United States                   Office of the             EPA 100-F-00-012
                             Environmental Protection           Administrator            May, 2000
                             Agency                       [Mail Code 1802]         (h
               Project  XL:  Summary  of
               Current  Pilot Projects
WHAT IS PROJECT XL?

Project XL, which stands for "excellence and Leadership", is a national pilot program that tests innovative ways of
achieving better and more cost-effective public health and environmental protection.  The information and lessons
learned from Project XL are being used to assist EPA in redesigning its current regulatory and policy-setting
approaches.   Project XL encourages testing of cleaner, cheaper and smarter ideas to attain environmental results
superior to those achieved under current regulations and policies, in conjunction with greater accountability to
stakeholders.

As of May 2000, 25 pilot experiments are being implemented under Project XL and about 30 more are in various
stages of development. During project development, the project sponsors, EPA, States, co-regulators, and other
stakeholders participate in day-to-day negotiations leading to a Final Project Agreement (FPA).  FPAs outline the
details of XL projects and each party's commitments. It is vital that each project test new ideas with potential for
wide application and broad environmental benefits. This fact sheet provides a very brief summary of each of the
25 final pilot projects.

For more information on Project XL, see EPAs fact sheet entitled, "What is Project XL? Excellence and
Leadership in Environmental Protection" ( EPA-100-F-00-011), May 2000, and other project-specific fact
sheets-all of which are available on the Internet at http://www.epa.gov/Project XL or via Project XL's Information
Line at 202-260-5754.

WEYERHAEUSER FLINT RIVER OPERATIONS

Weyerhaeuser Company's pulp manufacturing facility in  Oglethorpe, Georgia, is striving to minimize the
environmental impact of its manufacturing processes on the Flint River and the surrounding environment by
pursuing a long-term vision of a Minimum [environmental] Impact Mill. The company plans to support the project
for a period of 15 years. The Weyerhaeuser final project agreement was signed on January 17, 1997.

Innovative Approach: Weyerhaeuser's project will test: (1) how a facility operates under an environmental
management system with a minimum impact goal; and (2) whether new approaches to meet ambitious
environmental goals can be created by a company together with stakeholders and government agencies.

Benefits for the Environment: First-year results include a 32 percent decrease of certain bleach plant
effluent discharges into the Flint River, a 40 percent reduction of solid waste, and a 13 percent decrease in air
emissions. Additional benefits are anticipated: (1) cuts in its bleach plant effluent by 50 percent over a ten-year
period; (2) reduction of water usage by about 1  million gallons a day; (3) cuts in solid waste generation in half over
a ten-year period; (4) reduction of hazardous waste constituents; and (5) improved forest management practices
in over 300,000 acres of land by stabilizing soil, creation of stream side buffers, and safeguarding of unique
habitats.

Benefits to the Facility: After just one year of implementation, Weyerhaeuser has saved $176,000 in


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operating costs and expects to save an additional $10 million in future capital spending.
Weyerhaeuser is gaining from regulatory flexibility that (1) enables it to consolidate a number of routine reports
into two reports per year; (2) allows use of alternative means to meet the requirements of new maximum
achievable control technology regulations; and (3) waives government review prior to certain physical
modifications, provided emissions do not exceed stipulated levels.

Stakeholder Involvement: Local stakeholders have been fully involved in the development, environmental
design, and impact assessment of the project. The outcome has been ongoing high stakeholder satisfaction and
improved availability of information from the company.

INTEL CORPORATION

Intel's Fab 12 facility, which manufactures semiconductors (computer chips) in chandler, Arizona, is
implementing an Environmental Management Master Plan that includes a facility-wide cap on air emissions to
replace individual permit limits for different air emissions sources.  Since Intel's products often have a very short
life span, production delays caused by multiple permit reviews can be critical and costly to the company. Intel's
final project agreement was signed on November 19, 1996.

Innovative Approach: Intel's project will test: (1) the time efficiency of performance-based caps in lieu of pre-
construction permit reviews; (2) the value of incorporating  non-regulated items into the regulatory permit process;
and (3) the effectiveness of community involvement in decision making as an incentive for improving environmental
performance.  The project includes multi-media, performance-based permits that specify performance levels for
each regulated pollutant at the new facility.

Benefits for the Environment: The facility will (1) reduce up to 60 percent of the solid waste and up to 70
percent of the non-hazardous chemical wastes it generates by the year 2000; (2) recycle up to 65 percent of the
fresh water it uses; and (3) balance limits on hazardous air pollutant emissions with health-based permits that
specify performance levels for each regulated pollutant at  the new facility.

Benefits to the Facility:  Intel will gain from the opportunity to make operational changes without permit
review, as long as permit limits are met. This allows it to  bring products on line faster, a critical aspect in this
"quick-to-market" industry. Results from the first year show that Intel avoided millions of dollars worth of
production delays by eliminating 30-50 permit reviews a year.

Stakeholder Involvement: Stakeholders have been fully involved in the development, environmental design,
and impact assessment of the project.  Intel has become one of the first facilities in the U.S. to make its
environmental reporting data available on the  Internet in a  format designed by community stakeholders. The
project has also led to environmental mentoring and educational activities for local students and community
groups.

JACK M. BERRY INC.

Jack M. Berry Inc. is a mid-sized juice-processing facility in LaBelle, Florida.  Through this XL project, Jack M.
Berry Inc. is developing a facility-wide comprehensive operating plan that consolidates environmental permits and
all operating procedures into a single manual for the facility. The  project builds in stakeholder participation,  and
will be evaluated with appropriate public notices every five  years.  By developing and gaining approval for just one
comprehensive operating permit instead of many each year, the project may consolidate seven federal, state, and
local environmental permits.  It is also improving compliance with environmental requirements by involving staff in
the development of the facility-wide operating plan and by using simple  language to describe more clearly what is
required by law. The Jack M. Berry final project agreement was signed on August 8, 1996.

Innovative Approach: The Jack M. Berry, Inc. project will  (1) explore the benefits and pitfalls of


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comprehensive operating permits that meld dozens of local, state, and federal permits into one; (2) the impact of
permit consolidation on costs and expenditures; and (3) the impact of permit certainty on cost of capital.

Benefits for the  Environment: In the first year of the project, the facility eliminated several hazardous waste
streams, and an 88 acre area previously used to disperse wastewater, which relieved the community of irritating
odor problems. The facility is also expected to: (1) reduce air emissions of volatile organic compounds, sulfur
dioxide, and nitrogen oxides; and (2) further reduce the number and types of solvents and lubricants used onsite
and replace them with a number of environmentally-friendly materials.

Benefits to the Facility: Jack M. Berry Inc. will save significant expenditures by eliminating the costly
requirement of preparing multiple permit applications every few years. This results in reduced lender concern
about future operational status, which,  in turn, can translate into lower interest rates for long-term loans.  In
addition, as a result of audits during the project's first year, the company's new work procedures are expected to
result in 50 percent savings in environmental control investments, improved worker safety, and substantially
reduced employee training costs.

Stakeholder Involvement: Jack M. Berry Inc. has been working to ensure that those parties with a stake in
the environmental concepts of its project are informed and have had an opportunity to participate in the
development of the project.

HADCO CORPORATION

HADCO is a leading manufacturer of printed wiring boards and electronic interconnection products. Due to
process changes since the 1970's,  HADCO believes that the sludges created as  a by-product of its operations
are far less toxic and no longer need to be regulated as a hazardous waste.  HADCO's XL project proposes to
remove these wastes, which are rich in valuable copper, from regulation under the Resource Conservation and
Recovery Act based on analyses of the waste with the hope that they are sent directly to be recycled.  Four
HADCO facilities are participating in Project XL - Owego, NY; and facilities in Deny, Hudson, and Salem, NH.
The HADCO final project agreement was signed on October 7,  1997.

Innovative Approach: HADCO's five-year project will  help demonstrate whether valuable materials determined
to be safe can be reclaimed from waste streams without shipping them long  distances to "middleman"
processors, which  is costly and increases risk.  The project may demonstrate that new regulatory approaches
can tip the economic scales in favor of recycling throughout the printed wiring board industry by tailoring
regulatory requirements to the specific circumstances of the facility and the waste.

Benefits for the  Environment: HADCO has committed to directing 100 percent of cost savings realized
from the project towards expanding its efforts to recover valuable metals or prevent pollution.  HADCO will
voluntarily recycle copper dusts-another by-product of its operations-that are currently sent to land fills, and
research their ability to install sludge dryers to reduce the volume of sludge wastes.

Benefits to the Facility: HADCO will gain flexibility to recycle wastes and avoid currently long and costly
procedures for delisting hazardous waste.

Stakeholder Involvement: A regional environmental  group, local  representatives of national environmental
groups, representatives from local towns, and industry representatives fully participate in the development of the
project. A number of meetings were held to seek public input from all interested  citizens.

MERCK STONEWALL PLANT

Merck & Co.,  Inc. is a pharmaceutical manufacturing facility in  Elkton, Virginia.  Avoiding production
delays is important to this company so that life-saving drugs can be made available to the public as quickly as
possible.  The company also aims to reduce emission levels for sulfur dioxide and nitrogen oxide to protect
visibility and reduce acid deposition in nearby Shenandoah National Park and the community. The Merck final
project agreement was signed on December 15, 1997.


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Innovative Approach: Merck's project will focus on: (1) whether a cap on criteria air pollutants for the entire
site provides better overall air quality than before while offering more operational flexibility than the current
permitting system; (2) whether a cap for the entire site can create better incentives to minimize emissions than
the current air permitting system; and (3) whether a system that requires increased monitoring, record keeping,
and reporting as emissions approach the cap ensures compliance and creates additional incentives to minimize
emissions.

Benefits for the Environment: The facility will achieve: (1) permanent reductions in certain air pollutant
emissions by 20 percent (about 300 tons/year); (2) decreases in sulfur dioxide and nitrogen oxide emissions by
900 tons/year (60 percent); and (3)  reductions in hazardous air pollutants by 47 tons/year (65 percent).

Benefits to the Facility: As long as the facility's emissions remain below the established caps, Merck will  no
longer have to undergo time-consuming and costly permit reviews by EPA or the Virginia Department of
Environmental Quality for changes at the facility that increase emissions.  In addition, Merck will benefit from
flexibility under certain new air pollution control regulations by having the option of either installing the  prescribed
new control technology or decreasing the facility's emissions by the emission reduction that would have been
achieved with the new technology by some other means.

Stakeholder Involvement: The stakeholder team consists of representatives from the communities of Elkton
and Rockingham County, VA, the U.S. Department of Interior/National park Service, federal and state  regulatory
agencies, and Merck. The team also  has received input from regional environmental organizations and other
interested parties through numerous public meetings, briefings, and newsletters.

VANDENBERG AIR  FORCE BASE

Vandenberg Air Force Base (AFB), located in Santa Barbara County, California, is the third largest Air Force
installation in the United States. Most of the stationary source ozone precursor emissions at the base are
generated by boilers, furnaces, process heaters, and internal combustion engines.  Vandenberg has completed
and assessment of the emission reduction potential from a variety of sources, and is now in the process of
upgrading or retrofitting those emission sources with  advanced pollution control technology to convert those
sources to lower-emitting sources. Vandenberg is the first XL project involving a federal facility and is the first
Department of Defense regulatory reform project known as ENWEST (Environmental Investment).  The
Vandenberg final project agreement was signed on Novembers, 1997.

Innovative Approach: Vandenberg AFB and the stakeholder technical review team are assessing the
emissions reduction potential from a variety of sources, including internal combustion engines, space  heaters,
water heaters, chillers, and solvent applications. By upgrading the more energy-efficient, state-of-the-art
equipment,  significant emission reductions can be achieved. Installation of the new equipment is expected to
continue over the next 3 years.

Benefits for the Environment: The facility will reduce its annual emissions of ozone precursors  into the air
by 10 tons or more within the next five years through emissions reductions in boilers, furnaces, and/or process
heaters. Vandenberg will no longer be a potential major source of air pollution under Title V of the Clean Air Act.

Benefits to the Facility: By using money that would have been spent on administrative compliance with  Title
V and instead using it to make  real world upgrades in equipment the base can reduce paperwork and  decrease
emissions to the environment.

Stakeholder Involvement: Vandenberg AFB worked to ensure that those parties with a stake in the
environmental concepts and effects of its project have had the opportunity to participate in the development of the
project.  For example, it consulted closely with the District Advisory Council and the Vandenberg Community
Advisory Board and held regularly scheduled public meetings.

OSI SPECIALTIES, INC.
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OSi Specialties, Inc. (a subsidiary of Witco Corporation) is a specialty chemical manufacturer.  OSi's Sisterville,
VW, plant has agreed to: (1) install air pollution controls on a production unit well ahead of when the controls are
anticipated to be required by EPA regulations; (2) reuse/recycle methanol, thereby reducing generation sludge at
the facility; and (3) study the feasibility of reducing its waste streams. OSi's project will extend until 2002, unless
additional environmental benefits warrant a continuation of the regulatory flexibility. OSi's final project agreement
was signed on October 17, 1997.

Innovative Approach: OSi's project will determine: (1) whether providing flexibility to control pollution in a
more cost-effective manner will produce benefits for both he environment and industry; (2) whether it is
environmentally beneficial to defer regulations as an incentive for encouraging waste minimization/pollution
prevention activities; and (3) what results can be obtained through a waste minimization/pollution prevention
study.

Benefits for the Environment: The  project will result in the destruction of 98 percent (by weight) of the
organic compounds in the vent stream, or about 309,000 pounds per year. OSi will also recover and reuse an
estimated 500,000 pounds per year of methanol that would otherwise be treated in its wastewater system. This
will result in a reduction in sludge from the facility's wastewater treatment system of about 815,000 pounds per
year.

Benefits to the Facility:  EPA and the West Virginia Department of Environmental Protection have deferred
new organic air emission regulations (RCRA Subpart CC) applicable to OSi's two hazardous waste surface
impoundments.

Stakeholder Involvement: OSi held  a series of public meetings during the development of the project, gave a
presentation to the West Virginia Conference on the Environment, had interviews with local radio stations and
newspapers, and sent information on the  project to a number of other interested parties.

LUCENT TECHNOLOGIES, INC.

The Microelectronics business unit of Lucent Technologies designs and manufacturers integrated circuits and
optoelectronic components for the computer and communications industries. The Final Project agreement (FPA)
of this XL pilot is an "umbrella" document,  under which details for individual facilities will be worked out in
subsequent site specific addenda. The FPA outlines a process that allows Lucent to use its existing
environmental management system (EMS) as a framework for developing specific proposals to simplify
permitting, record keeping, and reporting requirements, while driving continual improvement and pollution
prevention programs. The Lucent umbrella final project agreement was signed on August 19, 1998.

Innovative Approach: Lucent's project will determine: (1) whether a state-of-the-art EMS can achieve superior
environmental performance in both regulated and non-regulated areas and drive environmental management
toward continuous improvement; (2) what characteristics of an EMS are necessary to provide superior
environmental performance; and (3) how EPA regulations can be crafted to allow a company with a high-quality
EMS to best implement projects arising from the EMS.

Benefits for the  Environment: The  EMS will foster superior environmental performance by identifying
opportunities to reduce Lucent's environmental  impacts in a variety of areas, both regulated and non-regulated,
across the entire business unit involving a number of facilities.

Benefits to the Facility:  Under the "umbrella" FPA, the stakeholders will develop site-specific addenda for
several Lucent facilities which will enable Lucent to have potential flexibilities in permitting, permit modification,
compliance monitoring, and record keeping requirements under Title V of the Clean Air act,  the Clean Water Act,
and RCRA.

Stakeholder Involvement: Lucent has established facility-specific Local Environmental Advisory Groups
(LEAGS) for all of its facilities globally.  Each LEAG is composed of local stakeholders including environmental
organizations, community groups, employees, and other interested citizens. The LEAGs provide input on the XL


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project and the facility's EMS as both are implemented.  The Environmental Law Institute is a signatory to the
FPA.

MOLEX, INC.

Molex Incorporated (Molex) is a multinational company that operates several electroplating facilities worldwide.
Molex's project is based on innovative management of its waste sludges at its Lincoln, Nebraska facility, which
allows the facility to optimize the recovery of metals used in electroplating processes.  The Molex final project
agreement was signed on August 8,1998.

Innovative Approach: Molex's project will test whether regulatory approaches can tip the economic scales in
favor of recycling metals by tailoring regulatory requirements to the specific circumstances of the facility and its
waste.

Benefits for the Environment: The implementation of Molex's project will reduce the amount of metals
released to the publicly-owned treatment work (POTW) by at least 50 percent. In addition,  the pure sludge
generated will not require disposal, and will be sold directly to processors.

Benefits to the Facility: The regulatory flexibility provided under this XL project allows Molex to segregate
their waste streams, which were previously co-mingled.  By changing the process lines to generate separate
waste streams (nickel, copper, tin/lead), the facility can optimize the precipitation of each metal more effectively
before the effluent is sent to the POTW. A second benefit is that the resultant mono-metal sludges will be
commodity-like materials suitable for recycling.

Stakeholder Involvement: Molex has worked with and will continue to involve those parties with a stake in
the environmental effects of its proposal to ensure they are informed and have an opportunity to fully participate in
project development.  Efforts so far have included working with the State of Nebraska, the City of Lincoln,
Nebraska, and the Lincoln/Lancaster County Health Department.

MASSACHUSETTS ENVIRONMENTAL RESULTS PROGRAM  (ERP)

The Environmental Results Program (ERP) was developed  by the Massachusetts Department of Environmental
Protection (DEP) to streamline permitting and reporting processes in  the state for approximately 5,000 small
businesses to begin with, and possibly 10,000 by the end of the year. It will reduce the number of traditional
permits and reporting requirements through a program of facility-wide, performance-based self-certification.
Industry representatives have cooperated with Massachusetts DEP to establish criteria for  reporting compliance
with stringent state performance and operating standards in certain industrial categories, without developing
permits for each facility.

The ERP currently applies to three industrial sectors-dry cleaners, photo processors and printers.
Massachusetts DEP will guide companies through the process, providing explanations of laws and regulations
and ideas for meeting associated requirements.  The project is intended to reduce resources expended by both
the DEP and industry in the permitting process, as well as improve compliance by offering  companies flexibility in
pollution prevention. Massachusetts DEP believes that after an initial  evaluation and revision phase, the program
will be transferable to  other industry sectors throughout Massachusetts and other states. The Massachusetts
ERP umbrella final project agreement was signed on Octobers, 1998.

Innovative Approach: The Massachusetts ERP has taken the bold step of streamlining permitting and
reporting processes for three industrial sectors in order to achieve more effective  environmental protection. ERP
promises to make it easier for the regulated community to meet and exceed Massachusetts' stringent
environmental standards by giving them flexibility to decide the best,  most cost-effective  ways to comply with
performance standards.

Benefits for the Environment: The Environmental Results Program will achieve superior environmental
performance beyond what is achieved by the current federal and state regulatory systems.  By converting permit


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requirements into industry-wide performance standards, DEP anticipates superior environmental performance
since facility managers will be aware of their environmental obligations before they make decisions about
modifying equipment and operations, rather than at the end of a long, expensive permitting process. For example,
the new system is expected to reduce wastewater discharges of silver by 99 percent from photo processors, and
to achieve a 43 percent reduction in emissions of perchlorethylene from dry cleaners. Since all companies will
ultimately be held to strict ERP performance standards, environmental protection will be strengthened.

Benefits to the Facility: ERP improves accountability and increases flexibility for companies.  For the first
time  ever, top management of the companies involved will certify annually that their facilities are in compliance
with all applicable air, water and hazardous waste management performance standards.  Facilities not in
compliance will be required to  specify interim milestones toward achieving compliance by a certain date. This will
give companies more flexibility to  choose cost-effective compliance strategies for themselves, thereby reducing
the "time-to-market" for new products and removing regulatory obstacles to pollution prevention.

Stakeholder Involvement: As part of its draft Final Project Agreement, Massachusetts DEP will actively
work to ensure and maintain involvement of key stakeholders and the general public in ERP implementation. DEP
has been and will continue to work with an  ERP Design Team comprised of representatives from EPA, other
government entities, environmental advocacy groups, business and industry, consulting firms, and the legal
community.

ATLANTIC STEEL

EPA and Jacoby Development Inc., a developer in Atlanta, Georgia, are working on an XL project to allow
construction of an urban redevelopment project in Atlanta.  This redevelopment project will explore new ways to
meet community, environmental and economic interests.   Jacoby has proposed a mixed-use (residential, retail,
office, and entertainment) redevelopment of a 138-acre site in midtown Atlanta that was formerly the home of
Atlantic Steel.  An essential component of the Atlantic Steel redevelopment project is construction of a bridge
which would cross an Interstate highway adjacent to the site and link the  site and the surrounding community
with a nearby rapid transit station.

The Atlanta metropolitan area is one of the fastest growing regions in the  country.  In part due to its rapid growth,
Atlanta has failed to meet federal  air pollution standards and as a result is barred from building certain types of
road projects.  The prohibition  on  new road projects also applies to the bridge linking the Atlantic Steel site with
the rapid transit station. However, projects that will reduce air emissions can be approved as Transportation
Control Measures (TCMs).  EPA has never evaluated a project of this size and complexity,  combining Atlantic
Steel's location, transit linkage, site design, and other elements, as a TCM. Through Project XL, EPA is using an
innovative approach to approving the entire Atlantic Steel redevelopment project as a TCM.  EPA and Jacoby
signed the first of a two-part XL agreement on April 13, 1999, and they hope to sign a subsequent Final  Project
Agreement in June, 1999.

Innovative Approach:  The Atlantic Steel Project will test (1) whether the combination  of location, linkage to
transit, and design characteristics of a development project will result in significant, measurable emissions
reductions, and (2) whether the application of "smart growth" site design principles (pedestrian friendliness, mix of
uses, etc.) make a difference in travel patterns, even in Atlanta - where people drive more per capita than any
other city in the country.

Benefits for the Environment: The Atlanta region will continue to grow.  If the Atlantic Steel site is not
redeveloped, the growth it represents would locate at other sites in the Atlanta region. EPA and Jacoby feel that
construction of the bridge and  redevelopment of the Atlantic Steel site will produce less air pollution than an
equivalent amount of development at other likely sites in the region. The  combination of the site's location,
design elements and connection to the public transportation system are expected to work together to reduce
growth of auto  traffic in the Atlanta region. The project will also accelerate the clean-up of an underused former
industrial site in midtown Atlanta.

Benefits to the Facility: Because Atlanta cannot currently get federal approval for new road projects, the


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proposed bridge cannot be built without the flexibility being provided by EPA under Project XL.

Stakeholder Involvement:  EPA and Jacoby participated in a number of public stakeholder meetings to
discuss the project and the Phase 1 Agreement and are planning similar meetings prior to signing a Final Project
Agreement. EPA and Jacoby have also participated in meetings with an Environmental Justice Focus Group and
several meetings regarding the proposed bridge at the invitation of the City of Atlanta and/or the Georgia
Department of Transportation and the Atlanta Regional Commission.  EPA received valuable feedback on the
Project Agreement from national and local environmental and transportation groups and other interested
organizations and individuals.  A Stakeholder Participation Plan and minutes from public meetings are posted on
the Project XL web site at: http://www.epa.gov/projectxl.

EXXON FAIRMONT COKE WORKS

This project will test an alternative strategy for cleaning-up the Sharon Steel Fairmont Coke Works Superfund
Site, located in Fairmont,  VW. The site was placed on the EPA's National  Priorities List (NPL) on December 23,
1996.  Exxon  is the only Potentially Responsible Party (PRP) working with  EPA and the West Virginia Division of
Environmental Protection  (WVDEP) under an Administrative Order on Consent to address environmental concerns
at this site.

To clean up the site, Exxon proposes that changes to the traditional Superfund process be made. These
changes would affect: (a) site  characterization and clean-up, (b) risk assessment procedures, (c) the
management of onsite landfills, (d) mitigation requirements for EPA-created wetlands onsite, (e) the stakeholder
and community involvement process, (f)  reduction of paperwork requirements, and (g) the quality assurance
process.  In addition, as a new approach, Exxon will work with stakeholders and community groups to seek
interested developers for commercial or industrial re-development of the site. The Exxon final project agreement
was signed on May 24, 1999.

Innovative Approach: The Exxon Fairmont Coke Works project will test whether coupling expedited
Superfund clean-up procedures with  land reuse commitments will result in benefits to the community, the
environment and  industry.

Benefits for the Environment:  In this project, Exxon will implement changes to the Superfund process that
will yield significant benefits to the environment, the surrounding community, and Exxon.  Key benefits include:
(1) Much shorter clean-up times that more quickly eliminate the potential risk to human health; (2) A commitment
from Exxon to work with stakeholders and community groups to seek interested developers for
commercial/industrial redevelopment of the site; (3) A commitment from Exxon to demolish and dispose of all
on-site buildings and structures; (4)  Reduced administrative burden through the use of streamlined risk
assessment and site characterization processes and electronic document/data submittals.

Benefits to the Facility:  By participating in  Project XL, Exxon will obtain flexibilities that will allow them to
reduce the oversight costs, cleanup time and paperwork burden normally associated with a Superfund Cleanup.
These flexibilities specifically allow Exxon to streamline traditional Superfund processes related to risk
assessment, site characterization, on site landfill management and mitigation requirements. The alternative
cleanup strategy will result in economic and schedule benefits for Exxon. Exxon's innovative team approach at
the site will also significantly reduce the amount of time necessary to  review documents, because it will receive
direct input from EPA, the State of West Virginia, and the community prior to finalizing a document.  The
experience gained from this project will allow Exxon to perform similar redevelopment activities at other sites.

Stakeholder Involvement:  As part of its FPA commitments, Exxon will continue to work actively to ensure
and maintain involvement of key stakeholders and the general public during  the clean-up and redevelopment and
planning of the site. Exxon will also directly fund the WVDEP's involvement in the project and will work with the
Fairmont Community Liaison Panel (FCLP) and EPA in every stage of the clean-up process.

ANDERSEN CORPORATION
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Andersen Company manufacturers windows at its facility in Bayport, MN.  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. Through Project XL, Andersen
can shift from high-emission processes like solvent-based wood preservation to lower-emission processes like
waterbome wood treatment. Andersen can also shift production to an innovative process called FibrexTM, 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.   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 make these changes without additional approval. The final project
agreement, EPA's 13th XL project, was signed on June 30, 1999.

Innovative  Approach: The Andersen project will explore (1) whether an innovative, incentive-based system of
tying emission limits to  a given quantity of product will reduce a facility's impact on the environment; (2) if
operational flexibility for a facility will allow it to better transition to more environmentally-beneficial products;  and
(3) if simplified record keeping will work as an incentive for a facility to focus resources on better environmental
practices.

Benefits for the Environment: This project provides incentives for Andersen to continually lower the amount
of emissions  per unit of product. Caps on emissions of VOCs 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,  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.  Andersen must show that
cost savings  resulting from shutting down this equipment have been reinvested in projects that further reduce
emissions.

Benefits to the Facility: Benefits for achieving substantial reductions in emission rates include rewards  such
as an extension of the project or a commendation letter from EPA. Under this XL project Andersen can modify
and add pre-approved emission sources (such as waterbome 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.

Stakeholder Involvement: 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.

NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION

The Resource Conservation and Recovery Act currently requires producers of hazardous wastes at remote
locations (e.g.,  manholes and pipelines away from their staffed facilities) to transport all quantities of waste-no
matter how small -  to an often distant treatment, storage,  and disposal facility (TSDF).  The waste producers,
which include public utilities, may keep the waste at the remote location for up to 90 days before transporting it to
the TSDF.  Under the new Project XL agreement between  EPA and the New York State Department of
Environmental Conservation (NYSDEC), public utilities in New York State will be  able to transport wastes to a
nearby central collection facility, provided they do it as soon as the waste has been collected. They then can
store the waste at the central collection facility - designated by the state - for up to 90 days before transporting it
to a permitted TSDF. Approximately fifteen  utilities - including gas, electric, and  phone companies with locations
throughout the  state - are expected to participate initially.  The final project agreement, EPA's 14th XL project,
was signed on July  12,  1999.

Innovative  Approach: The NYSDEC project will test (1) whether immediate transport of hazardous waste to
local facilities will  reduce accidental releases and traffic congestion; (2) if utility and agency costs are


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significantly reduced by consolidating reporting requirements and eliminating administrative requirements; and (3)
if the reinvestment of a portion of the utilities' savings in environmental projects can provide better environmental
protection than current regulation?

Benefits for the Environment:  The project provides the following environmental benefits: (1)Reduces the
risk of accidental hazardous waste releases at remote locations (e.g. manholes and pipelines) by quickly moving
the waste to a nearby collection facility; (2) Allows consolidation of similar waste at central collection facilities,
which reduces the number of vehicle trips to often-distant treatment, storage and disposal facilities and avoids
traffic disruptions; and (3) Requires each participating utility to reinvest one-third of its direct cost savings (e.g.
staff time and paperwork) into one or more new, environmentally beneficial projects.

Benefits to the Facility: Under current regulations, New York State public utilities must transport waste
generated at remote locations to a permitted treatment, storage and disposal facility.  Under this XL project, the
participating utilities will instead be able to transport the waste to central collection facilities where they may
accumulate waste for up to 90 days.  In addition, participating utilities will be permitted to obtain a single
identification number and submit a single Biennial Report for the central collection facility and all remote locations
that ship waste to that facility.

Stakeholder Involvement:  The project was developed with extensive involvement by New York State public
utilities.  Information on the project was disseminated to  over 500 local environmental groups and published in the
New York State Register and the New York State Environmental Reporter.  In  addition, the project provides for
public notice and comment prior to designation of each central collection  facility.
NEW ENGLAND LABS

This pilot allows participating laboratories at the University of Massachusetts-Boston in Boston, MA; Boston
College in Chestnut Hill, MA; and University of Vermont in Burlington, VT (the "Universities") to implement flexible,
performance-based standards for managing hazardous wastes in their laboratories.  The site-specific rule enables
laboratories at the three Universities to replace existing requirements for hazardous waste generators (that had
been designed with industrial generators in mind) with a comprehensive Laboratory Environmental Management
Plan developed by each University and including certain minimum performance criteria.

Under the rule, the Universities will not be required to make a RCRA hazardous waste determination with respect
to laboratory waste until it reaches a central on-site location. This should allow the Universities' Environmental
Health and Safety professionals to more effectively manage the laboratory waste at the institutional level and
increase reuse and recycling opportunities.  The New England Laboratory Final Project Agreement, EPA's 15th
XL project, was signed on September 28, 1999.

Innovative Approach: This innovative pilot will test whether (1) the use of performance-based standards as
part of the Environmental Management Plan (EMP) will enhance environmental  results beyond those achieved by
existing regulatory  requirements in the laboratory setting; (2) the integration of OSHA-based health and safety
requirements for hazardous chemicals with the RCRA generator requirements and elements of ISO 14001
environmental management system's voluntary standards will result in a more consistent and resource efficient
scheme for regulating laboratories; (3) the use of an EMP will result in increased implementation of pollution
prevention and waste minimization activities and more environmentally informed students and researchers.

Benefits for the Environment:  The Laboratory XL project is expected to result in increased pollution
prevention. The Universities have set specific pollution prevention goals, including a 10% reduction  in  the overall
amount of hazardous waste generated from participating  laboratories, and a 20% increase in reuse  of laboratory
waste over the next four years, or the life of the project.  The Universities participating in this XL project will report
each year on their  progress in meeting their goals.  The Universities will also conduct environmental awareness
surveys and training for all laboratory workers.

Benefits to the Facility: A primary aim  of the project is to allow the Universities to develop  and  implement an


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Environmental Management Plan that defines the policies and procedures for managing all hazardous chemicals,
including laboratory wastes under a logical, integrated scheme. This XL pilot provides the Universities with a
temporary conditional deferral from  two specific RCRA regulations dealing with Hazardous Waste Determinations
Satellite Accumulation Provisions.  The regulatory changes set forth are conditioned upon the Universities'
compliance with the Minimum Performance Criteria and the Laboratory Environmental Management Plan.

Stakeholder Involvement:  The university and research communities are diverse and active. Stakeholder
involvement at both national and local levels has been extensive. As this XL project is implemented, the
stakeholder involvement program will ensure that: (1) interested parties are apprised of the status of project
implementation and (2) national and local stakeholders have access to information sufficient to judge the success
of this pilot.
ELMENDORF AIR FORCE BASE

Elmendorf Air Force Base (EAFB), in Alaska, plans to streamline the application, implementation, management,
and renewal process for their Title V air emissions permit, through reduced monitoring and record keeping. EAFB
estimates that total monitoring, record keeping, reporting, and overall permit management costs will decrease by
about 80 percent, yielding about $1.5 million in savings over six years.  These realized cost savings will be
directed toward pollution prevention  (P2) opportunities around the base. The Final Project Agreement (FPA),
EPA's sixteenth XL project, was signed on December 15, 1999.

Innovative Approach: This pilot will try to decide: (1) if redirecting resources from monitoring and
record keeping to P2 projects will improve the environment; (2) whether the regulation of military
facilities should be modified so that they can reduce monitoring and record keeping and increase their
investment in environmentally-beneficial projects; and (3) which P2 projects provide the greatest
benefits at military facilities.

Benefits  for the Environment:  EAFB will spend the savings derived from streamlining its environmental
management costs on P2 opportunities. A P2 project identified in the FPA involves installing a compressed
natural gas (CNG) fueling station, purchasing new CNG vehicles, and  converting certain base fleet vehicles to
allow them to use CNG as an alternative fuel. EAFB has assembled a list of other feasible P2 opportunities
available at the base, along with the  estimated costs and environmental benefits of each opportunity. EPA, the
State of Alaska, and EAFB have expressed a preference for projects that reduce hazardous air contaminants.

Benefits  to the Facility:  The traditional Alaska operating permit program currently treats the entire EAFB
installation as a single air contaminant emission source.  However,  under this FPA the permit applies to only a
small segment of EAFB  , including one source that is a major stationary source and several others that are
subject to new source performance standards. The other sources at EAFB that will not be permitted will instead
obtain limits on their potential-to-emit to ensure that they are not considered major sources. This will simplify
monitoring, record  keeping, and reporting associated with Title V, and result in significant cost savings that will be
applied to  P2 projects.


Stakeholder Involvement:  Elmendorf held public  meetings to  request input on the project. These meetings
were publicized through  local newspapers and personal contacts. In addition, Trustees for Alaska submitted a
comment on the project.  The comment and EPA's response are attached to the FPA.

IMATION CORPORATION

Imation Corporation produces magnetic data-storage tapes, primarily for the computer industry, at its plant in
Camarillo,  California.  Imation must be able to make changes to existing production processes or begin producing
new advanced products without delay in order to stay competitive in a rapidly evolving  worldwide industry.
However, Clean Air Act regulations require manufacturers to obtain approval for each prospective change to plant
processes  and/or new equipment addition.  Following these traditional procedures impedes Imation's ability to


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respond rapidly to the marketplace, particularly since Imation anticipates numerous changes over the next several
years.  Through Project XL, EPA is employing a broader interpretation of existing preconstruction review and
permit rules to preapprove changes Imation anticipates making in the future. The preapproval strategy is meant to
satisfy the preconstruction review and permit revision requirements that otherwise would apply, while allowing
Imation to make changes without delay. The Final Project Agreement, EPA's seventeenth XL project, was signed
on December 21, 1999.

Innovative Approach: This innovative pilot will examine whether: (1) the preapproval approach to
accommodating changes at a plant will produce environmental compliance better than the traditional case-by-
case review of changes, and are enforcement officials able to follow changes and determine compliance as easily;
(2) Imation will experience decreased time to implement changes under this experiment; and (3) whether
permitting "transaction" costs are reduced for the environmental agency and Imation compared to the traditional
system?

Benefits for the  Environment: (1)lmation will comply with emissions caps on volatile organic compound
(VOC) emissions, which produce smog, and other air pollutants. Emission reduction credits generated through
imposition of the VOC cap will in part be retired by Imation and in part donated to Ventura County.  Ventura
County will sell the credits and use the proceeds to fund clean air projects that would not have been funded
otherwise. (2) Imation equipment emitting VOCs will comply with the most stringent federal emission reduction
requirements  of all those that apply at the plant, even though many plant operations are subject to  less  rigorous
requirements. (3) VOC emissions will be tracked through a state-of-the-art continuous emissions monitoring
device, which is not otherwise required.  This will provide the best available compliance information.

Benefits to  the Facility: This project will allow Imation to use alternate operating scenarios to preapprove
classes of changes to existing equipment and additions of new equipment, without revising their permit prior to
these changes.

Stakeholder Involvement:  The project details and draft Final Project Agreement are products of an active
stakeholder group that consists  of EPA, California Air Resources Board, Ventura County Air Pollution Control
District (APCD), and community representatives.  Several Ventura County organizations offered valuable input,
including the Environmental Coalition, the American  Lung Association, and the Ventura County Economic
Development Association. An ongoing stakeholder group will participate in evaluating the project, recommending
changes to the project, assisting in brining out community concerns, and maintaining a dialogue with Imation to
ensure transparency of project-related operations and continued superior environmental performance.

LOUISVILLE  PRETREATMENT

Louisville and Jefferson County Metropolitan Sewer District (MSD) have signed Phase 1 of a two-phase agreement
with the EPA.  The Agreement spells out MSD and EPA's intentions to achieve greater environmental gains by
redesigning MSD's waste water pre-treatment program, developing performance  measures, and collecting data to
gauge progress.  Using the new information, MSD plans to move toward a more holistic watershed protection
strategy for the Chenoweth Run watershed, whose current level of pollution is not meeting the State's use
designation.  MSD will  redesign  the pretreatment program to reduce  key pollutant loadings and identify areas
where resources  can be shifted to achieve greater environmental benefits.  The Phase 1 Project Agreement,
EPA's 18th XL project, was signed on January 31, 2000.

Innovative Approach: This pilot will explore whether MSD can build a bridge between the pretreatment
program and watershed management programs and use new and existing mechanisms to involve stakeholders
and  citizens  in this project.

Benefits for the  Environment: MSD plans to reduce the amount of pollutants being released into the
watershed by using pollution prevention measures and changing pretreatment program requirements. These
changes will allow local industry to save on operating costs and shift funds to nontraditional water quality


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controls, such as reducing erosion and storm water run off, improving stream banks, and planting trees.

Benefits to the Facility:  Under the current proposal, MSD is not requesting regulatory flexibility from EPA.
MSD's Phase I Agreement describes a process to collect data, develop pretreatment performance measures, and
to redesign and implement an improved pretreatment program . The proposal does outline areas that may require
regulatory flexibility once all data has been collected.  These areas include, but are not limited to: significant
noncompliance; monitoring and inspections; reporting; and the definition of significant industrial user (SIU).

Stakeholder Involvement:  MSD held public meetings to request input on the project. These meetings were
publicized through local newspapers and/or personal contacts.  Comments on the project and EPA's response
are on EPA's website and will be attached to the Final Project Agreement.
ALBUQUERQUE PRETREATMENT

This project aims to reduce the amount of pollutants released into the environment from industries and
businesses in Albuquerque by integrating pollution prevention (P2) activities with the existing Industrial
Pretreatment Program (IPP). The City of Albuquerque's proposal allows the present IPP program to shift
resources from certain less productive requirements towards innovative activities likely to yield superior
environmental results. Albuquerque will also initiate a variety of outreach efforts designed to increase the number
of businesses using P2 techniques. The Final Project Agreement (FPA), EPA's 19*1 XL project, was signed on
February 3, 2000.

Innovative Approach: This innovative project will test whether sewer sub-basin monitoring is a better method
to determine where certain pollutants  predominate in a watersshed

Benefits for the Environment:  Albuquerque will attempt to initially reduce loadings of aluminum, cadmium,
chromium, copper, cyanide, fluoride, lead, mercury, molybdenum, nickel, selenium, silver, and zinc by 10 - 25%.
In addition to reducing pollution loadings for these 13 pollutants of concern and improving the area's overall water
quality, this project will reduce mass and  concentration loadings of influent, effluent and biosolids. To help reach
these goals, Albuquerque plans to increase the number of businesses using  P2 techniques by 25 new
businesses per year.

Benefits to the  Facility: Albuquerque will modify some permits for burden reduction, replace certain permits
with general use permits, and revise its enforcement response  plan.  These changes will allow Albuquerque to
shift resources to cover P2 outreach and  other costs associated with reducing certain pollutants by 10-25%.

Stakeholder Involvement: Albuquerque held public meetings to request input on the project. These
meetings were publicized through local newspapers and personal contacts.  Comments on the project and EPA's
response are attached to the FPA.
DENTON PRETREATMENT

In 1997, the City of Denton Environmental Services Division and the University of North Texas (UNIT) Institute of
Applied Sciences conducted an 18 month study to assess the feasibility of integrating the industrial pretreatment
program activities with those required under the Phase II Stormwater regulations. Denton's XL project will allow it
to continue implementation of recommendations resulting from that study, which was completed in  March of
1998. Denton will reduce its monitoring and annual inspections for certain individually approved facilities and focus
on pollutants in the urban stormwater drainage.  The Final Project Agreement (FPA), EPA's 20th XL project, was
signed on February 22, 2000.
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Innovative Approach: This project will test whether integrating industrial pretreatment program activities with
those required under the Phase II Stormwater regulations can improve the environment; and whether a
combination of Pollution prevention measures, including BMPs, buffer zones and public education can increase
control of run-off from point and non-point sources?

Benefits for the Environment: Saved resources will be reapportioned to watershed protection activities
including inspections of vehicle maintenance facilities, recycling centers, junkyards, salvage yards, municipal and
school district fleet service operations, construction sites, establishment of a remote creek monitoring network,
and incorporation of pollution prevention BMPs into the local code of ordinances.

Benefits to the  Facility: Denton will be reducing its monitoring and inspection frequencies for certain
individually approved facilities, so that it can redirect resources to focus on pollutants in the urban stormwater
drainage.

Stakeholder Involvement: Denton held public meetings to request input on the project.  These meetings
were publicized through local newspapers and personal contacts. Comments  on the  project and EPA's response
are attached to the FPA.

International Paper - Predictive Emissions Monitoring

The International Paper XL Project will develop, test, and implement a computer model that can estimate pollutant
emissions on a continuous basis. The computer model which IP proposes to develop is called a Predictive
Emissions Monitoring System (PEMS). The project proposes to develop and subsequently install the PEMS on
IP's waste fuel  incinerator.  The PEMS has been developed and implemented for simple stacks such as gas fired
boilers, but has had very limited application for complex,  saturated stacks such as waste fuel incinerators.  The
International Paper PEMS project, EPA's 21st signed Final Project Agreement, was signed on April 20, 2000.

Innovative Approach: This experiment will test whether (1) a PEMS technology can be used to provide
continuous information for PM emissions from a complex, saturated stack; (2)  continuous
emissions data is accurate enough to replace current monitoring requirements; and (3) an improved
understanding of the operating parameters does lead to reductions in emissions that would otherwise not be
attainable.

Benefits for the Environment: The primary goal of this XL Project is to develop  an innovative state-of-the art
monitoring system designed to increase information  on environmental emissions, particularly particulate matter
(PM) emissions. The PEMS technology will allow IP to optimize stack emissions and production rates by
developing a linkage between emission rates and production rates and the operating parameters that affect them.
In addition, by identifying continuous emission levels and  key operating  parameters, the PEMS would provide
instant compliance information, allowing mill operators to identify opportunities for reductions in emission rates
and to prevent pollution from occurring in the first place.

Benefits to the  Facility:  The company is seeking regulatory flexibility in two areas. The first is to allow short
term, minor exceedances above existing permit limits in order to accurately calibrate and develop the computer
model. The second area of flexibility requested is from the frequency of routine stack testing  and the replacement
of continuous emission monitoring with the computer model. These requirements are  primarily embodied in state
regulations that have been approved by EPA and are considered to be federally enforceable.  If the PEMS are
determined to be successful, Maine DEP would submit, and EPA would intend to approve, an amendment to
State Implementation  Plan that would allow PEMS to become the approved continuous monitoring method on the
waste fuel incenerators for all emission sources.

Stakeholder Involvement: International Paper has held several public meetings to request input on the
project. These meetings were publicized through local newspapers and through local  radio announcements of
meetings and the availability for review of documents, meeting notes and technical data generated during project
implementation and testing. The stakeholder group will also be invited to participate and observe the work during


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project implementation.  Non-governmental stakeholders include, but are not limited to: Maine Lung, Environment
Northeast, Alliance for Environmental Innovation and Western Mountain Alliance and the Jay High School Science
Club.
U.S. Postal Service - Denver

The DSPS will scrap 512 late-1970s/early 1980s vintage postal vehicles operating in the Denver/Boulder non-
attainment area, taking these vehicles off the road permanently. The DSPS commits to using at least 794
alternative fuel vehicles in the Denver area and helping to stimulate the development of a public infrastructure to
support these vehicles.  In exchange for these commitments, the DSPS will receive up to 794 emission credits
from the State of Colorado.  The USPS is not requesting any federal flexibility. USPS, EPA's 22nd  Final Project
Agreement, was signed on May 22, 2000.

Innovative Approach: This experiment will test whether:, (1) a demonstration project can provide the impetus
for other fleet operators to purchase alternative fuel vehicles; and (2) 794 vehicles is a sufficient number of vehicles
to build an alternative fuel infrastructure.

Benefits for the Environment:  Some of the environmental benefits expected from this pilot include direct
reductions of air emissions by replacing high-emission vehicles with low emission vehicles.   Other benefits are
more difficult to measure-for example, stimulating the development of an infrastructure for alternative fuel vehicles.

Benefits to the Facility: Through this XL agreement, the USPS will earn 512 emission  credits to scrap
vehicles (one credit for each vehicle scrapped) and can earn up to 282 additional credits based on the amount of
ethanol used in the vehicles.  The USPS will also gain preferred vendor status and public recognition, as well as
assistance in publicizing the XL project.

Stakeholder Involvement: The organizations that helped develop this project include but are not limited to:
Ford Motor Company, National Ethanol Vehicle Coalition, environmental groups,  U.S. Environmental Protection
Agency, U.S. Department of Energy, State of Colorado, local ethanol production industry, and local gasoline
service stations.

Naval Station Mayport

To maintain adequate depths for naval ships, Naval Station Mayport (NS Mayport), in Jacksonville, Florida, must
dredge 600,000 cubic yards of sediment, every 18-24 months from the entrance channel of the St. Johns River
and the facility's turning basin (where the ships are anchored). Currently, this material is disposed into the
ocean. In an effort to eliminate ocean disposal, NS Mayport is asking EPA, under the XL/ENWEST Program, to
create a partnership with the US Army Corps of Engineers (COE), the State of Florida Department of
Environmental Protection (DEP), and the City of Jacksonville that would streamline the permitting process for
dredging  and ocean disposal. NS Mayport is proposing to investigate and demonstrate the  beneficial re-use of
dredged material by using it to produce construction blocks and artificial reef material.  This would ultimately
eliminate the need for ocean disposal of the dredged material.  NS Mayport, EPA's 23rd Final Project Agreement,
was signed on May 30, 2000.

Innovative Approach: This innovative pilot will anyalyze: (1) the effectiveness of a multi-agency partnership
between  EPA, NS Mayport, COE, Florida DEP and the City of Jacksonville to improve public health, the
environment and  marine habitat; (2) the ability to produce construction blocks and artificial reef material from
dredged material; and (3) the value of streamlining NS Mayport's dredging and ocean disposal permitting process.
Benefits for the Environment: Some of the potential superior environmental benefits of this project include:
(1) decreasing and eventually eliminating the need for ocean disposal of NS Mayport's maintenance dredged
material; (2) beneficially reusing the dredged material now contained in NS Mayport's two upland disposal sites to


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produce construction blocks and artificial reef material; (3) reducing the potential for adverse impacts to water
quality and benthic communities due to ocean disposal; and (4) reducing the amount of raw materials, such as
cement and aggregate, necessary for making concrete.

Benefits to the Facility: Through Project XL, NS Mayport seeks to synchronize the dredging and ocean
disposal permitting process.

Stakeholder Involvement: Public meetings were held to inform the general public and national
environmental groups about the Project and to invite their comments and participation.  Additional public meetings
may be held during implementation of the Agreement based on public interest or as decided by the direct
participants.  Stakeholder input and community goals have been and will continue to be considered throughout
project implementation.

Steele County, XL for Communities (XLC)

Nine small-to-medium sized industrial facilities located in Owatonna and Blooming Prairie, Minnesota are
committing to reduce the discharge of four priority metals and three priority effluents that flow to the local waste
water treatment facilities. The Owatonna sponsors also plan to minimize storm water runoff at each participating
facility and will  work with the local wastewater treatment facility to develop and distribute to the community
educational materials on the importance of minimizing storm water infiltration into the sewer system.  The Steele
County Project, EPA's 24th Final Project Agreement, was signed on May 31, 2000.

Innovative Approach: The Steele County project is the first XLC project, which encourages local public
sector and community organizations to come forward with new approaches to demonstrate community-
designed and directed  strategies for achieving greater environmental quality consistent with community
economic goals. This new agreement will examine the effectiveness of an overall community-based approach to
achieving superior environmental results.  It will also determine if: providing mass-based limits prior to full adoption
of water conservation practices can encourage facilities to incorporate water conservation measures into their
operations to a greater extent;  and development of an alternative approach to SNC publication will enhance a
community-based approach  to joint problem solving.

Benefits for  the Environment: The project sponsors have committed to four key areas of environmental
performance that will enhance  local environmental quality: (1) Reduce the discharge of four metals (Chromium,
Copper, Nickel, and Zinc) and three priority effluents (BOD, TSS, TKN) that flow into the local wastewater
treatment facilities; (2) Reduce the amount of water flowing to the local wastewater treatment facilities; (3)
Minimize the adverse impact of storm water on the local wastewater treatment facility by reducing the runoff from
each participating  facility and developing education materials for the local community; and  (4)
Arrange and participate in training for the development of an  ISO 14000-based Environmental Management
System (EMS) for each facility.

Benefits to the Facility:  Although the Blooming Prairie sponsor is not seeking regulatory flexibility, the
Owatonna sponsors are seeking flexibility from existing Federal specified pretreatment regulations.

Stakeholder Involvement: The Steele County Sponsors have worked to ensure that those parties with a
stake in the project are informed and have had an opportunity to fully participate in project development. Efforts
have included:  contact with a diverse local and national stakeholder group; holding regularly scheduled public
meetings to inform the public; requesting coverage of public meetings by the  local media;  and providing public
access to project documents through State, EPA Regional and Headquarters offices, as well as via the Internet.
As project implementation proceeds, outreach to local stakeholders will continue via the local media and direct
contact.  National and local stakeholders will also have adequate access to information to judge the success of
the project.

Georgia Pacific

Georgia-Pacific Corporation, a pulp and paper mill in Big Island, Virginia, will test the effectiveness of a new


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gasification technology under their signed agreement with EPA.  Georgia-Pacific owns and operates a mill that
produces the components of cardboard and emits pollutants during the manufacturing process. In April 1998,
EPA proposed a performance standard, the Maximum Achievable Control Technology (MACT II) regulation which,
if promulgated would regulate hazardous air pollutant emissions from combustion sources specifically associated
with the recovery of pulping chemicals from spent pulping liquor (aka "black liquor"). Presently, Georgia-Pacific
employs evaporators to concentrate black liquor and subsequently combust it in two high temperature recovery
smelters. To meet the standard proposed for pulp and paper mills in the MACT II regulation, Georgia-Pacific
proposes to install a black liquor gasification system that would be the first commercial application of this
innovative gasification technology in the United States. Georgia Pacific, EPA's 25th Final Project Agreement, was
signed on May 31, 2000.

Innovative Approach: This XL pilot will help determine if: (1) Georgia-Pacific's proposed installation of a black
liquor gasification system will make energy conversion systems more efficient and less capital intensive, while
improving safety and environmental standards; and (2) gasification will replace the need for expensive fossil fuels.

Benefits for the Environment: This new gasification technology has the  potential to produce much lower
air emissions compared to traditional technology, eliminate smelt-water explosion hazards, greatly improve the
industry's energy conversion potential, and to reduce operation and maintenance costs. The expected emissions
to be reduced include:  particulates (PM, PM10), Sulfur Dioxide (SO2), Total Reduced Sulfur (TRS), Nitrogen
Oxides (NOx),  Volatile  Organic Compounds (VOC), Carbon Monoxide (CO),  HAPs, and greenhouse gases,
specifically Carbon Dioxide (CO2).

Benefits to the Facility:  Because this is a new technology and the first commercial scale demonstration of
this type of gasifier, there is some risk that the technology will not work at all or will not work as well as
anticipated. Under these scenarios, Georgia-Pacific may have hazardous air pollutant emissions in excess of the
EPA MACT II  performance standard, and under Project XL they seek allowance for such emissions for a set
period of time (until a conventional recovery system can be built).

Stakeholder Involvement:  To encourage stakeholder involvement, public  meetings were held in Bedford,
Lynchburg, and Big Island. Information about the project was distributed to local newspapers, radio and TV
stations. A series of eight stakeholder meetings were held to discuss the Final Project Agreement.  The first two
meetings included tours of the Big Island facility and detailed briefing and discussions of the Mill's operations,
manufacturing  process, the proposed gasification system process and the anticipated air quality improvements
associated with the proposed new equipment.
FOR ELECTRONIC INFORMATION

More information about Project XL is available on the Internet at http://www.epa.aov/ProiectXL, or via Project XL's
Information Line at 202-260-5754.
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