(National

    ilEwifHrfnenta!

     PerforrfianceTrack
U.S. Env;t'- •      ' Ttton Agency

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Location of Performance Track Members

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         ABLE      OF     CONTENTS
£-
0V
        Executive Summary _ 2
       , Why Performance Track? _                              _ 3
            Building on Experience                                              3

            Program Structure and Criteria                                        4

        The First Year of Progress                                              7

            Performance Track Member Goals

            Performance Track Member Achievements

        Promoting Continuous Improvement                                   15

        Working with State Partners                                           19

        Performance Track Assistance                                         2 1

        Looking Forward                                           _ 22

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EXECUTIVE      SUMMARY

    This report describes the mission and activities of Performance 1 rack, its members'
achievements to date, and the goals for the future of the program.
    In the less than three years since it was launched. Performance Track has:
    •   Grown to include over 300 members, from among the more than
       -±00 that have applied:
    •   Enlisted broad corporate support from such leaders as Johnson & Johnson,
       IBM, 3M, International Paper, Lockheed Martin, and Rockwell Collins;
    •   Engaged 19 trade, professional, and environmental organizations in the
       Performance Track Network;
    •   Improved environmental management systems at member facilities
       through site visits;
    •   Advanced environmental performance measurement;
    •   Created a learning community of members, government, associations,
       and prospective members;
    •   Strengthened links among federal and state performance-based
       excellence programs; and
    •   Developed proposals for regulatory and policy changes that allow for better
       environmental and business performance.
    Commitment to continuous environmental improvement is a core value of
Performance Track. In their first year of participation. Performance Track members
have gone beyond legal requirements to reduce:
    •   Energy use by 1.1 million mmBtus
    •   Water use by 4^5 million gallons
    •   Hazardous materials use by 908 tons
    •   Emissions of volatile organic compounds (VOCs) by 329 tons
    •   Emissions of air toxics by 57 tons
    •   Emissions of nitrogen oxides (NOX) by 152 tons
    •   Discharges to water of biochemical oxygen demand (BOD), chemical oxygen
       demand (COD), and total suspended solids (TSS) by 1,327 tons
    •   Toxic discharges to water by 5.5nb3 tons
    •   Solid waste by 150,000 tons
    •   Hazardous waste by 692 tons
    Members also increased their use of reused  and recycled materials by 10.823 tons
and preserved or restored 2.698 acres of habitat.
    EPA will continue to build Performance Track by increasing the environmental and the
business value of the program, increasing membership, and expanding program ownership
among Agency programs, states, corporations, and trade and environmental groups.

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WHY    PERFORMANCE    TRACK?
    The U.S. Environmental Protection Agency's National Environmental Performance
Track (Performance Track) program recognizes and rewards facilities that consistently
exceed regulator}- requirements, work closely with their communities, and excel in pro-
tecting the environment and public health.
    Performance Track is based on the premise that government should complement
existing programs with new tools and strategies that not only protect people and the
environment, but also  capture opportunities for reducing costs and spurring tech-
nological innovation. The program's  mission is to improve environmental performance,
transform relationships, and encourage innovation. Performance Track encourages
performance improvements by supporting environmental goals that go  beyond compli-
ance, offering recommendations during site visits, and providing opportunities for the
sharing of information among  members. The program transforms the relationship
between regulators and  regulated facilities to make them more collaborative, cooperative,
and focused on results. Innovation is  encouraged through peer networking, regulatory
changes, and the program's focus on fostering a culture of continuous improvement.
    Launched in June 2000. the program has more than 300 members in 41 states and
Puerto Rico, representing virtually every manufacturing sector as well as facilities in the
public sector. All U.S. facilities, large  and small, public  and private, may apply to
Performance Track.  Participants must meet a set of criteria to be accepted into the pro-
gram.  Once accepted, members receive  a range of benefits and incentives to motivate
and enable them to make further improvements.
    EPA is pleased to present this first progress report, which describes the mission and
activities of Performance Track, its members' achievements to date, and  the goals for the
future of the program.

Building on Experience
    Performance Track builds on lessons that EPA has learned from
state environmental leadership programs and from its own efforts, such
as the Common Sense Initiative,  die Environmental Leadership
Program, and EPA Region 1's Star Track  program. Through these early
initiatives, EPA learned the importance of keeping program design sim-
ple, keeping transaction costs low. and delivering measurable results.
    EPA's initial proposal to develop Performance Track was pub-
lished in its July 1999 report. Aiming for Excellence. The Agency
consulted extensively with stakeholders and state environmental
agencies to develop  and refine the proposal. The program was
launched officially on June 26, 2000  EPA accepted 228 facilities as
Charter Members during its first round of applications,  welcoming
them at a ceremony  in Washington, DC.  on December 13, 2000.
" Performance
  Track gives
  us recognition for
  the good work
  we are doing
  and encourages
  employees
  to do more."

  Evet L. Vera
  Baxter Healthcare/
  Aibonito, P.R.
  Size of
  Performance Track
  Facilities

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         Distribution of
           Performance
         Track Members
          Across Sectors
Pharmaceuticals
                   Other
              Manufacturing
                     -JO/
      Transportation
        Equipment
            5%
Energy,
Utilities,
Sanitary
Services
 6%
    In early 2001, incoming Administrator Christie Whitman reaffirmed support for the
Performance Track program. "Performance Track is an important public/private partnership
that encourages environmental excellence, involves communities in environmental protec-
tion, and focuses on measurable results," she said in a letter to new members. Since then.
Administrator Whitman has welcomed new members to Performance Track personally.
    By the end of February 2003, Performance Track had held five rounds of appli-
cations, receiving 421 applications and accepting 3-O. The program currently has
    members.

                      Program Structure and Criteria
                          The structure of Performance Track consists of a core staff in
                      EPA's Office of Policy.  Economics, and Innovation and regional
                      Performance Track Coordinators in  each of the Agency's 10
                      regional offices. EPA staff work  with state environmental agencies
                      to review applications to the program, conduct site visits at mem-
                      ber facilities, promote Performance  Track and similar state per-
                      formance-based programs, and develop program policy.
                          Performance Track accepts applications twice each year:
                      from February 1 to April 30 and from August 1 to October 31
                      The  Performance Track application can be found at
                      http://www.epa.gov/perforniancetrack/apps/app.htm.
    The application was designed to be as clear and user-friendly as possible while gath-
ering enough information to demonstrate  that an applicant meets Performance Track's
criteria in four key areas:
    1.  Establishing and maintaining a comprehensive environmental
        management system (EMS):
    2.  Going beyond legal  requirements  as evidence  of its commitment
        to continuous environmental improvement;
    3.  Informing and seeking input from its local community about the
        facility's environmental performance; and
    4.  Ivlaintaining a record of sustained  compliance  with
        environmental requirements.
    In meeting the second criterion,  applicants commit to  four quantitative goals for
improving their environmental performance. Small facilities commit to two goals.
Facilities choose these goals from among the categories listed in Table A. such as water
use, hazardous waste, or nitrogen oxide emissions.
    Facilities are accepted into Performance  Thick for a three-year period, after which they
can renew their membership by committing to four new  goals (or two. for small facilities).
         Public
         Facilities
Wholesale,   7%
Retail,
Shipping
4%
      Other
      Non-manufacturing
      8%

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TABLE A:  Categories and Aspects of Performance Track Member Goals
Category

Energy Use

Water Use
Materials Use
Air Emissions
(Including Motor Vehicles)
Aspect
Total Energy Use
Total Water Use
Total Materials Use
Hazardous Materials Use
Recycled/Reused Materials Use
Emissions of Greenhouse Gases
Emissions of Ozone-Depleting Gases
Emissions of Volatile Organic Compounds (VOCs)
Emissions of Nitrogen Oxides (NOX)
Emissions of Sulfur Dioxide
Emissions of Particulate Matter
Emissions of Carbon Monoxide
Emissions of Toxics
Waste
Total Solid Waste
Hazardous Waste
Habitat Preservation/Restoration
Removal
Remediation
Habitat Impacts
Discharges to Water
Accidental Releases
Product Performance
Discharges to Water: Chemical Oxygen Demand (COD)
Discharges to Water: Biochemical Oxygen Demand (BOD)
Discharges of Toxics to Water
Discharges of Total Suspended Solids to Water
Discharges of Pathogens to Water
Discharges of Nutrients to Water
Sediment from Runoff

Release History
Vulnerability and Potential for Releases

Expected Lifetime Energy Use of Product
Expected Waste (to Air, Water, Land) of Product
Packaging Materials Used  in Product
Waste to Air, Water, Land  from Disposal or
Recovery of Product
Other                               Noise
                                    Odor

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    Each year, members submit an annual performance report documenting progress
toward meeting their goals and major activities undertaken as part of their EMS. This
report is due on April 1 for the preceding calendar year. Results from the first set of
annual performance reports are presented on pages 9-14.
    EPA designed Performance Track's admission process to be simple and low in cost
to both the Agency and facilities. Because the process does not include a site visit before
each facility is selected into the program, EPA Performance Track staff and state officials
visit a portion of Performance Track member facilities each year. A site visit provides EPA
with the  opportunity to verify the information presented in a facility's application, par-
ticularly the quality of its EMS, and progress toward  its performance goals. EPA provides
an assessment of the facility's programs and progress relative to other facilities in the
Performance Track program and may suggest opportunities for improvements or part-
nerships with other firms and sources of technical expertise. The site visit also helps EPA
and states to establish a relationship with the facility's key environmental staff and top
management. These relationships then can facilitate  an ongoing dialogue between EPA
and facilities on ways to improve Performance Track and its benefits.
    Through December 2002, EPA had conducted site visits at 79 Performance Track
facilities. Sixty-eight percent of the site visits have shown that the member facility fully
met all program criteria, often in exemplary ways. The facility was implementing an
effective  EMS, making progress toward its performance goals, reaching out to its com-
munity, and complying with legal requirements. Thirty-two percent  of the site visits
revealed areas for improvement. Some of these facilities continued  to meet basic pro-
gram criteria but were advised to strengthen their EMS, revise their performance goals,
or improve their public outreach programs. However, 22 of these facilities  had more sig-
nificant issues and fell short of meeting program criteria. EPA asked these facilities to
withdraw from the program,  and they are no longer members of Performance Track.
    A total of-il facilities have left the program since its inception. Facilities may be
removed from Performance Track at their own request, for failing to continue to meet
the program entry criteria, or for failing to submit a complete annual performance
report. The  most common reasons for leaving were: EMS deficiencies found during site
visits (22 facilities), facility closure or reorganization (6 facilities), and failure to submit
an annual performance report (5 facilities). Eight facilities have left  the program for
other reasons. In all cases, EPA encourages facilities to reapply to Performance Track
when they are able to meet the program criteria.

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THE   FIRST   YEAR   OF   PROGRESS

    Performance Track members commit to attain performance goals within three years.
Facilities commit to at least four environmental goals (two for small facilities), which they
select from the categories and aspects shown in Table A on page 5. Each facility chooses its
goals based on its individual environmental impacts. For example, paper mills use large
amounts of water, so many of the paper mills in Performance Track have committed to
reducing water discharges.  Facilities that use large amounts of solvent often commit to
reducing their use of hazardous solvents or to reducing solvent emissions.

Performance Track Member Goals
    Table B (see page 8) presents  the goals .set by Performance Track members that
were accepted through 2002. By fulfilling these goals. Performance Track members
collectively will within three years:

    Reduce their emissions of volatile organic compounds
    by 460 tons, equivalent to the effect of taking nearly
    30,000 cars off the road;

    Reduce their annual energy consumption by
    2.3 million mmBtus,  equivalent to the energy used by
    approximately 22,200 households in a year;

    Reduce their generation of solid waste by 202,655 tons,
    equivalent to the amount generated by some 257,069
    Americans each year;

    Reduce their water consumption by 2.5 billion gallons,
    enough to fill 2,500 Olympic-size swimming pools, and

    Increase preserved or restored habitat by 3,600 acres,
    an area equivalent to that of 3,267 football fields.

Performance Track Member Achievements
    Performance Track facilities improved their environmental performance significantly
during their first year in the program. All improvements reported to the program
exceeded those required by law. Some of these achievements were in areas such as air
pollution, water pollution, and solid waste, which have been the focus of environ-
mental regulations and industry efforts for many years. Other achievements reduced
impacts in areas that are recent or emerging environmental priorities and are essentially
unregulated, such as materials use. water use. energy use, and habitat preservation.
    This report presents the results from the first annual reports submitted by member

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TABLE B:  Performance  Track Members' Goals Accepted through 2002
                               Number of Members
                                     With Goals
                                                                  Projected Reduction
                                                                In Year 3 of Membership
Energy Consumption
Water Consumption
Materials Use
Total Materials Use
Hazardous Materials Use
Recycled/reused Materials Use
Air Emissions
Greenhouse Gases
Volatile Organic Compounds
Air Toxics
Nitrogen Oxides
Paniculate Matter
Sulfur Dioxide
Ozone-depleting Compounds
Carbon Monoxide
Other
110
117
:

:
.
:





1
1
2.3 million mmBtus1
2.5 billion gallons2
31,200 tons3
6,700 tons4
140,000 tons (increase)5
14,870 tons6
460 tons7
160 tons8
2,600 tons
19 tons9
8,200 tons
9 tons
1 ton

Solid Waste Generation
                                          179
202,655 tons10
Hazardous Waste Generation

                                                                        5,599 tons"
Habitat Preservation and Restoration

                                                                   3,600 acres (increase)12
Discharges to Water
    Biochemical Oxygen Demand (BOD),
    Chemical Oxygen Demand (COD),
    Total Suspended Solids (TSS)
    Toxics

                                                                   26.3 million pounds13
                                                                    39.8 million pounds
Product Packaging Materials Use

                                                                        1,300 tons14
1  Represents commitments from only 97 members due        8 Represents
  to missing or nonstandard data                     9 Represents
2  Represents commitments from 63 member              10Represents
3  Represents commitments from 33 member              '] Represents
&  Represents commitments from 31 member              12Represents
5  Represents commitments from 29 member.              13Represents
6  Represents commitments from 53 member-.              uRepresents
^  Represents commitments from 42 members !")
                                                   ommitments from 19 members <")
                                                   ommitments from 3 members (")
                                                   ommitments from 94 members ("i
                                                   ommitments from 90 members (")
                                                   ommitments from 17 members (")
                                                   ommitments from 18 members {").
                                                   ommitments from 11 members ("i

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facilities, representing their first year of progress toward their three-year goals. The
reports covered performance during the 2001 calendar year. Only members admitted by
the end of 2001, a total of 247 facilities, were required to report. EPA received reports
from 227 facilities; the remaining 20 facilities have left the program.
    EPA received data on progress on 22 types of environmental impacts. Aggregate
performance improved in the following areas:
    •   Air emissions (volatile organic compounds, nitrogen oxides, carbon monoxide,
       sulfur oxides, air toxics, particulate matter, ozone-depleting chemicals);
    •    Discharges to water (suspended solids, biochemical oxygen demand, chemical
       oxygen demand, toxics);
    •   Hazardous and nonhazardous waste;
    •   Consumption of energy, water, hazardous materials, recycled/reused materials,
       and packaging materials; and
    •   Habitat preservation and restoration.
    Aggregate performance  declined in two areas, greenhouse gas emissions and total
materials use. The data suggest that the increases in materials use and greenhouse gas
emissions are due largely to increases in production at many member facilities.
Performance data on accidental releases could not be aggregated because of the variety
of measurements used.
    The graphs in this section may understate the aggregate achievements of
Performance Track members. They do not include some results  reported in nonstandard
terms that could not be converted to common measures. For example, one member
more  than halved the amount of materials used in its product packaging, but was
unable to convert its measurement units from cubic feet to a standard weight-based
measure. EPA worked closely with many members to standardize their reporting so that
their achievements could be included in this report, but not all  data could  be standard-
ized before the report went to print. The graphs starting on page 11 show  how many
facilities contributed to the  results shown.
    In addition to aggregate data, this section also presents achievements of individual
Performance Track facilities that have reduced their environmental  impacts  per unit of pro-
duction. A facility that reduces its environmental impact per unit of production is becoming
more  "eco-effkient."  For example, member facility BMW Manufacturing of Greer, South
Carolina, increased its production of vehicles by 13" percent between 1999 and 2001 while
its energy use increased by only 20 percent. The energy use per vehicle was reduced by
approximately 50 percent, representing a substantial improvement in eco-efficiency.
    Performance Track members showed eco-efficiency improvement in 72 percent of the
impacts included in  their 2001 reports. In 6T percent of the cases, they showed absolute

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                         reductions in impacts. Note that a facility with increasing production could increase its
                         eco-efficiency while also increasing its environmental impact.
                             Each facility's Annual Performance Report is available at the Performance Track Web site
                         http://www.epa.gov/performancetrack/particip/mdex.htm. The following pages present
                         Performance Track members' progress during 2001 by type of environmental impact. The
                         aggregate goals used here only include commitments from those facilities admitted to the
                         program in 2001. These goals differ from the aggregate goals presented on page 7, which
                         also include commitments from facilities admitted in 2002.

                         Energy Use
                             Members reported an overall 6 percent decline in energy consumption during
                         their first year, putting them two-thirds of the way toward their three-year goal.

                         Wafer Use
                             Members reported a 5 percent decline in water use, putting them one-third
                         of the way toward their three-year goal.

                         Materials Use
                             Members reported a 5 percent increase in materials use. This is due in large part to pro-
                         duction increases at many facilities. Members reported an 11 percent decrease in the use of
                         hazardous materials, and an 81 percent increase in the use of recycled or reused materials.

                         Air Emissions
                             Members reported decreases in all air emissions except for greenhouse gases, which
                         increased. This is due in large part to production increases at many facilities. In addition
                         to the results shown here, three members reduced their emissions of paniculate matter
                         by 5 percent, one member reduced its emissions of sulfur dioxide by 28 percent, four
                         members reduced emissions of ozone-depleting compounds by 33 percent, and one
                         member reduced carbon monoxide emissions by 6"? percent.

                         Solid Waste
                             Members reported an 11 percent reduction in the generation of solid waste, exceed-
                         ing their three-year goal in their first year. In addition to the results shown here, three
                         members reduced their use of packaging materials in the first year by 53 percent.

                         Hazardous Waste
                             Members reduced their generation of hazardous waste by 8 percent, putting them
                         20 percent of the way toward their three-year goal.
10

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Habitat Preservation and Restoration
    Members preserved or restored an additional 2,698 acres of habitat in their first
year, putting them 90 percent of the way toward their three-year goal.

Discharges to Water
    Members reported decreases in discharges to water, as measured by reductions in
biochemical oxygen demand (BOD), chemical oxygen demand (COD), total suspended
solids  (TSS), and toxics.
        First-Year Reductions
            In Energy Use*
                                             First-Year Reductions
                                                 In  Water Use*
                            -18.1
                            Goal for
                            Third Year
                            (9% Reduction
                            From Baseline)

                            Members reduced
                            energy use by 1.1
                            million mmBtus.
  Baseline       Year 1
•Based on data received from 73 members
                                                                 -8.8
                                                                 Goal for
                                                                 Third Year
                                                                 (15% Reduction
                                                                 from Baseline)

                                                                 Members reduced
                                                                 their water
                                                                 consumption
                                                                 by 475 million
                                                                 gallons.
                                                       Baseline       Year 1
                                                    * Based on data received from 53 members
FEATU RE D  FAC I LITY

Baxter Caribe
Baxter Caribe, an inhalation
anesthetics facility with 206
employees in Guayama,
Puerto Rico, is one of Baxter
Healthcare's 250 facilities
worldwide. In its first year as
a member of Performance
Track, the facility cut its use
of solvents to reduce its haz-
ardous waste per pound of
product by 33 percent. In
doing so, the facility sur-
passed its already ambitious
goal to reduce hazardous
waste by 30 percent per
pound of product over three
years. Baxter Caribe also
reported progress on its
reduction of VOCs, even
though it had made no goals
to reduce those emissions
under Performance Track.
The facility reduced emissions
by closing inefficient opera-
tions and integrating produc-
tion in a modern facility.
         First-Year Changes
       In Total Materials Use*
 S  200
 I


 I  150
                            -303
                                             First-Year Reductions
                                        In Hazardous Materials Use*
Third Year
(4% Reduction
From Baseline)
Materials use
increased by
2,200 tons due
mainly to
production
increases at
many facilities.









"5
                                                                 - 6,309
                                                                 Goal for
                                                                 Third Year
                                                                 (28% Reduction
                                                                 From Baseline)

                                                                 Members reduced
                                                                 their use of
                                                                 hazardous materials
                                                                 by 908 tons.
           Baseline      Year 1
                      iO members
                                               Baseline       Year 1
                                             'Based on dala received from 23 me
                                                                                                                 i

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FEATURED  FACILITY

Naval Air
Engineering Station
The Naval Air Engineering
Station, located in Lakehurst,
New Jersey, is one of a grow-
ing number of  public-sector
facilities that have been
accepted to Performance
Track. Part of the U.S. Navy's
Naval Air Systems Command,
the facility employs 4,100
people. In its first year of
membership, the station
exceeded  two of its four
three-year targets, reducing
water use per employee by
22 percent (its three-year
goal was for a 5 percent
reduction) and  NOX emissions
by 36 percent per square
foot of heated space (with  a
three-year goal  of a 35 per-
cent).The facility also drafted
a master plan outlining areas
where grassland habitat will
be preserved and managed,
and plans to increase its cur-
rent allocation of 1,102 acres
of preserved land to 1,225
acres in 2003.
       First-Year Increases in
Recycled/Reused Materials Use*
        First-Year Changes
In Greenhouse Gas Emissions*
                             - 24,789
                              Goal lor
                              Third Year
                              (83% Increase
                              Over Baseline)

                              Members
                              increased their
                              use of recycled
                              or reused
                              materials by
                              10,823 tons.
          Baseline        Year 1
       •Based on data received from 21 memrjers
       First-Year Reductions
         In VOC Emissions*

                             --2.591
                               Goal for
                               Third Year
                               113% Reduction
                               From Baseline)

                               Members
                               reduced
                               emissions of
                               volatile organic
                               compounds
                               by 329 tons.
£  120
a
8  100
                                                   I    60
-156
 Goa/for
 Third Year
 (4% Reduction
 From Baseline)

 Greenhouse gas
 emissions
 increased by
 7,600 tons
 due mainly to
 increases in
 production at
 many facilities.
          Baseline       Yeai
        •Based on data received from 21
      First -Year Reductions
     In Air Toxics Emissions*
                                                                                    §     50
                                            Baseline       Year 1
                                          •Based on data received from 36 members
                               -145
                               Goal for
                               Third Year
                               (46% Reduction
                               From Baseline)

                               Members
                               reduced
                               emissions of air
                               toxics by 57
                                                              Baseline       Year 1      tOOS
                                                           •Based on data received from 16 members
   ;

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First-Year Reductions
  In NOX Emissions*
     First-Year Reductions
        In Solid Waste*
     7,268
                       -6,399
                        Goal for
                        Third Year
                        (12% Reduction
                        From Baseline)

                        Members
                        reduced NOX
                        emissions by
                        152 tons.
                            - 1.67
                             Goal for
                             Third Year
                             (6% Reduction
                             From Baseline)
                             Members
                             reduced solid
                             waste by
                             150,000 tons.
    Baseline        Year 1
  'Based on data received from 8 member,
First-Year Reductions
 In Hazardous Waste
         Baseline       Year 1
      "Based on data received from 86 members
     First-Year Increases in
Preserved/Restored Habitat*
                       - 5,814
                        Goal for
                        Third Year
                        (36% Reduction
                        From Baseline)

                        Members cut
                        their generation
                        of hazardous
                        waste by 692
                        tons.
                            - 16,396
                             Goal for
                             Third Year
                             (23% Increase
                             Over Baseline)

                             Members
                             preserved or
                             restored 2,698
                             additional acres
                             of habitat.
    Baseline        Year 1
  •Based on data received from " •
   Baseline
•Based on data received fr
                     Year I
                    r^ '
                                      FEATURED  FAC ILITY

                                      Lansing Cleaners
                                      One of Performance Track's
                                      smaller member facilities,
                                      Lansing Cleaners of Lansing,
                                      Illinois, employs 130 people.
                                      It specializes in dry-cleaning
                                      and restoring fire-damaged
                                      garments. The company has
                                      reduced its  use of per-
                                      chloroethylene, a toxic air
                                      pollutant, by 44 percent per
                                      pound of clothes cleaned
                                      between  1999 and 2001,
                                      and reduced its generation of
                                      hazardous waste by 55 per-
                                      cent per pound of clothes
                                      cleaned. Lansing Cleaners
                                      also replaced two vans in its
                                      fleet with models that run on
                                      compressed natural gas,
                                      reducing NOX emissions by
                                      45 percent.
FEATURED  FACILITY

Wacker Siltronic
Wacker Siltronic makes
silicon wafers in Portland,
Oregon, where it employs
approximately 1,500 people.
The facility cut its production
of solid waste by 59 percent
per unit of production, a
reduction of nearly 1.5 mil-
lion pounds, by reusing and
recycling materials such as
pallets, scrap wood, sludge,
plastic  films, and plastic
drums. The plant also
reduced its emissions of
volatile organic compounds
(VOCs) by 13 percent per
unit of production by reduc-
ing the use of VOC-based
wax in  a polishing process.
                                                                                                                13

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FEATURED FACILITIES

Rockwell Collins
With four of its Iowa facilities
enrolled in Performance
Track, the communication
and aviation electronics man-
ufacturer Rockwell Collins is
an example of a company
that has committed to
Performance Track at the cor-
porate level. The four facili-
ties reduced their total waste
by more than 19 percent in
their first year of membership
by adopting a comprehensive
recycling program for paper,
notebooks, metals, plastics,
toner cartridges, and other
materials. Two of the facili-
ties, in Decorah and
Manchester, Iowa, have
reduced their use of toluene,
a toxic chemical used  in
industrial spray painting, by 6
percent. The Manchester
facility reduced its generation
of hazardous waste by pur-
chasing a drum compactor,
which saved the facility near-
ly $12,000 in disposal costs.
The company's facility in
Bellevue, Iowa,  reduced its
use of soap by 72.5 percent,
far exceeding its goal, and
the Bellevue and Coralville
facilities outperformed their
goals to reduce water use.
 First-Year Reductions
In BOD, COD, and TSS*
                         First-Year Reductions
                   In  Toxic Discharges to Water*














16000
14000

12000

10000

8000
6000
4000
2000

17,679

























      Baseli
                 Year 1
   •Based on data received from 12 members
    (BOD=Biocherri!Cal Oxygen Demand.
    COO=Chemical Oxygen Demand,
    TSS=Tota! Suspended Solids)
                         -12,321
                          Goal for
                          Third Year
                          (30% Reduction
                          From Baseline)
Members reduced
discharges to water
— as measured
by biochemical
oxygen demand,
chemical oxygen
demand, and total
suspended solids —
by 1,327 tons.
                                                       Baseline       Year 1
                                                     •Baied on data received fron '
                                                                            11,302
                                                                            Goat for
                                                                            Third Year
                                                                            (54% Reduction
                                                                            From Baseline)
Members reduced
toxic discharges to
water by 5,543
tons, an 18 percent
decrease.


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PROMOTING    CONTINUOUS

IMPROVEMENT

    EPA seeks to establish Performance Track as a "gold standard" for environmental
performance — a standard that facilities will strive to attain. To encourage facilities to
aim for this standard, EPA adds value to Performance Track membership through recog-
nition, networking, and regulatory and administrative incentives.

Recognition and Awareness
    With today's heightened awareness of environmental concerns, facilities value their
environmental reputations among their regulators, peers,  investors, customers, employ-
ees, and local communities. Performance Track provides recognition for facilities, raising
their environmental profile among these key constituents.
    Facilities admitted to the program are recognized by the EPA Administrator at the
Performance Track Annual Members Event in Washington,  DC. They receive a certificate
from the Administrator and may use the Performance Track logo to boost their public
and employee relations. Many members display the logo on a flag outside their facility,
and some facilities have produced caps, shirts, and other Performance Track logo items
for their employees.
    EPA highlights members' participation in Performance Track in letters sent to elect-
ed officials at the local, state, and national levels. Members' achievements also appear in
trade  publications read by facilities' peers and customers.  To date, articles in 47 trade
publications have  featured Performance Track members.
    EPA is "branding" Performance Track by marketing the
program at important industry conferences, distributing
media kits and video segments, and holding regional work-
shops. The  program was featured on public television's
"Environmental Review Series with Morley Safer."
    EPA established the Performance Track Network,
which currently has 19 partners. Partner organizations
endorse the principles of Performance Track, promote the
concept of continuous environmental improvement to
their members, and inform their members about the
opportunities offered by Performance Track. More information
about the Performance Track Network is available at
http://www.epa.gov/performancetrack/partners/trade.htm.
We wanted to be part
of an elite group of
companies being
recognized nationally
for exemplary
environmental
performance."

David Korman
Skanska USA Building, Inc.
                                                                                    A/I/CO/? Bar Mill-Auburn facility
                                                                                    highlights its environmental
                                                                                    achievements.
                                                                                                       15

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Membership and
Partnership Services
Members of Performance
Track benefit from a number
of services:
• Bimonthly Tele-Seminars
  — enable members to
  discuss timely issues, tech-
  niques for furthering envi-
  ronmental performance,
  and important regulatory
  changes.
• Regional Events —
  facilitate networking
  among members and
  provide a forum to
  recognize facilities for
  their achievements.
• EPA Roundtables —
  with representation by
  state and EPA officials,
  enable members to meet
  with regulators to discuss
  Performance Track, related
  issues and concerns.
• Annual Member Event
  — provides a forum for
  recognition, networking,
  and workshops.
Creating a Learning Network
    The Performance Track program helps members share best practices and lessons
learned, effectively creating a learning network.
    Each EPA regional office holds meetings during which members exchange ideas with
each other and with regional administrators and staff. These meetings also generate
feedback and suggestions for improving and expanding the Performance Track program.
Performance Track also holds tele-seminars to feature member facilities' best practices.
For example, International Paper recently presented the business case for participation
in Performance Track, and Baxter International presented the financial and other bene-
fits of pursuing sustainable development
    The program is working with  the National Environmental Education and Training
Foundation to develop a Leadership Practices Database that will help facilities share
information and learn from one another to improve their environmental performance.
    Every two months, EPA e-mails "P-Track News" to members and other stakeholders.
This electronic newsletter contains program updates, member achievements, and infor-
mation on EPA activities of interest to members.
    Performance Track members have  formed a private, independent membership asso-
ciation, the Performance Track Participants' Association, that provides a forum for mem-
bers, trade associations, and public entities dedicated to improving their environmental
performance. Additional information on the Performance Track Participants' Association
may be found at http://www.ptpaonline.org.

Regulatory and Administrative Incentives
    Members clearly value the recognition, networking, and learning benefits of partici-
pating in Performance Track. The  program goes further, however, by incorporating
Performance Track into EPA's regulatory programs and policies and by providing incen-
tives for Performance Track members.  This enables them to focus on continuous
improvement by reducing some of the routine  administrative costs of regulation and
allowing them additional administrative flexibility in certain cases. These benefits allow
the facilities to operate more efficiently and to  respond more rapidly to changes in their
business environment. The benefits also enable members to dedicate more of their
efforts to developing best practices and identifying opportunities for innovation. Given
their history of strong compliance, commitment to measurable improvement, and  effec-
tiveness in environmental management. Performance Track members have distinguished
themselves from other regulated facilities.
    Regulatory changes (described below) benefit government as  well as members of
Performance Track. They enable agencies to focus  their assistance, inspection, and
  16

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enforcement resources on other facilities that require closer oversight. These agencies may
exchange certain kinds of routine information (which is necessary for facilities with less
exemplary records and capabilities) for information related to performance and manage-
ment that may offer more value for government, customers, communities, and others.
Low Priority for Routine Inspections
    Over the past year EPA has worked to develop and implement incentives that recog-
nize members' commitment to compliance and environmental stewardship. This com-
mitment is demonstrated by certain Performance Truck program elements, including the
implementation of an EMS that requires a  commitment to compliance, periodic audits
of the EMS and environmental compliance, and an annual certification of compliance.
In recognition of these and other program elements, facilities in Performance Track are
given a low priority for routine inspections by EPA.
Proposed Performance Track Rule
Reduces Burden of Regulations
    EPA also has begun a long-term process of modifying its regulatory programs and
policies as they apply to members. Under the first Performance Track rulemaking, pro-
posed in August 2002, member facilities would be allowed to store hazardous waste on-
site for 180 days or more, rather than the current 90 clays. This benefit could reduce
waste disposal costs at 34-43 member facilities, saving them a total of 860,000 annually.
In addition, members subject to the Clean Air Act's Maximum Available Control
Technology (MACT) requirements could report annually rather than semiannually. Other
provisions of the proposed rule could reduce reporting costs at publicly owned treat-
ment works. The rule will be finalixed during the summer of 2003.

Performance Track Integrated into Other EPA Rules
    EPA has proposed to reduce the burden of compliance for all facilities subject to the
Resource Conservation and Recovery Act (RCRA). A final rule based on this proposal
will be issued during the summer of 2003  Under this rule. Performance Track members
may see additional  reductions in burden beyond those available to other facilities.
    Under proposed changes to MACT, all  facilities would be able to  apply for less-bur-
densome alternative compliance options when they use pollution  prevention measures
to reduce their emissions below a threshold level. Members would be given a shorter
review time by the Agency and provided with a designated point of contact to assist
them in the process.
I am impressed with
the tremendous
enthusiasm and
support that
Performance Track
members are
showing for this
program."

EPA Region II Administrator
Jane Kenny
                                                                                                     17

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                         Permitting, Reporting, and Recordkeeping
                             Additional regulatory changes that would apply to Performance Track members will
                         address permitting, reporting, and recordkeeping. EPA is evaluating mechanisms for
                         making innovative air permitting options available to members. Pilot studies have
                         shown that such options reduce costs and increase flexibility for facilities while leading
                         to reduced emissions over time. Since states generally are the permitting authorities.
                         EPA is working closely with several states to implement this proposal. Other permitting
                         initiatives that would reduce processing time and increase regulatory certainty for mem-
                         bers also are under consideration with several states.
                             EPA currently is developing a proposal that would eliminate or reduce the frequen-
                         cy of several categories of routine reporting from Performance Track facilities, as a meas-
                         ure of the Agency's greater degree of confidence in Performance Track members' man-
                         agement and performance. These changes are expected to result in significant efficien-
                         cies for member facilities.
18

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WORKING   WITH   STATE   PARTNERS

    EPA and state governments are partners in implementing the Performance Track
program and delivering benefits to member facilities. EPA works with the states to
advance the principle that high-performing facilities should be recognized and rewarded
for their accomplishments by enabling them to focus more on environmental progress
than on process.
    Recommendations from the states are crucial to EPA's decisions to admit facilities
into Performance Track. State governments implement and enforce many environmen-
tal requirements and frequently have greater knowledge of potential member facilities
than EPA does.
    Performance Track complements and builds on the successful environmental per-
formance programs launched by the program's state partners. Some of the state pro-
grams were established prior to Performance Track's inception and served as models for
the  national program. The establishment of Performance Track then helped to spur the
development of additional state programs. In Performance Track's initial year, EPA
awarded 21 states a total of 5500,000 to  support the development of state performance-
based programs. Although some state programs are rooted in EMSs and others in pollu-
tion prevention, they all support environmental performance that goes beyond compli-
ance. The table on page 20 lists state programs, the years they began, and the number
of members in each program as of February 2003
    Both EPA and the states believe they can achieve more by working together than by
pursuing their goals independently. Therefore, representatives of EPA and state agencies
are  in frequent contact as they coordinate the development and implementation of their
programs.  EPA consults with states on policy issues such as member implementation of
EMSs. States also participate in site visits to Performance Track facilities, as well as in
Performance Track member events at the national and regional levels.
    States that wish to maximize the coordination of performance-based incentive pro-
grams with EPA may enter into a Memorandum of Agreement (MOA). EPA has signed
MOAs with five states: Colorado, Massachusetts. Tennessee. Texas, and Virginia, and is
working with several others to develop state-specific agreements. These MOAs provide a
framework for joint recruitment, admissions, and delivery of incentives to program
members. The agreements also affirm the intention of both EPA and the states to com-
municate the measurable environmental results achieved by their programs.
                                                                                                    19

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                        State Environmental Performance Programs
                            Colorado: Environmental Leadership
                            Program 1999, 21  members
                            Florida: Partnership for Ecosystem
                            Protection Program 2000, 10 members
                            Idaho: GEMStars,  1998, 10 members
                            Illinois: Regulatory Innovation Pilot
                            Program 1995, 3 members
                            Louisiana: Environmental Leadership
                            Pollution Prevention Program 1995,
                            90 members
                            Maine: Smart Tracks for Exceptional
                            Performers and Upward Performers
                            (STEP-UP) 2000, 7  members
                            Massachusetts: Environmental
                            Stewardship Program 2002,
                            5 members
                            Michigan: Clean Corporate Citizen
                            2000, 52 members
                            New Mexico: Green Zia Environmental
                            Excellence Program 1999, 24 members
                            North Carolina: Environmental
                            Stewardship Initiative 2002,
                            26 members
Oregon: Green Permits Program 1997,
3 members
South Carolina: Environmental
Excellence Program 1997,
59 members
Tennessee: Pollution Prevention
Partnership 2000, 51 members
Texas: Clean Texas Leaders 1999,
216 members
Utah: Clean Utah expected in 2003,
no members yet
Vermont: Business Environmental
Partnership 1996, 60 members
Virginia: Environmental Excellence
Program 2000, 117 members
West Virginia: Sustainable Business
Program expected in 2003,
no members yet
Wisconsin: Green Tiers expected in
2003, no members yet
20

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PERFORMANCE  TRACK  ASSISTANCE

    EPA is in the process of creating an "on-ramp" to Performance Track to help facilities
qualify for membership. Performance Track works with other EPA programs and with
state programs to build capacity- among facilities interested in improving their environ-
mental performance, compliance, and management. Through this assistance, businesses
may, over time, qualify for higher-level tracks in state programs and for membership in
Performance Track.
    The Performance Track Assistance Project (PTAP) helps trade associations work
with their members to develop "better than compliance" EMSs that will meet the
criteria of Performance Track as well as reduce facilities' costs and increase competi-
tiveness.  These efforts are focused particularly on trade associations that work with
small businesses.  As a result of this work, several trade associations have decided to
modify their EMS  guidelines so that they meet the Performance Track EMS criteria.
The  Performance  Track Assistance Project coordinates these efforts with state part-
ners and with  EPA's Small Business Office, the Office of Environmental Policy and
Innovation, the Design for the Environment  Program, the Sector Strategies Program,
and  the Compliance Assistance Office.
    EPA's Sector Strategies Program works closely with industry sectors to find solutions
to the particular environmental challenges faced by facilities in each sector. These sector
strategies often involve strengthening facilities' EMSs, compliance records, community
outreach, and continuous improvement efforts — the same qualifications needed for
Performance Track membership. The Sector Strategies Program thus helps to nurture
and identify good  candidates for Performance Track.
    The new Performance Track Mentoring Program assists facilities as they prepare
their Performance  Track application. Mentors, who are Performance Track members,
help candidate facilities  identify appropriate beyond-compliance goals, develop meas-
ures of progress, describe community outreach, and otherwise demonstrate that they
meet Performance Track criteria.
The American Furniture
Manufacturers Association
has developed a program
entitled "Enhancing
Furniture's Environmental
Culture (EFEC)." EPA and
the Association are work-
ing together to harmonize
this program with
Performance Track, so that
EFEC members will meet
Performance Track criteria
for the EMS. This work
will help ensure that
Association facilities in
EFEC are better prepared
to  qualify for national
recognition under
Performance Track.
                                                                                                     21

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                         LOOKING      FORWARD

                             The National Environmental Performance Track is entering a new stage of growth
                         and development. During its first two years, the program defined its purpose, basic poli-
                         cies, and core functions. It built a substantial membership base, name recognition, and
                         support from federal and state agencies and industry. With this solid foundation in
                         place, the program now is ready to broaden and deepen its membership, enhance its
                         value and appeal as a standard of achievement, and expand its efforts to promote inno-
                         vative performance-based approaches to protecting the environment. In the year ahead.
                         Performance Track will concentrate on  four goals that support its mission.

                         Goal 1: Increase environmental value
                             The experience, knowledge, and ingenuity of Performance Track members are a
                         tremendous resource. F.PA wants to help put that resource to work in a broader context,
                         with members helping both current and potential members find new ways to improve
                         environmental performance. I;PA also wants to continue to expand ownership of environ-
                         mental performance beyond the member facility to its surrounding community.
                         Accordingly, Performance Track plans  to work toward the following goals in the year
                         ahead:
                             •   Improve the ability to measure performance over time and across facilities;
                             •   Build a  learning community that facilitates better environmental performance;
                             •   Encourage innovative approaches and sharing of best practices
                                 among members;
                             •   Improve management systems  through site visits and other efforts; and
                             •   Increase performance accountability  to communities and others.

                         Goal 2: Increase business value
                             EPA recognizes that Performance Track must offer tangible, quantifiable value for its
                         members. The program is building on its existing benefits and incentives while  creating
                         new ones that will bring additional value to membership in Performance Track. In the
                         year ahead. Performance Track will work to:
                             •   Implement regulator)' and policy changes that reduce costs and
                                 enhance flexibility:
                             •   Promote dialogue among government, business, and communities;
                             •   Continue to increase the "brand value" of the program; and
                             •   Strengthen networks and opportunities  for sharing information.
22

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Goal 3: Increase program membership
    Growth in membership adds environmental value as new members commit to
improve their environmental performance. Growth also adds business value by increas-
ing opportunities for the sharing of information and solutions among members. Finally,
growth reinforces the institutionalization of Performance Track, building recognition for
the program and demonstrating its long term value. During the coming year,
Performance Track aims to:
    •   Maintain at least a 25 percent annual growth rate in  applications:
    •   Work collaboratively with states and  EPA programs to build capacity
       for new members;
    •   Engage environmental leaders in the government and nonprofit sectors; and
    •   Increase opportunities for corporate commitments to the program  over time.

Goal 4: Expand ownership of the program
    Performance Track  needs the support and endorsement of a variety of stakeholders,
including trade and environmental groups, state agencies, other EPA program offices,
and corporate officials. EPA will  pursue activities with each of these stakeholders to
expand ownership of Performance Track. In  the year ahead, Performance Track will:
    •   Engage nongovernmental organizations that stress partnerships with business;
    •   Strengthen and expand  the Performance Track Network; and
    •   Continue to build linkages with state excellence and leadership programs.
                                                                                                     23

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                      NOTES
24

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