United States
Environmental Protection
Agency
Office of the Administrator
Washington, DC 20460
Mail Code 1802
Project XL Progress Report
Lucent Technologies
On March 16,1995, the Clinton Administration announced a portfolio of reinvention initia-
tives to be implemented by the U.S... Environmental Protection Agency (EPA) as a part of
its efforts to achieve greater public health and environmental protection at a more reasonable
cost. Through Project XL, which stands for excellence and Leadership, EPA enters into
specific proj ect agreements with public or private sector sponsors to test regulatory, policy,
and procedural alternatives that will produce data and experiences to help the Agency make
improvements in the current system of environmental protection. The goal of Proj ect XL is to
implement 50 proj ects that will test ways of producing superior environmental performance
with improved economic efficiencies, while increasing public participation through active
stakeholder processes. As of October 1999,15 XL projects are in the implementation
phase and 3 5 XL proj ects are under development. EPA Proj ect XL Progress Reports
provide overviews of the status of XL proj ects that are implementing Final Proj ect Agree-
ments (FPAs). The progress reports are available on the Internet via EPAs Proj ect XL web
site at http://www.epa.gov/Project XL. Or, hard copies may be obtained by contacting the
Office of Reinvention's Proj ect XL general information number at (202) 260-7434. Addi-
tional information on Proj ect XL is available on the web site or by contacting the general
information number.
Background
The Microelectronics Group of Lucent Technologies, Inc. (Lucent), designs and manufac-
tures integrated circuits and other electronic components for the computer and communica-
tions industries. Lucent has been operating an Environmental Management System (EMS)
since April 1997. Building upon this effort, Lucent is now striving to demonstrate that use of
a third-party certified ISO 14001 EMS is an effective vehicle for determining and managing
regulatory flexibility, while achiev-
ing multi-media superior environ-
mental performance at all U. S.-
based Lucent facilities. This XL
proj ect will be implemented in a
phased approach over a 5 year
period through site-specific dem-
onstration proj ects at Lucent
facilities in Allentown, PA; Reading,
PA; Breinigsville, PA; and Orlando,
FL.
Lucent Technologies
XL Projects:
• Allentown, PA
• Reading, PA
• Breinigsville, PA
•Orlando, FL
Major Milestones
October 30, 1995
Lucent XL Proposal
Submitted
August 19, 1998
Final Project Agreement
Signed
April 2001
In-depth Progress
Analysis
2003
Final FPA Commitments
to be Met
-------
Lucent Technologies XL Project 12-31-99
The Lucent XL Proj ect has six specific obj ectives.
• Identify the characteristics of a high-quality EMS that achieves superior performance;
• Evaluate whether the ongoing operation of a high-quality EMS can achieve superior environmental perfor-
mance in both regulated and nonregulated areas and can drive environmental management toward continu-
ous improvement;
• Test concepts regarding the benefits of the EMS and develop indicators to measure them;
• Determine if a high-quality EMS can be the basis for an integrated approach, embodied in a single docu-
ment governing environmental management in all media at Lucent facilities, that achieves superior environ-
mental performance exceeding the requirements of existing statutes and regulations;
• Implement facility-specific regulatory flexibility demonstration proj ects that will lead to superior environ-
mental performance; and
• Integrate regulating agencies into the EMS management process.
The Microelectronics EMS is managed by four main components.
• Identifying and determining the significance, or priority, of "Environmental Aspects": those environmentally
related characteristics of the Facility's operations, products, and services (the inputs such as raw materials,
water, energy, and chemicals; and outputs such as products, emissions, discharges, and wastes);
• Identifying environmental "Obj ectives," which represent what Lucent seeks to achieve through its EMS in
addressing the management of its significant Environmental Aspects;
• Identifying "Targets," the programs that define how the Obj ectives will be achieved over time; and
• Continually monitoring and measuring performance toward implementing its Targets and achieving the
Objectives.
The Experiment
The Lucent proj ect will test whether use of a high-quality EMS will create a more efficient, more transparent,
more easily understandable, and more flexible system which not only meets the requirements of existing
statutes and regulations, but also achieves superior environmental performance. The project will also use the
unique strategy of integrating regulators into the EMS process to set environmental goals and to track perfor-
mance.
The Flexibility
Lucent aims to operate an EMS to manage its environmental impacts for all media at all sites that achieves
environmental performance superior to that required by its current permits. In return, EPA will allow Lucent
to use the EMS as an alternative means to meet the obj ectives of the compliance, reporting, monitoring,
modification, and reapplication requirements of the current permits. The statutory programs, and the EPA
offices administering the programs, that affect the Lucent XL proj ect are
• Clean Air Act (CAA) programs administered by EPAs Office of Air Quality Planning and Standards;
• Clean Water Act (CWA) programs administered by EPAs Office of Wastewater Management and EPAs
Office of Wetlands, Oceans, and Watersheds;
• Resource Conservation and Recovery Act (RCRA) programs administered by EPAs Office of Solid
Waste; and
-------
Lucent Technologies XL Project 12-31-99
• Pollution Prevention Act (PPA) programs administered by EPA's Office of Prevention, Pesticides, and Toxic
Substances.
The EMS will provide a vehicle for determining and managing the following regulatory flexibilities.
Permitting. Consolidation overtime of all Federal and state permits (for all media) for domestic facilities into a
single Lucent-wide multi-media permit to be based on Obj ectives and Targets set j ointly each year by the
company and regulators. This would result in a defacto annual review of the companywide, multi-media
permit, rather than the current system of multiyear renewals of individual permits.
Permit Modification. Development of a streamlined process for identifying and incorporating new regulatory
flexibility approaches.
Reporting. Simplification and consolidation of reporting requirements businesswide. This also would involve
making requirements consistent throughout Lucent facilities and reshaping some requirements to coordinate
with other EPA efforts, such as the Center for Environmental Information and Statistics.
The "umbrella" FPA signed on August 19,1998, provides an overarching framework to govern the XL
project across Lucent's U.S.-based facilities. Lucent also will implement site-specific regulatory flexibility
demonstration proj ects at individual facilities. Each facility requesting flexibility under the XL Proj ect will
develop a "site-specific addendum" to the umbrella FPA. The Allentown facility will be the location of the first
site-specific demonstration project. The Allentown addendum currently is being negotiated. As successes are
generated at Allentown, site-specific proj ects will be developed at the other facilities in Breinigsville, PA;
Reading, PA; and Orlando, FL.
Any site-specific regulatory flexibility proj ects established under the XL proj ect would be allowed to continue
beyond the date of FPA termination as long as the continuation is agreed to in the site-specific addenda. Any
changes made to regulatory requirements described in site-specific addenda will be made in accordance with
EPA's regulatory procedures. Once the changes are adopted, the new requirements will be fully enforceable.
To facilitate understanding and access by all stakeholders, the significant Environmental Aspects, Obj ectives,
and Targets will be consolidated into one matrix. The matrix eventually will become the heart of Lucent's
governing environmental document, containing performance measurements and accountability information. The
matrix also will be used to transition from a medium-specific regulatory system, governed by individual permits,
to a holistic multi-media management system. The building blocks for the governing environmental management
matrix will be site-specific matrices developed for (potentially) all U. S.-based Lucent facilities as part of the
regulatory flexibility demonstration projects. The site-specific matrices will be published in the site-specific
addenda.
Promoting Innovation and System Change
Proj ect XL provides EPA opportunities to test and implement approaches that protect the environment and
advance collaboration with stakeholders. EPA is continually identifying specific ways in which XL proj ects are
helping to promote innovation and system change. The innovations and system changes emerging from the
Lucent XL proj ect are described below.
Developing a Framework for Consolidated Multi-media Permitting. The Lucent proj ect strives to
develop site-specific flexibilities that would lead to superior environmental performance and improved environ-
mental management at each Lucent facility. The ultimate goal is to use the EMS as a platform from which the
company can, over time, consolidate all Federal and state permits for its domestic facilities into a single
companywide multi-media permit. The Lucent proj ect is testing sectorwide applications of EMS concepts
-------
Lucent Technologies XL Project
12-31-99
using a multifacility corporate model. This experiment will affect EPA's efforts under its Sector-Based
Action Plan which seeks to incorporate sector approaches into core Agency functions. EPA's Federal
Register Notice on EMSs states that it is critical to measure any change in a facility's environmental perfor-
mance that might be attributable to implementation of an EMS. Project XL can collect information on types,
amounts, and properties of regulated and nonregulated pollutants that are reduced as a result of an EMS. In
particular, XL will be able to provide this information on a multifacility basis.
Institutionalizing Regulator Participation in Setting Environmental Management System (EMS)
Annual Goals and Targets. The integration of regulator participation into the normal operation of an EMS
can enhance efficiency and improve environmental progress. Regulators will participate in identifying Envi-
ronmental Aspects; establishing Obj ectives, Targets, and long-term strategies; continually improving the
EMS; developing creative mechanisms to seek out current problems or past inadequacies; and streamlining
the decisionmaking process leading to flexibilities. Involving regulators in this EMS approach would result in
a de facto annual review of the permit, eliminating multiyear renewals of individual permits. The EMS
Federal Register Notice also states that Federal and state regulators are interested in understanding the
involvement of local communities and other stakeholders in the EMS process. The Lucent proj ect can
collect data to assess the amount and degree of stakeholder and regulator participation in both the develop-
ment and implementation of an organization's EMS, and the effect that participation has on the public
credibility of the facility's EMS implementation.
Project Commitment Summary
This table and the environmental performance section that follows summarize progress in meeting commit-
ments described in the FPA for Lucent.
Commitment
Status
Use the EMS to Develop a Governing Environmental Management Matrix
Actively involve stakeholders in identifying signifi-
cant Environmental Aspects and in monitoring
progress toward performance objectives.
Lucent has established a local environmental
advisory group, composed of local environmental
organizations, community groups, employees and
other interested citizens, at each of its major
manufacturing facilities.
Identify and manage a full range of significant
Environmental Aspects, regulated and
nonregulated.
In progress.
Create measurable performance Objectives for
significant Environmental Aspects and a system for
tracking progress toward these Objectives.
In progress.
Perform an in-depth evaluation of progress towards
attainment of EMS Objectives and Targets associ-
ated with all demonstration proj ects and the goals
of the umbrella FPA.
To be conducted in April 2001.
Integrate critical information regarding significant
Environmental Aspects and performance goals into
a single companywide matrix that serves as the core
of a single, governing environmental document.
To be done by 2003.
-------
Lucent Technologies XL Project
12-31-99
Commitment Status
Develop Facility- Specific Regulatory Flexibility Demonstration Project at Allentown Facility
Agree on facility-level superior environmental
performance criteria and flexibility as the basis for a
site-specific addendum.
Develop an addendum that describes the demon-
stration project; the specific regulations, policies,
guidance, or processes from which the facility plans
to deviate (and alternative requirements); the legal
mechanisms necessary to implement the proj ect;
and the superior environmental performance to be
achieved.
Finalize the addendum based on public notice and
comment guidelines.
Prepare quarterly reports and an annual review of
the site-specific project.
Determine the transferability of site-specific flexibil-
ity proj ects to other Lucent facilities and to the
broader regulated community.
In negotiation.
In negotiation.
Not yet applicable.
Not yet applicable.
Not yet applicable.
Test Concepts Regarding the Benefits of the EMS
EMS will drive continuous environmental improve-
ment and deliver performance beyond law and
regulation.
EMS will improve compliance.
EMS will integrate pollution prevention into normal
business processes to foster technology improve-
ments and transferability.
EMS will integrate public concerns into normal
business processes.
EMS will provide a process for implementing
regulatory flexibilities/efficiencies in a manner that
results in superior environmental performance.
EMS will create indicators to evaluate the cost
savings or competitive efficiencies associated with
regulatory flexibilities.
EMS will allow new regulations to be more effi-
ciently and less contentiously integrated into busi-
ness operations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
-------
Lucent Technologies XL Project
12-31-99
Commitment | Status
Test Concepts Regarding the Benefits of the EMS
EMS will foster transferability of sound environmental
management practices.
EMS will make environmental management practices
consistent across business, geographical, and political
boundaries, in order to address environmental justice
issues.
EMS will incorporate employee disclosure and
protection mechanisms into environmental manage-
ment more effectively than do current approaches.
EMS will create reporting programs that are more
understandable, transparent, up-to-date, comprehen-
sive, and less costly than those currently required.
EMS will identify enforcement approaches that are
less contentious and more efficient for regulators and
regulated entities.
EMS will align manager and employee rewards and
incentives with sound environmental practice.
EMS will facilitate the development across all media
of de minimis thresholds below which regulation may
not be necessary.
Third-party certification of EMS will improve its
performance and quality.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Integrate Regulatory Agencies into the EMS Process
Include agencies in the continual improvement of the
EMS both at the facility level and businesswide.
Include regulators in the identification of Environmen-
tal Aspects, and in the establishment of Objectives,
Targets and long-term strategies.
Develop creative mechanisms to seek out current
problems or past inadequacies.
Give regulators an opportunity to provide input for
the demonstration proj ects, through the setting of
Targets and Obj ectives under the EMS .
Conduct joint review of progress toward stated
Obj ectives and Targets relevant to the demonstration
projects.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
Concept to be tested during site-specific demon-
strations.
To be conducted April 200 1 .
-------
Lucent Technologies XL Project 12-31-99
Environmental Performance
This section summarizes progress in meeting the environmental performance described in the FPA for Lucent.
The goals and baselines for specific performance obj ectives will be developed in each site-specific addendum.
No addenda have been developed yet. The Allentown addendum is now being negotiated. The umbrella FPA
lists the Environmental Aspects —water consumption, wastewater, sludge, and air emissions— that Lucent
predicts may be part of the Allentown demonstration proj ect. However, these parameters may change as the
Allentown addendum is finalized.
Stakeholder Participation
To ensure active stakeholder involvement in determining significant Environmental Aspects and in setting
performance goals, Lucent established a Local Environmental Advisory Group (LEAG), composed of local
environmental organizations, community groups, employees, and other interested citizens, at each of its maj or
manufacturing facilities. At Lucent's request, during the formative phases of the corporate level EMS, the
Environmental Law Institute (an independent research and education center) voluntarily provided advice and
guidance during development of the public participation development document. This became the basis for the
Allentown and other facility LEAGs.
The Allentown LEAG reviewed and commented on the umbrella FPA and will be the key stakeholder partici-
pant in the development and implementation of the Allentown demonstration project. The LEAG was initiated
at the Allentown facility with an invitation published in local newspapers in August 1996. The eight LEAG
meetings in 1996 and 1997 included two with EPA and Pennsylvania DEP representatives. In December
1997, the LEAG provided input on the draft umbrella FPA and, as a result, the FPA was reorganized and
made more readable for the lay person. Following the signing of the FPA in August 1998, Lucent staff and
LEAG members met with EPA and Pennsylvania DEP to address ongoing EMS issues. As a result of these
meetings, the environmental agencies agreed to present their views to Lucent's Environmental Action Team
during EMS strategic planning sessions. In addition, Lucent agreed to form a reporting subcommittee to
enhance its communication of environmental performance information with the public, EPA, Pennsylvania DEP,
and LEAG members. In January 1999, LEAG members discussed the need to create a common understanding
among stakeholders and emphasized the importance to the community of having Lucent strive for continual
pollution prevention by reducing the generation of waste from its operations while the company explores
opportunities to expand manufacturing at the facility. In June 1998, a LEAG member spoke about the need for
participants to work together to make Proj ect XL successful. In September 1999, Lucent presented a status
report on the proj ect, including topics for future discussion with EPA.
Six-Month Outlook
Over the next six months, Lucent will focus on developing the site-specific addendum for the Allentown facility.
Project Contacts
• Ralph McMurry, Lucent Technologies, Inc., (973) 606-4096.
• Deb Wenger, Lucent Technologies, Inc., (610) 712-7329.
• Lisa Reiter, U. S. EPA, Office of Policy and Reinvention, (202) 260-9041.
• RichardKampf,U.S. EPA, RegionS, (215) 814-2105.
-------
Lucent Technologies XL Project 12-31-99
• Tom Maslany, U.S. EPA, Region 3, (215) 814-2050.
• David Lamereaux, Pennsylvania DEP, (570) 826-2511.
• Mary Lou Barton, Pennsylvania DEP, (717) 787-7060.
Information Sources
The information sources used to develop this report include (1) the October 30,1995, Lucent FPA; and (2)
individual contacts with direct stakeholders.
Glossary
Baseline: The measure by which future environmental performance can be compared.
Center for Environmental Information and Statistics: The U.S. EPA's one-stop source for information on
environmental quality, status, and trends. Located in EPA headquarters in Washington, DC.
Clean Air Act (CAA): The CAA is the comprehensive Federal law that regulates air emissions from area,
stationary, and mobile sources. This law authorizes EPA to establish National Ambient Air Quality Standards
(NAAQS) to protect public health and the environment.
Clean Water Act (CWA): The CWA sets the basic structure for regulating discharges of pollutants to waters
of the United States. The CWA makes it unlawful for any person to discharge any pollutant from a point
source into navigable waters unless a National Pollutant Discharge Elimination System (NPDES) permit is
obtained under the Act.
Effluent: Treated or untreated wastewater that flows out of a treatment plant, sewer, or industrial outfall.
Generally refers to wastes discharged into surface waters.
Environmental Justice: Equal protection from environmental hazards for individuals, groups, or communities
regardless of race, ethnicity, or economic status. This applies to the development, implementation, and en-
forcement of environmental laws, regulations, and policies, and implies that no population of people should be
forced to shoulder a disproportionate share of negative environmental impacts from pollution or environmental
hazard due to a lack of political or economic strength.
Environmental Management System (EMS): An EMS allows an organization to assess and control the envi-
ronmental impact of its activities, products, or services. According to the International Organization for Stan-
dardization, there are six key elements of an EMS: (1) an environmental policy (an organization's statement of
its intentions and commitment to environmental performance); (2) planning (the analyses by the organization of
the environmental impact of its operations); (3) implementation and operation (the development and putting
into practice of processes that will bring about environmental goals and obj ectives); (4) checking and correc-
tive action (monitoring and measurement of environmental indicators to ensure that goals and obj ectives are
being met); (5) management review (review of the EMS by the organization's top management to ensure its
continuing suitability, adequacy and effectiveness); and (6) continual improvement.
Final Project Agreement (FPA): The FPA outlines the details of an XL project and each party's commitments.
The project's sponsors, EPA, State agencies, Tribal governments, other regulators, and direct participant
stakeholders negotiate the FPA.
International Organization for Standardization (ISO) 14000: The ISO is a private-sector, international stan-
dards body that promotes the international harmonization and development of manufacturing, product, and
communications standards. ISO 14000 is primarily concerned with "environmental management." The ISO
-------
Lucent Technologies XL Project
12-31-99
14000 series sets out the methods that can be implemented in an organization to minimize harmful effects on
the environment caused by pollution or natural-resource depletion.
ISO 14001: The ISO EMS Specification Document is assigned the document number 14001.
Media: Specific environments—air, water, soil—which are the subject of regulatory concern and activities.
Multi-media: Pertaining to several environmental media, such as air, water, and land.
National Pollutant Discharge Elimination System (NPDES): A provision of the CWA that prohibits discharge
of pollutants into waters of the United States unless a special permit is issued by EPA, a state, or where
delegated, a Tribal government on an Indian reservation.
Pollution Prevention: Identifying, altering, or eliminating areas, processes, and activities that create excessive
waste products or pollutants. Such activities, consistent with the Pollution Prevention Act (PPA) of 1990, are
conducted across all EPA programs.
Resource Conservation and Recovery Act (RCRA): RCRA gives EPA the authority to control the genera-
tion, transportation, treatment, storage, and disposal of hazardous waste. RCRA also set forth a framework
for the management of nonhazardous wastes. RCRA enables EPA to address environmental problems that
could result from underground tanks storing petroleum and other hazardous substances. RCRA focuses only
on active and future facilities and does not address abandoned sites.
Wastewater: The used water from a home, community, farm, or industry that contains dissolved or suspended
matter.
------- |