United States
                      Environmental Protection
                      Agency	
                       Office of the
                             Administrator
                      	[Mail Code 1802]
 EPA-100-F-99-022
       June 1999
	(http://www.epa.gov)
     EPA        Project XL:
                                                      f E i n v E * -1 e *
                      Anderson  Corporation
WHAT IS
PROJECT XL?
 SUMMARYOF
 THE
 ANDERSEN
SUPERIOR
ENVIRONMENTAL
PERFORMANCE
Project XL, which stands for "excellence and Leadership," is a national
initiative that tests innovative ways of achieving better and more cost-effective
public health and environmental protection. The experience and lessons
learned from Project XL will assist EPA in redesigning its current regulatory
and policy-setting approaches. Project XL encourages testing of cleaner,
cheaper, and smarter ways to attain environmental results superior to those
achieved under current regulations and policies.  It also requires substantial
involvement by stakeholders, i.e., the people and organizations affected by
EPA's decisions. It is vital that each XL project test new ideas with the
potential for wide application and broad environmental benefits. As of June
1999, twelve pilot projects are being implemented and about twenty additional
experiments are in negotiation.
Andersen Company manufacturers windows at its facility in Bayport, MN.
Through Project XL, Andersen has proposed modifications that involve a shift
from high-emission processes like solvent-based wood preservation to lower-
emission processes like waterborne wood treatment. Andersen has also
proposed to shift production to an innovative process called Fibrex™, which
uses wood fiber and vinyl to make window components-this process has
lower emissions and the components can be recycled into Fibrex again and
again. According to EPA regulations, facilities must obtain prior approval from
either the state or EPA when making modifications that result in significant
increases in volatile organic compound emissions, which produce smog.   To
support the movement to these cleaner processes, Andersen, EPA, the
Minnesota  Pollution Control Agency (MPCA), and Washington County have
agreed on  legal mechanisms that authorize Andersen to modify certain
processes  without additional approval. The final project agreement, EPA's 13th
XL project, was signed on June 30, 1999.

The project establishes emission rates for volatile organic compounds based
on a given quantity of product. This project provides incentives for Andersen
to continually lower the amount of emissions per unit of product. Benefits for
achieving substantial reductions in emission rates include rewards such as
an extension of the project or a commendation letter from EPA, while dis-
incentives for increased emission rates may include possible enforcement
actions or  project termination.

In addition to the production-based emission measure, caps on emissions of
volatile organic compounds and particulate matter ensure that the facility's
overall emissions will not exceed those from normal operations even while
expanding and transitioning to new lower pollution processes. In addition,
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  FLEXIBILITY
 STAKEHOLDER
 INVOLVEMENT
 APPROACHES TO
 BE TESTED
 CONTACTS
FOR ELECTRONIC
INFORMATION
Andersen will be able to manufacture more of its windows from wood fiber
and vinyl than in the past, reducing its use of virgin materials and its air
emissions. Andersen will also increase its reliance on low-solvent
processes, further reducing air emissions at the facility.

Under this XL project Andersen can modify and add pre-approved emission
sources (such as waterborne treatment lines and Fibrex production) without
additional review by EPA or Minnesota.  In addition, the permit combines 26
different emission limits for Andersen's two diptanks into one limit.
Minnesota will provide Andersen with flexibility on procedures to close these
diptanks. Also, the project allows Andersen to remove an emission control
unit (which may be the source of odors in the community) with the approval
of EPA, Minnesota, and the Community Advisory Committee. Andersen
must show that cost savings resulting from shutting down this equipment
have been reinvested  in projects that further reduce emissions.

The project was developed with extensive involvement by the Community
Advisory Committee. In addition, a number of national environmental groups
were provided information and the opportunity for input.  The Environmental
Defense Fund reviewed and commented on the project during the
development stage.

      Can an innovative, incentive-based system of tying emission  limits to a
      given quantity of product reduce a facility's impact on the environment?
      Will operational flexibility for a facility allow it to better transition to more
      environmentally-beneficial products?
      Will simplified record keeping work as an incentive for a facility to
      focus on better environmental practices?
Andersen:
EPA Region 5:
EPA/XL HQ:
Minnesota:
Kirk Hogberg651-430-7437
Brian Barwick      312-886-6620
Nancy Birnbaum    202-260-2601
AndyRonchak      651-296-3107
More information about Project XL is available on the Internet at
http://www.epa.gov/ProjectXL, or via Project XL's Information Line at 202-
260-5754.
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