Project XL Progress Report
Intel Corporation
In 1995, the U. S. Environmental Protection Agency (EPA) embarked on a series of innova-
tive initiatives in an effort to test new ways to achieve greater public health and environmental
protection at a more reasonable cost. Through Proj ect XL, which stands for excellence and
Leadership, EPA enters into specific project agreements with public or private sector spon-
sors to test regulatory, policy, and procedural alternatives that will produce data and experi-
ences to help the Agency make improvements in the current system of environmental protec-
tion. 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 January 2001, EPA has
reached its goal of 5 0 proj ects in the implementation phase. EPA Proj ect XL Progress
Reports provide overviews of the status of XL proj ects that are implementing Final Proj ect
Agreements (FPAs). The progress reports are available on the Internet via EPAs Proj ect XL
Web site at http://www.epa.gov/Project XL. Hard copies may be obtained by contacting the
Office of Policy Economics and Innovation's (formerly the Office of Reinvention) Proj ect XL
general information number at 202-260-5754. Additional information on Proj ect XL is
available on the Web site or by contacting the general information number. The information
and data presented in the January 2001 Progress Report is current as of December 2000.
Background
Intel Corporation, the world's largest semiconductor manufacturer, has operated the Fab 12
facility in Chandler, Arizona since 1996. Fab 12 is Intel's newest chip fabrication facility
operating on the 720-acre Ocotillo site. Intel's Proj ect XL agreement applies to the entire
Ocotillo site, including any new semiconductor-related facilities that may be built at the site.
Intel is striving to reduce the environmental impact of its fabrication process by implementing
an environmental management master
plan that includes both voluntary and
mandatory commitments for environ-
mental performance, and is tailored to
meet both the operational needs of the
facility and the concerns of the local
community
Major Milestones
Intel XL Project
Chandler, Arizona
7
June 30, 1995
Intel XL Proposal
Submitted
s
November 19, 1996
Final Project Agreement
Signed
s
April, 1998
First Annual Stakeholder
Meeting
s
January 1999
Mid-Course
Review Meeting
7
December 3 1,2001
Termination/Renewal of
FPA
-------
Intel XL Project 1-31-01
In the highly competitive microprocessor industry, success is directly related to a manufacturer's ability to bring
new technologies to the marketplace ahead of domestic and foreign competitors. The dynamic nature of this
industry makes it crucial for a company to obtain maximum flexibility in its operations. Each new generation of
microprocessors requires continual process experimentation, involving frequent changes in equipment and
process chemicals. A typical Intel plant can undertake 3 5 to 40 process chemical changes annually, and begin
manufacturing a complete new generation of chips every 18 to 30 months. Given these operating characteristics,
standard Federal air quality permit requirements increase the potential for delays in the development and pro-
duction of new products and product lines. The Intel XL proj ect has the potential to minimize these delays and
provide more flexibility in Intel's operations, by allowing the facility to make operational changes without a
permit review for each change, as long as the overall permit limits are not exceeded.
In the FPA and subsequent agreements, Intel has committed to limit emissions of criteria air pollutants and
hazardous air pollutants (HAPs), and to meet other environmental goals that are designed to improve the area's
air and water quality, conserve water, reduce the generation of hazardous and nonhazardous waste, and im-
prove the general environmental performance of the facility. The anticipated environmental benefits from this
project are the following:
Maintaining a sitewide cap on air emissions for nitrogen oxides (NOx), sulfur dioxide (SO2), carbon monox-
ide (CO), paniculate matter with a diameter less than 10 microns (PM-10), and volatile organic compounds
(VOCs) at levels that ensure that the current site, including any future semiconductor manufacturing plants
built there, is and remains a minor air emissions source, as defined by the Clean Air Act (CAA).
Using state guidelines to establish enforceable caps on emissions that may affect the community adj acent to
the site. These standards also will be used to voluntarily set lower emissions levels to increase protection for
those working at or visiting the facility.
Conserving city water resources by increasing the amount of recycled manufacturing effluent to 65 percent of
the volume of fresh water used, by 2001.
Reducing the amount of fresh water used by reusing treated effluent for 95 percent of the water used in the
semiconductor manufacturing cooling tower and for landscaping.
Recycling up to 60 percent of the solid waste and up to 70 percent of the nonhazardous chemical wastes the
facility generates, by the year 2001.
Recycling an average of about half of the hazardous waste the facility generates over the five year period
between 1997 and 2001.
Maintaining a minimum setback of 1,000 feet from the closest manufacturing-related building to residential
property.
Reducing vehicle miles traveled by employees through a trip reduction program.
Participating in equipment donation and environmental education programs.
The Experiment
The Intel proj ect's goal is to implement an Environmental Management Master Plan that includes a facility-wide
cap on air emissions to replace individual permit limits for different air emission sources. The Intel proj ect
provides a test case for two innovations for improving air permitting: (1) the elimination of case-by-case review
of specific manufacturing process changes, if emissions remain under a capped amount; and (2) preapproval of
a maj or plant expansion, if emissions remain below a capped amount for the entire site.
-------
Intel XL Project 1-31-01
The Flexibility
The Intel XL Proj ect establishes a long-term plan to minimize the Ocotillo facility' s environmental impact on
local air, land, and water quality, to minimize both its use of fresh water and its generation of waste, and to
undertake a number of other actions to enhance the overall environmental quality of the community. As an
incentive to achieve environmental performance at the Ocotillo facility, EPA, the Arizona Department of Envi-
ronmental Quality (ADEQ), the Maricopa County Bureau of Air Pollution Control, and the City of Chandler will
provide a more flexible and cost-effective process for regulatory management. The FPA provides regulatory
flexibility in the areas of air quality permitting, environmental performance reporting, and innovative technology.
The statutory programs, and the EPA offices administering the programs, that affect the Intel XL proj ect are the:
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
Pollution Prevention Act (PPA) programs administered by EPAs Office of Prevention, Pesticides, and Toxic
Substances.
The parties to the FPA have designated the ADEQ as the coordinating agency for the FPA. This role includes
maintaining public records, coordinating implementation issues such as the conduct of inspections, and consider-
ing compliance issues or enforcement actions. The signatories anticipated that consolidating the coordination into
one agency would enhance the effective administration of the FPA, streamline regulatory oversight, and help to
coordinate approaches to environmental issues that arise at the Ocotillo site. The oversight of the air quality
permit conditions is delegated to the Maricopa County Environmental Services Department (MCESD). The
oversight of the industrial user wastewater discharge permit is designated to the City of Chandler.
Air Quality Permitting. The FPA and the revised air quality permit provide Intel with the flexibility to make
equipment and process changes and construct new facilities at the site without air quality permit reviews, as long
as the Plant Site Emission Limits (PSELs) are not exceeded and all other FPA and permit limits are met. To
provide an additional safety factor, Arizona Ambient Air Quality Guideline (AAAQG) limits for HAPs will not
be exceeded at the Intel facility property line or elsewhere on the site. This flexibility in air quality regulation
allows Intel to eliminate potentially 30 to 50 permit reviews a year and bring new products to market faster. The
benefits of this flexibility are exemplified by Intel's plan to build a new production manufacturing facility. Early
this year, Intel announced it will build its first 3 00 millimeter, high volume production manufacturing facility at the
Chandler site. The company said it will invest $2.0 billion to build and equip the water fabrication facility. It is
expected that Intel will seek this expansion under its existing air emissions cap for the Chandler facility that was
provided under the original Proj ect XL permit in 1996. Intel has noted that the new facility will allow the com-
pany to maintain its leadership in the extremely competitive world of semiconductors. For example, the facility
will provide more manufacturing capacity, which will help Intel to better address customers' growing need for
high performance microprocessors.
Environmental Performance Reporting. Compliance with PSELs will be verified through periodic emissions
reporting. EPA and Arizona are allowing Intel the flexibility to consolidate routine reports into four quarterly
reports and one annual report. The effluent discharge limitations, which are contained in a separate permit, are
incorporated into the FPA by reference. The reporting of these discharges is incorporated into the quarterly and
-------
Intel XL Project 1-31-01
annual reports submitted under the FPA. This reporting system provides Intel with a more flexible reporting
format, and makes a consolidated environmental report available to the signatory agencies and the public. Also,
such periodic reporting will allow the public to verify that Intel has fully complied with the PSELs in the air
quality permit. These reports are available on the Internet via EPA's Proj ect XL web site at http://
www. epa. gov.Proj ectXL.
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 Intel
XL proj ect are described below.
Consolidated Reporting. The XL proj ect allows Intel to consolidate the reporting for Federal, state, and local
permitting and regulatory programs into one annual and four quarterly reports and to make these reports avail-
able on the Internet. Internet reports cover air emissions quality, water and wastewater use and quality, and solid
and hazardous waste management, with the exception of the Toxic Release Inventory (TRI) reports which,
under the Emergency Planning and Community Right-to-Know Act (EPCRA), are required to be prepared and
submitted separately. EPA anticipates that this innovation in consolidated reporting will be incorporated into
future XL proj ects, as EPA will work with sponsors, other regulatory authorities, and stakeholders to develop
similar reporting formats and to make them available on the Internet. This proj ect will serve as a test for
sectorwide collection of higher quality information from regulated industries, and directly influence the develop-
ment of the comprehensive information management plan to be developed by EPA's Office of Environmental
Information.
Enhancing Public Access: Internet Reporting and Stakeholder Input. The Intel project has two innovations
designed to improve public access to information: (1) using stakeholder input to help redesign the content and
format of the reports on the environmental performance of the Ocotillo facility; and (2) making these reports
available on the Internet. This reporting format was designed in conjunction with the EPA, the Arizona DEQ, the
Maricopa County Bureau of Air Pollution Control, the City of Chandler, and area residents who are part of the
stakeholder team. Based on input from the team, Intel agreed to put routine environmental reports and account-
ability measures into a single, integrated report that is publicly available on the Internet via Intel's Proj ect XL
Web site. The site also includes the proj ect's historical information, such as minutes of previous public meetings,
and public comments and responses. Now citizens, as well as regulatory officials, can routinely monitor the
facility's progress towards its environmental commitments. This approach tests the value of getting comprehen-
sive environmental information directly from the company. Although the long-term goal is to merge Intel's
Internet form directly into the state and local agency information systems, for the time being, all data must be
reentered. The multi-stakeholder input approach and the Internet access to information have proven so innova-
tive that EPA has incorporated Intel's approach into the "Guide to XL Proj ect Teams - Proj ect Tracking and
Reporting," which strongly encourages all future proj ects to develop similar Internet reporting formats with
interested stakeholders. The Agency has a number of efforts underway to improve public access to facility
environmental information. The experience gained through this reporting approach will contribute to the devel-
opment of a process for disseminating high quality information to regulatory authorities and the public.
Computer Based Emergency Planning and Preparedness. The emergency requirements will be incorporated
within the Chandler Fire Department Hazardous Materials Management Plan (HMMP) for Intel. The informa-
tion in the HMMP will be integrated into the computer-based Emergency Information System maintained by
Intel and the Chandler Fire Department. The benefits associated with this innovative approach are:
-------
Intel XL Project
1-31-01
Enhanced preparedness and prevention activities by Intel and the Chandler Fire Department due to increased
clarity of requirements, and;
Enhanced emergency response by the City of Chandler Fire Department due to an on-board FDVDVIP Emer-
gency Information System computer on emergency response vehicles.
With a single consolidated emergency plan, Intel's preparedness and prevention activities will be more effective.
Moreover, emergency response by qualified responders is enhanced because of their greater familiarity with the
Ocotillo Site and being able to respond to all emergencies with consistent information. As a result, such a plan
will provide greater protection of human health and the environment. This plan also will reduce the administra-
tive burden associated with developing and maintaining several plans for essentially the same types of risks.
Air Permits. The Intel XL proj ect is testing two of several alternatives for improving air permitting. These
include preapproval and elimination of review of specific manufacturing process changes, if emissions remain
under a capped amount; and preapproval of a major plant expansion, if emissions remain below a capped
amount for the entire site. These emission caps are set at levels low enough for the entire site to remain a minor
source of criteria and hazardous air pollutants under the CAA. These tests will directly influence EPAs sector-
based action plan and the Agency's permit reform efforts.
Project Commitment Summary
This table and the environmental performance section that follows summarize progress in meeting commitments
described in the FPA for Intel's facility in Ocotillo, Arizona.
Commitment
Status
Plant Site Emission Limits (PSELs)
Limit the emissions of the following: volatile organic
compounds (VOCs), inorganic hazardous air pollut-
ants (HAPs), organic HAPs, nitrogen oxides (NOx),
carbon monoxide (CO), particulate matter (PM-10),
phosphine, sulfuric acid, and any new chemical that is
brought onsite that produces air emissions.
All PSELs have been achieved through 1999 and the
first quarter of 2000.
Limit the level of emissions of total VOCs and
aggregate HAPs so that air emissions per unit of
production will not increase in the future. To enable
Intel and the public to monitor progress in meeting this
commitment, Intel has voluntarily agreed to establish a
production-based performance standard.
In 1996, Intel voluntarily established a standard
based on the "production unit factor" (PUF). The
PUF is a measure of annual semiconductor output.
The standard is expressed annually as tons of emis-
sions (VOCs or HAPs) per PUF. A baseline value
was established for 1997 emissions and production
levels. Each year Intel reports the annual value for the
reporting year relative to the 1997 baseline value.
Performance measures for 1998 and 1999 were
compared to the 1997 baseline and included in the
1998 and 1999 Annual Reports. Both results indicate
lower values then the previous year.
-------
Intel XL Project
1-31-01
Commitment Status
Air Quality Evaluation and Management
Screen modeling whenever Intel uses a new chemical
for which Arizona Ambient Air Quality Guidelines
(AAQG) have been established.
For new chemicals introduced to the site that gener-
ate air emissions, that have not been evaluated under
the air permit or AAAQG screen modeling proce-
dures, and that present potential concerns for human
health or the environment, there must be a special
analysis of the chemicals performed, and the
Maricopa County Environmental Services Depart-
ment and the Arizona Department of Health Services
must be consulted.
In the fourth quarter of 1997, screen modeled four
new chemicals associated with the 0.25 micron
manufacturing process.
No consultation has been required since the new
chemicals that have been introduced have been
evaluated.
Reporting of Air Emissions
Quarterly report of actual air emissions of all
pollutants subject to PSELs or limits otherwise
identified.
Annual summary of actual aggregate emissions of all
pollutants subject to PSELs or limits otherwise
identified.
Annual summary of known actual individual HAP
emissions above 1,000 pounds per year.
Annual list of known individual HAPs emitted in
quantities less than or equal to 1,000 pounds per
year.
Annual report of VOCs & HAPs per unit of
production (PUF), expressed as a ratio to the 1997
value.
Quarterly reports through 1 999 and the first quarter
of 2000 have been filed on schedule.
Annual summary for 1998 and 1999 filed on sched-
ule. Quarterly reports include summaries for previous
12 months.
The 1998 and 1999 annual report indicates there
were no individual HAP emission above 1,000
pounds.
The 1998 and 1999 annual reports include aggregate
amounts of emissions of known HAPs, and lists four
organic and four inorganic HAPs that fall into this
category.
The VOC and HAP PUFs for 1998 relative to 1997
were 0.3 and 0.7, respectively. This means that the
VOC and HAP emissions released in 1997 per unit
of production for 1 997. The value for VOCs for
1 999 relative to 1 997 was 0.26. This means that the
VOC emissions released in 1999 per unit of produc-
tion in 1999 was less than that for 1998.
General Reporting
Prepare consolidated reports quarterly for signatory
agencies, and make the reports available to the
public.
Prepare annual summary report.
Completed all quarterly reports through 1999 and the
first quarter of 2000.
Completed 1998 and 1999 annual reports.
-------
Intel XL Project
1-31-01
Commitment | Status
Water and Wastewater Use
Manufacturing effluent will be treated for reuse or
reinj ection into the groundwater supply, according to
the following timetable: 45% of freshwater volume
intake in 1997, 5 5% in 1999, and 65% in 2001.
The Mid-course Review of January 1999 established
a goal requiring using treated effluent water for 95%
of water used for cooling tower makeup and land-
scaping. This goal was revised from 100% in the
FPA.
Achieved 66% for 1997, 61% for 1998, and 61%
for 1999.
Achieved 80% for 1997, 97% for 1998, and 98%
for 1999.
Management of Stormwater
Use secondary containment areas, best management
practices, and retention basins.
Achieved prior to signing of FPA.
Management of Waste
Recycle substantial portions of solid, hazardous, and
nonhazardous chemical waste, according to a sched-
ule in the FPA.
Achieved through 1999.
Intel Corporate Design for the Environment Program (DFE)
Implement the corporate DFE program, which seeks
to develop environmentally compatible processes and
products.
Being implemented as part of Intel's corporatewide
effort to design improvements for environmental
management and performance into manufacturing
processes during the development stage.
Chemical Spill Contingency Planning
Implement a single emergency plan for the facility that
integrates all applicable environmental requirements as
they relate to emergency planning.
Emergency plan was implemented in the first quarter
of 1997.
Trip Reduction Program for Intel Employees
Implement and maintain ongoing car pool and other
trip reduction activities.
Ride share registration increased by 3.02% in 1999.
Property Setback for the Site
Maintain a minimum setback of 1 ,000 feet from the
closest manufacturing-related building to residential
property, and use contoured landscaping to add to the
aesthetic appeal of the setback.
The 1,000 foot setback has been maintained for all
plant expansions.
-------
Intel XL Project
1-31-01
Commitment | Status
Environmental and Education in the Community
Ongoing participation in environmental mentoring and
educational activities targeted at various groups in the
community
Community volunteer activities included assuming a
leadership role in coordinating ozone alert program;
participating in the Arizona Nature Conservancy;
assisting in refurbishing a community center; partici-
pating in the annual EarthFest celebration; presenting
a program to over 3 1 ,000 students emphasizing
math, science, and technology; and providing
Arizona State University with reusable/recyclable
materials for campus projects.
Donation of Computers and Manufacturing Equipment
Ongoing program to donate new and used computers
to schools and libraries, and used manufacturing
equipment to universities.
Donated 1,663 personal computers in 1998.
Donated 2,060 personal computers in 1999.
Environmental Performance
This section summarizes progress in meeting the environmental performance commitments described in the FPA
for Intel. It compares the FPA goals to what would have been required under conventional environmental
regulations for minor sources in National Ambient Air Quality Standards (NAAQS) nonattainment areas.
Because the plant was new at the time the FPA was developed, there were no data upon which to establish a
baseline. Therefore, the "baseline" used in this section is based on what a conventional minor source permit
might have allowed. All the air quality permit and wastewater discharge permit commitments are enforceable
under various environmental laws. There are no regulatory requirements for the other commitments.
Ocotillo Plant Environmental Performance
TPY= tons per year
T-YTD=tons-year to date (9/30/99)
Volatile Organic Compounds (VOCs): Intel has com-
mitted to capping the emissions of VOCs at 40 tons per
year (TPY) for the entire facility. The FPA provides Intel
the flexibility to make changes to the existing manufacturing
operations and to expand the plant, as long as the entire
Ocotillo site stays within this and other established limits.
The baseline shown is based on an estimate of what would
have been allowed under a conventional minor source air
quality permit.
Progress: The facility has remained well under the limit for
1997, 1998, 1999, and for the first quarter of 2000.
Volatile Organic Compounds Emissions
2000 YTD
(As of 3/31/00)
Performance Goal
less than
50
10
20 30
Tons per Year
40
50
-------
Intel XL Project
1-31-01
Nitrogen Oxides (NOJ: Intel has committed to capping the
emissions of NOx at 49 TPY for the entire site. The FPA
provides Intel the flexibility to make changes to existing
manufacturing operations and to expand the plant, as long as
the entire site stays within this and other established limits.
The baseline shown is based on an estimate of what would
have been allowed under a conventional minor source air
quality permit.
Progress: The facility has remained well under the limit for
1997, 1998, 1999, and for the first quarter of 2000.
Carbon Monoxide (CO): Intel has committed to capping
the emissions of CO at 49 TPY for the entire site. The FPA
provides Intel the flexibility to make changes to the existing
manufacturing operations and to expand the plant, as long
as the entire site stays within this and other established
limits. The baseline shown is based on an estimate of what
would have been allowed under a conventional minor
source air quality permit.
Progress: The facility has remained well under the limit for
1997, 1998, 1999, and for the first quarter of 2000.
Sulfur Dioxide (SO): Intel has committed to capping the
emissions of sulfur dioxide at five TPY for the entire site.
The FPA provides Intel the flexibility to make changes to
the existing manufacturing operations and to expand the
plant, as long as the entire site stays within this and other
established limits. The baseline shown is based on an estimate
of what would have been allowed under a conventional minor
source air quality permit.
Progress: The facility has remained well under the limit for
1997, 1998, 1999, and for the first quarter of 2000.
Nitrogen Oxide Emissions
2000 YTD
(as of 3/31/00)
ess than
50
10
20 30
Tons per Year
40
50
Carbon Monoxide Emissions
2000 YTD
(as of 3/31/00)
1999 Actual
1998 Actual
Performance Goal
less than
100
20
40 60
Tons per Year
100
Sulfur Dioxide Emissions
2000 YTD
(as of 3/31/00)
0 50 100 150 200 250
Tons per Year
-------
Intel XL Project
1-31-01
Particulates (PM-10): Intel has committed to capping the
emissions of parti culate matter at five TPY for the entire site.
The FPA provides Intel the flexibility to make changes to the
existing manufacturing operations and to expand the plant,
as long as the entire site stays within this and other estab-
lished limits. The baseline shown is based on an estimate of
what would have been allowed under a conventional minor
source air quality permit.
Progress: The facility has remained well under the limit for
1997, 1998, 1999, and for the first quarter of 2000.
Aggregate Combined Organic Hazardous Air Pollut-
ants (HAPs): Intel has committed to capping the emissions of
organic HAPs at ten tons per year for the entire site. Organic
HAPs include methanol, xylene, and ethylene glycol. The FPA
provides Intel the flexibility to make changes to the existing
manufacturing operations and to expand the plant, as long as
the entire site stays within this and other established limits. The
baseline of 25 TPY refers to a total of organic and inorganic
HAPs, which is what would have been allowed under a
conventional minor source air quality permit. (The combined
total commitment for organic and inorganic HAPs under the
XL permit is now 20 TPY.)
Progress: The facility has remained well under the limit for
1997, 1998, 1999, and for the first quarter of 2000.
Aggregate Combined Inorganic Hazardous Air Pollut-
ants (HAPs): Intel has committed to capping the emissions of
inorganic HAPs at 10 TPY for the entire site. The FPA
provides Intel the flexibility to make changes to the existing
manufacturing operations and to expand the plant, as long as
the entire site stays within this and other established limits.
The baseline of 25 TPY refers to a total of organic and
inorganic HAPs, which is what would have been allowed
under a conventional minor source air quality permit. (The
combined total commitment for organic and inorganic HAPs
under the XL permit is now 20 TPY.)
Progress: The facility has remained well under the limit for
1997, 1998, 1999, and for the first quarter of 2000.
Particulate Emissions
2000 YTD
(as of 3/31/00)
less than
70
15
30 45
Tons per Year
60
75
Aggregate Combined Organic
Hazardous Air Pollutants Emissions
2000 YTD
(as of 3/31/00)
1999 Actual
1998 Actual
1997 Actual
Performance Goal
Baseline
0.1
0.7
0
20
25
5 10 15
Tons per Year
*The baseline includes combined organic and
inorganic HAPs.
Aggregate Combined Inorganic
Hazardous Air Pollutants Emissions
2000 YTD
(as of 3/31/00)
1999 Actual
1998 Actual
1997 Actual
Performance Goal
Baseline
10 15
Tons per Year
20
25
*The baseline includes combined organic and
inorganic HAPs.
10
-------
Intel XL Project
1-31-01
Phosphine: Intel has committed to capping the emissions of
phosphine at four TPY for the entire site. The FPA provides
Intel the flexibility to make changes to the existing manufac-
turing operations and to expand the plant, as long as the
entire site stays within this and other established limits. The
baseline of 10 TPY is based on what the CAA would allow
for a specific HAP under a conventional minor source air
quality permit.
Progress: The facility has remained well under the limit for
1997, 1998, 1999, and for the first quarter of 2000.
Sulfuric Acid: Intel has committed to capping the emissions
of sulfuric acid at nine TPY for the entire site. The FPA
provides Intel the flexibility to make changes to the existing
manufacturing operations and to expand the plant, as long as
the entire site stays within this and other established limits.
The baseline often TPY is based on what the CAA would
allow under a conventional minor source air quality permit.
Progress: The facility has remained well under the limit for
1997, 1998, 1999, and for the first quarter of 2000.
Arsine: Intel has committed to capping emissions of arsine
at less than 14 pounds per year for the entire site. Arsine
was added to the list of chemicals in late 1998, and Intel
began reporting it in the first quarter of 1999. The FPA
provides Intel the flexibility to make changes to existing
manufacturing operations and to expand the plant, as long as
the entire site stays within this and other established limits.
Progress: The facility has remained well under the limit for
1999, and for the first quarter of 2000.
Phosphine Emissions
2000 YTD
(as of 3/31/00)
8 10
Tons per Year
Sulfuric Acid Emissions
2000 YTD
(as of 3/31/00)
4 6
Tons per Year
Arsine Emissions
10
2000 YTD
(as of 3/31/00)
0.31
- Not applicable
- Not applicable
4 6 8 10 12 14
Pounds perYear
11
-------
Intel XL Project
1-31-01
VOC Emissions Per Unit of Production: Intel has com-
mitted to limit the level of emissions of total VOCs so that air
emissions per unit of production will not increase in the future.
The 1997 emissions and production levels were used to
establish a baseline ratio of emissions per unit of semiconduc-
tor production. To enable Intel and other stakeholders to
monitor progress in meeting this commitment, Intel has volun-
tarily established a production measure called a "production
unit factor" (PUF). APUF is a measure of annual semicon-
ductor output (square inches of silicon processed divided by
feature size; the feature size is the width of the smallest transis-
tor, which was 0.3 5 microns in 1997). The performance is
measured annually as tons of emissions of VOCs divided by
the PUF divided by the 1997 value for this ratio. The 1997
value for VOCs, which was 1.28E"06, is set equal to 1.0 to
express the baseline in the form an index. Each year Intel
reports the annual value relative to the baseline value.
Progress: The value for VOCs for 1998 relative to the
baseline value was 0.3. This means that the VOC emissions
released in 1998 per unit of production in 1998 was less than
the baseline value. The value for VOCs for 1999 relative to
the baseline was 0.26. This means that the VOC emissions
released in 1999 per unit of production in 1999 was less than
that for both 1998 and the baseline year.
Aggregate HAPs Emissions Per Unit of Production: Intel
has committed to limit the level of emissions of total HAPs, so
that HAP emissions per unit of production will not increase in
the future. The 1997 emissions and production levels were
used to establish a baseline ratio of emissions per unit of
semiconductor production. As with VOCs, Intel has voluntar-
ily established a production measure called a PUF, to enable
Intel and other stakeholders to monitor progress in meeting
this commitment. The performance is measured annually as
tons of emissions of HAPs divided by the PUF divided by the
1997 value for this ratio. The 1997 value for HAPs, which
was 9.40E"08, is set equal to 1.0 to express the baseline in the
form of an index. Each year Intel reports the annual value
relative to the 1997 baseline value.
Progress: The value for HAPs for 1998 relative to 1997 was
0.7. This means that the HAP emissions released in 1998 per
unit of production in 1998 was less than that for 1997. The
value for HAPs for 1999 relative to 1997 wasO.84. This
means that the HAP emissions released in 1999 per unit of
production in 1999 was slightly greater than that for 1998, but
less than the HAP emissions released in 1997.
Total VOC Emissions Per Unit of Production
Baseline (1997)
0.0
0.2
0.4
0.6
0.8
Tons perYear/PUF/1997 value
Aggregate Hazardous Air Pollutant
Emissions Per Unit of Production
Baseline (1997)
0.0
0.2
0.4
0.6
0.8
Tons perYear/PUF/1997 value
12
-------
Intel XL Project
1-31-01
City Water Reuse: Intel has committed to increase the amount of
water sent for recycling to the city's effluent treatment and re-
charge facility, according to the following timetable: 45 percent of
freshwater volume in 1997, 55 percent in 1999, and 65 percent in
2001. There is no regulatory requirement or previous standard
that might be considered a baseline, although water conservation
is a priority environmental goal in this arid region.
Progress: For 1998 and 1999, the facility exceeded the agreed-
upon goal for 1999. In 1998, Intel recycled 399 million gallons
and, in 1999,422 million gallons.
Use of Treated Wastewater: Intel has committed to using treated
effluent water for semiconductor manufacturing cooling tower
makeup and landscaping. The treated effluent will come from the
city's wastewater reclamation facilities and treated wastewater
from its manufacturing operations. There is no regulatory require-
ment or previous standard that might be considered a baseline,
although water conservation is a priority environmental goal in
this arid region.
Progress: The facility was able to use the treated effluent to meet
97 percent of its needs in 1998, and reports that it used 98
percent in 1999. The original goal set in the FPA was 100
percent. However, based on a review of the system design and
after spending $300,000 annually for phosphate treatment, the
company informed the stakeholders that it would not likely be
able to achieve more than 95 percent, without spending signifi-
cant resources on additional treatment systems. The 95 percent
goal was approved at the Mid-Course Review in January 1999.
In 1998 Intel reused 183 million gallons and, 205 million gallons
in 1999.
Solid Waste Recycling: Intel has committed to recycle sub-
stantial portions of solid and hazardous waste according to the
following schedule: 40 percent in 1997, 55 percent in 1999, and
60 percent in 2001. There is no regulatory requirement or
previous standard that might be considered a baseline.
Progress: In 1998 and 1999, the facility recycled more solid
waste than was required in the FPA. In 1998, Intel recycled
1,284 tons of solid waste and; 1,468 in 1999. This total indi-
cates that Intel recycled 67 percent of its solid waste, which
exceeds its goal of 55 percent.
City Water Reuse
2000 YTD
(as of 3/31/00)
Performance
Goals
20 40 60 80
Percent of Freshwater Volume
100
Use of Treated Manufacturing Wastewater
2000 YTD
(as of 3/31/00)
99%
80%
98%
97%
95%
1 20 40 60 80 100
Percent
2000 YTD
(as of 3/31/00)
Performance
Goals
Solid Waste Recycling
0 20 40 60 80
Percent Solid Waste Recycled
100
13
-------
Intel XL Project
1-31-01
2000 YTD
(as of 3/31/00)
Performance
Goals
20 40 60 80
Percent Hazardous Waste Recycled
100
Nonhazardous Chemical Waste Recycling
2000 YTD
(as of 3/31/00)
Hazardous Waste Recycling: Intel has committed to recycle Hazardous Waste Recycling
substantial portions of hazardous waste generated at the plant
complex according to the following schedule: 60 percent in 1997,
50 percent in 1999, and 40 percent in 2001. Intel anticipates that
the percentage of hazardous waste to be recycled will decrease
because it expects to reduce the amount of hazardous waste
generated at this site through pollution prevention measures. There
is no regulatory requirement or previous standard that might be
considered a baseline.
Progress: In 1998 and 1999, the facility recycled more hazardous
waste than was required in the FPA. Actual tons recycled were
342 in 1998 and 337 in 1999. The 1999 total indicates that Intel
recycled 65 percent of its hazardous waste, which exceeds its
goal of 65 percent.
Nonhazardous Chemical Waste: Intel has committed to
recycle substantial portions of nonhazardous chemical waste
according to the following schedule: 25 percent in 1997, 50
percent in 1999, and 70 percent in 2001. There is no regulatory
requirement or previous standard that might be considered a
baseline.
Progress: The facility almost achieved the 1999 goal for all of
1998, and exceeded that goal in 1999. Intel recycled 415 tons of
nonhazardous chemical waste in 1998, and 704 tons during
1999.
Percent
Stakeholder Participation
Intel has worked to involve stakeholders in the design of its XL proj ect. Stakeholder involvement efforts during
negotiation of the FPA included
use of a Community Advisory Panel (CAP) consisting of area residents to serve as a full partner in the
project's development;
an outreach effort to local citizens (including 25,000 hand-delivered notices);
the involvement of national, regional, and local nongovernmental organizations that provided substantial
comments on the project; and
the use of EPA and Intel web sites to enhance accessibility to proj ect development and implementation
information.
Intel has established a Stakeholder Team to ensure the involvement of national, regional, and local regulatory
authorities and citizens in the project's implementation. This team meets once a quarter to review the project's
progress reports. The most recent meeting was held in May 2000. A third annual stakeholder and general public
meeting was held in April 2000. All quarterly and annual reports are published on Intel's web site to make its
environmental data publicly available as part of a standard reporting mechanism.
Performance
Goals
20
40
80
100
14
-------
Intel XL Project 1-31-01
Six-Month Outlook
Complete quarterly progress report for the third and fourth quarter reports of 2000, within 60 days after the
close of the quarter.
Plan and implement semi-annual stakeholders and general public meeting in April 2001.
Plan quarterly stakeholder meetings for November 14,2000 andFebruary 13,2001.
Stakeholder Team
LenDrago, Intel Corporation, (480) 715-0132
Jim Fullmer, Intel Corporation, (480) 715-0342
Alex Heard, Intel Corporation, (480) 715-4798
Tim Mohin, Intel Corporation,(480) 554-3465
Jim Larsen, Intel Corporation, (480) 715-0206.
Beverly Westgaard, Arizona Department of Environmental Quality, (602) 207-4249
Colleen McKaughan, EPA Region 9, (520)498-0118.
Jo Crumbaker, Maricopa County Bureau of Air Pollution Control, (602) 506-6705.
Pat Sampson, City of Chandler, (480) 786-2396.
Pat Mariella, Gila River Indian Community Department of Environmental Quality, (520) 562-2234.
Steve Brittle, local citizen, (602) 268-6110.
BarbaraKnox, local citizen, (480) 963-3802.
Jim Lemmon, local citizen, (480) 941-5517.
Dave Matusow, local citizen, (480) 899-9425.
Information Sources
The information sources used to develop this progress report include: (1) discussions during a teleconference
among representatives of the U.S. EPA, Intel Corporation, Arizona DEQ, Maricopa County, City of Chandler,
and local residents serving on the Intel CAP; (2) the FPA for the Intel XL project; and (3) annual, quarterly, and
midcourse review reports prepared by Intel Corporation. The information sources are current through July
2000.
Glossary
Arsine (AsH3): Arsine is a colorless flammable, poisonous gas with an odor like garlic. It is used, among other
things, in the processing of semiconductors.
Baseline: The measure by which future environmental performance can be compared.
Carbon Monoxide (CO): A colorless, odorless, poisonous gas produced by incomplete fossil fuel combustion.
Clean Air Act (CAA): This act is the comprehensive Federal law that regulates air emissions from area, station-
ary, and mobile sources. This law authorizes EPA to establish the 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 law gives EPA the authority to set technology-based effluent standards on an industry
15
-------
Intel XL Project 1-31-01
basis and continues the requirements to set water quality standards for all contaminants in surface water. The
CWA makes it unlawful for any person to discharge any pollutant from a point source into navigable waters
unless aNational Pollutant Discharge Elimination System (NPDES) permit is obtained under the Act.
Community Advisory Panel (CAP): An advisory group consisting of area residents.
Criteria Air Pollutants: The C AA requires EPA to set NAAQS for certain air pollutants known to be hazardous
to human health. EPA has identified and set standards to protect human health and welfare for six criteria air
pollutants -ozone, carbon monoxide, total suspended particulates, sulfur oxide, lead, and nitrogen oxide.
Effluent: Treated or untreated wastewater that flows out of a treatment plant, sewer, or industrial outfall. Gener-
ally refers to wastes discharged into surface water.
Emissions Cap: A measure designed to prevent proj ected growth in emissions from both existing and future
stationary sources from exceeding any mandated levels. Generally, such provisions require that any emission
increase from equipment at a facility be offset by emission reductions from other equipment under the same cap.
Final Project Agreement (FPA): The FPA outlines the details of the XL project and each party's commitments.
The project's sponsors, EPA, state agencies, tribal governments, other regulators, and direct participant stake-
holders negotiate the FPA.
Hazardous Air Pollutants (HAPs): Air pollutants that are not covered by NAAQS but that may have an adverse
effect on human health effects or the environment. Such pollutants include asbestos, beryllium, mercury, ben-
zene, coke-oven emissions, radionuclides, and vinyl chloride. Organic HAPs include methanol, xylene, and
ethyleneglycol.
Hazardous Waste: By-products of society that can pose a substantial or potential hazard to human health or the
environment when improperly managed. Hazardous waste possesses at least one of four characteristics
(ignitability, corrosivity, reactivity, or toxicity), or appears on special EPA lists.
Hazardous Waste Recycle: Materials that are specifically designated as hazardous waste under EPA's Resource
Conservation and Recovery Act (RCRA) regulations. The percentage recycled is calculated by dividing the
quantity of hazardous waste sent off for beneficial recycle and energy recovery by the total quantity of hazard-
ous waste generated and shipped offsite.
Media: Specific environmentsair, water, soilwhich are the subject of regulatory concern and activities.
Multi-media: Several environmental media, such as air, water, and land.
National Ambient Air Quality Standards (NAAQS): Standards established by EPA under the Clean Air Act
applicable to outdoor air throughout the country.
National Pollutant Discharge Elimination System (NPDES): A provision in the CWA that prohibits the discharge
of pollutants into the waters of the United States unless a special permit is issued by EPA, a state, or where
delegated, by a tribal government or Indian reservation.
Nitrous Oxides (NOx): An air pollutant that is the result of photochemical reactions of nitric oxide in ambient air.
Typically, it is a product of combustion from transportation and stationary sources. It is a major contributor to
the formation of tropospheric ozone, photochemical smog, and acid deposition.
Nonattainment Area: A designated geographic area that does not meet one or more of the NAAQS for the
criteria pollutants designated in the CAA.
16
-------
Intel XL Project 1-31-01
Nonhazardous Chemical Waste Recycle: Used chemical materials which are collected for the purpose of
returning them into beneficial reuse. They are classified as nonhazardous based upon EPA's definition set forth
under RCRA. The percentage recycled is calculated by dividing the amount of material in this category by the
total quantity of waste generated.
Paniculate Matter (PM-10): Fine liquid or solid particles, such as dust, smoke, mist, fumes, or smog, found in
air or emissions.
Phosphine: Phosphine occurs as a colorless, flammable gas that is slightly soluble in water. It is used as an
intermediate in the synthesis of flame retardants for cotton fabrics, as a doping agent for n-type semiconduc-
tors, a polymerization initiator, and a condensation catalyst.
Plant Site Emissions Limits (PSELs): Plant site emissions limits are facility-based emission caps that allow
production changes and facility expansion without recurring air quality permit reviews.
Pollution Prevention Act (PPA): This 1990 law was passed to reduce or eliminate industrial pollutants through
technology transfer, education, and public awareness. The programs developed under the PPA are adminis-
tered by EPA's Office of Prevention, Pesticides, and Toxic Substances.
Production Unit Factor (PUF): A measure of annual semiconductor output. The PUF = square inches of
silicon processed/feature size. Feature size is the width of the smallest transistor.
Resource Conservation and Recovery Act (RCRA): Passed in 1976, RCRA gives EPA the authority to
control hazardous waste from the "cradle-to-grave." This includes the generation, transportation, treatment,
storage, and disposal of hazardous waste. RCRA also sets forth a framework for the management of nonhaz-
ardous waste. RCRA enables EPA to address environmental problems that could result from underground
storage tanks storing petroleum and other hazardous substances. RCRA focuses only on active and future
facilities and does not address abandoned sites.
Solid Waste: Nonliquid, nonsoluble materials ranging from municipal garbage to industrial wastes that contain
complex and sometimes hazardous substances. Solid wastes also include sewage sludge, agricultural refuse,
demolition wastes, and mining residues. Technically, solid waste also refers to liquids and gases in containers.
Solid Waste Recycle: Includes materials designated under RCRA as nonhazardous waste such as paper,
plastics, aluminum, glass, and wood. The percentage recycled is calculated by dividing the quantity of materials
within this category that are sent to beneficial recycle by the total volume of solid waste shipped offsite.
Sulfur Dioxide (SO2): SO2 gases are formed when fuel containing sulfur (mainly coal and oil) is burned and can
be formed during metal smelting and other industrial processes. SO2 is associated with acidification of lakes
and streams, accelerated corrosion of buildings and monuments, reduced visibility, and such adverse health
effects as inhibition of breathing, respiratory illness, and aggravation of existing cardiovascular disease.
Toxic Release Inventory (TRI): Database of toxic releases in the United States compiled from Superfund
Amendments and Reauthorization Act of 1986 (SARA) Title III Section 313 reports.
Volatile Organic Compounds (VOCs): Any organic compound that easily evaporates and participates in
atmospheric photochemical reactions, except those designated by EPA as having negligible photochemical
reactivity.
Wastewater: Spent or used water from a home, community, family, or industry that contains dissolved or
suspended matter.
------- |