the
ability to accurately portray the economic consequences of a single pollution
prevention project, financial performance indicators are needed to allow comparisons to
be made between competing project alternatives. Three methods of comparison are
currently in widespread use: Payback Period, Net Present Value, and Internal Rate of
Return.
      The simplest and most common approach used by Federal agencies is to
conduct a payback analysis that estimates the amount of time it will take to recover the
capital expenditures.  Net present value, an approach that is gaining popularity among
Federal agencies and facilities, is also advocated by many economists as a more
accurate approach to project evaluation. Both techniques are useful and offer specific
advantages/drawbacks for Federal facility decision makers. The third approach,
Internal Rate of Return, is rarely used within the Federal government but is described
below for use by  readers who encounter it. Analyzing economic impacts using two or
more of these approaches will provide even more insight.
      Payback Period.  Payback period analysis is the investment performance
indicator most commonly used by many Federal agencies. The purpose of a payback
analysis is to determine the length of time it will take before the costs of a new projects
are recouped. The formula used to calculate Payback Period is:


      Payback Period (in years) = start up costs / (annual benefits - annual costs)
      Payback Period          = $800 / ($600 - $400) = 4 years
                                      14

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       Those investments that recoup their
 costs before a set "threshold" period of time
 (usually 3-5 years) are determined to be
 projects worth funding. Payback period
 analysis does not discount costs and savings
 occurring in future years.  In addition, costs
 and savings are not considered if they occur
 in years later than the threshold time in which
 a project must pay back in order to be funded.
 There are also examples where critical
 pollution prevention projects may have a
 payback slightly longer than an established
 threshold, but have been implemented due to
 significant intangible benefits.
      Net Present Value.  The Net Present
Value (NPV) method is based upon the
concept that a dollar today is worth more than
a dollar in the future (commonly referred to as
the time value of money). Specifically, this
method progressively reduces (discounts) the
value of costs and revenues occurring in
future years (cash flows). Federal facilities
discount projected cash flows by a rate that is
periodically determined and published by the
Office of Management and Budget3. These discounted annual cash flows are then
added to calculate the "Net Present Value" of the investment. The higher the NPV, the
more attractive the project.  Since most Federal Government projects do not result in
revenues, the NPV of the most attractive project will have the smallest negative number
(closest to zero).
    Use of Payback Period Analysis
The military often uses payback analysis
as part of its justification process for
evaluating pollution prevention projects.
The military typically looks for projects
that pay back in 3 years or less.
Examples of results from the Air Force
using payback analysis to evaluate
projects as part of the Tidewater
Interagency Pollution Prevention Program
initiative are given below:
   Analysis of replacing a solvent parts
   washing station with a biodegradable
   detergent system indicated a 7 month
   payback.
   Analysis of antifreeze recycling system
   indicated a payback of 2 years based
   on a recycling rate of 1000 gallons per
   year.
This method is particularly useful when comparing pollution prevention projects against
alternatives that result in higher annual waste management and disposal costs. The
increased costs of current operations (or of investment options that do not reduce
wastes) will tend to lower their net present value. This method easily accommodates
the use of an expanded  cost inventory when calculating all costs and benefits.
      At the time of printing, the appropriate OMB discount rate is 7.3% for 3 year investments, 7.6% for 5
      year investments, 7.7% for 7 year investments, 7.9% for 10 year investments, and 8.1% for 30 year
      investments. Updated rates are available from OMB's Office of Economic Policy at (202) 395-5873.
                                       15

-------
      NPV = Initial investment (expressed as a negative number) +
            discounted net yearly cash flows


            Note: Net yearly cash flow = discounted cash inflows
                  discounted cash outflows
For example:
      $100,000 initial investment (-100,000) + $300,000 discounted savings -$100,000
      discounted costs = $100,000
      Internal Rate of Return.  The Internal Rate of
Return (IRR) method is not commonly used in Federal
investment decision making.  Unlike in Federal NPV
calculations, where cash flows are discounted by a
rate (determined periodically by OMB) and then
added, the purpose of IRR calculations is to
determine the interest rate at which NPV is equal to
zero.  If that rate exceeds  the hurdle rate (defined as
the minimum acceptable rate of return on a project),
the investment is deemed  worthy of funding.  Federal
decision makers using the IRR method should use the
discount rate developed by OMB or their specific
Agency as the hurdle rate (currently 7.9% for 10 year
investments, see footnote  2). Therefore, the IRR
equals V  in the following  equation:
        Use of NPV Analysis

Many private sector companies and
some government agencies c,:rrently
use NPV to analyze financial
performance of environmental projects.

Hyde Tools Company used NPV
analysis to document over $15,000 in
benefits from a pollution prevention
project that involved a rinse water
recycling project.

Tektronix Corporation used NPV
calculations to document over $90,000
in benefits from a process modification
to its painting system that dramatically
reduced paint consumption.4
      Initial Cost + cash flow year 1/(1 +r)1 + cash flow year 2/(1 +r)2 +
                  cash flow year 3/(1+r)3... + cash flow year n/(1+r)n = O
      Summary of Pollution Prevention Case Studies with Economic Data (by SIC Codes)
      EPA/OPPTS Document # 742-S-94-001 January 1994.
                                      16

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       In practice, IRR is usually calculated using a process of trial and error, where
 different interest rates are tried until the correct internal rate of return is found.  That
 rate is then compared to the hurdle rate.
       In many instances, decision makers at Federal facilities may have little choice
 concerning which of the above methodologies to use. The choice of payback, NPV, or
 IRR may be dictated by either policy or common practice. Whichever method is used,
 the challenge for decision makers is to expand the content of their analysis to reflect
 the true costs and savings as accurately as possible.
 GETTING STARTED
       The concepts discussed in this chapter can be used to help identify, calculate,
 and demonstrate the economic benefits that result from pollution prevention projects.
 They can be used to provide a fair and more complete comparison of two or more
 competing project alternatives, or can be used to comoare proposed projects to the
 costs of existing operations.
      As discussed earlier, managers seeking to expand their existing economic
analysis methods to better capture the benefits of pollution prevention should
incorporate as many of the concepts discussed in this chapter as practical. Managers
who cannot isolate and quantify all of the items they have identified in their expanded
cost inventory should nevertheless research and include cost data on all of the items
for which they can collect reliable information. Similarly, the time horizon for the
analysis should be extended as far as possible, given available data and the type of
project evaluation method in use at their facility.  Incorporating these concepts is often
an incremental process. Even small steps toward expanding inventories and extending
time horizons can result in funding approval for pollution prevention projects that would
otherwise face rejection.
      A worksheet has been provided at the end of this chapter to illustrate the use of
these concepts.  This and similar worksheets can help the reader analyze the costs
and benefits associated with current operations, pollution prevention projects, and
alternative project opportunities.  The worksheet demonstrates ways of capturing more
cost categories by  better allocating costs to specific activities, expanding the cost areas
included in the analysis, and expanding the time horizon over which the project is
analyzed.  Note that the lists of potential costs and revenues have been abbreviated for
ease of use. Facility decision makers likely will need to  revise this worksheet to include
items relevant to their own analysis.
                                       17

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      The worksheet also provides for the calculation of two measures of financial
performance, a simple payback analysis and a net present value calculation (which
incorporates the time value of money). Both of these calculations can help  in making
comparisons between competing project options or in comparing a proposed project
against current operations. IRR calculations are not included on the spreadsheet due
to the infrequent use of IRR in the Federal government.  Readers wishing to make use
of a worksheet incorporating IRR should refer to P2/Finance (see Appendix B).
INSTRUCTIONS FOR COMPLETING THE PROJECT ANALYSIS WORKSHEET
      The following instructions are designed to assist managers in completing the
project analysis worksheet. When completing the worksheet, recognize that data might
not be available to complete all requested information.  By completing only a few
sections of the worksheet with data that otherwise would not have been collected, the
accuracy in evaluating project opportunities will be enhanced.
      Begin by determining the purpose of the analysis, the audience to whom it will
be directed, the facility or Agency's decision making criteria, and the format in which
the analysis must be presented. This information will be critical in ensuring that the
scope of the analysis is appropriate, and that the completed analysis will be presented
in a readily understood and accepted manner.  If these worksheets will be used to
compare project alternatives, or to compare a potential project to current operations, a
separate worksheet should be completed for each option under consideration.
Sections 1-3       Identify the economic consequences associated with the activity
                  under review.  The specific items (i.e., categories of cash outflows)
                  mentioned in the worksheet may not represent a complete list of
                  costs incurred at your facility.  If so, add new categories as
                  appropriate. Refer to Exhibits 2-1 and 2-2 for lists of capital and
                  operating cost categories.  If you are conducting a payback
                  analysis, completing information for only the initial year is
                  acceptable provided that data are available to describe annual
                  costs and annual savings.  If you plan to analyze the financial
                  performance of the investment using a NPV calculation, you need
                  to estimate future costs and benefits. NOTE:  IT IS NOT
                  NECESSARY TO MAKE ADJUSTMENTS FOR INFLATION.
                  THESE CALCULATIONS WILL BE ADDRESSED THROUGH THE
                  USE OF THE OMB NOMINAL DISCOUNT FACTOR.
                                     18

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To allow comparisons with other project options, two measures of economic
performance are included in the worksheet. To conduct a payback analysis, refer to
section 4. To conduct a net present value analysis, refer to sections 5 through 8.
Section 4
This section calculates the number of years that it will take to
recoup the initial capital expenditure. This value is obtained by
dividing the initial investment to establish the project by the net
annual benefits (obtained by subtracting the expected annual cash
outflows from the expected annual cash inflows). If only a payback
analysis is needed, skip the following steps.
Section 5
For each year included in the evaluation, calculate the annual net
cash flow by subtracting the capital expenditures (Section 1) and
annual cash outflows (subtotals from Sections 3,4,5) from the
annual cash inflows (Section 2).
Section 6
Calculating the NPV requires determining the value of future cash
flows today. To do this, present value factors are used to discount
future cash flows. As of January 1995, OMB recommends using a
7.9% nominal discount factor for evaluating performance of 10 year
investments. Therefore, the present value (PV) factors assume a
7.9% rate.  For more current information, refer to OMB Circular A-
94, call OMB at 202/395-5873, or contact the cost analysis office in
your organization.  OMB's nominal discount rate for investments of
various duration are included in Table 1.
Section 7
Multiply the net cash flows (Section 7) by the PV factors (Section 8)
to determine the present value today of the cash flow in each year.
Section 8
Add all the annual discounted cash to determine the Net Present
Value of the process.  If the value is positive, the project is cost-
beneficial.  If more than one investment is being analyzed, the
project with the greatest NPV is the most cost-beneficial.
                                       19

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tablet
PRESENT VALUE FACTORS FOR NOMINAL
DISCOUNT RATES (OMB JANUARY 1995)

Yearl
Year 2
Year3
Year 4
Years
Year6
Year?
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
Year 20
Year 21
Year 22
Year 23
Year 24
Year 25
Year 26
Year 27
Year 28
Year 29
Year 30
7.3%
0.93197
0.86856
0.80947



























7.6%
0.92937
0.86372
0.80272
0.74602
0.69333

























7:7%
0.92851
0.86212
0.80048
0.74325
0.69012
0.64078
0.59496























7.9%
0.92678
0.85893
0.79604
0.73776
0.68374
0.63368
0.58729
0.54429
0.50444
0.46750




















8.1%
0.92507
0.85575
0.79163
0.73231
0.67744
0.62668
0.57972
0.53628
0.49610
0.45893
0.42454
0.39273
0.36330
0.33608
0.31090
0.28760
0.26605
0.24611
0.22767
0.21061
0.19483
0.18023
0.16673
0.15424
0.14268
0.13199
0.12210
0.11295
0.10449
0.09666
20

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      After completing the analysis, write a narrative to accompany the analysis that
explains the results. Be sure to include a discussion of the economic benefits of the
proposed pollution prevention projects that were not able to be quantified, and a
discussion  of the non-economic benefits that may tip the scales in favor of the pollution
prevention  project if the economic analysis is too close to call.
      Electronic versions of the spreadsheet on the next page are available on disk in
Lotus 1-2-3 or Excel format from EPA's Pollution Prevention Information Clearinghouse
(see Appendix B for contact information).
                                      21

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                                Chapter 3
       ESTIMATING ENVIRONMENTAL CONSEQUENCES

INTRODUCTION


      Historically the project review process has considered only those environmental







investments such as remodeling or plant expansion.


      Therefore managers require analytical tools that accurately and



 easily incorporated into the review process.
       Many public and private organizations in
 the United States and abroad actively promote
 Life Cycle Assessment (LCA) as a means to
 evaluate environmental consequences and
 impacts. LCA is a procedure to identify and
 evaluate "cradle-to-grave" natural resource
 requirements and environmental  releases
 associated with processes, products, packaging,
 and services. LCA concepts can be particularly
 useful in ensuring that identified pollution
 prevention opportunities are not causing
 unwanted secondary impacts by  shifting
 burdens to other places within the life-cycle of a
 product or process. LCA is an evolving tool
 undergoing continued development.
 Nevertheless, LCA concepts can be useful in
                                       23  •
         LIFE CYCLE

Over the past 20 years,
environmental professionals have
oecome more aware that the
consumption of manufactured
products and  services can adversely
affect supplies of natural resources
and the quality of the environment.
These effects occur at all stages of
the life cycle of a product, beginning
with raw materials extraction,
continuing through materials
manufacture  and product fabrication,
and concluding with product
consumption and disposal.

-------
gaining a broader understanding of the true environmental effects of current practices
and of proposed pollution prevention opportunities.
       This chapter begins with an introduction to LCA and a discussion of its
components. Next, tools are presented to help Federal facility decision makers begin
to apply LCA concepts to existing and potential projects.  The LCA descriptions are
adapted from existing LCA reference documents. The abbreviated discussion in this
user's manual is intended to provide Federal facility managers with a concise,  easy to
follow introduction  to incorporating environmental considerations into the project review
process. For a detailed discussion on conducting a comprehensive life cycle
assessment, consult  EPA's Life Cycle Assessment: Inventory Guideline and Principles
and other LCA reference documents provided in Appendix B.
WHAT IS A LIFE CYCLE ASSESSMENT?
      A life cycle assessment (LCA) is a tool to evaluate all environmental effects of a
product or process throughout its entire life cycle. This includes identifying and
quantifying energy and materials used and wastes released to the environment,
assessing their environmental impact, and evaluating opportunities for improvement.
Exhibit 3-1  illustrates the possible life stages that can be considered in a LCA and the
typical inputs/outputs measured.
      The unique feature of this type of assessment
is its focus on the entire "life cycle," rather than a
single manufacturing step or environmental emission.
 The theory behind this approach is that operations
occurring within a facility can also cause impacts
outside the facility's gates that need to be considered
when evaluating project alternatives.  Examining
these "upstream and downstream" impacts can point
out benefits or drawbacks to a particular opportunity
that otherwise may have been overlooked. For
example, examining whether to invest in
washable/reusable cloth towels or disposable paper
towels  in a vehicle maintenance facility should include
a comparison of all major impacts, both inside the
facility  (e.g.,  disposing of the paper towels) and
"outside the gate" (e.g., wastewater discharges from
the off-site washing of the reusable towels).
     MAJOR LCA CONCEPTS
LCA is a tool to evaluate the
environmental consequences of a
product or activity across its entire life.

An LCA can consist of the following
components: Goal Definition and
Scoping, Inventory, Impact and
Improvement Analyses.
LCA can be used in process analysis,
material selection, product evaluation,
product comparison, and policy-making.
LCA can be used by acquisitions staff,
new product design staff, and staff
involved in investment evaluation.
                                       24

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       Unlike the financial analysis techniques described in the previous chapter, LCA's
 provide data on environmental releases and their effects.  Some LCA proponents
 advocate further efforts to assign costs to LCA data. This is often described as a Life
 Cycle Cost Assessment (LCCA). This chapter will focus on LCA. Those readers
 interested in finding out more about LCCA should refer to Appendix B.
                                   Exhibit 3-1
                              LIFE CYCLE STAGES
  INPUTS
 Raw
 Materials
 Other
 Resources
 (Energy, Water)
                                   Raw
                                 Material
                                Acquisition
      Manufacturing
  Use/Reuse/Maintenance
                              Recycle/Waste
                              Management
                                   OUTPUTS
     Atmospheric
     Emissions

     Waterborne
     Wastes

-*    Solid
     Waste

     Co-products
                                     Other
                                     Releases
      In general, LCA is a process which includes the following components.
Goal Definition and
Scoping:
Inventory Analysis:
This is a screening process which involves defining and
describing the product, process or activity; establishing the
context in which the assessment is to be made; and identifying
the life cycle stages to be reviewed for the assessment.
This process involves identifying and quantifying energy, water
and materials usage, and the environmental releases (e.g., air
emissions, solid waste, wastewater discharge) during each life
cycle stage.
              25

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 Impact Assessment:      This process is used to assess the human and ecological effects
                         of material consumption and environmental releases identified
                         during the inventory analysis.

 Improvement             This process involves evaluating and implementing opportunities
 Assessment:             to reduce environmental burdens as well as energy and material
                         consumption associated with a product or process.
 APPLICATIONS OF A LIFE CYCLE ASSESSMENT
       LCA provides vital information on the environmental consequences associated
with pollution prevention projects and competing alternatives. Using LCA can provide
Federal facility decision makers with another ranking criterion to use when evaluating
and prioritizing competing project opportunities.  For instance, LCA can provide
information to assist in addressing decisions, such as:
       Does it make environmental sense to replace a solvent degreaser with a caustic
       cleaner?  Does the elimination of VOC emissions resulting from this change off-
       set the discharge of heavy-metal laden caustic cleaner to the wastewater
       treatment plant?

       What are the environmental trade-offs associated with disposable vs. reusable
       dinnerware in the cafeteria? How does the solid waste impact of disposable
       dinnerware compare with the increased water needed to wash reusable plates
       and utensils?

       Does replacing paper towels in the restrooms with reusable cloth or hand dryers
       increase or decrease the total impact on the environment?
      Facility managers can also use a LCA approach to verify that a project that
effectively solves one particular pollution problem does not result in cross-media
shifting of pollution to another media (e.g., from waterborne to atmospheric releases).
By examining all resource inputs (e.g., energy, materials, water) and environmental
releases (e.g., air, water,  and solid waste) across the entire life cycle of the product,
process, or activity, a LCA can identify cross media transfers and transfers of pollutants
to other life cycle stages.
                                       26

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  BEGINNING TO APPLY LCA CONCEPTS IN PROJECT ANALYSIS
        Gaining a complete understanding of a proposed project's environmental effects
  requires identifying and analyzing inputs and releases from every life cycle stage.
  However, securing and analyzing this data can be a daunting task. In many cases
  Federal facility decision makers may not have the time or resources to examine each
  life cycle stage or to collect all pertinent data.


        Therefore, the remainder of this chapter will discuss the steps required to begin
  applying LCA concepts and principles to project analysis. Examples will demonstrate
  steps within selected life cycle stages.  These stages will generally begin when
  materials and equipment enter Federal facility property, in recognition of the fact that
  data on materials and releases occurring outside Federal facility fencelines may be
  difficult to obtain. Tools are presented that will help decision makers with limited
  resources begin to use LCA concepts.


       Before beginning to apply LCA concepts to projects under review, facility
 managers must first determine the purpose and the scope of the study,  'in determining
 the purpose, facility managers should consider the type of information needed from the
 environmental review (e.g., Does the study require quantitative data or will qualitative
 information satisfy the requirements?).  Once the purpose has been defined, the
 boundaries or the scope of the study should then be determined.  What stages of the
 life cycle are to be examined? Are data available to study the inputs and outputs for
 each stage of the life cycle to be reviewed? Are the available data of an acceptable
 type and quality to meet the objectives of the study? Are adequate staff and resources
 available to conduct a detailed study? Exhibit 3-2 lists some of the major LCA
 definitions and scoping issues.


       The definition and scoping activity links the purpose and scope of the
 assessment with available resources and time and allows reviewers to outline what will
 and will not be included in the study.  In some cases, the assessment may be
 conducted for all stages of the life cycle (i.e., raw materials acquisition, manufacturing,
 use/reuse/maintenance, and recycling/waste management).  In many cases, the
 analysis may begin  at the point where equipment and/or materials enter the'facility. In
 other cases, primary emphasis may be placed on a single life cycle stage,  such as
 identifying and quantifying waste and emissions data.  In all cases, managers should
ensure that the boundaries of the LCA address the purpose for which the assessment
is conducted and the realities of resource constraints.  Whenever possible, include in
                                      27

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the analysis all life-cycle stages in which significant environmental impacts are likely to
occur.
                                   Exhibit 3-2
             ISSUES TO BE RESOLVED IN DEFINING AND SCOPING
                          A LIFE CYCLE ASSESSMENT
Have the boundaries of the assessment been determined (i.e., have the life cycle stages been
identified)?
Are data sources available to describe the inputs and outputs for these stages?
Is the available data of an acceptable type and quality to meet the objectives of the
assessment (e.g., is the data verifiable enough to be used in justifying capital budgeting
investments)?
Is a life cycle checklist appropriate for reviewing the proje^ or is a more detailed life cycle
assessment needed?
      Determining the purpose and scope of the study will help to identify the type of
environmental analysis that should be conducted.  This chapter provides an
introduction to two tools that are useful when applying LCA concepts: 1) Life Cycle
Checklist and 2) Life Cycle Assessment Worksheet.  For more detailed information on
conducting a comprehensive life cycle analysis, consult the reference documents listed
in Appendix B.


Life Cycle Checklist


      Conducting a LCA that includes all life-cycle stages will provide decision makers
with the most complete understanding of environmental consequences. However, if
resources are limited and an in-depth, quantitative analysis is not practical, a Federal
facility manager may consider using a simple checklist to identify and highlight certain
environmental implications associated with competing projects. A checklist using
qualitative data instead of quantitative inputs can be very useful when available
information is limited or as a first step in conducting a more thorough LCA.  In addition,
a Life Cycle Checklist should include questions regarding the environmental effects of
current operations and/or potential projects in terms of materials and resources
consumed and wastes/emissions generated.  Exhibit 3-3 provides a sample checklist.
      The checklist used by an individual facility can be tailored to emphasize areas of
specific concern.  For example, a facility in an area of the country where landfill space

                                       28

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is limited may want to emphasize the collection and evaluation of solid waste
generatfon data  Similarly, a facility located in arid or semi-arid areas may want to
collect and evaluate information relating to water consumption.
                                    Exhibit 3-3
                        SAMPLE LIFE CYCLE CHECKLIST
  Issue
  ^•wna
  Material Usage

       -—•	
  Resource Conservation
  Local Environmental
  Impacts
   Global Environmental
   Impacts
   Toxicity Reduction
Question
Does the project minimize the use of raw
materials?
Does the project minimize energy usage?
Does the project minimize water usage?

Does the project eliminate or minimize impacts to
the local environment (i.e.. air, water, land)?

Does the project eliminate or minimize impacts
known to cause global environmental concerns
(e.g., global wanning, ozone depletion, acid rain)?
 Does the project improve the management of toxic
 materials and/or processes which result in
 human/ecological exposure?
        Using a life cycle checklist has specific advantages and disadvantages when
 compared to the other forms of life cycle assessment. The principle advantage «, that
 completion of a checklist is relatively easy to perform and requires limited resources.
 On the other hand, a life cycle checklist does not provide a detailed or complete
 ^8^^ of tt5e environmental consequences associated with the act.v.ty under
 review. Instead, this method only provides general qualitative data.


 Conducting A More Detailed Project Review


        If more detailed information concerning the environmental consequences of
  pollution prevention projects is required, an environmental manager may consider
  SnduSng a more in-depth analysis to identify and evaluate the resource and material
  "puts and the environmental releases associated with each life cycle stage.  This is a
  more resource intensive operation than using a life cycle checklist. Therefore, def.n.ng
                                         29

-------
and scoping the analysis to fit available resources while including all significant areas
of environmental impact is very important.
       The first step in identifying and evaluating the inputs and outputs associated with
life cycle stages under review is to describe and understand each step in the process.
One common method to do this is to construct a system flow diagram for the product,
process, or activity being studied.  Each step within the relevant life cycle stages is
represented by a box.  Each box is connected to other boxes that represent the
preceding and succeeding step. A simple example of a process flow diagram is
illustrated below. In this example, the life cycle stages covered within the diagram begin
at the point a solvent is purchased for use and enters a Federal facility property.  Each
of these boxes can be further divided into detailed process flow steps.
          Purchase
           Solvent
       Use Solvent
  Dispose of
   Solvent
      When all relevant steps for each stage of the product, process, or activity under
review have been identified, the flow diagram should be expanded to identify the
specific energy and material inputs, and the specific environmental releases associated
with each box on the diagram. This step is of crucial importance, because data on
these identified inputs and releases will be collected later, and will form the basis for all
findings and conclusions. The diagram below illustrates the inputs and releases for
each step in the sample flow diagram.
   Purchase
    Solvent
  INPUTS
  Solvent
  Packaging

  OUTPUTS
  Packaging
    Use Solvent
INPUTS
Electricity
OUTPUTS
Air Emissions
Excess Solvent
 Dispose of Solvent
INPUTS
Electricity
Packaging

OUTPUTS
Waste Solvent
Air Emissions
      Once a flow diagram has been developed, personnel conducting the LCA should
identify sources of information that will describe and quantify the material and energy
inputs, and the environmental releases associated with each box in the process flow
diagram. Possible sources of information for each stage are presented in Exhibit 3-4.
                                       30

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                                    Exhibit 3-4
                          SOURCES OF INFORMATION
Raw Materials Acquisition
   Data specific to a particular materials processor
.  Government, academic, trade association, or industry studies of aggregate data
      =>  U.S. Department of Commerce, Census of Manufacturers
      =>  U.S. Bureau of Mines, Census of Mineral Industries
      =>  U.S. Department of Energy, Monthly Energy Review
      =>  Encyclopedia of Chemical Technology, Kirk-Othmer
Manufacturing
   Data specific to a particular materials processor
•  Government, academic, trade association, or industry studies of aggregate data
Use/Reuse/Maintenance
•  Engineering studies
•  Facility process flow diagrams
•  Environmental studies and reports
       =>  Hazardous waste (state Annual reports or Federal biennial reports)
       =>  Toxics Release Inventory reports (as of 1994)
       =>  Compliance assessment reports
       =>  Routine testing and monitoring data (e.g.,  air emissions, waste water discharge)
       =>  Solid waste disposal  records
•  Utility bills
•  Supply and acquisitions databases of materials used on-site
•  Equipment suppliers
•  Facility staff or contractors performing maintenance or operations work
Recycle/Waste Management
•   Facility staff or responsible contractors, equipment vendors
 •   Data specific to a particular waste management firm
 •   Government, academic, trade association, or industry studies of aggregate data
                                         31

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 Although quantitative data are preferable (and are necessary to accurately and
 completely conduct an impact assessment), qualitative data may be acceptable in
 cases where quantitative data are lacking.


       A worksheet and instructions are provided to help readers complete a sample
 process flow diagram.  The intent of this worksheet is to acquaint Federal facility
 managers with a form that can be completed for each project option or process change
 under consideration. This life cycle-based worksheet is organized into three sections.
 The first section asks for a flowchart of the process steps/activities to be included in the
 analysis. The second section asks for inputs (i.e., raw materials, energy, and water),
 and the third section asks for outputs (i.e., products, air, water, and land releases).
 The worksheet provides space for four process steps. If more than four process steps
 are to be examined, continue the analysis on a copy of the original form.


       Using this or any other life cycle worksheet has specific advantages and
 disadvantages when compared to conducting a complete LCA.  The principle
 advantage is that it provides a more detailed analysis of the process than the checklist,
 and it is easier to conduct than a complete LCA.  On the other hand, it does not
 encompass the full environmental  impacts of a process or activity life cycle stage.


 INSTRUCTIONS FOR COMPLETING THE LIFE CYCLE ASSESSMENT
 WORKSHEET


    The following instructions are designed to assist managers in completing the life
 cycle assessment worksheet.  The worksheet is intended to help Federal facility
 managers gain a more complete understanding of the life cycle environmental
 consequences associated with existing processes, potential pollution prevention
 projects, and competing project alternatives. When completing the worksheet, do not
 worry if data are not available to complete all requested information. Even  by just
 completing a few sections of the worksheet, the information on each individual line can
 still be useful in evaluating and comparing the environmental performance of existing
 processes and potential projects.  However, be aware that completing only  certain
 sections of the worksheet may provide misleading results.  For example, completing
 sections on solid wastes and releases to air without entering data on releases to water
may bias the analysis toward projects whose primary environmental consequences
result from water pollution. Similarly, collecting and analyzing data  on a limited  number
of life cycle stages may bias the analysis toward projects whose primary environmental
effects occur upstream or downstream from stages under analysis.
                                      32

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   The information requested on the worksheet can be indicated either numerically or
by description only.  Descriptive information is often the only information available.
Specific instructions follow:

Line 1:  Indicate the process steps that are to be reviewed.  For example, a life cycle
         analysis of a solvent degreaser tank system might examine the following
         three activities: acquisition of solvent, use of tank, and disposal/recycling of
         waste materials.
Line 2a: For each of the process steps indicated in Line 1, identify the raw materials
         used.  Examples of typical materials include chemicals, parts, and minerals.
         Do not forget to  include associated packaging materials such as cans,
         cardboard, and plastic wrap.
Line 2b: Indicate the energy involved with operating the process activity. Three
         common energy source categories have been included (i.e., electricity,
         natural gas, and fuel).  Include other categories if needed.  If numerical data
         are available, it is possible to sum together all entries from the same energy
         source (i.e., electricity usage from each of the process steps examined).
Line 2c: Indicate the quantity of water consumed in each of the process steps being
         evaluated.  Note that water could be coming from surface sources (e.g.,
         pumped in from  a nearby river), from a well, or from purchased city water.
Line 2d: Indicate other inputs, as needed.  Some process steps that can generate
         additional inputs include pre-process cleaning, process cleaning and
         maintenance supplies required  in the upkeep of the process.
Line 3a: For each process step,  indicate the products that result. Be aware that the
         products often become the  inputs to the next step in the sequence.
Line 3b: Indicate numerically or by description the air releases associated with the
         process step. Examples of typical releases from an industrial process include
         particulates/dust and solvent vapors. Numerical records of air emissions can
         often be found on permitting applications or in engineering  records. If
         numerical data is not available, provide a narrative list of emissions.
Line 3c: Indicate the wastewater discharges and liquid hazardous wastes associated
         with each process step
Line 3d: Identify the solid waste  generated from each process step.  If possible list the
         type/quantity of  solid waste and how it is managed (e.g., 10 pounds of
         cardboard that are recycled or 5 cubic yards of sludge that  is landfilled).

       Electronic versions of the spreadsheet on the next page are available on disk in
Lotus 1-2-3 or Excel format from EPA's Pollution Prevention Information Clearinghouse
(see Appendix B for contact information).

                                       33

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                 LIFE CYCLE ASSESSMENT WORKSHEET
   PROCESS
    STEPS
 H  INPUTS
m OUTPUTS

—


2a Raw Materials (units)


*

2b Energy Usage
Electricity (kW-hr) + +
Natural Gas (cubic ft) + 4
Fuel (gallons) + +
Otfier + +
2c Water Usage (gallons) + +
2d Other Inputs (units)



3a Products, Useful By-Products (Item and amount)


3b Releases to the Air (Including gaseous wastes)
+ +
+ +
+ +
+ +
3c Releases to the Water (Including liquid wastes)
+ +
+ +
+ +•
+ +
3d Solid Wastes
+ +
+ +


—







4* s
+ a
+ S3
+ =
.+ x








•f st
+ a
-f =
-*• =
..•
+ =
+ «
+ =
+ =

+ *
+ =

                               34

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                                Chapter 4
 INCENTIVES AND CHALLENGES TO EXPANDING PROJECT
                        ANALYSIS PRACTICES
INTRODUCTION
   This section discusses various incentives given to Federal facility decision makers
to expand upon project analysis models and to incorporate broader inventories (both
economic and environmental) and expanded time horizons.  In addition, some common
challenges and barriers to incorporating these principles are discussed, along with
some ideas on ways to overcome the obstacles.
EXISTING INCENTIVES


   Many Executive branch, legislative, and agency-specific policies and mandates are
in effect that encourage and/or require Federal facilities to incorporate the principles
discussed  in this report into the project review process. Many of these policies and
mandates were developed to encourage Federal agencies to develop an understanding
of the true cost of government activities, as well as acknowledge the value of promoting
pollution prevention activities in reducing future government liabilities. Further
discussion of key policies, initiatives, and examples of Agency activities are provided
below.
Executive Branch Initiatives


   Executive guidance, in the form of Executive Order 12856, Federal Compliance
With Right-To-Know Laws And Pollution Prevention Requirements, was signed August
3, 1993. Among other provisions, this EO requires all Federal facilities to implement
total cost accounting and life cycle analysis principles in the review of all current and
planned activities (including pollution prevention programs and initiatives).  The goal of
this EO is to encourage pollution prevention activities by promoting the use of a
budgeting analysis tool that will accurately reflect the true costs of current operations
and the sometimes hidden benefits offered by pollution prevention.

                                     35

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Office of Management and Budget Guidance


   As the lead agency responsible for establishing standardized Federal budgeting
procedures, the Office of Management and Budget (OMB) has issued a memorandum
encouraging Federal facilities to use total cost assessment principles.  This September
1991 memorandum from the Director of OMB to Senior Agency Procurement
Executives stated that Federal facilities need to use "life cycle" cost analysis principles
to reflect the indirect and hidden costs not generally addressed in the traditional
budgeting process. This memorandum suggested that factors such as energy
conservation, reduction of waste streams, and product substitution required more
emphasis in agency acquisition plans and encouraged agencies to take advantage of
existing life cycle costing training curricula. In November 1992, OMB established a
position on total cost assessment by preparing a policy directive entitled, Procurement
of Environmentally-Sound and Energy-Efficient Products and Services. As part of this
directive, OMB recommended that each Agency "employ life cycle cost analysis,
whenever feasible and appropriate, to assist in making product and service selections."


Specific Agency And Facility Initiatives


   Some Federal agencies have issued their own policies and guidance documents to
further emphasize the importance and value of implementing an expanded concept of
project-analysis and review. Examples of the types of initiatives some agencies have
pursued are described below.
Department of Defense


   The Department of Defense (DoD), through the broad-based Directive 4210.15;
Hazardous Material Pollution Prevention, stated that its policy is to select, purchase,
use and manage hazardous materials over their life cycle so that the DoD incurs the
lowest cost to protect human health and the environment. A key component of this
policy is to eliminate hazardous materials or substitute less hazardous materials in
processes and products rather than simply managing or treating the hazardous waste
created.  For DoD facilities, meeting this intent can be accomplished by incorporating
total cost assessment and life cycle analysis principles into the budgeting and
procurement process.
                                      36

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 Department of the Interior
    The Department of Interior (DOI) also has a procurement policy which encourages
 the use of comprehensive economic and environmental investment reviews rather than
 simple comparisons of purchase prices in the evaluation of procurement alternatives.
 Several DOI bureaus have supplemented the efforts of DOI headquarters by
 establishing their own policies.  For example, the National Park Service (NPS)
 developed an Integrated Solid Waste Alternative Program (ISWAP) in March, 1991
 which instructs the national parks and associated offices to purchase products based
 on life cycle principles.
 United States Postal Service
   The U.S. Postal Service (USPS) has issued various policy directives that address a
wide range of waste reduction programs including life cycle based costing models.  At
USPS, procurement costs are now calculated using total cost accounting analytical
techniques that take into consideration long-term effects such as: savings in labor and
raw materials, transportation needs, storage concerns, operating costs, environmental
factors concerning waste handling, treatment and disposal costs, regulatory
compliance costs, and potential liability.
OVERCOMING EXISTING CHALLENGES
   Although various incentives have been issued to encourage Federal facility decision
makers to implement comprehensive project review practices, not all facilities are
currently using these review practices for pollution prevention. Facilities that have
experimented with using these concepts instead of traditional budgeting principles have
encountered challenges that have required the development of innovative solutions.
The following sections highlight some of the challenges facility personnel have
encountered and discusses possible solutions. For further information, refer to EPA's
Pollution Prevention Benefits Manual and other reference documents listed in Appendix
B.
                                      37

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Proper Allocation of Cost Categories


   Compared with the traditional project analysis processes, expanding the analysis to
include broader cost inventories requires a more detailed data tracking system.
Currently, many government agencies utilize tracking systems that group together
many inventory categories into facility-wide overhead accounts.  These types of
tracking methods make it very difficult to identify all of the discreet costs that will be
impacted by proposed project alternatives. Pollution prevention activities, in particular,
are at a disadvantage because many of the savings that result from these projects
(such as energy, sewage, water, permitting, and waste disposal) often occur in areas
lumped into overhead accounts.


   To overcome this challenge, staff performing project analyses must first identify the
exact data needs for the project under review.  Then, a comparison can be made to
information available from traditional recordkeeping systems in order to identify
information gaps resulting from items being lumped together or reported on a facility-
wide basis. To eliminate the data gaps, one of several approaches can be employed:
      For the simplest of challenges where several inventory categories have been
      combined, a review of the input data developed by each department in a facility
      may reveal the data for the particular project in question.  For example, while the
      accounting department indicates on its books only the total quantity of copier
      paper used at the entire facility, a review of department specific expenses would
      likely reveal a more detailed account of paper use by location.
      For categories that are aggregated for the whole facility and not by specific
      project (e.g. water usage), engineering estimates or a facility walk through may
      be used to generate an estimate allocation to specific projects.
      For aggregated categories that cannot be easily allocated on a project specific
      basis by either of the above two methods, it may be useful to discuss the data
      needs both with the vendors that supplied the original equipment to see if any
      baseline consumption data exist and/or auditing professionals to identify what
      types of measurement devices or meters could be located at the specific project
      to meet the data needs.
                                       38

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 Placing Value On Future Costs And Benefits
    Estimating future costs and benefits can become a difficult task for anyone
conducting project analyses.  Quantitatively estimating future costs for items such as
property clean-up and environmental compliance upon facility decommissioning can be
a very difficult task. A useful  approach is to group future costs into one of two
categories; recurring costs, or contingent costs.
    Recurring costs include items that are currently incurring costs and are anticipated
to continue incurring costs into the foreseeable future based upon regulatory
requirements. These include permits, monitoring costs, and compliance with regulatory
requirements. The first step in estimating the future costs of these items is to
determine how much the facility is currently paying.  Then estimate how much the cost
can reasonably be expected to escalate in the future.  For example, if monitoring costs
are currently $100 and are expected to  rise with inflation, a conservative estimate
would be a 4% annual increase.  Consequently, the monitoring costs for the following
year would be estimated at $104, assuming that monitoring requirements do not
become more stringent. Note that when using the Economic Worksheet in Chapter
Two,  it is not necessary to escalate these values because the worksheet already takes
inflation into account when calculating present values.
   Contingent costs include catastrophic future liabilities such as remediation and
clean-up costs. While current activities can lead to these future costs, quantitative
estimates of these liabilities are difficult to obtain. Often the only way to include these
future liabilities in the budgeting process is to qualitatively describe estimated liabilities,
without attempting to define these costs using dollar amounts.  If a pollution prevention
option is being considered, a comparison highlighting the areas in which future  liability
would be reduced by implementing the pollution prevention option should be included.
For example, this approach could be used to describe the future benefit of switching
from lead-based paint to water based paint. Most likely, the best option may be to fully
describe the potential liability if the change is not made and, if possible, document the
remediation cost that could result if a liability event occurred today.
Availability of Process Specific Resources


   Although most agencies are now incorporating the principles described in this
chapter at some level, resources remain scarce. Some managers have been able to
                                       39

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utilize existing costing software programs, while others have been able to refer to
private sector experience.  It may also be useful to identify other facility managers
within your own agency that have recently implemented pollution prevention projects to
discuss the budgeting techniques they used. In June 1995, EPA published a document
titled "Incorporating Environmental Costs and Considerations into Decisionmaking:  A
Review of Available Tools and Software." This document is listed in Appendix B and
can be ordered through EPA's Pollution Prevention Information Clearinghouse.
                                      40

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                                     Appendix A

                             GLOSSARY OF TERMS

Discount Rate-  The interest rate (sometimes called the Present Value Factor) used to discount future
cash flows to their present values. This represents the rate of return that could be earned by investing in
a project with risks comparable to the project being considered. Federal facilities generally use a
discount rate determined by the Office  of Management and Budget.

Hurdle Rate- In Internal Rate of Return calculations, the minimum rate of return that a project must
Generate in order to be considered worthy of investment.  Federal facilities usually use the discount rate
determined by the Office of Management and Budget as the hurdle rate. Projects that provide a rate of
return below this rate will not be pursued.

Internal Rate of Return (IRR): The discount rate at which the net savings (or NPV) on  a project are
equal to zero. The IRR of a project can be compared to the hurdle rate to determine economic
attractiveness. The General IRR rule is:
If IRR >or = hurdle rate then accept project.
If IRR < hurdle rate then reject project.

Life Cycle Assessment: A method to evaluate the environmental effects of a product or process
throughout its entire life cycle, from raw material acquisition to disposal. This includes identifying and
quantifying energy and materials used  and wastes released to the environment, assessing  their
environmental impact, and evaluating  opportunities for improvement.

Life Cycle Costing: A method in which all costs are identified with a product, process, or activity
throughout its lifetime, from raw material acquisition to disposal, regardless of whether these costs are
borne by the organization making the investment, other organizations, or society as a whole.

Net Present Value (NPV):  The present value of the future net revenues of an investment less the
investment's current and future cost. An investment is profitable if the NPV of the net revenues it
generates in the future exceeds its cost, thatris, if the NPV is positive.

Payback Period:  The amount of time required for an investment to generate enough net revenues or
savings to cover the initial capital outlay for the investment.

Pollution Prevention:  Any practice that reduces the amount of environmental and health impacts of
any pollutant released into the environment prior to recycling, treatment, or disposal. Pollution
prevention includes modifications of equipment and processes; reformulation or redesign of products and
processes; substitution of raw materials;  and  improvements in housekeeping, maintenance, training, or
inventory control.

Total Cost Assessment (TCA): A long-term comprehensive financial analysis of the full range of
costs and savings of an investment that are or would be  experienced directly by the organization making
or contemplating the investment.
                                             A-1

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                                     Appendix B
                 ADDITIONAL INFORMATION  SOURCES

    The following government publications are available to assist Federal facility environmental
managers conduct an investment analysis of pollution prevention projects. Also included is a
list of guidance manuals to assist environmental managers identify and develop pollution
prevention projects. Finally, a list of various Federal and State agencies which provide direct
technical assistance on pollution prevention topics and projects is provided on the pages that
follow.
Project Analysis Guidance Documents

1.   Total Cost Assessment: Accelerating
    Industrial Pollution Prevention through
    Innovative Project Financial Analysis, with
    applications to the Pulp and Paper Industry
    EPA/600-R-92-002
    U.S. Environmental Protection Agency
    Pollution Prevention Information
       Clearinghouse (PPIC)
    401 M Street. SW
    Washington, DC 20460
    202-260-1023

    This document outlines and justifies a total
       cost assessment approach to evaluate
       pollution prevention opportunities. This
       report applies a TCA method to analyze
       several actual investments in the pulp
       and paper industry.  It also reviews
       several TCA methods.

2.   Environmental Accounting Resource Listing
    EPA/742-F-94-004
    U.S. Environmental Protection Agency
    Pollution Prevention Information
       Clearinghouse (PPIC)
    401 M Street, SW
    Washington, DC 20460
    202-260-1023

    This resource listing presents selected
       information sources organized in the
       following categories (1) Activity-based
       costing, (2) Bibliographies, curricula,
       and definition of terms, (3) Corporate
       environmental accounting, (4) Federal
       government, military and logistics
       applications, (7) Pollution prevention,
       and (8) Quality costs.
A Primer for Financial Analysis of Pollution
Prevention Projects
EPA/600-R-93-059
The Center for Environmental Research
   Information (CERI)
26 West Martin Luther King Drive
Cincinnati, OH 45628
513-569-7562

This document introduces the time value of
   money concept into analysis of pollution
   prevention investments.

Life-Cycle Assessment: Inventory
Guidelines and Principles
EPA/600-R-92-245
U.S. Environmental Protection Agency
Office of Research and Development
26 West Martin Luther King Drive
Cincinnati, OH 45268
513-569-7562

This document describes the environmental
   aspects of a life cycle assessment. The
   major life cycle stages and data
   gathering techniques are discussed.

A Technical Framework for Life-Cycle
Assessment
Society of Environmental Toxicology and
   Chemistry and SETAC Foundation for
   Environmental Education, Inc.
1101 14th Street, NW
Suite 1100
Washington, DC 20005

This document provides  information about
   product, process, and activity life-cycle
   assessments.
                                           B-1

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6.  Life Cycle Assessment
    Z760-94
    Canadian Standards Association
    178 Rexdale Boulevard
    Rexdale (Toronto), Ontario
    Canada M9W1R3

    This manual provides technical guidance on
        conducting life cycle assessments and
        reporting assessment results.

7.  Guidelines for Assessing the Quality of Life-
    Cycle Inventory Analysis
    EPA/530-R-95-010
    U.S. Environmental Protection Agency
    Pollution Prevention Information
        Clearinghouse (PPIC)
    401 M Street, SW
    Washington, DC 20460
    202-260-1023

   This document identifies the issues and
        challenges confronting LCA
        practicioners as they seek to gather
        quality data for Life Cycle Inventories.
        The document outlines a possible
        framework for assessing and
        documenting data quality and discusses
        specific techniques to support the data
        quality assessment process.

8.  Life Cycle Assessment:  Public Data
    Sources for the LCA Practicioner
    EPA/530-R-95-009
    U.S. Environmental Protection Agency
    Pollution Prevention Information
        Clearinghouse (PPIC)
    401 M Street, SW
    Washington, DC 20460
    202-260-1023

    This document provides LCA practitioners
        with potentially useful public data
        sources for preparing LCAs.
9.   Development of a Pollution Prevention
    Factors Methodology Based on Life-Cycle
    Assessment: Lithographic Printing Case
    Study
    EPA/600-R-94-157
    U.S. Environmental Protection Agency
    Office of Research and Development
    26 West Martin Luther King Drive
    Cincinnati, OH 45268
    513-569-7562

    This report describes a preliminary pollution
       prevention factors methodology which
       was developed using a streamlined life-
       cycle assessment approach. The
       lithographic printing industry was
       selected as the test industry.

10. United States Postal Service Hartford
    Vehicle Maintenance Facility Waste
    Minimization/Pollution Prevention Study
    U.S. Postal Service
    Northeast Area Office
    This report provides a financial analysis of
       alternatives to the vehicle painting and
       oil handling processes used at the
       Hartford Vehicle Maintenance Facility.
       Data collection and analysis for the
       Total Costs Assessment was performed
       with the use of P2/Finance, a flexible
       spreadsheet developed by Tellus
       Institute.

11.  Life Cycle Design Guidance Manual:
    Environmental Requirements and The
    Product System
    EPA/600-R-92-226
    U.S. Environmental Protection Agency
    Office of Research and Development
    26 West Martin Luther King Drive
    Cincinnati, OH 45268
    513-569-7562

     This report promotes the reduction of
       environmental  impacts and health risks
       through a systems approach to design
       by integrating environmental,
       performance, cost, cultural, and leagal
       requirements in effective designs.
                                             B-2

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12. Federal Agency Environmental Management
    Program Planning Guidance
    EPA/300-B-95-001
    U.S. Environmental Protection Agency
    Office of Enforcement and Compliance
       Assurance
    401 M Street, SW
    Washington, DC 20460

    This document discusses the data elements
       that will be reported to EPA under the
       A-106 process and provides insijht into
       the rationale underlying those data
       elements.

13. Survey of Resources Available for
    Estimating the Environmental Costs of Major
    Defense Acquisition Programs
    n^SW903-94-C-0043
    Office of the Director
    Program Analysis & Evaluation
    1800 Defense Pentagon
    Washington, DC 20301-1800

    This report is the first from the Survey of
      Resources Available for Estimating the
      Environmental Costs of Major Defense
      Acquisition Programs.  It identifies
      existing  environmental management
      (EM) cost estimating methods, data
      bases, engineering case studies, and
      management systems to determine their
      usefulness for estimating EM costs for
      major defense acquisition programs.
 14. Survey of Resources Available for
    Estimating the Environmental Costs of Major
    Defense Acquisition Programs
    DASW903-94-C-0043
    Office of the Director
    Program Analysis & Evaluation
    1800 Defense Pentagon
    Washington, DC 20301-1800

    This report is the second from the Survey of
       Resources Available for Estimating the
       Environmental Costs of Major Defense
       Acquisition Programs.  It presents a cost
       breakdown structure and a cost driver
       category structure for environmental
       management.

 15. Evaluation of Environmental Management
    Cost-estimating Capabilities for Major
    Defense Acquisition Programs
    MDA903-94-C-0043
    Office of the Director
    Program Analysis & Evaluation
    1800 Defense Pentagon
    Washington, DC 20301-1800

    This report, which is the last from the
       Survey of Resources Available for
       Estimating the Environmental Costs of
       Major Defense Acquisition Programs,
       provides assessments of the most
       promising cost analysis tools based on
      testing their capabilities against the cost
       breakdown structure developed earlier  in
      the project

Pollution Prevention Planning Documents

16. Federal Facility Pollution Prevention: Tools
    for Compliance
    EPA/600-R-94-154
    U.S. Environmental Protection Agency
    Office of Research and Development
    26 West Martin  Luther King Drive
    Cincinnati, OH 45268
    513-569-7562
                                            B-3

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 17. Pollution Prevention in the Federal
     Government: Guide for Developing
     Pollution Prevention Strategies for Executive
     Order 12856 and Beyond
     EPA/300-B-94-007
     U.S. Environmental Protection Agency
     Pollution Prevention Information
        Clearinghouse
     401 M Street, SW
     Washington, DC 20460
     202-260-1023

 18. Federal Facility Pollution Prevention Guide
     EPA/300-B-94-013
     U.S. Environmental Protection Agency
     Pollution Prevention Information
        Clearinghouse
     401 M Street, SW
     Washington, DC 20460
     202-260-1023

 19. Facility Pollution Prevention Guide
     EPA/600-R-92-008
     U.S. Environmental Protection Agency
     Office of Research and Development
     26 West Martin Luther King Drive
     Cincinnati, OH 45268
     513-569-7562

 20. Pollution Prevention Directory
     EPA/742-B-94-005
     U.S. Environmental Protection Agency
     401 M Street, SW
     Washington, DC 20460
     202-260-9801

21.  Abstracts of Pollution Prevention Case
     Study Sources
     EPA/742-B-94-001
     U.S. Environmental Protection Agency
     Pollution Prevention Information
       Clearinghouse
     401 M Street, SW
     Washington, DC 20460
     202-260-1023
22. Summary of Pollution Prevention Case
    Studies With Economic Data (By SIC
    Codes)
    EPA/742-S-94-001
    U.S. Environmental Protection Agency
    Pollution Prevention Information
      Clearinghouse
    401 M Street, SW
    Washington, DC 20460
    202-260-1023

Agency Guidance Documents

23. Navy Shore Installation Pollution Prevention
    Planning Guide
    Doc. #OPNAV-P45-120-10-94
    Office of Chief of Naval Operations
    2000  Navy Pentagon
    Washington. DC 20350
    703-602-5334

24. U.S. Air Force Installation Pollution
    Prevention Program Manual
    United States Air Force
    Air Force Center for Environmental
       Excellence (AFCEE)
    AFCEE/ESP
    8106  Chennault Road
    Building 1161
    Brooks AFB, TX 78235-5318
    1-800-233-4356

25. Army Pollution Prevention Plan Manual: A
    Guide for Army Installations
    Army Environmental Policy Institute
    430 10th Street,  NW
    Suite 5105
    Atlanta, GA 30318
    404-875-6813

26. Guidance for Preparation of Site Waste
    Minimization and Pollution Prevention
    Awareness Plans
    Department of Energy
    1000  Independence Avenue, SW
    Washington, DC 20585
    301-427-1570
                                             B-4

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 Technical Assistance Programs

 1.  Pollution Prevention Information
    Clearinghouse (PPIC)
    U.S. Environmental Protection Agency, PM
        211-A
    401 M Street, SW
    Washington, DC 20460
    202-260-1023

    The Pollution Prevention Information
        Clearinghouse (PPIC) is a free,
        nonregulatory, information and referral
        service of the U.S. EPA.  PPIC includes
        a repository of pollution prevention
        information and a telephone reference
        and referral hotline.

2.  Enviro$ense (ES)
    EPA Systems Development Center
    200 N. Glebe Road
    Arlington, VA 22203
    703-908-2092 (modem)
    http://wastenot.inel.gov/envirosense

    ES is a free, 24-hour electronic  network
       accessible by personal computer
       equipped with a modem or direct
       connect through Internet WWW.  ES
       consists of message centers, bulletins,
       electronic documents, technical
       databases, case studies and issue-
       specific conference listings.

3.  Federal Agency Mini-Exchange  (FAME)
    EPA Systems Development Center
    200 N. Glebe Road
    Arlington, VA 22203
    703-506-1025 (modem)

    FAME is a database on the Pollution
       Prevention Information Exchange
       System which provides information on
       pollution prevention/recycling efforts at
       Federal facilities.
 4.  Defense Environmental Network and
    Information Exchange (DENIX)
    DECIM Office
    Hoffman 2, Room 12S49
    200 Stovall Street
    Alexandria, VA 22332
    1-800-642-3332
    703/325-0002

    DENIX is a Department of Defense
       communications platform for the
       dissemination and exchange of
       environmental information across all
       DOD components.

 5.  PRO-ACT
    AFCEE
    8106Chennault Road
    Building 1161
    Brooks AFB, TX 78235-5318
    1-800-233-4356
    (210) 536-4214
    DSN 240-4214

    PRO-ACT is an environmental information
       clearinghouse and hotline provided by
       the Air Force Center for Environmental
       Excellence (AFCEE).  PRO-ACT
       services are provided free of charge to
       all Air Force personnel.

6.  Center for Environmental Research
    Information (CERI)
    Dorothy Williams
    U.S. Environmental Protection Agency
    Center for Environmental Research
       Information (CERI)
    26 West Martin Luther King Drive
    Cincinnati, OH 45268
    513-569-7562

    CERI serves as the exchange of scientific
       and technical environmental information
       produced by EPA in brochures, capsule
       and summary reports, handbooks,
       newsletters, project reports, and
       manuals.
                                            B-5

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7.  Center for Waste Reduction Technologies
    (CWRT)
    American Institute of Chemical Engineers
    345 East 47th Street
    New York, NY 10017
    212-705-7407

    CWRT was established in 1989 by the
       American Institute of Chemical
       Engineers to support industry efforts in
       meeting the challenges of waste
       reduction through a partnership with
       industry,  academia, and government.

8.  The National Pollution Prevention
    Roundtable
    David Thomas
    218 D Street, SE
    Washington,  DC 20003
    202-543-7272

    The Roundtable is a group of pollution
       prevention program at the State and
       local level in both the public and
       academic sectors. The member
       programs are engaged in activities
       including multi-audience training and
       primary to post-secondary pollution
       prevention education.

9.  Northeast States Pollution Prevention
    Roundtable (NE Roundtable)
    Terri Goldberg, Program Manager
    Northeast States Pollution Prevention
       Roundtable / Northeast Waste
       Management Officials' Association
    85 Merrimac Street
    Boston, MA 02114
    617-367-8558

    The NE Roundtable was initiated in 1989 by
       the Northeast Waste Management
       Officials' Association to assist State
       programs, industry, and the public in
       implementing effective source reduction
       programs.
10. Pacific Northwest Pollution Prevention
   Research Center
   Madeline Grulich, Director
   Pacific Northwest Pollution Prevention
       Research Center
   411 University Street, Suite 1252
   Seattle, WA 98101
   206-223-1151

   The Pacific Northwest Pollution Prevention
       Research Center is a non-profit public-
       private partnership dedicated to the goal
       of furthering pollution  prevention in the
       Pacific Northwest.

11. Waste Reduction Institute for Training and
   Applications Research, Inc. (WRITAR)
   Terry Foecke
   Waste Reduction Institute for Training and
       Applications Research
   1313 5th Street, SE
   Minneapolis, MN 55414-4502
   612-379-5995

   WRITAR is designed to identify waste
       reduction problems, help find their
       solutions, and facilitate the
       dissemination of this information to a
       variety of public and private
       organizations.

12. Waste Reduction Resource Center for the
   Southeast (WRRC)
   Gary Hunt
   Waste Reduction Center for the Southeast
   3825 Barrett Drive
   P.O.  Box 27687
   Raleigh, NC 27611-6787

   WRRC was established to provide
       multimedia waste reduction support for
       the eight states of U.S. EPA IV
       (Alabama, Florida, Georgia, Kentucky,
       Mississippi, North Carolina, South
       Carolina, and Tennessee).
                                             B-6

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  Federal Facility Pollution Prevention
  Contacts

  Department of Agriculture
  William Opfer
  Environmental Health Engineer
  Department of Agriculture
  P.O. Box 96090
  Washington, DC 20090-6090
  202-205-0906

  Central Intelligence Agency
  Larry McGinty
  Chief, Environmental and Safety Group/QMS
  Central Intelligence Agency
  Washington, DC 20505
  703-482-4533

  Coast Guard
 T. J. Granito, Environmental Compliance and
 Restoration Branch
 P2 and Recycling Coordinator
 U.S. Coast Guard
 USCG(G-ECV-IB)
 2100 2nd Street, SW
 Washington, DC 20593
 202-267-1941

 Department of Commerce
 Jack Murphy
 Environmental Compliance Officer
 Office of Management Support
 U.S. Department of Commerce
 Room 6020
 14th and Constitution Avenue
 Washington, DC 20230
 202-482-4115

 Department of Energy
 Susan C. Weber
 Waste Minimization Division
 Office of Waste Management (EM-334)
 U.S.  Department of Energy
 1000 Independence Avenue, SW
Washington,  DC 20585
301-903-1388
  Department of the Interior
  Connie Kurtz
  Environmental Protection Specialist
  Division of Hazardous Materials Management
  Department of the Interior, MS 2340-MIB, Room
  2349
  Office of Environmental Affairs
  1849 C Street, NW
  Washington, DC 20240
  202-208-7554

  Department of Justice
  Marvin Fink
  Safety and Health Manager
  Security and Emergency Planning Staff
  U.S. Department of Justice, Room 6525
  10th and Constitution Avenue, NW
 Washington, DC  20530
 202-514-5076

 Department of Transportation
 Janet Krause
 Environmental Engineer
 Office of the Secretary
 Department of Transportation
 400 7th Street, SW
 Washington, DC  20590
 202-366-0038

 Department of the Treasury
 William McGovern
 Chief, Environmental Compliance Division
 Department of the Treasury
 Treasury Annex
 1500 Pennsylvania Avenue, NW
 Washington, DC 20220
 202-622-0043

 Department of Veterans Affairs
 John Staudt
 Chief, Hazardous Materials Management
 Division
 Department of Veterans Affairs,  138C-4
810 Vermont Avenue, NW
Washington, DC 20420
202-233-7863
                                          B-7

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 Economic Development Administration
 Dr. Frank Monteferrante
 Senior Environmental Specialist
 U.S. Department of Commerce
 Herbert C. Hoover Building, Room 7019
 Washington, DC 20230
 202-482-4208

 Federal Aviation Administration
 Tom Halloway
 Manager of Hazardous Materials and Special
 Projects Staff
 Federal Aviation Administration, AEE-20
 800 Independence Avenue, SW
 Washington, DC 20591
 202-267-8114

 Food and  Drug Administration
 Dr. Naresh K. Chawla
 Chief,  FDA Safety Office (HFA-205)
 Food and  Drug Administration
 7500 Standish Place
 Rockville, MD 20855
 301-594-1718

 General Services Administration
 Karone Peace
 Safety and Environmental Division
 Environmental Branch (PMS)
 General Services Administration, Room 4340
 18th and F Streets, NW
 Washington, DC 20450
 202-501-3518

 National Aeronautical Space Administration
 Olga Dominguez
 Environmental Management Division
 National Aeronautics and Space Administration
 NASA Headquarters, Code JE
 Washington,  DC 20546
 202-358-1093

 National Oceanic and Atmospheric
Administration
 I. Sam  Higuchi, Jr.
 Senior  Environmental Compliance Officer
 National Oceanic and Atmospheric
Administration
SSMC-2/OA3X1  Room 4434
 1325 East  West  Highway
Silver Spring, MD  20910
301-713-0845
 National Security Agency
 Barbara Krupiarz
 Project Manager, Pollution Prevention Program
 Environmental Service Division
 National Security Agency, (APS-13), Room
 AT200
 Department of Defense
 9800 Savage Road
 Fort Meade, MD  20755-6000
 410-684-7305

 Postal Service
 Bernie Denno
 Environmental Specialist
 U.S. Postal Service, Room 6830
 475 L'Enfant Plaza, SW
 Washington, DC  20260-2810
 202-268-6014

 Tennessee Valley Authority
 Paul Schmierbach
 Environmental Compliance Department
 Tennessee Valley Authority
 400 Summit Hill Drive
 Knoxville, TN 37902
 615-632-6644

 State Pollution Prevention Programs

 ALABAMA

 Alabama Waste Reduction and Technology
 Transfer (WRATT) Program
 Daniel E. Cooper, Chief
 Special Projects
 Alabama Department of Environmental
 Management
 1751 Congressman William L. Dickinson Drive
 Montgomery, AL 36130
 205-260-2779

 ALASKA

 Pollution Prevention Office
 David Wigglesworth, Chief
 Pollution Prevention Office
Alaska Department of Environmental
Conservation
P.O. Box O
Juneau,  Alaska 99811-1800
907-465-5275
                                           B-8

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Waste Reduction Assistance Program (WRAP)
Kristine Benson
Alaska Health Project
1818 West Northern Lights Boulevard
Suite 103
Anchorage, AK 99517
907-276-2864

ARIZONA

Arizona Waste Minimization Program
Sandra Eberhardt, Manager
Pollution Prevention Unit
Arizona Department of Environmental Quality
3033 North Central Avenue, Rm. 558
Phoenix, A2 85012
602-207-4210

ARKANSAS

Arkansas Pollution Prevention Program
Robert J. Finn
Hazardous Waste Division
Arkansas Department of Pollution Prevention
and Ecology
P.O. Box8913
Little Rock, AR 72219-8913
501-570-2861

CALIFORNIA

Department of Toxic Substances Control
Mr. Kim Wilheim
Department of Toxic Substances Control
Pollution Prevention,  Public and Regulatory
Assistance Division
400 P Street
P.O. Box 806
Sacramento, CA 95812-0806
916-322-3670

Tony Eulo
Local Government Commission
909 12th Street
Suite 205
Sacramento, California 95814
916-448-1198
California Integrated Waste Management Board
8800 Cal Center Drive
Sacramento, California 95826
Recycling Hotline:  800-553-2962
General Public Information: 916-255-2289

COLORADO

Pollution Prevention and Waste Reduction
Program
Kate Kramer, Program Manager
Pollution Prevention Waste Reduction Program
Colorado Department of Health
4300 Cherry Creek Drive South
Denver, CO 80220
303-692-3003

Michael Nemeck
Colorado Public Interest Research Group
(COPIRG)
1724 Gilpin Street
Denver, Colorado 80218
303-355-1861

CONNECTICUT

Connecticut Technical Assistance Program
(CONNTAP)
Andrew Vecchio
Connecticut Technical Assistance Program
(ConnTAP)
Connecticut Hazardous Waste Management
Service
900 Asylum Avenue
Suite 360
Hartford, Connecticut 06105-1904
203-241-0777

Connecticut Department of Environmental
Protection
Liz Napier
Bureau of Waste Management
Connecticut Department of Environmental
Protection
165 Capitol Avenue
Hartford, Connecticut 06106
203-566-5217
                                           B-9

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DELAWARE
FLORIDA
Delaware Pollution Prevention Program
Philip J. Cherry
Andrea K. Farrell
Pollution Prevention Program
Department of Natural Resources and
Environmental Control
P.O. Box 1401
Kings Highway
Dover, DE 19903
302-739-5071/3822
Herb Allen
Department of Civil Engineering
University of Delaware
Newark, DE 19716
302-451-8522/8449

DISTRICT OF COLUMBIA

Office of Recycling
Evelyn Shields, Recycling Coordinator
D.C. Department of Public Works
65 K Street, NE
Washington, DC 20002
202-727-5887

George Nichols
Department of Environmental Programs
Council of Governments
777 North Capitol St., NE
Suite  300
Washington, DC 20002-4201
202-962-3355

Kenneth Laden
Environmental Policy Division
D.C. Department of Public Works
2000 14th St., NW
Washington, DC 20009
202-939-8115

Ms. Ferial Bishop, Administrator
Environmental Regulation Administration
D.C. Department of Consumer and Regulatory
Affairs
2100 MLK Avenue, SE
Suite 203
Washington, DC 20020
202-404-1136
Waste Reduction Assistance Program (WRAP)
Janeth A. Campbell, Director
Waste Reduction Assistance Program
Florida Department of Environmental
Regulation
2600 Blair Stone Road
Tallahassee, Florida 32399-2400
904-488-0300

GEORGIA

Georgia Multimedia Source Reduction and
Recycling Program
Susan Hendricks, Program Coordinator
Environmental Protection Division
Georgia Department of Natural Resources
4244 International Parkway, Suite 104
Atlanta, GA 30334
404-362-2537

HAWAII

Hazardous Waste Minimization Program
Jane Dewell
Waste Minimization Coordinator
State of Hawaii Department of Health
Solid and Hazardous Waste Branch
Five Waterfront Plaza, Suite 250
500 Ala Moana Blvd.
Honolulu. HI 96813
808-586-4226

John Harder
Department of Health
Office of Solid Waste
5 Waterfront Place, Suite 250
500 Ala Moana Blvd.
Honolulu, HI 96813
808-586-4373

IDAHO

Division of Environmental Quality
Joy Palmer
Katie Sewell
Division of Environmental Quality
Idaho Department of Health and Welfare
1410 North Hilton Street
Boise, ID 83720-9000
208-334-5879
                                           B-10

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 ILLINOIS
 IOWA
 Illinois Hazardous Waste Research and
 Information Center (HWRIC)
 Dr. David Thomas, Director
 Illinois Hazardous Waste Research and
 Information Center
 One East Hazelwood Drive
 Champaign, IL61820
 217-333-8940

 Office of Pollution Prevention
 Mike Hayes
 Illinois Environmental Protection Agency
 Office of Pollution Prevention
 2200 Churchill Road
 P.O. Box 19276
 Springfield, IL 62794-9276
 217-785-0533

 INDIANA

 Office of Pollution Prevention and Technical
 Assistance
 Joanne Joice, Director
 Charles Sullivan, Environmental Manager
 Office of Pollution Prevention and Technical
 Assistance
 Indiana Department of Environmental
 Management
 105 South Meridian Street
 P.O. BOX6015
 Indianapolis, IN 46225
 317-232-8172

 Indiana Pollution Prevention Program
 Rick Bossingham, Coordinator
Jeff Burbrink, Agricultural Pollution Prevention
Coordinator
 Environmental Management and Education
Program
2129 Civil Engineering Building
Purdue University
West Lafayette, IN 47907-1284
317-494-5038
 Iowa Waste Reduction Center (IWRC)
 John Konefes, Director
 Kim Gunderson, Environmental Specialist
 Iowa Waste Reduction Center
 University of Northern Iowa
 Cedar Falls, IA 50614-0185
 319-273-2079

 Waste Management Authority Division
 Tom Blewett, Bureau Chief
 Scott Cahail, Environmental Specialist
 Waste Management Authority Division
 Department of Natural Resources
 Wallace State Office Building
 DesMoines, IA50319
 515-281-8941

 KANSAS

 State Technical Action  Plan (STAP)
 Tom Gross, Bureau Chief
 State Technical Action  Plan
 Kansas Department of Health and Environment
 Forbes Field, Building 740
 Topeka, KS 66620
 913-296-1603

 Kansas State University RITTA Program
 Lani Himegarner, Program Manager
 Engineering Extension Programs
 133 Ward Hall
 Kansas State University
 Manhattan, KS 66506-2508
 913-532-6026

 KENTUCKY

 Kentucky Partners - State Waste Reduction
 Center
Joyce St. Clair, Executive Director
Kentucky Partners - State Waste Reduction
Center
Ernst Hall,  Room 312
University of Louisville
Louisville, KY 40292
502-588-7260
                                           B-11

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LOUISIANA

Louisiana Department of Environmental Quality
Gary Johnson, Waste Minimization Coordinator
Louisiana Department of Environmental Quality
P.O. Box 82263
Baton Rouge, LA 70884-2263
504-765-0720

MAINE

Maine Waste Management Agency
Gayle Briggs
Maine Waste Management Agency
State House  Station 154
Augusta, ME 04333
207-287-5300

MARYLAND

Waste Management Administration
James Francis
Hazardous Waste Program
Waste Management Administration
Maryland Department of the Environment
2500 Broening Highway, Building 40
Baltimore, MD 21224
410-631-3344

Maryland Environmental Services
George  G. Perdikakis, Director
Maryland Environmental Services
2020 Industrial Drive
Annapolis, MD 21401
301-974-7281

Technical  Extension  Service
Travis Walton, director
Technical  Extension  Service
Engineering  Research Center
University of Maryland
College Park, MD 20742
301-454-1941
MASSACHUSETTS

Office of Technical Assistance for Toxics Use
Reduction
Barbara Kelley, Director
Richard Reibstein, Outreach Director
Massachusetts Department of Environment
Office of Technical Assistance
100 Cambridge Street
Boston, MA 02202
617-727-3260

Toxics Use Reduction Institute
Jack Luskin
Director of Education and Outreach
Toxics Use Reduction Institute
University Avenue
Lowell, MA 01854
508-934-3262

MICHIGAN

Office of Waste Reduction Services
Nan Merrill, Manager
Office of Waste Reduction Services
Environmental Services Division
Michigan Departments of Commerce and
Natural Resources
116 West Allegan Street
P.O. Box 30004
Lansing, Ml 48909-7504
517-335-1178

MINNESOTA

Minnesota Office of Waste Management
Kevin McDonald, Sr., Pollution Prevention
Planner
Minnesota Office of Waste Management
1350 Energy Lane
Suite 201
St. Paul, MN 55108-5272
612-649-5750/5744

Minnesota Pollution Control Agency (MPCA)
Eric Kilberg,  Pollution Prevention Coordinator
Environmental Assessment Office
Minnesota Pollution Control Agency
520 Lafayette Road
St. Paul, MN 55155
612-296-8643
                                           B-12

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 Minnesota Technical Assistance Program  $
 (MNTAP)
 Cindy McComas, Director
 Minnesota Technical Assistance Program
 Environmental Health School of Public Health
 University of Minnesota
 1313 5th Street, S.E., Suite 207
 Minneapolis, MN 55414
 612-627-4555/4646

 MISSISSIPPI

 Mississippi Waste Reduction/Waste
 Minimization Program, Mississippi Technical
 Assistance Program (MISSTAP) and Mississippi
 Solid Waste Reduction Assistance Program
 (MSSWRAP)
 Dr. Caroline Hill
 Mississippi Technical Assistance Program/
 Mississippi Solid Waste Reduction Assistance
 P.O. Drawer CN
 Mississippi State, MS 39762
 601-325-8454

 Thomas E. Whitten,  Director
 Waste Reduction/Waste Minimization Program
 Mississippi Department of Environmental
 Quality
 P.O. Box 10385
 Jackson, MS 39289-0385
 601-961-5171

 MISSOURI

 Waste Management  Program (WMP)
 Becky Shannon, Pollution Prevention
 Coordinator
 Hazardous Waste Program
 Division of Environmental Quality
 Missouri Department of Natural Resources
205 Jefferson Street
 P.O. Box 176
Jefferson City, MO 65102
314-751-3176
 Environmental Improvement and Energy
 Resources Authority
 Steve Mahfood, Director
 Tom Welch, Assistant for Planning and Project
 Development
 Environmental Improvement and Energy
 Resources Authority
 225 Madison Street
 P.O. Box 744
 Jefferson City, MO 65102
 314-751-4919

 MONTANA

 Solid  and Hazardous Waste Bureau
 Dan Fraser
 Water Quality Bureau Chief
 Department of Health and Environmental
 Sciences
 Room A-206
 Cogswell Building
 Helena, MT 59620
 406-444-2406

 Jeff Jacobsen
 Montana State University Extension Service
 807 Leon Johnson Hall
 Bozeman,  MT 59717-0312
 406-994-5683

 NEBRASKA

 Hazardous Waste Section
 Teri Swarts, Waste Minimization Coordinator
 Hazardous Waste Section
 Nebraska Department of Environmental Control
 301 Centennial Mall South
 P.O. Box 98922
 Lincoln, NE 68509
402-471-4217

 NEVADA

Business Environmental Program
Kevin  Dick, Manager
Business Environmental Program
Nevada Small Business Development Center
University of Nevada - Reno
Reno,  NV 89557-0100
702-784-1717
                                          B-13

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Doug Martin
Bureau of Waste management
Division of Environmental Protection
123 West Nye Lane
Carson City, NV 89710
702-687-5872

Nevada Energy Conservation Program
Curtis Framel, Manager
Nevada Energy Conservation Program
Office of Community Services
Capitol Complex
201 South Fall Street
Carson City, NV 89710
702-885-4420

NEW JERSEY

New Jersey Pollution Prevention Program
Jean Herb, Director
Office of Pollution Prevention
New Jersey Department of Environmental
Protection
CN-402
401 East State Street
Trenton, NJ 08625
609-777-0518

New Jersey Technical  Assistance Program
(NJTAP)
Kevin Gashlin, Director
New Jersey Technical  Assistance Program
New Jersey Institute of Technology
Hazardous Substance  Management Research
Center
Center for Environmental and Engineering
Sciences
323 Martin Luther King Boulevard
Newark, NJ 07102
201-596-5864
NEW YORK

Bureau of Pollution Prevention
John lanotti, Director
Bureau of Pollution Prevention
Division of Hazardous Substances Regulation
and the
Division of Solid Waste
New York State Department of Environmental
Conservation
50 Wolf Road
Albany, NY 12233-7253
518-457-7276

NORTH CAROLINA

Pollution Prevention Program
Gary Hunt, Director
Stephanie Richardson, Manager
Pollution Prevention Program
Office of Waste Reduction
North Carolina Department of Environment,
Health, and Natural Resources
P.O. Box 27687
Raleigh, NC 27611-7687
919-571-4100

OHIO

Ohio Technology Transfer Organization (OTTO)
Jeff Shick, State Coordinator
Jackie Rudolf
Ohio Technology Transfer Organization
Ohio Department of Development
77 South High Street, 26th Floor
Columbus, OH 43255-0330
614-644-4286

Ohio Environmental Protection Agency
Roger Hannahs
Michael W. Kelley
Anthony Sasson
Pollution Prevention Section
Division of Hazardous Waste Management
Ohio Environmental Protection Agency
P.O. Box1049
Columbus, OH 43266-0149
614-644-3969
                                           B-14

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 OKLAHOMA
                                       ft
 Pollution Prevention Technical Assistance
 Program
 Chris Varga
 Hazardous Waste Management Service, 0205
 Oklahoma State Department of Health
 1000 Northeast 10th Street
 Oklahoma City, OK 73117-1299
 405-271-7047

 OREGON

 Waste Reduction Assistance Program (WRAP)
 Roy W. Brower, Manager
 David Rozell, Pollution Prevention Specialist
 Phil Berry, Pollution Prevention Specialist
 Hazardous Waste Reduction and Technical
 Assistance Program
 Hazardous and Solid Waste Division
 Oregon Department of Environmental Quality
 811 S.W. Sixth Avenue
 Portland, OR 97204
 503-229-6585

 PENNSYLVANIA

 Department of Environmental Resources
 Meredith Hill
 Assistant to Deputy Secretary
 Office of Air and Waste Management
 Pennsylvania Department of Environmental
 Resources
 P.O. Box 2063
 Harrisburg, PA  17105-2063
 717-772-2724

 Center for Hazardous Materials Research
 Roger Price
 Center for Hazardous Materials Research
 University of Pittsburgh Applied Research
 Center
 320 William Pit Way
 Pittsburgh. PA 15238
412-826-5320
 1-800-334-CHMR
 Pennsylvania Technical Assistance Program
 (PENNTAP)
 Jack Gido, Director
 PENNTAP
 Penn State University
 110 Barbara Building II
 810 North University Drive
 University Park, PA 16802
 814-865-0427

 RHODE ISLAND

 Hazardous Waste Reduction Program
 Richard Enander, Chief
 Janet Keller
 Office of Environmental Coordination
 Rhode Island Department of Environmental
 Management
 83 Park Street
 Providence, Rl  02903-1037
 401-277-3434

 Eugene Pepper, Senior Environmental Planner
 Hazardous Waste Reduction Section
 Office of Environmental Coordination
 Rhode Island Department of Environmental
 Management
 83 Park Street
 Providence, Rl  02903
 401-277-3434

 SOUTH CAROLINA

 Center for Waste Minimization
 Ray Guerrein
 Center for Waste Minimization
 South Carolina  Department of Health and
 Environmental Control
 2600 Bull Street
 Columbia, SC 29201
 802-734-4715

 SOUTH DAKOTA

 Waste Management Program
 Wayne Houtcooper
 Department of Environment and Natural
 Resources
Joe Foss Building
 523 E. Capitol Avenue
Pierre, SD 57501-3181
605-773-4216
                                          B-15

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TENNESSEE
UTAH
Department of Health and Environment
Paul Evan Davis
Bureau of Environment
Tennessee Department of Health and
Environment
14th Floor, L & C Building
401 Church Street
Nashville, TN 37243-0455
615-741-3657

Waste Reduction Assessment and Technology
Transfer Training Program (WRATT)
George Smelcer, Director
Waste Reduction Assistance Program
Cam Metcalf (Suite 606)
Center for Industrial Services
University of Tennessee
226 Capitol Boulevard Building
Nashville, TN 37219-1804
615-242-2456

Carroll Dugan, Section Manager
Waste Reduction and Management Section
Tennessee Valley Authority
Mail Code HB 2G-C
311 Broad Street
Chattanooga, TN 37406
615-751-4574

TEXAS

Center for Hazardous and Toxic Waste Studies
John R. Bradford, Director
Center for Hazardous and Toxic Waste Studies
Texas Tech University
P.O. Box 4679
Lubbock,TX 79409-3121
806-742-1413
Department of Environmental Quality
Sonja Wallace, Pollution Prevention Co-
Coordinator
Stephanie Bernkopf, Pollution Prevention Co-
Coordinator
Office of Executive Director
Utah Department of Environmental Quality
168 North 1950 West Street
Salt Lake City, UT 84114-4810
801-536-4480

VERMONT

Pollution Prevention Program
Gary Gulka
Pollution Prevention Division
Vermont Department of Environmental
Conservation
103 South Main Street
Waterbury, VT 05676
802-244-8702

Paul Maskowitz, Chief
Recycling and Resource Conservation Section
Vermont Department of Environmental
Conservation
103 South Main Street
Waterbury, VT 05676
802-244-8702

VIRGINIA

Waste Minimization Program
Sharon Kenneally-Baxter, Director
Waste Minimization Program
Virginia Department of Waste Management
Monroe Building, 11th Floor
101 N. 14th Street
Richmond, VA 23219
804-371-8716
                                          B-16

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 WASHINGTON

 Waste Reduction, Recycling and Litter Control
 Program
 Stan Springer
 Joy St. Germain
 Peggy Morgan
 Waste Reduction, Recycling and Litter Control
 Program
 Washington Department of Ecology
 Mail Stop PV-11
 Olympia, WA 98504-8711
 206-438-7541

 WEST VIRGINIA

 Pollution Prevention and Open Dump Program
 (PPOD)
 Richard Ferrell, Environmental Analyst
 Waste Management Section
 West Virginia Division of Natural Resources
 1356 Hansford Street
 Charleston, WV 25301
 304-558-4000

 WISCONSIN

 Department of Natural Resources
 Lynn Persson, Hazardous Waste Reduction and
 Recycling Coordinator
 Kate Cooper, Assistant Recycling Coordinator
 Bureau of Solid and Hazardous Waste
 Management
 Wisconsin Department of Natural Resources
 P.O. Box 7921  (SW/3)
 Madison, Wl 53707-7921
 608-267-3763

 WYOMING

 Department of Environmental Quality
 David Finley, Manager
Pat Gallagher, Senior Environmental Analyst
Solid Waste Management Program
Wyoming Department of Environmental Quality
 122 West 25th Street
Herschler Building
Cheyenne, WY 82002
307-777-7752
                                          B-17

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                                   Appendix C


                       READER FEEDBACK SURVEY



     This manual has been developed to make analysis of pollution prevention projects easier
  to understand and implement.  We would appreciate your feedback on this manual to improve
  future editions and to be able to supply additional support as needed.  Please .take the time to
  respond to the questions below, and send it back using the address given at the end of this
  survey. Thank you.



  1.   Will the methodologies discussed in this manual be helpful to you? Why or why not?
 2.  Are you currently using any of the financial analysis concepts described in this manual? If so
        what kind of success have you had?
3.  Are there cost elements of your particular projects that are not covered in this manual that need
       to be addressed?
4.  What topics covered in this manual would you like to see explained in greater detail?
                                       C-1

-------
5.  Does your facility or operation use any type of software program that automates the cost
       accounting process for pollution prevention or other projects? If so, please describe.
6.  Additional comments:
If you are interested in receiving an electronic copy of the spreadsheets contained within this manual,
please fill in your name, address and preferred spreadsheet format below. In addition, EPA intends to
make electronic versions of the manual and spreadsheets available through the Enviro$ense bulletin
board (703- 908-2092)and World Wide Web site on the lnternet( http://wastenot.inel.gov/environsense).

Please send me electronic versions of the manual spreadsheets in the following format:
           Excel	                 Lotus 1 -2-3	
    Name:
    Address:
E-Mail Address:
MAIL/FAX TO:
Mr. Rick Brenner
U.S. Environmental Protection Agency
Federal Facilities Enforcement Office
401 M Street, SW (OE-2261)
Washington, DC 20460
202-260-6177 (telephone)
202-260-9437 (facsimile)
                           C-2

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