United States          Office of Pollution Prevention  EPA742-F-94-004
Environmental Protection    and Toxics               July 1994
Agency             Washington, DC 20460
Environmental Accounting
Resource Listing

Design for the Environment
(DfE) Accounting and Capital
Budgeting for Environmental Costs

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                                            Preface

        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, (5) Financial and
economic analysis of pollution prevention projects,  (6) National environmental accounting, (7) Pollution
prevention, and (8) Quality costs.  The list includes ordering information and cost (if applicable).  Most of
these sources are non-EPA sources. A listing of all documents on this topic written by the EPA
Management Accounting and Capital Budgeting for Environmental Costs Project can be obtained by
calling the Pollution Prevention Information Clearinghouse at (202) 260-1023.

        If you know of additional materials that should be included in future revisions of this resource
guide,  please send a copy of the material and a short narrative including the title, short description of the
material, contact information, cost if any and publication date to:

                       Martin Spitzer, J.D., Ph.D.
                       US EPA
                       Pollution Prevention Division (7409)
                       401 M Street, S.W.
                       Washington, D.C. 20460
                       Fax:    (202)260-0168

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                               Table of Contents



            Tonic                                                   Page
Activity-Based Costing
Bibliographies, Curricula, and Definition of Terms
Corporate Environmental Accounting
Federal Government, Military, and Logistics Applications
Financial and Economic Analysis of Pollution Prevention Projects
National Environmental Accounting
Pollution Prevention                                                   8
Quality Costs                                                         8
                                        11

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                                                        Revised June 94

            ENVIRONMENTAL ACCOUNTING RESOURCE LISTING
   Design for the Environment (DfE) Accounting and Capital Budgeting Project
1.     ACTIVITY BASED COSTING

An ABC Manager's Primer: Straight Talk on Activity-Based Costing, Cokins, Stratton, &
Helbling
The authors, who have led many ABC projects, take the mystique out of ABC. The primer, written in
simple, clear language, gives a headstartfor action in implementing an ABC program. (93282/$15.00)

       To order contact:      The Institute of Management Accountants
                            10 Paragon Drive
                            Montvale, NJ 07645-1760
                            Phone: 1-800-638-4427
                            Fax: (201) 573-0639

'Implementing Activity-Based  Cost Management: Moving from Analysis to Action, Cooper,
Kaplan, Maisel, Morrissey, & Oehm
This research study documents key implementation issues and results, based on real-life examples and case
studies of eight companies. (92268/$35.00)

       To order contact:      See Above

       In addition, the IMA library has an extensive list of bibliographies on areas of interest to
management accountants, including Activity-Based Costing, Capital Budgeting, and Environmental
Accounting.  The bibliographies are free to members and cost $15.00 each for nonmembers. For more
information, call the IMA library at (201) 573-6235.

Implementing Activity Based Costing.  Editor Frank Collins  (1991)
This book introduces the  concept of activity-based costing ($40)

       To order contact the publisher:  Executive Enterprises Publications Co.
                                   22 West 21st Street
                                   New York, NY 10010-6904

2.     BIBLIOGRAPHIES, CURRICULA,  AND DEFINITIONS OF TERMS

Bibliographies

'Environmental Accounting: Current Issues, Abstracts and  Bibliographies, United Nations,
No.:E.92.II.A.23, This United Nations Publication is a guide to the issues and literature in the field of
corporate environmental  accounting. Focuses largely on Financial Reporting and National Accounting.
(Cost $15.00 plus $3.50  shipping and handling) Must be pre-paid. UN accepts  Visa, MC, AMEX.

       To order contact:      United Nations Publications
                            Sales Section
                            Room DC2-0853, Dept. 600
                            2 United Nations Plaza
                            New York, NY 10017
                            Phone: (212) 963-8302
                            Fax:    (212) 963-3489
 * = New Listing                                                                   Paee 1

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                                                            Revised June 94

Curricula

Costing and Financial Analysis of Pollution Prevention Projects
Developed by the Northeast Waste Management Officials' Association (1992), this packet on costing and
financial analysis of pollution prevention projects was designed for use in a workshop to introduce state
pollution prevention staff to concepts and methods of conducting financial analysis for pollution prevention
projects. In addition to the workshop curriculum, it includes case studies of pollution prevention efforts in
four small Massachusetts companies. ($40 for profit organizations, $20 for non-profits)

        To order contact:       NEWMOA, Pollution Prevention Program
                              85 Merrimac Street
                              Boston, MA 02114
                              Phone:  (617)367-8558

'Curriculum Module on Environmental Accounting
Developed by the National Pollution Prevention Center at the  University of Michigan, this regularly
updated module provides an introduction to the application of pollution prevention in business accounting.
It is a continuously evolving resource list of educational materials.  (Recent update April 1994)

        The module summary may be obtained from:   The University of Michigan, School of Natural
                                                    Resources and Environment
                                                    430 E.  University, Dana  Building
                                                    Ann Arbor, MI 48109-1115 P
                                                    Phone:  (313) 764-1412

'Polaroid:   Managing Environmental Responsibilities and Their Costs, Harvard Business School,
N9-194-052, December 2, 1993, Richard D.  Stark under the supervision of Professors Mary E. Barth and
Marc J. Epstein (Cost $5.00)
A case prepared for class discussion.

        To order contact:       Publishing Division
                              Harvard Business School
                              Boston, MA 02163
                              (617)495-6117

Teaching Case Studies Applicable to Full Cost Accounting and Capital Budgeting
The Management Institute for Environment and Business have three teaching case studies: Bayerische
Motor en Werke; AT&T and Tempes (a fictional company)

        To order contact:       Julia Nickel
                              MEB
                               1220 16th Street,  N.W.
                              Washington, D.C. 20036
                              Phone:  (202)833-6556
                              Fax:    (202) 833-6228
                              Email:  Meb@gwuvm.gwu.edu
* =
    = New Listine                                                                        Pa OP

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                                                           Revised June 94

Definitions-

Environmental Cost Accounting: Key Definitions and Terms
This ten page paper developed by the Business Roundtable defines key terms commonly associated with
environmental cost accounting.  The definitions are intended to provide a brief overview on this topic and
to illustrate the differences and relationships between various terms and techniques.

        To obtain the paper contact:     The Business Roundtable
                                     1615 L Street, NW
                                     Washington, D.C.  20036-5610
                                     Phone:  (202) 872-1260
                                     (request by mail are preferred)

3.      CORPORATE ENVIRONMENTAL ACCOUNTING

Environmental Accounting:  What's the Bottom Line? (120 minute audio cassette and handouts)
A presentation given on July 20, 1993 by Elliot Berkihiser of the Boeing Company, chair of the Economic
Council of the American Institute of Pollution Prevention, on defining and allocating costs  and benefits.
(Cost $10.00plus $1.50 shipping and handling, make check payable to PPRC)

        To order contact:        PPRC Communications
                              1326 Fifth Avenue,  Suite 650
                              Seattle, WA 98101
                              Phone:  (206) 223-1151 Fax: (206) 223-1165

'Accounting for Environmental Compliance:  Crossroad of GAAP, Engineering, and Government: A
Survey  of Corporate America's Accounting for Environmental Costs
This 1992 report is the second Price Waterhouse survey of accounting practices for environmental
compliance and related management issues.

        To order contact:        Dean Petracca
                              Environmental Services
                              Price Waterhouse
                              600 Grant Street
                              Pittsburgh, PA  15219
                              (412)355-6000

'Coming Clean: Corporate Environmental Reporting (1993)
This survey report published by Deloitte Touche Tohmatsu International, the International Institute for
Sustainable Development and SustainAbility: The Green Growth Company, reviews environmental
disclosure information reported by companies worldwide.  The report identifies best practices, business
motives for disclosure and concludes that many companies are "ill prepared" to respond to growing
disclosure needs and that pressures for more disclosure will continue to grow.
(Cost $25)

        To order contact:        Steve Hebel
                              Deliotte Touche
                              50  Fremont Street, Suite 2800
                              San Francisco, CA  94105
                              Phone: (415)247-4038
 * = New T.istin?

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                                                           Revised June 94

'Environmental Cost Accounting:  The Bottom Line for Environmental Quality Management,
William G. Russell, Steven L. Skalak, and Gail Miller
Spring 1994, Total Quality Environmental Management, pp. 255-268.  This article discusses current cost
accounting systems available to support environmental management systems.  (Cost $145 to subscribe; $37
for individual book issue)

       To order contact:       Executive Enterprises
                              22 West 21st Street
                              New York, NY  10010-6990
                              Phone:  1-800-332-8804

'Environmental Accounting-Current Issues, Abstracts and Bibliography, United Nations,
Sales No.:E.92.II.A.23, This United Nations Publication is a guide to the issues and literature in the field
of corporate environmental accounting.  Focuses largely on Financial Reporting and  National Accounting.
(Cost $15.00 plus $3.50 shipping and handling) Must be pre-paid. UN accepts  Visa, MC, AMEX.

       To order contact:       United Nations Publications
                              Sales Section
                              Room DC2-0853, Dept.  600
                              2 United Nations Plaza
                              New York, New York 10017
                              Tel.: (212)963-8302
                              Fax No.:  (212) 963-3489

'"Management Accounting" (The Official Magazine of The Institute of Management Accountants)
The February 1994 issue of this monthly has articles on accounting for environmental liabilities, deduction
vs. capitalization of cleanup costs, ABC and life cycle costing for environmental expenditures, and
environmental management systems.  ($10 per copy; $20 yearly subscription for members, $125 for
non-members)

       To order contact:       Institute of Management Accountants
                              10 Paragon Drive
                              Montvale, NJ 07645-1760
                              (201) 573-9000
                              FAX (201) 573-0639

'Environmental Auditing and the Role of the Accounting Profession, The Canadian Institute of
Chartered Accountants (CICA Research Report)
This 1992 report of a Study Group discusses what services constitute environmental auditing, now and in
the future, and provides recommendations to the accounting profession as to the roles it should play in
environmental auditing.

       To order:      The Canada Institute of Chartered
                      Accountants
                      277 Wellington Street West
                      Toronto, Ontario
                      CANADA, M5V  3H2
                      (416) 204-3313
                      (416) 204-3414 Fax
 * = MPU/ T icfina                                                                      -onr,a. A

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                                                           Revised June 94

'Reporting on Environmental Performance (CICA Discussion Paper)
The purpose of this 1993 discussion paper was to stimulate comments on issues relating to reporting on
environmental performance.  The paper explores factors influencing organizations' decisions to report
information on environmental performance and provides a  generalized framework for organizing such
information.

       To order contact:      See Above

'Environmental Costs and Liabilities:  Accounting and Financial Reporting Issues (CICA Research
Report)
This 1993 report of a Study Group discusses information needs and presents proposals and positions on
accounting for and reporting on environmental issues.

       To order contact:      See Above

'Environmental Stewardship: Management, Accountability and the Role of Chartered
Accountants, The Canadian Institute of Chartered Accountants (CICA)
The CICA Board of Governors accepted this 1993 report as providing guidance to the profession.

       To order contact:      See Above

'Accounting for the Environment (Management Accounting Issues Paper 1), The Society of
Management Accountants of Canada
This 1992 issues paper identifies some of the key  issues in  accounting for the environment and offers some
guidelines on improving environmental accountability; it also addresses the role of the  management
accountant in developing an environmental agenda and designing appropriate performance measures to
monitor its implementation.  (Cost $9.00)

       To order contact:      The Society of Management Accountants of Canada (SMAC)
                             120 King Street  West, Suite 850
                             P.O. Box 176
                             Hamilton,  Ontario
                             CANADA, L8N 3C3
                             (905) 525-4100
                             SMAC Direct Order Line 1-800-263-7622

Background Discussion of Total Cost Accounting Within Petroleum  Operations
This four page paper developed by the American  Petroleum Institute's Pollution Prevention Task Force
explains the importance of total cost accounting concepts for the petroleum industry and suggests types of
costs that should be included in project evaluations.

       To order contact:      Pollution Prevention Information Clearinghouse (PPIC)
                             EPA Headquarters Library
                             401 M Street, SW  3404
                             Washington, D.C. 20460
                             Phone: (202) 260-1023   Fax: (202) 260-0178

       For more information an  API's Activities contact:        Barbara Bush
                                                           American Petroleum Institute
                                                           1220 L Street, N.W.
                                                           Washington, D.C. 20005
                                                           (202) 682-8325
 * = XT«»«/ T ictino                                                                       Do r

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                                                          Revised June 94

4.     FEDERAL GOVERNMENT, MILITARY, AND LOGISTICS APPLICATIONS

Federal Government

'Creating a Government that Works Better and Costs Less: Reinventing Environmental
Management, Accompanying Report to the National Performance Review, Vice President Al Gore
(September 1993)
This report of the National Performance review recommends among other things, that the Federal
Government should " Improve Federal Decision Making Through Environmental Cost Accounting."

       To order contact:       U.S. Government Printing Office
                             Superintendent of Documents
                             Mail Stop: SSOP
                             Washington, DC 20402-9328
                             Phone: (202)783-3238

Military

'Environmental Costs: A New Element in Life Cycle Cost Estimates for DOD Acquisition Programs,
A keynote address presented to the International Society of Parametric Analysts,  16th Annual Conference;
June 2, 1994  By Michael R. Anderberg
This presentation describes what DOD's, Office of Secretary of Defense is doing to assure the significant
costs of environmental effects are reflected in life cycle cost estimates for major defense acquisition.

       To order contact:       Office of Secretary  of Defense
                             Program Analysis and Evaluation
                             1800 Defense Pentagon
                             Washington, D.C.  20301-1800
                             Phone: (703)697-0317
'Pollution Prevention in the Department of Defense, Andres Tails and Christopher P. Werle
This 1993 report provides an overview of pollution prevention programs across the DoD components,
identifies pollution prevention opportunities for DoD, and concludes with ten recommendations.

       To order contact:      Logistics Management Institute
                             6400 Goldsboro Road
                             Bethesda, MD 20817-5886
                             (301) 320-2000

Logistics

'Logistics Spectrum—Journal of the Society of Logistics Engineers
Volume 27, Issue 2,  (Summer 1993)
Special Issue:  New Directions in Logistics.  First all environmental issue of this quarterly.

       To order contact:      Logistics Spectrum
                             SOLE International Headquarters
                             8100 Professional Place, Suite 211
                             Hyattsville, MD 20785
                             Member Subscription:  Annual membership dues include a $10 yearly
                             subscription
                             Nonmember Subscription: $50 U.S.; $60 all others
* =
   = New Listing

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                                                          Revised June 94
'SOLEtter:  The Newsletter of the Society of Logistics Engineers
Membership dues include $6 yearly subscription fee.

        To order contact:      The Society of Logistics Engineers
                             SOLE International Headquarters
                             8100 Professional Place, Suite 211
                             Hyattsville, MD 20785
5.     FINANCIAL AND ECONOMIC ANALYSIS

A Primer for Financial Analysis of Pollution Prevention Projects (EPA/600/R-93-059)
Introduces the time value of money concept into analysis of pollution prevention investments

       To order contact:       The Center for Environmental Research Information (CERI)
                             26 West Martin Luther King Drive
                             Cincinnati, OH 45628
                             Phone: (513) 569-7562 Fax: (513) 569-7566

Cost Analysis for Pollution Prevention
This four page document, published by the Washington State Department of Ecology, describes a simple
hand calculation to complete the net present value of a pollution prevention investment.  It contains step-
by-step directions. (R-HWTR-93-129)

       To order contact:       Peggy Morgan
                             Washington State Department of Ecology
                             P.O. Box 47600
                             Olympia, WA 98504-7600
                             Phone: (206) 407 6739 (for information)
                                    (206) 407-6746 (for ordering)

6.    NATIONAL ENVIRONMENTAL ACCOUNTING

'Integrated Environmental and Economic Accounting, United Nations
This 1993 handbook's objective is to provide a basis for linking conventional economic accounts with
environmental and natural resource accounts.  Sales No.:E.93.XVII.12 (Cost $45.00 plus  $3.50 shipping
and handling) Must be pre-paid. UN accepts Visa, MC, AMEX.

       To order contact:       United Nations
                             Sales Section
                             Room DC2-0853, Dept. 600
                             2 United Nations Plaza
                             New York, New York  10017
                             Tel.: (212)963-8302
                             Fax No.: (212)963-4116
 * = MPU/ T i«rino

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                                                          Revised June 94
7.
POLLUTION PREVENTION
Facility Guide for Pollution Prevention (EPA-600-R-92-008)
An EPA Guide to setting up an effective corporate pollution prevention program,  (see Chapter 6 for a
discussion of Total Cost Assessment Concepts)
       To order contact:
                      The Center for Environmental Research Information (CERI)
                      26 West Martin Luther King Drive
                      Cincinnati, OH 45628
                      Phone: (513) 569-7562 Fax: (513) 569-7566
Waste Minimization Guidance, Interim Final Guidance to Hazardous Waste Generators on a
Waste Minimization "Program in Place"
This guidance recommends improved environmental accounting practices as pan of a successful Waste
Minimization Program.
8.
       To order contact:
QUALITY COSTS
                      Becky Cuthbertson: Office of Solid Waste (703) 308-8447 or
                      RCRA Hotline 1-800-424-9346
                      TDD       1-800-553-7642
'Current Trends in Cost of Quality:  Linking the Cost of Quality and Continuous Improvement,
John Hawley Atkinson, Jr., Gregory Hohner, Barry Mundt, Richard B. Troxel, William Winchell (Cost
$35.00; 91259)
This 1991 successor study to a 1987 report on Cost of Quality analyzes four case studies and discusses the
tactics and techniques required to convert an organization to a continuous quality improvement
philosophy.
       To order contact:
                      Institute of Management Accountants
                      10 Paragon Drive
                      Montvale, NJ 07645-1760
                      (201) 573-9000
                      FAX (201) 573-0639
 * = New Listing
                                                                                Pa OP 8

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