Making Pollution Prevention Pay - P2 InfoHouse · towards energy conservation, electro- nics,...

u" 4

rD Y

U

m

m C

3

> 7T

n

Pergamon Press Offices

U.S.A.

U.K.

CANADA

AUSTRALIA

FRANCE

FEDERAL REPUBLIC OF GERMANY

Pergamon Press Inc.. Maxwell House. Fairview Park. Elmsford. New York 13523. U.S.A.

Pergamon Press Ltd.. Headington Hill Hall. Oxford OX3 OBW. England

Pergamon Press Canada Ltd.. Suite 104. 150 Consumers Road. Willowaale. Ontario M2J 1 P9. Canada

Pergamon Press (Aust.) Pty. Ltd.. P.O. Box 544. Potts Point. NSW 201 1, Australia

Pergamon Press SARL. 24 rue des Ecoles. 75240 Paris. Cedex 05. France

Pergamon Press CmbH. Hammerweg 6 6242 Kronberg/Taunus. Federal Republic of Germany

Copyright 0 1982 Pergamon Press Inc.

Library of Congress Cataloging in Publication Data Main entry under title:

Making pollution prevention pay.

Papers presented at a symposium held in Winston-

1. Pollution-Economic aspects-Congresses. 2. Pol- Salem, N.C., my 26-27, 1982.

lution control industry-Cost effectiveness-congresses. 3. Environmentsl protection-Cost effectiye- ness-Congresses . 4. Enviromntd policy-Coat effectiveness-Congresses. I. Huisingh, Don, 1937- . 11. Bailey, Vickie, 1953- ~~69.~6~28 182 363.7'37 82-1858i ISBN 0-08429 it 17-0

All Rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means: el ctronic, electrostatic, magnetic tape, mechanical, photocopying, relording or otherwise, without permission in writing from the publishers.

Printed in the United States of America

TABLE OF CONTENTS

Acknowledgements

Preface

Introduction

Making Pollution Prevention Pay Dr. M. G. Royston

Page

vi i

ix

xi 1

Pollution Prevention Pays: The 3M Corporate Experience 17

23

Russell H. Susag, Ph.D., P.E. t?*

Dan Meyer "In Every Dark Cloud ..."

Disposal Cost Reductions from Ciba Geigy Corporation's Cost Improvement Program 28

John A. Stone, Ph.D.

Polyvinyl Alcohol Recovery by Ultrafiltration H. C. (Nick) Ince Tom Grizzle

33

Opportunities for Clean Technology in North Carolina 41 Dr. M. G. Royston

Implication and Procedures for Waste Elimination of Hazardous Wastes

Dr. Michael R. Overcash

Chemical Recycling: Making it Work, Making it Pay Dr. Paul Palmer

68

73

Waste Exchanges: An Informational Tool for Linking Waste Generators with Users 86

Elizabeth W. Dorn M. Timothy McAdams

Donald D. Easson Process Design to Minimize Pollution Case Studies 95

A Systems Approach to Waste Management

Waste Reduction - Concept to Reality James C. Dickerman

A. Brent Brower, P.E.

103

110

Positive Incentives for Pollution Control in North Carolina: A Policy Analysis 115

Dr. Carlisle Ford Runge

Pergamon Titles of Related Interest Colglazier THE POLITICS OF NUCLEAR WASTE

Dolman GLOBAL PLANNING AND RESOURCE MANAGEMENT Gabor BEYOND THE AGE OF WASTE, Second Edition

Geller/Winett/Everett PRESERVING THE ENVIRONMENT Meetham ATMOSPHERIC POLLUTION, Fourth Edition Murphy ENERGY AND ENVIRONMENTAL BALANCE

Royston POLLUTION PREVENTION PAYS

Related Journals* CONSERVATION AND RECYCLING

CURRENT ADVANCES IN ECOLOGICAL SCIENCES ENVIRONMENT INTERNATIONAL

THE ENVIRONMENTAL PROFESSIONAL

*Free specimen copies available upon request.

ACKNOWLEDGEMENTS

As editors of these proceedings, we wish to express our appreciation to the authors of the following papers for being so punctual in sending their copy to us and for presenting their information in a clear and concise manner. Thanks also to Ms. Jeanne Adam for her excellent preparation of the final manuscript. Her tireless efforts are responsible for the expediency in the publishing of this volume.

We are grateful for the hundreds of hours contributed by dozens of individuals during the planning and delivery phases of the symposium. Their ideas and able assistance contributed much to the success of the entire project.

Finally, we say thank you to the members of the board of the Mary Reynolds Babcock Foundation for their allocation of funds for the symposium and the publication of this proceedings volume.

Appreciatively,

Don Huisingh, Editor

Vickie Bailey, Editor

vii

POLLUTION PREVENTION PAYS: ECONOMY WITH ECOLOGY AS POLICY

PREFACE

National and state opinion polls have shown repeatedly that citizens are demanding economic growth and quality environment. ask, to have both at the same time? other individuals and groups throughout society have said and continue to say that it isn't. Many act as though it isn't.

Fortunately, increasing numbers of industrial leaders are demonstrating that it is possible! The exciting truth presented in this volume is tribute to industries that have learned, "Pollution is a symptom of using inefficient technologies that waste resources, degrade the environment and are unprofitable". These leaders have learned, pollution^ Prevention

Is it possible, you Many governmental, industrial and

Pays".

an article by Dr. Michael Royston of Geneva, Switzerland, that appeared in the November-December, 1980 issue of the Harvard Business Review under the title, "Making Pollution Prevention Pa 'I. (Thanks to Mrs. Jane Sharpe for bringing the article to our attention.7 As the title suggests, this article offers the forward-looking and preventive emphases that are stressed in the following symposium proceedings.

As a result of the interest the article and a book published by Pergamon Press entitled, "Pollution Prevention Pays" by Michael Royston, generated among a number of state government staff, university faculty, and industrialists, several of us decided to plan and sponsor a symposium designed to share this information with industrial, governmental and civic leaders throughout North Carolina and the region.

In August, 1981 we (under the auspices of Dr. Quentin Lindsey and the North Carolina Board of Science and Technology) submitted a grant proposal to the Mary Reynolds Babcock Foundation. sponsored by:

We first learned of the Pollution Prevention Pays (PPP) concept from

The proposal as submitted was co-

The TSCA Project--The Governor's Office and the N.C. Board of

The Governor's Waste Management Board North Carolina Department of Commerce North Carolina Department of Human Resources North Carolina Department of Natural Resources and

North Carolina Department of Community Colleges The Industrial Extension Service of North Carolina

The Professional Engineers of North Carolina The North Carolina Citizens' Association The North Carolina Industrial Developers' Association North Carolina Associated Industries

Upon learning of the award of $25,000 from the Mary Reynolds Babcock

Science and Technology

Community Development

State University

(Sam Johnson, Attorney)

Foundation in November, 1981, the co-sponsors turned their efforts to planning a 2-phase educational program in North Carolina on the concept "Pollution Prevention Pays". Phase I consisted of a symposium on the philosophy, technology and economics of pollution prevention, held on May 26-27, 1982 at the W. C. Benton, Jr. Convention Center in Winston-Salem, North Carolina. The papers presented are contained in this volume.

ix

X

During Phase 11, which is currently being planned with the involvement of several dozen governmental, industrial , academic and citizen groups, mechanisms for the implementation of "Pollution Prevention Pays" in North Carolina will be developed and enacted.

The "Pollution Prevention Pays" effort is being designed to be an integral component of the state plan for toxic substance and hazardous waste management. It will support economic growth through the increase of bottom-line industrial profits by eliminating or reducing wasteful inefficiency of end-of-pipe pollution control costs. Environmental quality will be improved and a clean, healthy environment maintained, as harmful and/or unaesthetic substances are either not produced or not released into the environment. Finally, all of the diverse groups and individuals who play a role in economic growth and management can focus together in a positive and cooperative way to meet the challenge of achieving what are most fundamentally "everyone's best interests", health and prosperity.

citizens an extraordinary opportunity to work together and to trust each other," states Bill Holman of the N.C. Conservation Council. It is with this positive spirit that we herald in now, with these proceedings, a new philosophy of waste and pollution prevention.

"Making pollution prevention pay gives industry, government and

Don Huisingh

Vicki Bailey

I'

INTRODUCTION

How many times have you heard the statement, "It is either jobs or the environment?" The implication is that the environmental and economic health of society are in direct competition with each other. true one must choose either jobs or the environment, or some combination of the two.

Those holding this view emphasize that many environmental regulations enacted during the decade of the 70's with primary emphasis upon pollution control have been costly to implement and have yielded fewer environmental benefits than were expected.

struggle between economic and environmental forces? Must we sacrifice the environment on the economic altar? Is there another way?

Fortunately, leading industries throughout the world are demonstrating that indeed there is a better way; one that proves conclusively that economic health and environmental health travel hand in hand. What new secret have they found? They have rediscovered the truth in the old adaqe,

If this is

Is there no way out of this dilemma? Are we trapped in an eternal

"An once of r&ention is w&th a pound of cure". truth in wha! J.T. LingTf-0 succincny-ased it,

They have found the

POLLUTION PREVENTION PAYS.

This symposium was designed to acquaint industrial, governmental, academic and private citizens with the concepts and experiences of industries from all parts of the world. illustrate that in changing from a primary emphasis upon "end of pipe" ollution control to a system-wide emphasis upon pollytion prevention the

{ompanies derive economic benefits while environmenta quality is improved. As you read this symposium proceedings, you will be pleased to learn

that these approaches can be applied to a wide variety of industrial applications. As Michael Royston astutely points out, "ecology" and "economy" are derived from the same Greek root, *. Through pursuance of the pollution prevention course, we can once again reunite economics and ecology in a positive, non-competitive fashion.

Graphic evidence is presented to

xi

I 'I

MAKING POLLUTION PREVENTION PAY

Dr. M. G. Royston International Management Ins t i tu te

Geneva

ABSTRACT

Pollution is a symptom of using low technologies which not only waste valuable resources, but which are also unprofitable. All around the world countries and companies are adopting simultaneously strategies for clean technology and for restructuring towards higher level, higher value-added, and more profitable technologies. Singapore make clean technology an explicit part of their national policies, which are also increasingly oriented towards energy conservation, electronics, aerospace and quality. which has abated pollution in its plants worldwide, and saved over $80 million as a result. Pollution prevention does pay therefore, both in straight financial terms, and also in terms of measuring a company's or a country's ability to meet the challenge of a world short of natural and economic resources, in other words, to survive.

Countries such as France, Japan and

Among companies, the prime example is 3M,

KEY WORDS

Low technologies, higher value-added, France, Japan and Singapore, energy conservation, electronics, aerospace, quality.

MAKING POLLUTION PREVENTION PAY

All over the world it is being realized that pollution is not just an ecological or an economic problem. symptom of deeper problems in our economic structures.

Which are the industries which are the economic headaches of most industrialized countries? Steel? Heavy chemicals? Non-ferrous metallurgy? Pulp and Paper? Textile? Mining? And what are the industries which are top of the environmentalists' hit lists? Very much the same. And why is this? Probably because these are old, low technology industries. It is low technology which leads to low profitability, and also to low resource utilization efficiency, ie. high waste and pollution.

What we see, then, is a valid basis for ensuring that future industrial investments are characterized by low pollution, because by doing so

It is now seen that pollution is a

1

2

we are likely to encourage higher technology, high skill development, lower energy and resource usage, and hence, high value added, specialization and profitability.

Singapore is one of the few countries which has taken the question of selecting clean technology seriously. Anyone visiting that city-state is impressed by three things: the cleanliness and greenness of the city, the happiness of the people and the evident prosperity. All this is based on a deliberate strategy of selecting high value-added clean technology based on electronics, optics, precision engineering and services.

Interestingly enough, this is exactly the strategy which comes out of the analyses of over 2000 businesses by the Strategic Planning Institute in Cambridge, Mass. Their findings suggest that the most profitable strategy is based on producing high quality, specialized products to meet and domi- nate a particular market niche with a high service content and a low investment intensity; ie., using grey matter rather than black gold.

matters is France, with a very clear and successful policy of nuclear energy, computers and aerospace. technology whose progress is regularly reported at national and regional 1 evels.

A recent survey in France showed that, of a sample of 100 companies with clean technology, 70 involved investment less than what would be required if the pollution had been solved by adding on pollution control equipment.

plants using clean technology WAS LESS than that of the original dirty plants. So France is well-launched on the path of clean technology, hand- in-hand with an orientation to a new industrial revolution based on micro- electronics and nuclear energy.

What is happening in France is occurring even more rapidly in Japan. In 1972 when most western countries were spending about 1% of GNP on pollution control, Japan was spending 6% of GNP, and was criticized by other countries for falsifying the account and spending the money, not on good old add-on pollution control equipment, but in subversively modernizing their factories with new clean technology. So now Japanese industry is not only cleaner and more profitable than before, but is also being heavily re- structured away from producing steel, ships, copper, aluminum, pulp and paper, etc., and towards a high value-added, electronic society in which its large nuclear programme is forging ahead unhampered. coincidence that it is Japan that produced an automobile - the HONDA CVCC - which can meet California air pollution standards through the use of the stratified charge engine which also gives 20% better fuel economy than a standard 'dirty' engine of the same power output.

All around the world it is being realized that pollution is a sign of wasteful inefficiency and represents a potentially valuable resource in the wrong place.

there is a chlor-alkali plant which was built over twenty years ago. Unlike most such plants in the world, it does not pollute. All the waste chlorine streams are collected and used to make bleaching powder which is then sold. The sludge from the electrolysis cells is sold as filler to a local rubber factory, and there is no mercury pollution because since its inception the plant has used diaphram cells. In Shanghai, each year 2 million tons of building material is produced from waste materials and every day 5,000 tons of human wastes are taken out of the city to be converted into bio-gas and fertilizer. The late Chairman Mao Tse-tung never talked about pollution control, he always talked of the Three Wastes -

Another country which has a rather clear-minded approach to these

They have an advanced programme of clean

Even more interesting, in 69 cases the running cost of the clean

It is not

In the Guangzhou Chemical Works in the People's Republic of China

3

waste solids, waste liquids and waste gases and the need to turn these "wastes into treasures and the harmful into beneficial". In fact, one can go back 2,500 years to Lao Tzu, and probably even further, and find the same great virtue of frugality being expounded. can reveal it to be not a threat but an opportunity in the same way as Mao Tse-tung saw a pig as a "walking fertilizer factory".

In Thailand, Kamchai Iamsuri runs an "ecological" and economical rice milling operation which includes a 200 ton per day rice mill, a poultry farm, a 10,000 pig farm and a fish farm of 3 million fish. brickworks using rice husks as fuel. the waste from one activity becomes the feed for another. good housekeeping, demonstrating the significance of the common root "oikos", the Greek word for household, in the two words "ecology" - study of the household - and "economics" - management of the household. In Belize in Central America there is a fermentation plant which converts citrus industry wastes into high protein animal feed. In Malaysia a similar product is produced from palm oil industry effluent, the largest single source of pollution in the country. Also in Malaysia, old tin mine sites have been converted into recreational areas, and in the Philippines, site of the Second World Recycle Conference, examples of turning waste to profit abound, particularly in the conversion of forest wastes and special fast growing trees into energy. In Tunisia, as in many countries, industrial waste waters from, for example, the textile industry are recycled and municipal waste waters are treated with algae and then used for irrigation.

time in the 1950s and 60s this ethic was forgotten in some of the rich industrialized countries and they ceased to be economical in their ecological endeavours.

Thus, while in one Norwegian pulp and paper mill in 1953 the black liquor was evaporated and used to fire the boilers, in 1963 it was found to be cheaper to burn oil in the boilers and dump the black liquor in the nearest river. In 1973 with the oil crisis, the black liquor evaporators were re-introduced.

In the Lake Tahoe advanced waste water treatment plant in the Cali- fornia Sierra, it is estimated that more pollution is created by the manufacture of the equipment, chemicals and the power needed to run the plant than it actually removes. Here the main difference is that the pollution is removed from the expensive Lake Tahoe resort area and it is introduced in the poorer industrial areas.

Today, with increasing costs of energy, raw materials, water and pollution control, many companies are beginning to realize that pollution prevention pays. This is the basis of the 3P programme of the 3M company. They introduced this policy in 1976 based on the concept that:

Pollutants + Know-how = Potential Resources (+ Profit). Since then, with very little investment in plant and process modification and none for additional pollution control equipment, the company worldwide has eliminated hundreds of thousands of tons of gaseous effluents, millions of tons of solid wastes and hundred of millions of gallons of waste waters; and, instead of it costing money, they have saved over $80 million as a result.

Economic Commission for Europe is in the process of establishing a compendium of Low and Non-Waste Technologies. deasphaltising of petroleum residues, utilizing steam condensates from petroleum stripping, dry bark stripping of wood came from the Soviet Union; an aerobic/anaerobic process for waste water treatment, refuse recovery, iron ore smelting came from Sweden; a process for converting organic waste into a stable fuel and mercury recovery from Spain; and as might be expected, 17 processes from France, including demineralization of beet sugar,

A new look at pollution

There is even a All the units are arranged so that

This is truly

All cultures used to believe in "waste not, want not". For a brief

Industries worldwide are following this path. The United Nations

New clean technologies for the

4

ammonium nitrate production, potato starch, surface treatment of plastics, chip board, surface treatment of brass, hydrogen washing, solvent recovery, asbestos-cement, recovery of chlorine residues, printing paper production, wdol washing, mercerising cotton, electrophoretic painting, de- scaling of steel billets (these are some of 100 case studies which have been described and published by the French Ministry of the Environment under the title "Clean Technologies in French Industry"). gies in the ECE compendium are bio-gas plants and solvent recovery plants from Denmark; recovery of red mud from titanium dioxide manufacture in Czechoslovakia; closed silicon-iron furnaces and nitro-phosphate production, fluoride recovery from aluminum and fertilizer from Norway; nitric acid from Hungary, ferro-chrome, zinc coating, desalination, mechanical pulp from Finland, closed cycle Kraft pulp production, retrofitting domestic heaters, waste oil in cement kilns from Canada; plastic wastes and glass wastes from Belgium; and re-use of moulding sands from Poland. Germany also has carried out a survey of clean technology applications under the auspices of the German Industry Federation. examp 1 es . However, the extraordinary thing is not so much that so many examples exist, but that in almost all cases they exist despite the complete absence of a management policy aimed at mobilizing the efforts and imagination of everyone in the organization to re-examine practices and come up with more efficient solutions which are both cheaper and cleaner.

At an even higher level, and given the right policy guidelines, clean operation becomes as much an indication of good management as does profitability. Thus a study of 17 companies running 120 pulp and paper mills in the USA showed a strong correlation between a good record of pollution control and a good prof it record.

Other technolo-

Table I gives some

Rank Correlatiori Coefficient

Return on Between Earttitigs per Return on and share eqtiity capiial

% of plants with Significant Significant Not Significant pollution control equip.

% of plants with Significant Significant Not Significant advanced wnste water treatment

Subjective evalu- Sigtiificatit Significant Significant ation by Council of Econoniic Planning of pollution control effort

('Significant' means ;ignificant at the 95% confiderice level)

5

While the association measured here does not necessarily imply Causal- ity, the investigators of this particular study did conclude that the good profit record reflected the lower costs associated with better pollution control and better management.

In the U.S., considerable effort is also going into the introduction of clean technology. control up to 1981, Table I11 shows the expenditure on end-of-line equipment, and, by difference, Table IV shows the expenditure on in-process clean technology.

Figures 1, 2, 3 and 4 show typical details of such clean technology. Figure 1 shows how re-design of the process for de-oiling of cloth

prior to dyeing or printing saves investment and running costs. Again, as in Fig. 2, re-cycle of caustic used for mercerizing cotton

brings savings. In textile printing, reduced pollution and savings result from chang-

ing the composition of the white spirit paste used in the preparation of cloth for printing, Fig. 3.

Even in something as simple as dealing with drawing and spinning oil in synthetic fibre manufacture, this approach leads to significant savings in both capital investment and running costs, as seen in Fig. 4.

Table I1 shows the total expenditure on pollution

Name of Company

Gesamtverband der Deutschen Stein- kohlenbergbaus

Forschungsinstitut der Zementindustrie

Verein deutscher Eisenhuttenleute

Problem

Air and water pollution from loading of dusty coal and wet quenching of hot coke from coke ovens

Dust emissions from cement works

Water pollution from steelworks

29 million tons of solid wastes from steel works producing 50 million tons of steel

Sol ut ion

Enclose discharge area and quenching zone AND Continuous coking process

Dust collection from mills and kilns and recycle of material

99% recycle of water

Recycle and re-use all but 2% million tons as - road material - cement - fertilizer - recycle of iron

dusts, etc.

Benefit

Less pollution and recovery of water gas and steam which provides 30-40% of energy of plant or production of synthesis gas.

Less pollution and greater efficiency

Less water costs, less pollution Increased efficiency and sales from reused products

6

Name of Company

Vereinigte Aluminium Werke

Fa.W.Reffelmann Metallverarbeitung KG

Rohm GmbH

Verband Kunst- stofferzeugend Industrie

ENKA-Glanzstoff AG

Wirtschaf tsverband der deutschen Kautschukindustrie

Pro b 1 em

TABLE 1 (concluded)

Fluoride rich waste gases

Water pollution from electroplating solutions, especially the rinse waters

Waste acid from acrylic resins

Disposal of waste plastics

Sol ut ion

Absorption of fluorides on aluminium oxide and return to the smelters

Counter-current washing of work- pieces, followed by ion exchange of concentrated solution

Pass waste salts through cracker and regenerate 500 ton/day of sulphuric acid.

Retorting or pyrolysis of wastes to produce original monomers for re- synthesis of fuels AND Melting down and production of foams AND Re- melting and moulding new products AND Burning fuel.

Pollution of rivers Precitipate zinc by zinc from rayon with lime water spinning baths and recycle to

Waste tires - Retread process

- Rubber recovery - Blacktop for surf acing

- Pyrolysis for recovering raw materi a1 s

- Backing of rails - Coastal protection

Benefit

Reduce air pollution and saving in purchase of cryolite flux.

No pollution. Recovery of nickel and chromium salts. Improved water quality. Re- duced use of chemicals

No pollution, no purchase of acid.

No pollution New products

Reduced pol 1 ut ion Reduced process costs.

Eliminates intractable waste problem and creates new materials and energy.

TABLE I1 - New Plant and Equipment Expenditures by U.S. Nonfarm Business: Total and for Pollution Abatement Billions of $

later Solld I waste 1

Total 1

r ~~

TOPI nonfarm buslnssa _______________.____ ._.______ Manufmiurlng.. . _____.. .______ ____. ...__ .................

Durable gwda ..........................................

210.46

98.69

61.07

1978

Pollutlon abatement

7.71 3.29 3.11 2.96 8.59

11.58 18. 16 9.08 7.03 3.82 5.08

(Ita1 I A'r

.88 .67

.61 .41

.27 .I7

.07 .02

.I6 .07

.I5 .07

.52 .31

.39 .25

. 10 .w

.25 .21

.14 .Oi

8.42 4.50

4.82 1 255

2.w 1.21

,28 ,I9 .07

.at .OB

.07

.I7

.I2

.M

.at

.OB

.w .01

.at

.01 .02

.01

.M

.02

.02

.01

.Ol

2.82 I 1.34

.2R 19 .as .a5 .a, .as , 13

.OB

.m

.M .M

.07

.02

.a5

.01

.at

.01

.oi

.M .02

.M

3.60 I 1.91

.82

.62

.21

.07

.I1 , I4 ,4I .3l .01 .21 .I5

.e4

.43

.I4

.03

.05

.07

.I8

.I5

.03

.I7

.@a

.28

.I9

.OB

.OB .I6 .I1 .at .03 .05

:;

3.21 0.11

1.84 1 .43

..M .14

.02

.01

.Ol

.01

.OB

.05

.01

.01

.01

(?Ol

.I6 :E .34

.91

.02

.01

1.191 .29

'". .at 08

.lI

.I8

.Ol ,01

.I8

1: .32 .69 .01 .02

1.36 I .23

.a2 (?07 .IO .IS .01 .01

.27

.OB

.40

.63 1.38 .05 .w

1980

I Pollution abatement I--

.@a

.hl .I8 .29 .72 .M .01

II

35.63 9.20 6.07

15.81 5.52 288

58.91 I 221 1 1.42

.?a

.53

.01

.01

.OB

.I3

.01

.02

12.M1 20.69

1.73 6.08

179.811 3.691 2.1!

.73 .31 1.71 .a .at .w .W .01

.21

.OB

.03

(?03 .61 .M

:E .01

later I Solid waste

I

.08

.01 (*)

(*).01 .20 .20

.01 '".M

.51

.IO

.at

.Ol

2.75 2.70

.05

.I9

.M

.a5

1.40( .40

.I:

.M

.01

.01

1.6: 1.6 .(I .cr .a

.o:

.27

:g (?02 .B7 .# .03 .OB .02

1.20 I .30

.IO

(;p' '?Ol

.I3

.I3

.01

.M

.01

otal I

- I. 12

1.85

66.41

8. 20 3.27 3.59 3. 25 12.05 13.98 19. I8 0. 10 7.62 3.80 5.91

63.38

1.82 1.72 6.73

13. II 25. 17 2.30 6.43

195.81

15.87 12.81

1. I1 4.1 38.21 30.24 8. E 88.9: 41.9:

4.40

-

13.51 12.08 4.25 4.01 3.82 35.44 ?a. 12 7.32

81.79 38.99

Planned I981

.48 .I;

.lI .o:

.M .o'

2.88 1.b 2.82 1.6 .07 .O .I7 .O .u .a

::; (3

Pollutlon abatement - otal

- 1o.w 6.34

2.48

1. I1 .w .36 .OB ,233 .11 .44 .30 .12 .26 .17

3.86

.so .@a

.43

.81 2. I5

.06

.05

3.66

.4Q

.13

.a! .01

.M 2.81 2.74 .G . 11 .w

._ hlr

- 5.67

3.26

1.41

.7n

. (6

.w .at

. I1

.19

.13

.a5

.21

.08

1.80

.IO

.6

.1 1. w .02 .m

2. 31

.x .o:

.01

.01

.a 1.9: I. P( .o:

1 .a

.m

.le

-

1.611 .43

1.01 I .34

Survey of Current Business, June 1981 U

TABLE I11 - New Plant and Equipment Expenditures for Air and Water Pollution Abatement by End-of-Line Methods

Billions of $

.21

.I8

.05

.03

.04

.ffi

.I2

.in .02

.03

.05

L

.x

.SI

.2f

.oE

.I5

. 13

.a .21

.07

.I9

. II

Ll"

- 1

2

3

4 5 6 7 8 Q IO 11 12 13 14

15

16 17 18 I9 20 21 22

23

24 25 26 27 28 28 30 31

33 a?

. I3

.02

.I4 .27 .58 .01 .02

-- I Total

I

.I9

.05

.a .6l 1.67 .04 .03

Told nonfarm buslness.. . .................... M.n"hclurlng .... . . . . .. . . . . . . . . . . . . . . . ... .. . ..... . Durable gwda ... .... .._. ..... ... ... .. .. . .. ... .....

.20

.04

.03

. O? .64

.63

.01 .03 .01

0

I Prlmary metals l... .__..._._._....._._.__________ Blast lumaees. steel works ._._.......____.______

.36

. @J

.05

2.14 2.11 .03 .08 .02

(7 . 04

Nonlrrraur mel~ls.. . . . . . . . . . . . . . ____ __ Fahrlrntcd metali . . . . _. . . . . . . . . . . . . . .. .. Elcelrlcal machlnrry. . . . . . . . . . . . . . . .. .. . .... Mwhlnery. ewept cIocIr.c~I _____.. . .. ... . ..I/ TrmsDorl~llon coummcnl 1. ....._ ... ........ :

Stone, clay, and Othcr durablcs 2

N

N .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

Air ............................................ Other ..........................................

Pulillc Electric ulilitic~ ... . . . _____. . . ... __ . .. ____. . .. .. . __ . ___ ______ _____ ............. ___. ___ ... . . Gas and other ___.____.._.________..............

Trado and scrviccs ______._____________........... Communlcatlon and other 6 ____________________..

6.12

3.41

1.47

.78

.57

.I5

.04

.07

.IO

.20

.I4

.04

.I7

.II

2.01

.I6

.03

.28

.47 1.01 .04 .02

2.66

.38

.ffi

.03

2.07 2.05 .02 .I2 .03

(" .03

1979 __

Air

3.55

2 01

.95

.55

.30

.I1

.02

.03

.04

.IO

.08

.02

.I4

.07

1.06

.01

.01

.I5

.23

.57

.03

.01

1.64

.I3

. 02 .01

1.32 1.31 .01 .ffi .01

'". 01

- water

2 5;

1.41

.61

.2:

.If

. 04 . 0: .a

. 0: .I(

.01

. 0: .E .04

.95

.I2

.os

.I2

.23

.01

. 01

1.11

.25

.04

.02

.02

.75

.73

.02

.05

.02

.43

0

- Total

6.81

4.0:

1.U

.81

.5f

.I8

.01

.cn

. I1 .31

.25

.05

. IO . IO 2.37

.I7

.03

.26

.54 1.32 .02 .03

2.78

.34

.08

.03

2.25 2.23 .02 .08 .03

(-) .04

1980 I Planned 1981

Air

4.18

2.32

1. IO

.57

.38

.I4

.02

.05

.05

.I9

.I6

.03

.16

.05

1.21

. 01

.01

.I2

.n

.14

.01

.01

1.86

.I5

.03

.01

1.61 1. M .Ol .@5 . 02

'". 02

Water I Total

7.31

4.71

.65 1.8:

1.16 I 2.87

.9I 1 2.69

Air

4.60

268 1. I8

.65 .4I .20 .02 .a .ffi . I4 .IO .03 .I6 .07

1.50

.ffi

.02

.I4

.30

.93

.02

.02

1.92

. I8

.01

.01

I. 63 I. 61 .02 .ffi , O?

"! o?

water

2 80

2.02

.s

.25

. I8

.ffi

.01

.07

.07

.15

. II

.03

.Ol

.Ol

1.37

13 .03 .14 .31 .74 .02 . 01

.77

. I8

.05

.03

.02

.51

.50

.01

.02

. 01

0

he

- 1

2

3

4 5 6 7 8 J

IO II 12 13 14

15

16 17 18 19 20 21 22

w

Survey of Current Business, June 1981

9

a) Investment in Clean Technology r

New Plnnt and Equipment Expenditures ior Air and U'nter Pollution Abatement by Chnnges-in-Production Proceas hletllodr

IDaIliom 01 dollar$l

1 1973 I 1974 1 1975 1 1976 1 1977 1978 I 1979

TohInonfum buin uvl.... ............ 1 1.05 1 1.09 I 1.21 I 1.31 I 1.34 I 1.42 I 1.53 I 1.55 I 1.63

hianulacturing ............................. GI .% .83 95 .88 83 .92 .91 1.M Durables.. ............................... Nondurables .............................. I I I :: I 1 :z I ::i 1 :::I 1: 1 :t;

Nonmanulaeturing.. ....................... .w Elcetrieulilitres .......................... 1 :::I :el 121 .I2 :::I .I5 ::I .I1 :::I .lG .43 .20 other nomanurscturing .................. .II .lo .13

~~~~ - 1. Chanaes-in-produetion-prqePss methods involve tho modineation of existing production procegses or the substitution

01 new proeesen to reduce or eliminate lhc pllutantS generated.

Survey of Current Business, June 19

b) Investment in Clean Technology as a, Percentage of Total Investment in Pollution Abatement

Steel

Mining

Non-ferrous metals

Stone, Clay, Glass Chemicals

Rubber Machinery, except

Paper

Food, Beverage

Fabricated metals Electrical machinery

Textiles

Gas

electrical

1979 1980 1981

8% 7% 9% 10% 13 % 13%

15% 18 % 14%

15% 21% 24 %

18% 15% 13% 20% 33% 20%

23% 21% 23 %

28% 19% 17 %

33 % 33% 27 %

33% 20% 25% 36% 31% 25%

40% 57% 37% 60% 67% 57 %

'1

"

40

00

..

ww

N

O

00

.

.

tn

S

.r c

.r 0

W

-0

c,

S

W > 0

VI

'c 0

VI

VI

W

V 0

L

S

4

W

V

I

W

S

-0

5

rcl

c

n

c

-0

.

em

02

.r-

*C,

I-%

W

.C,

01

.r IC

L

O

0

c

f

Y- O

C 0

c,

u 3

-0

aJ CT

.r

m

m

.r

LL

d

4

W

14

As well as paying off in a reduced wastage of resources, pollution control also pays off in reduced damage to the environment. For example, it is currently estimated that air pollution in the USA costs $10 billion per year in health costs alone. In 1972, it was estimated also in the USA that the benefit-to-cost ratio for pollution abatement was 2.2. Italy presented to the Stockholm Conference in the same year, estimates showing a 1.2 benefit cost ratio for proposed pollution control measures. Table 5 shows some estimated damage costs which show that 1-3% of GNP is lost through pollution. In developing countries, with a greater dependence of people on their natural environment for health, food, water and with a lower per capita GNP, the economic loss due to pollution is likely to be even greater in percentage terms. Whether in terms of damaged environment or wasted resources, pollution damages the economy and pollution prevention Pays *

What is valid for industrial pollution is even more valid for agriculture pollution. Deforestation leads to soil erosion, loss of fertility and imbalance of the water cycle. In the Indian sub-continent in recent years this has led to massive flooding with the resulting loss of thousands of human lives and millions of head of cattle. The economic benefit of avoiding this situation is obviously vast. In Thailand, the Bangkok Bank has reported how destruction of environmental resources by ill-advised forestry, farming, industrial and mining operations has impoverished the rural masses and encouraged many in their desperate flight to the cities. Prevention of this sort of pollution would certainly pay off.

TABLE 5 Estimated damage costs of uncontrolled pollution (millions of dollars).

Per capita cost, US dollars

USA Canada United Kingdom Italy

Health 60 2.5 35 2.5

Agr icu 1 ture 0.5 0.5 10 0.5

Services, amenities, tourism 20 10 10 5

Materials 24 49 14 5

TOTAL 104.5 62 69 13

As a percentage of GNP 2% 1% 3% 1%

Fortunately, it is increasingly being realized that good project management requires good environmental management. on time, on budget and to specification requires that the project manager must know and appreciate the potential project-environment interactions and hence must plan to avoid negative effects.

However, pollution prevention benefits will not be fully realized if domestic environmental proglems are not solved by domestic environmental expertise, be it in pollution control or by environmental impact assessment. Apart from wanting the benefits to accrue locally, local people know more about the local environment - and indeed local technology - than do many foreign so-called "experts". Thus a recent meeting of the Environ- mental Management Association of the Philippines agreed to set up a

To deliver a project

15

consortium to manufacture pollution control equipment that had previously been imported.

A country which does not waste its resources or damage its environment will benefit from a sounder economy than one which has no firm environmental policy. mic strength - is served by a pollution control policy rigorously rein- forced by action.

The second development goal is growth and here, too, environmental policies play a major role. the economy. by introducing stringent pollution control measures backed by economic assistance. In the USA today, environmental protection employs some 2 million people.

materials and the re-discovery of their inherent superiority over synthetics. For example, after India lost her Australian market for jute woolsacks to Japanese polyethylene sacks, the latter were subsequently found to damage the staple so that Indian jute has regained 80% of the market. boom in industrialized countries and they are less inflammable and toxic than synthetics.

innovation is the basis of growth. Table 6 shows the impact of environmental legislation on innovation in the automobile, chemical, computer, consumer, electronic and textile industries of France, the Federal Republic of Germany, Japan, the Netherlands and the United Kingdom.

Thus, the first of the major goals of development - econo-

Environmental protection measures stimulate Sweden in 1970 and Japan in 1974 both induced economic growth

Environmental concern also stimulates the production of natural

Jute wall covering and decorations are also experiencing a fashion

Environmental pressure can also lead to technological innovation and

TABLE 6 Innovations in Which Environmental Concerns were Considered

F eder a 1 Republic Nether- United TOTAL

France Germany Japan lands Kingdom

Automobiles 4 12 2 - 10 28

Chemicals 9 12 6 5 12 44

Computers 5 9 7 - 10 31

electronics 7 8 6 3 8 32

Text i 1 es 10 6 0 7 6 29

TOTAL 35 47 21 15 46 164

Consumer

The third major development objective is human development and a social structure based on freedom, justice and equality; and, pollution is often an indicator of injustice and inequality and inhibits human development so that environmental conflict becomes a fight for human rights. What else was the conflict which erupted in Bombay among the 24,000 fishing people over the construction of the giant fertilizer factory, or the Tree Movement in India when people embraced trees and invited the axes to fall on them, or the movement led by the local Swami to save the Taj Mahal from destructive air pollution? What else was the successful campaign by coco-

.. ww

w

w

*.r w

w-

-Ls 0

0

m*u

-+

*o

0

wm

m

m

mc

, m

-n

w

m

u s-

w o

s w

.7 m

373

0 sc+

--

rc

,w

ww

w

o n

cr

sx

%5

m

W

V z

W 55 L

W

CY

I I

I I

I !

I

!

I I

I I I

I il

POLLUTION PREVENTION PAYS: THE 3M CORPORATE EXPERIENCE

Russell H. Susag, PhD., P.E. Director of 3M Environmental Operations

St. Paul, Minnesota 55101

ABSTRACT

3M has a corporate policy to keep its facilities in conformance with all environmental requirements, to solve its own pollution problems and to develop products that have a minimum adverse effect on the environment. However, the environmental legislation and regulations of the early 1970s which specified increasingly sophisticated treatment technologies as control measures stimulated a desire at 3M to look for a better way. "better way" at 3M took the form of the "Pollution Prevention Pays" (3P) program. Rather than apply end-of-pipe add-on control technology which is very expensive, resource and energy consumptive, and residue generating, emphasis has been placed upon prevention of generation of pollution at the source through: product reformulation, process modification, equipment redesign, waste recycle or reuse.

jects have been developed, preventing the annual generation of 130,000 tons of air pollutants, 1,000 million gallons of wastewater, 4,500 tons of water pollutants and 13,500 tons of sludges. In addition, energy savings equivalent to 228,000 barrels of fuel oil are achieved annually.

environmental program, it is not applicable to all situations. Even with the best of waste treatment technology, pollution prevention and recycling programs, there is always some residue. This residue often is classified hazardous and requires special handling. residue is the land. together cooperatively to assure that there are proper land disposal sites at which this residue can be responsibly managed.

That

In the seven years since the 3P program was formalized over 600 pro-

While the 3P approach is believed to be the most responsible industrial

The ultimate receiver for this Industry, government and the public need to work

KEY WORDS

3M, corporate policy, "Pollution Prevention Pays", 3P program, Pro- cess Reformulation, Process Modification, Equipment Redesign, Waste Recycle or Reuse.

17

18

INTRODUCTION

How true it is -- necessity is the mother of invention. That's the We felt we basic story behind the 3M Pollution Prevention Pays program.

had to find a good way to keep the regulatory agencies, the public and our management happy.

Our problem was -- and is -- complicated by the fact that 3M does not make just one or two kinds of products. We have more than 45 different major product lines -- ranging from our famous pressure sensitive tape products like Scotch brand tape, to colored roofing granules . . . medical products . . . office products such as microfilm, copying machines and,over- head projectors . . . electrical insulation products . . . specialty chemicals . . . audio-visual tapes and data recording materials, to name a few. This means we generate many different wastes that are subject to regulatory control. These include hydrocarbon air emissions from coating operations, acid solutions in wastewater discharges and heavy metal wastes that would be sent to landfills.

Our 45 major product lines include literally thousands of individual products. So we have many hundreds of different wastes to control from nearly 100 manufacturing plant locations around the country. And the details of various state and local pollution control regulations vary consid- erably from place to place.

In addition, our 5,000 technical people keep inventing new products and production processes every year.

Even though our corporate management is concerned about pollution control costs, all of us also operate under a corporate environmental policy that says 3M must solve its own pollution problems . . . conserve resources . . . and cooperate fully with all governmental environmental agencies.

ENVIRONMENTAL PROTECTION REQUIREMENTS

The requirements of most of these agencies have centered on the concept of waste treatment. Examples of this concept include installing air pollution control facilities at the end of the manufacturing process to treat or control air pollutant emissions . . :wastewater treatment facilities installed at the end of the manufacturing process to treat or control liquid discharges before they enter a municipal sewer system or body of water . . . and stabilizing industrial wastes through some form of treatment before they are sent from a factory to a landfill.

Unfortunately, the waste treatment concept has its problems. First of all, building big black boxes at the back of the factory to control pollutants is costly. Hundreds of thousands or even millions of dollars for a single facility is not unusual. build these facilities, which are energy intensive when it comes to operating them. which can be hazardous.

Furthermore, the treatment concept applies only to pollutants generated at the factory. the factory? opers are pollutants in use, and treatment at that stage may not be feasible. final disposal -- as in the case of pesticide containers.

It takes a lot of natural resources to

They also generate substantial amounts of residues, much of

But what about the pollution prone product after it leaves For example, some photographic and printing industry devel-

The treatment concept also does not always apply well when it comes to

ALTERNATIVE TO TREATMENT

We had the limitations of treatment in mind back in 1975 when 3M started its Pollution Prevention Pays program.

19

The heart of this program is preventing or minimizing pollution at the source so that treatment at the end of the manufacturing process is not necessary. And after the product leaves the factory, there are no major problems in use or in final disposal.

include: There are four basic ways to prevent pollution at the source.

1.

These

Developing non-polluting products or reformulating existing products. This is done by substituting non-polluting materials for ingredients that are pollutants. is our effort to substitute water based adhesives for those that have contained solvents. because, untreated, they contribute to the formation of ozone in the atmosphere.

2. Changing production operations. For example, changing from batch feeding to continuous feeding because batch feeding may result in excess air or water emissions.

A good example of this

These solvents are pollutants

3. Modifying equipment used in a manufacturing process. For example, at one of our plants we converted an incinerator from a moderate to a high temperature operating mode, which resulted in substantial fuel oil and ash disposal savings.

Through recycling, or recovery for reuse or resale. our plants, for example, we are collecting and recovering waste acetone for reuse as a boil out solvent. Thus, we are saving more than a million pounds a year of this pollutant that otherwise would have to be incinerated or disposed of in some other way.

4. In one of

I must emphasize that attacking the problem at the source is not a new idea. It has been around for years and years -- generally used on a here and there basis. program is that it applies the pollution prevention concept on a comprehensive company-wide basis throughout the world.

The unique aspect of the Pollution Prevention Pays

THE 3P PROGRAM

Each of the 40 3M product divisions and each of the 30-some 3M subsidiary companies around the world is encouraged to participate in this effort. A coordinated management level program was designed to maximize implementation.

-laboratory, engineering and manufacturing personnel. These are the men and women who are responsible for product formulation, process equipment, manufacturing operations and recycling.

Working in their own specialty areas -- doing the work they know best -- they are asked to implement poTlution prevention concepts in their everyday activities.

When they believe they have made a worthwhile accomplishment, they submit their effort to a 3P coordinating committee of laboratory, engineering and manufacturing representatives for review.

Each effort is judged on the following criteria: It must document the amounfhf pollution prevented. of natural resources or energy. company. And it must demonstrate technical achievement.

The 3P program is directed at the company's 5,000 technical employees-

It must show additional conservation It must have a cost saving for the

20

If the effort meets with peer approval, it is accepted as a 3P project. The technical employee receives a certificate suitable for framing. A presentation is made by a senior management official in front of fellow employees, and frequently a private dinner or other suitable reward is involved. The recognition process is such that other employees are encouraged to contribute their own 3P projects.

annual management reviews, there has been an accounting as to which product divisions are doing the most -- and the least -- to produce 3P projects.

tinuing well-coordinated company-wide program. Because it enjoys top management support, it continues to grow and the results are getting better every year.

Top management is highly supportive of the program. During past

The point is that an old idea has been updated and turned into a con-

3P RESULTS

Let's look at the 3P results. Since the program began in 1975, a total of 144 3P projects have been recognized in the United States. A total of 456 smaller 3P projects have been recognized by 3M companies in 20 countries outside the United States.

The combined total of 600 3P projects has resulted in eliminating the discharge of more than 125,000 tons of air pollutants, 4,000 tons of water pollutants and 12,000 tons of sludge -- along with the prevention of over 900 million gallons of wastewater.

In addition, the 3P program's annual energy savings are estimated at the equivalent of 228,000 barrels of oil. than $100 million. These costs are for pollution control facilities that did not have to be constructed; for reduced pollution control operating costs and for retained sales of products that might have been taken off the market as environmentally unacceptable.

Each year, the results have been better. Last year in the United States, for example, there were 42 3P projects -- the most yet.

These 42 projects, all demonstrating technical accomplishment, eliminated the discharge to the environment of approximately 28,500 tons of air pollutants; 1,300 tons of water pollutants, 6,900 tons of sludge and solid waste and 39 million gallons of wastewater. The energy savings equaled 56,000 barrels of oil.

this figure are $7 million for unnecessary pollution control facilities; $21 million in raw material and operating costs; $1 million in additional energy savings and $1 million for retained sales of products that might otherwise have been taken off the market as environmentally unacceptable.

Last year's 3P projects included five increased solids coating modifications; five solventless coating improvements; two product curing changes; an incinerator efficiency improvement; five solvent recovery processes; the cross venting of a sand mill; two cleaning solvent recovery methods; two resin reformulations; three substitutions of toxic raw materials; three hazardous cleaner substitutions; an improved coating process that reduces two coatings to one; a product cleaning change and a resin application modification.

One of the very latest projects that has been submitted for consideration is a wastepaper recycling project that involves several of our facilities in Minnesota.

So far, over a five year period, more than 11,000 tons of wastepaper have been recycled, saving the equivalent of nearly 200,000 trees -- a small forest. We have saved $240,000 in landfill costs -- not to mention

Cost savings to 3M total more

The 42 projects resulted in a $30 million savings for 3M. Included in

I also can report that our 3P program is doing well so far this year.

I

I I

I I

I

I

I I

I

I

I

I

21

valuable landfill space -- and earned more than $1 million from sales of the used paper to paper mills.

These 3P results from our company are an illustration of what other companies also can do. are, in fact, eliminating or reducing pollution at the source. They are, however, doing it in their own way, and not necessarily broadcasting the results. I would be surprised if some of the industrial representatives here at the symposium don't have examples they could give from their own organizations.

technical approach of the 1980s. The reason is that it is more environmentally efficient and less costly than the treatment approach of the 1970s. This doesn't mean treatment will be eliminated soon as a means of controlling pollution, but the industrial emphasis will be on prevention in a growing number of cases.

One of the problems is that our federal and state pollution control regulations, which were written in the early 1970s with treatment in mind, have been slow in adapting to and encouraging pollution prevention.

The encouraging word today is that many companies

You see, preventing pollution at the source is taking over as the best

WASTE RESIDUE MANAGEMENT

So far, I've talked about the benefits and accomplishments of the Pollution Prevention Pays approach -- and how it has kept everyone relatively happy. At least I still have my job, and I still get invitations to speak at programs like this.

But there is one thing that bothers me, and I would like to bring it up now.

I have found that many people erroneously believe that a combination of pollution prevention, treatment and various recycling or reuse schemes will virtually eliminate industrial waste and the need for land disposal facilities.

The fact is that treatment methods generate hazardous wastes, and that recycling tends to produce concentrated sludges of hazardous substances. These hazardous residues must be disposed of somewhere, and land disposal facilities for them will be necessary well into the future.

Certainly treatment, pollution prevention and recycling greatly reduce the amount of volume of wastes -- often by 90 percent or more. always there is a small amount of residue left.

We find this is true even with our 3P program, and even with our multimillion dollar state-of-the-art incineration system in Minnesota that destroys flammable chemical wastes without creating air or water pollution problems. efficient in destroying these wastes.

But the ash that remains -- after all scrap metal has been removed by magnet -- is a concentrated residue. This residue is classified as hazardous because it contains small amounts of chromiup and lead. As a result, the ash must be taken to an approved land disposal facility for hazardous wastes.

Present federal, state and local regulations are closing or restricting the use of many existing land disposal facilities around the nation. Public concern is such that it is difficult to site any new land disposal facilities, even with present state-of-the-art safeguards.

needs local land use authority to site and build hazardous waste landfills in most parts of the country.

out pollution prevention and various other recycling programs, industry

But almost

The incineration facility, for example, is more than 99.9 percent

So there is a problem.

In other words, even after installing treatment facilities and carrying

Industry can't solve it alone because industry

VI

w

w

uv

3

ss

"IN EVERY DARK CLOUD.. . 'I

Dan Neyer, Manager Environmental Control Department

Dow Corning Corporation Midland, Michigan 48640

ABSTRACT

Sewered, incinerated, and landfilled waste streams, invisible gaseous emissions, and dark particulate clouds truly do contain silver linings and represent golden opportunities. Prevention Pay at Dow Corning requires three other P's: Philosophy, Pro- cedure, and Performance. The mind set and discipline brought by the first two have resulted in performance that is characterized by waste reduction and byproduct recovery and reuse. including disposal avoidance costs, at Dow Corning's Midland, Michigan, plant alone exceeded $8 million in 1981.

But the program that makes Pollution

The value of the recycled byproducts,

KEY WORDS

Silver linings, golden opportunities, Philosophy, Procedure, and Per- formance, Dow Corning.

INTRODUCTION

As recently as two decades ago, the belching, black smoke stack signi- fied the success of the Industrial Revolution and the vigor of a productive and expanding economy. however, with the awakening of our environmental conscience in the late 60's and 70's. That same black smoke stack then symbolized an assault upon our very ability to survive on this planet and helped rally many diverse groups to a common cause. The focal point of that cause was simply that man must learn to live in harmony with his environment.

That principle has been widely accepted in developed countries and, with increasing frequency, in developing countries. As only one example, Brazil's Minister of the Environment spoke just this month of that country's "one hundred and eighty degree turn" towards a commitment to environmental protection.

But all is not harmonious in our profession. Differences do exist concerning appropriate end points of protection -- the how clean is clean argument -- and over implementation rates for control measures. differences regarding methods of implementation also exist.

The significance of that symbol changed dramatically,

Other

23

24

Available methods range from end of pipe treatment to elimination of waste generation at the source, with beneficial recovery and reuse falling somewhere in between.

This conference will focus almost exclusively upon the elimination of waste at its source and recovery and reuse. methods are consistent with the conference theme of "Pollution Prevention Pays. "

The program that makes "Pollution Prevention Pay" at Dow Corning requires three other p's, however. Those new p's include a philosophy, procedure, and performance.

Only those implementation

PHILOSOPHY

Dow Corning has a code of conduct governing all its business activities. One important part of that code is a simple but powerful statement defining its environmental commitment. exceed all environmental regulations or will develop internal standards, if needed. It's instructive that well over half of our emission and effluent standards are internally developed.

That program seeks to assure that Dow Corning exercises responsibility and integrity in the production, research, and marketing of our broad product 1 ine.

ways. plant. manufacturing pl ants.

Therefore, the burden of product stewardship consists of providing products having minimal waste control problems and acceptable environmental risks. Within our Company, we treat each waste stream with the same degree of attention and care that our products receive. For example, all of our waste streams are characterized, analyzed, and documented with the same degree of scrutiny and detail as any product.

a profit. place and a potential asset. Accordingly, we have disciplined ourselves to look systematically for profit opportunities in our waste streams.

It states that Dow Corning will meet or

Dow Corning has also implementad a formal product stewardship program.

The product stewardship program touches upon waste in two important One revolves around our product as a potential waste in a customer's

Waste management in the customer's plant is largely beyond our control.

The other is concerned with actual waste streams within our own

A third element of our philosophy is that we are in business to make We recognize that waste truly does represent a resource out of

PROCEDURE

One effective method used to assess and control waste is through a capital authorization process. Any new or significantly modified process must, of course, receive capital funds for construction. capital funds are authorized, the approval of the Environmental Control Department is needed. In addition to Environmental Control, Safety and Industrial Hygiene Department signatures are also required before Executive Management will consider the authorization request.

An equally effective procedural concept has been the establishment of an Environmental Control Technology Center composed of individuals skilled in process technology, operations, research, environmental studies, and regulations. This group systematically examines our manufacturing technology and process development efforts from an environmental perspective to determine ways of eliminating waste generation, identifying waste recycling opportunities, or altering wastes to make them suitable for reuse. Each year opportunities are identified and projects initiated in cooperation with plant personnel to achieve improvements at various manufacturing locations.

But before

25

PERFORMANCE

Acid Reclamation

Two of Dow Corning's plants reclaim major sulfuric acid streams that were previously disposed. between 1-2MM gallons of acid annually. Additionally, the acid reclamation has eliminated the following items each year:

This action has eliminated the need to treat

Purchase of about 7.5-15MM pounds of waste water treatment chemicals,

Hauling of about 40M cubic yards of sludge, and

Burial of about 10M cubic yards of salt.

Reduced Acid Usage

One Dow Corning plant recently reduced the amount of acid required in a major processing unit by nearly 1MM pounds annually. by installing on-line process analyzers and has resulted in annual savings of about $250M. waste water treatment and a major salt discharge to the environment.

This was accomplished

An added benefit has been the elimination of subsequent

Acid Reclamation

Another major unit at one Dow Corning plant reprocesses waste acid into a usable material. from the plant sewer annually.

This process has eliminated about 5MM pounds of acid

Byproduct Recovery

Two major chlorosilane waste streams present at several Dow Corning plants are now processed into usable materials. previous waste streams by more than 75% and provides a net benefit of about $3MM annually.

Catalyst Recovery

Essentially all catalyst used in chlorosilane manufacture is now recovered and ultimately reused.

Brine Prduction and Sales

are now converted to a calcium chloride brine and sold for snow removal and dust control. Nearly 1MM gallons of brine are sold annually.

Spent Solvent Reclamation

Nearly two-thirds of all solvent used by Dow Corning is now collected and reclaimed -- either internally or externally. The external sales from one plant alone generate more than $250M annually.

This process reduced the

Two significant hydrochloric acid waste steams at one Dow Corning plant

Baghouse Dust

One air pollution control baghouse collector captures more than 15MM pounds of fine particles annually. landfilled, uses for the material have been developed, and a substantial

Whereas this material was once totally

rlstill

Sticky Note

26

portion of the dust is pelletized, bagged, and sold. Landfill costs have essentia1,ly been eliminated and sales revenues more than offset incremental handling 'costs.

Vent Recovery System

The installation of a central vent recovery system at one plant reduced the emission of corrosive gases by more than 90% from a major process. recovery system works by cooling and condensing the vapors and recycles usable material back into the process.

Process Modification

A single process waste stream at one plant was responsible for about 33% of the plant's total oxygen demand in the treatment plant. process essentially eliminated this waste from the effluent and saved the plant in excess of $300M annually by avoiding treatment costs.

The

Restructuring the

Vent Recovery System

Dow Corning's Hemlock, Michigan plant invested $2.7M?4 to recover chlorine and hydrogen and achieved savings in operating costs of $900M a year.

Byproduct Sales

The total waste stream from one major process is now purchased and used beneficially by an unrelated company. in excess of 2MM pounds per year, and the net savings, considering the sales and waste treatment and disposal avoidance costs approaches $100M annually.

Wood Fired Boiler

Midland this summer burning waste wood as its primary fuel. The system will also maximize thermal efficiency by cogenerating both steam and electricity. Rated at 275,000 pounds of steam per hour and 22.4MW electricity, the unit will cost about $30 million and has an attractive payback.

The boiler will burn in excess of 150 million tons of wood chips (dry basis) each year, which is equivalent to 600,000 barrels of oil. One of the unique features of the new system is that at least 75% of its wood fuel will be obtained from scrap or waste sources such as landfills and sawmills. The new boiler will use a substantial resource that would otherwise be wasted.

PCB's

enhanced an existing product opportunity for Dow Corning. fluid has become a widely accepted and environmentally safe alternative to PCB or askarel fluids in the electrical equipment industry.

Major activity in the past has centered on the new equipment market. But Dow Corning has just developed a new technology to decontaminate existing electrical transformers and wi 11 commercialize this breakthrough on July 1, 1982. The new system, in combination with a silicone fluid retrofill, will lower the PCB content in a transformer below the mandated 50 ppm limit.

Dow Corning's approach to handling the waste from the transformer retrofill program speaks strongly to its commitment to product stewardship and pollution prevention. First, Dow Corning will provide cradle to grave

The material is generated at a rate

Dow Corning will start up a new power plant at its main plant in

TSCA's 1979 ban on the manufacture, distribution, and use of PCB's A silicone based

27

tracking on all system components and silicone fluid even though not legally required to do so. Second, the wastes from the system will be incinerated notwithstanding the fact that current regulations allow landfilling. Incineration clearly offers a walk-away solution when compared with burial. Third, Dow Corning is now assessing the feasibility of recovering and reusing as much of the silicone fluid as possible. reusable fluid represents, in the eyes of executive management, an unacceptable waste of natural resources and energy.

The retrofill program, in short, provides a solution to a major part of the PCB problem by using a much safer product, extending the useful life of transformers, minimizing long term liability through incineration, and maximizing reuse of available material.

The destruction of any

SUMMARY

The effects of Dow Corning's program of pollution prevention at the source and recovery and reuse have been substantial. Michigan plant alone, which is the most diverse of all of Dow Corning's 24 world-wide manufacturing sites, the value of recovered products, including disposal avoidance charges, exceeded $8 million in 1981. Further, pollutant levels in the chemical process sewer have been reduced over the past decade about 50% and 80%, respectively, for total dissolved solids and total oxygen demand. time that production has increased.

Pollution prevention does pay. stimulating and very rewarding. Moreover, it offers a unique opportunity for the environmental professional to enhance the environment contribute positively to the company's bottom line. I hope that the above examples act as a challenge to industrial participants at this conference to examine your own processes and develop new technologies which are both clean and pro- f itable.

At the Midland,

It is significant that these reductions have occurred at the same

It's a program that is technically

DISPOSAL COST REDUCTIONS FROM CIBA GEIGY CORPORATION’S COST IMPROVEMENT PROGRAM

John A. Stone, Ph.D. Manager, Industrial Health Agricultural Di vi si on Ciba-Geigy Corporation Greensboro, N. C.

ABSTRACT

The Agricultural Division of CIBA-GEIGY Corporation initiated a

One group of cost improvement Cost Improvement Program in 1977. rising energy and raw material costs. projects provides reductions in disposal costs. These projects may be placed into three categories: process changes, material management and by-product exchange. Successful projects have included process changes to eliminate or reduce by-product formations, recovery of raw material from effluent streams, recycling of effluent streams, burning of solvents for heat recovery and reductions in operating supplies.

This program was in response to

KEY WORDS

Cost Improvement Program; process changes; material management; by-product exchange.

INTRODUCTION

Today, I would like to discuss two topics. First, I want to describe the mechanism CIBA-GEIGY’s Agricultural Division uses to validate the savings resulting from cost improvement projects. Second, I want to give some examples that will show the variety of disposal cost reduction projects we have implemented.

The Agricultural Division of CIBA-GEIGY Corporation initiated a Cost Improvement Program in 1977. This program was begun in response to rising energy costs and rising raw material costs. project is any project which can reduce the real cost of operations. cost improvement project is also any project which reduces the total delivered cost of a product to the customers. cost reduction and not a reduction in one area that is offset by other increases needed to execute the change. to a predetermined cost base. The Financial Planning Department must approve the project as representing a real cost reduction and it must also approve how the savings will be documented or tracked. The Financial

A cost improvement A

The project must be a true

Any cost reduction is relative

28

I

29

Planning Department must also agree to the cost base against which a cost improvement project will be measured. The Production Department has claimed cost savings in the past; however, until t$e Financial Planning Department was involved in the program, results were not easily documented. With the involvement of the Financial Planning Department, the Cost Improvement Program has been even more successful than imagined in 1977. A dollar saved in cost improvement is worth several dollars in sales. A dollar of cost savings goes directly to the bottom line, whereas a sales dollar is offset by the costs of generating the sales.

1.

2.

3.

4.

5.

COST IMPROVEMENT PROJECTS

Can be measured and tracked against a base set of data. The Produc- tion Departmeqt proposes a method for measuring the savings of the project, such as a change in raw material factors, and the Financial Planning Department must agree that the method is a valid means of measuring savings . Are expected to provide greater than $25,000 in savings per year. Projects less than $25,000 in annual savings are tracked at the local or plant level.

Represent a change from past practices. A change in a proposed project does not count.

Create a one-time savings, or

Create an on-going savings.

Examples of Cost Improvement Projects'

1.

2.

3.

4.

5.

A cost improvement project is any productivity improvement, such as reduced man-hours per pound of material produced or energy consumed per pound of material produced.

A cost improvement project is also the elimination of a step in a process. 1 oad.

An improvement in yields is another type of cost improvement project. In many cases, a project of this type will also produce a benefit by having fewer by-products to recycle or dispose of.

Lowering effluent treatment costs is an example of a cost saving project . A final example of a cost improvement project is decreasing the requi remepts for maintenance or operating supplies.

A project of this type could also reduce the effluent

As you can see, some of the cost improvement projects are examples I would now like to of the type of activities we are discussing today.

go in more detail into some of the projects that have led to disposal cost reductions. These projects fall into three categories: process changes, material management, and by-product exchange. These projects are generating over 2.5 million dollars in savings annually.

30

Process Chanqes

Use of HC1 for pH control. Previously, oleum was used to control pH in the product wash step of a process. This wash step is to remove impurities from the product. use of hydrochloric acid for pH control in the wash step increased yield by 1.5%. The yield increase is achieved because it was found that high concentrations of oleum actually degraded the product. Thus, the use of hydrochloric acid does not degrade the product so an overall yield increase is seen which also means fewer impurities are created that require subsequent treatment and disposal.

The savings on this project are measured by comparing the raw material consumption factors using hydrochloric acid with the raw material consumption factors using oleum for pH control.

Solvent-free process. A chemical rearrangement was carried out with potassium hydroxide using methanol as a solvent. Process development work provided a new procedure which does not require the use of a solvent in the process. potassium hydroxide charge to be reduced which in turn reduces the hydrochloric acid required to neutralize the potassium hydroxide. on this project are again tracked by comparing current raw material factors with previous factors. Savings are in the purchase cost of methanol, the disposal cost of methanol and the reduced requirements for potassium hydroxide and hydrochloric acid.

Prevention of by-product formation. An improper liquid seal allowed chlorine to enter the toluene solvent on the other side of the seal. The chlorine reacts with the toluene to produce chlorotoluenes which adversely affect product quality. The toluene has to be distilled occasionally to remove the chlorotoluenes, which are incinerated. Several attempts were made to provide a successful liquid seal, but the valves eventually plugged. Finally, a jacketed ball valve was installed which has been very successful in providing a proper seal. The amount of chlorotoluenes formed has been reduced by 90%.

Recovery of raw material from filtrate. charged to drive the reaction to the desired product. material is then washed out of the product. to effluent treatment. effluent stream went to a solvent removal column. The filtrate wash streams are combined with the aqueous stream from the solvent removal column. Product is removed in the secondary filter and the effluent is then sent for treatment. product yield versus yield before the process improvements were instal 1 ed . Extraction of raw material. The previous project proved to be so successful that an additional process modification has been added. The previous process modification reduced the amount of raw material to 0.5% in the effluent stream. A single stage extraction system will remove 50% of the raw material from the treated stream. The extraction solvent is recovered solvent from the next step in the reaction sequence.

Laboratory work and plant trials demonstrated that the

The elimination of methanol from the process allows the

Savings

An excess of raw material is The excess raw

This stream was then sent A process modification was made so that the

The savings are measured as increased

I

31

Recyclin of filtrate. A reduction in the volume Of the plant's effluent stream wzuld allow lower operating costs for the carbon adsorptfan effluent treatment unit. Also, a reduction in volume would allow h'l'gher production rates. trate stream is recycled to replace process water. Process water is used to cool the filtrate stream. effluent stream, the recycling of the filtrate stream allows an increased loading of material in the effluent stream which results in the carbon adsorption unit working more efficiently.

To accomplish the reduction in effluent volume, part of the fil-

In addition to reducing the volume of the

Materi a1 Management

Reduction of reactant excess. excess of one raw material. It was found that the installation of an in- unit analyzer allowed the excess to be reduced to 1% mole excess with the same yield. The savings on this project are measured in terms of raw material consumption per pound of product produced.

Use of waste alcohol to generate steam Waste alcohols are stripped from a process effluent and concentrated for disposal. The alcohols were disposed of by incineration or through the plant effluent treatment system. Minor changes were made in the stripping column to further purify the alcohols. boilers to generate steam and thus reduce natural gas consumption. costs to implement the project were the installation of a catch tank and associated facilities in the process area to allow collection and to allow pumping directly to the boiler area.

A different reaction was run with a 4% mole

This has allowed the alcohols to be used in the The

Reduced packaging material spoilage. cost improvement in the Packaging Unit is increased yield for packaging

One of the significant levers to

materials by reduction in spoilage. A procedure for the measurement of packaging material sppilage has been implemented. This provides management review of the amount of waste. The percentage of spoiled packaging materials has been reduced by this accountability. area has been given a special box for spoiled packaging materials. The shift supervisor counts the number of spoiled units and enters these numbers on the shift's log sheet. The weekly and monthly spoiled rates are then reviewed as a part of the plant's monthly cost review. this has been simple to implement, it has provided substantial savings.

By-product Exchange

Sale of by-product streams. ized or sent through effluent treatment. customers to determine their material specifications to see if we can modify these streams to make them commercially valuable.

In summary, the Production Department of CIBA-GEIGY's Agricultural Division has, in conjunction with the Financial Planning Department, developed a method for documenting the savings of a cost improvement or effluent reduction project. The disposal cost reduction projects have incl uded process improvements, material management and by-product exchange. As we have seen, these projects can range from very minor expenses to implement to projects that require equipment changes and their related expenses.

Each product packaging

While

Some of our by-product streams are neutral- We are working with potential

CIBA-GEIGY Is Agricultural Division is moving

a

Lw

l

I

I

POLYVINYL ALCOHOL RECOVERY BY ULTRAFILTRATION

H. C. (Nick) Ince* J. P. Stevens & Company

Greenville, South Carolina

ABSTRACT

Polyvinyl Alcohol (PVA) is a commonly used sizing material employed in the textile industry to protect yarns during weaving. of the fabric prior to dyeing and finishing, imposing a large chemical oxygen demand (COD) on Wastewater Treatment Plants. between J. P. Stevens and Co., Inc. and Gaston County Dyeing Machine Company in 1972-1973, a method of recovering PVA utilizing ultrafiltration was developed. In 1981, Stevens, at its Clemson, S. C. Plant, recovered 2.5 million pounds of PVA for reuse at a net savings of 90 cents/pound, and reduced the COD load on the Waste Treatment Plant approximately 23,000 pounds per day.

* Mr. Ince of J. P. Stevens delivered an address at the symposium. He presented information pertaining to J. P. Stevens' experiences as described in the abstract. In addition, he basically presented the information contained in the following paper entitled, "Ultrafiltration Applications in the Textile Industry", by Tom Grizzle of the Gaston County Dyeing Machine Company, Stanley, North Carolina.

It is washed out

In a joint project

ULTRAFILTRATION APPLICATIONS IN THE TEXTILE INDUSTRY

Tom Grizzle Gaston County Dyeing Machine Company

Stanley, North Carolina

ABSTRACT

Ultrafiltration is a relatively low pressure membrane separation process through which an effluent stream is separated into two fractions - a concentrate fraction containing the bulk of the macromolecules and suspended solids and a more dilute or permeate fraction. yield both reduced waste treatment costs and savings due to chemical

Some applications

33

34

recycl i ng . One such application is the treatment of textile washer effluent containing polyvinyl alcohol (PVA) size. significantly reduced, but, in the example cited, PVA worth $1.00 a pound is recovered at a cost of $0.12 per pound, resulting in a simple return on investment of less than one year.

Not only is effluent COR level

KEY WORDS Polyvinyl Alcohol (PVA), chemical oxygen demand (COD), J. P. Stevens

and Co., ultrafiltration.

INTRODUCTION

Ultrafiltration is a relatively low pressure membrane separation process through which an effluent stream is separated into two fractions - a concentrate fraction containing the bulk of macromolecules and suspended sollds and a more dilute or permeate fractisn. Capable of removing materials down to approximately 20 angstroms, ultrafilters are able to concentrate oils, waxes, latex, polymers, and certain dyestuffs such as indigo from textile wastewaters. Caustic, salts, and detergents generally pass through the membrane.

For some applications the objective of ultrafiltration may be nothing more than volume reduction for subsequent waste treatment. In others, however, the objective is to recycle the concentrate fraction and/or the permeate fraction. From a financial standpoint, the recycle of either fraction not only reduces waste treatment costs, but often generates a significant return on investment through reduced chemical costs.

WARP SIZE RECOVERY

One such textile application is warp size recovery. The ever increasing production of synthetic fabrics and blends on high speed weaving machines requires the warp (lengthwise) yarns to possess high strength and abrasion resistance to reduce yarn breaks and loom stops. Lubricity is also desired to reduce wear of loom parts.

Toward this end, textile manufacturers apply synthetic sizing agents and waxes to the warp yarns in a slasher prior to weaving. Warp yarns are first dipped into hot solutions of sizing materials such as PVA, CMC, or WD. Add-on is controlled by regulating squeeze roll pressure, yarn speed, and size concentration. The fabric must then be washed to remove the size prior to further finishing.

While clearly justified by improved product quality and weaving efficiency, size use is both expensive and troublesome as they typically cost more than $1.00 per pound and their effluents are difficult to treat. Ultrafiltration offers an economical alternative to this expensive and wasteful practice.

The desize effluent can be separated into two recyclable streams. concentrate stream contains the size, oils, and waxes which can be re- applied to warp yarns. water and detergent which can be returned to the washer. is virtually eliminated and substantial chemical, water, and energy savings are real ized.

The yarns are then dried and forwarded to weaving.

The

The permeate stream consists essentially of hot Waste treatment

I

I

I

35

Gaston County has installed eight such systems recycling millions of pounds of size annually. treatment beyond ultrafiltration. wax and may be used “as is” or in blends with virgin size. recovery installations typically require further separation via centrifuge to remove excess waxes. with virgin size. to the “cooking“ and bath preparation steps required for virgin size.

PVA recovery installations require no further The concentrate includes both PVA and

Eastman WD size

Weaving efficiencies with recycled size equal that Both labor and energy savings are realized as compared

MEMBRANE PERFORMANCE

Size recovery applications require the utilization of membranes which are tolerant of lint gnd particulate matter, with wide pH ranges, and temperatures near 100 C. Gaston County selected a 6 mm 1.0. porous carbon support tube to which an inert and inorganic membrane is applied. Approxi- mately 1000 tubes are assembled in a shell and tube configuration referred to as a module. what is known as a LOOP.

The de-size effluent is circulated through the inside of the tubes. Water and detergent permeate the membrane to the shell-side of the module leaving a more concentrated size solution in the loop.

The mode of filtration embodied is kn‘won as cross-flow filtration in which the effluent is circulated across or parallel to the membrane surface. Compared to the more common through-flow,filtration in which an

Two modules are combined with a recirculation pump to form

ever increasing layer of filtered material builds up on the surface requiring frequent cleaning or replacement, cross-f low filters tend to be self-cleaning as subsequent flows reduce the accumulation.

membrane is known as the flux rate and is normally expressed in gallons per square foot of surface area per day (GFD). Analagous to a D.C. electric circuit in which the current is proportional to the potential divided by the resistance, the permeate rate is similarly related to the pressure drop across the membrane divided by the sum total of resistances to flow.

The rate at which water and low molecular weight species permeate the

36

R R R R h

Y Membrane Fouling Filter Cake Tube

Current Battery

1 - - Permeate Differential Preau re

Permeate flux usually increases linearly with increasing potential or available pressure drop. Gaston County loops are ASME code designed for 150 psig operation.

Resistance to flux is offered by the carbon tube, the membrane, fouling, and boundary layer filter cake or gel formation. Resistance of the tube and membrane are fixed by their selection. Fouling resistance gradually increases with time as iron, calcium, size or wax accumulates on the membrane. Periodic cleaning every 3 to 6 months is recommended using caustic soda, peroxide, and sometimes mild acid. The filter cake or gel layer resistance is determined by the materials being recovered, their concentration, and the circulation rate through the tubes. Resistance is reduced and flux rate enhanced by lower viscosity, lower concentration, higher temperature, and higher circulation rate. resistance is achieved in the loops by operation at approximately 100°C with a circulation rate of 1400 GPM.

Minimum filter cake

RECOVERY AND YIELD

Approximately 96% of the size in the effluent is recovered by the ultrafilter. However, when one combines other losses such as loom shed- ding, de-size washer inefficiency, etc. with the 96t recovery efficiency, net recovery or yield is reduced to approximately 80% to 85%.

CONTROL MODES

The two major control modes are the batch and continuous modes. Selection of the best control mode depends upon the flux curve and system size. while the loop concentrate is returned to the feed tank. yields the highest average flux and provides maximum benefit for small systems with sharply declining flux curves. multiple feed tanks are needed to reduce down time between cycles as one tank is discharged and refilled.

In the true batch control mode, permeate is continuously removed This control mode

The disadvantage is that

In the continuous control mode, the concentration level(s) in the

I

I'

I

I

37

loop(s) remains constant with time. in batch control. centration is allowed to discharge. that of batch control. However, this deficiency is minimal in multi-loop installations and is justified by elimination of multiple feed tanks.

Permeate is continuously withdrawn as

The average permeate flux is below However, only concentrate at the desired final con-

PVA RECOVERY

Now to take a closer look at a specific example. Let's assume a textile manufacturer annually applies approximately 2.5 million pounds of Dupont T-66 PVA in a 10% solution to polyester/cotton warp yarns. woven fabric is de-sized in a three shift, 5 gay per week operation yielding an average effluent of 60 GPM at 180 F and containing 1.2% PVA by weight. With an approximate cost of $l.OO/lb. of PVA, it is realized that this "wastewater" is worth 10 cents per gallon and that an ultrafiltration system would recover 2 million pounds of PVA annually.

A 12 loop ultrafiltration system is proposed. The desize effluent is collected at the washers and transferred to a 100 to 150 mesh vibrating screen prefilter for removal of lint and other large particulate matter. The effluent is then transferred to a volume buffer tank with a 4-8 hour holding capacity to allow independent operation of the washers and the

The

ultrafiltration system. a direct steam injection sparger to maintain the 160 F temperature needed to prevent bacterial growth. constant pressure via a pressurization and bypass control valve.

The twelve loops would be arranged in two parallel six stage systems. The concentration of the final staae is monitored bv a refractometer wh ch

A 25,000 gallon tank is selgcted and provided with

The effluent is overfed to the system at

red prohibits the discharge of concentrate until the d&ired 10% level requ for slashing is achieved. The effluent is stage-wise concentrated such that the concentration in each successive stage is higher than in the previous stage. The average loop concentration is therefore considerab less than the 10% product level required and the capacity is markedly higher than if a single stage system had been designed.

Y

38

Approximately 7 GPM of 10% PVA concentrate would be discharged to a concentrate storage tank. as back-up control for the refractometer. Concentration level is indicated and recorded. Concentrate flow is indicated, recorded, and totalized for system monitoring, efficiency reports, and inventory control. A central control panel provides all switches and control functions required for the system.

An output flowmeter and controller are provided

From the heated storage tank the concentrate is pumped either directly into the slasher room or to a tank truck for delivery to remote griege mills. Automatic batch delivery controls can be provided.

ECONOMICS

Principal equipment costs include the effluent transfer system, loops, automatic controls, and miscellaneous valves and components. The cost of

I

39

these items is estimated at $850,000. Installed costs can vary widely depending upon whether or not a new building must be constructed to house the system and the number of griege mill reuse locations. The cost of storage tanks and installation is estimated at 50% of the above for an installed cost of $1,275,000. ment of $0.64 per pound of PVA recovered annually.

This installed cost correlates to an invest-

TO . Sire

Kenlc

Operating costs consist primarily of electrical power, labor, maintenance, transportation, and membrane replacement costs. system itself requires approximately 3/4 kwh per dry pound of PVA recovered. the total requirement to approximately 1 kwh/pound for a cost of $0.04/pound.

are provided. such as quality control, scheduling of shipments, and inventory control. Labor costs are estimated at $0.03/pound of PVA using 6,000 hours/year at $lO.OO/hour .

cations and the distances involved. mile round trip, and a $1.50/mile cost of operating a tanker, the transportation cost is estimated $0.04/pound of PVA.

Membrane replacement costs are negligible. Loops installed 7 years ago are still in operation with the original tubes and membranes. simple operating expense in this example totals up to $0.12 per dry pound

The ultrafiltration

Transfer pumps, concentrate storage tank pumps, etc. will boost

A full-time technician/operator is not required as automatic controls Operators are normally assigned additional duties, however,

Maintenance costs are estimated at $O.Ol/pound of PVA. Transportation costs vary with the number of greige mill reuse 10-

Using 4500 gallons per load, a 100

The

of PVA recovered.

worth $1.00 Der Dound. The principal savings from the system is realized from the PVA itself

Usinq this $1.00 per pound worth and the $0.12 recovery cost yields a net savings of $0.88/pound. Ignoring taxes and cash

Y- O

sm

L

.r

0

d

-0

Y

-64

u “\N

a-

m 3s

m

WC

N

o

mm

m

a

w

L-

m

3Y

- 0

.r

W*

vm

X

L

aJw

S

sa)

mm

L

wa

r 3-o

Q .r

XL

I

an

5%

> I

e a 0

-I

M

a

a

H

m

H

I

OPPORTUNITIES FOR CLEAN TECHNOLOGY IN NORTH CAROLINA

Dr. M. G. Royston International Management Institute

Geneva

ABSTRACT

Some technologies are intrinsically clean, eg. informatics (hardware and software) , electronics, optics, pharmaceuticals, fine chemicals, kraft products, precision engineering and instrumentation, clothing, services. In these cases a strategic orientation in this direction will provide, on the one hand a good physical environment, and on the other a good economic future. Other industries such as textiles, food, heavy chemicals, pulp and paper, and especially steel, oil and mining, some of whfch figure in North Carolina's "Top Ten" manufacturing industries, are capable of severe pollution unless clean technology is introduced into the production process to prevent pollution, improve resource uti1 ization and make the Operations more profitable. are given.

Examples of clean technologies for each of these sectors

KEY WORDS

Informatics, electronics, optics, pharmaceuticals, fine chemicals, craft products, precision engineering, instrumentation, clothing, services.

Looking at the structure of the industry here in North Carolina, one

Figure 1, from the recent report on hazardous wastes, shows this

can see that different industries have pollution problems to a different degree.

clearly. It is also clear from this study that 'problem' industries are 1 ikely to be those producing chemicals, rubber, tobacco, machinery and textiles.

Indeed, as we can see in Fig. 2, in France it is in just these sectors that clean technology is most advanced.

In all European countries, these industries have achieved significant reduction of pollution in an economic way. Many chemical companies, like Ciba-Geigy in Switzerland, have achieved a 50% reduction of pollution with

41

42

minimal investment. One German company discovered that its Swiss subsidiary was operating the same process but only producing 10% the amount of hazardous waste. Even an industry like the pulp and paper industry is capable of significant improvement.

and the Erco Environtech process as operated in a Canadian plant. low pollution, but also lower costs result.

carried out in France, where it was found that in 70% of the companies investigated, the cost of clean technology was LESS than that of pollution control technology to achieve the same result. xn more surprising, in 69% of the cases the running cost of the clean technology was LEss than that of the original DIRTY technology.

In the chemical sector for example, the use of potassium carbonate to wash the gas, as in Fig. 4, avoids the pollution and achieves a massive reduction of running costs, from $800,000 per year to $90,000 per year.

In the case of phosphoric acid production, the problem of fluoride pollution has been resolved by separating water streams according to their degree of pollution, and re-cycling selectively, as shown in Fig. 5, with a reduction of running costs of over $30,000 per year for an investment of $50 , 000.

Figure 6 shows how, in fertilizer production, better control of the process conditions limits the contact between the ammonia and nitric vapors and water, reducing running costs by $200,000 for an investment of $100,000, _. AND eliminating the pollution.

Figure 7 shows how simple de-misting and gas washing with nitric acid yields almost 100% return.

Another case of some 50% return on investment comes from replacing graphite electrodes with titanium electrodes, resulting in less pollution, less energy consumpton and less costs, as seen in Fig. 8.

Figure 9 shows the case in the manufacture of hydrazine hydrate where it is often possible to move to a completely pollution-free process by oxidation of ammonia with hydrogen peroxide instead of chlorine, and using methyl ethyl ketone. The pollution was eliminated totally, and running costs were cut by 40%.

Figure 10 shows how the change from a wet process for alkylate removal to a dry process avoids pollution and generates a valuable by-product which pays for the process costs.

In Fig, 11 again, we see how hazardous wastes can be transformed into useful, valuable products - in this case chlorinated wastes to solvents plus hydrochloric acid, with more than 100% return on investment.

Detergent manufacture also produces potentially valuable wastes which, as shown in Fig. 12, can be prevented by a process which is interesting both in terms of reduced investment costs and running costs.

Sometimes the polluting load is very heavy, and even when eliminated by complex re-cycling as in the case of chloral shown in Fig. 13, still brings about reduced running costs.

Figure 3 shows the comparison between a traditional Kraft pulp mill

One of the most comprehensive surveys of clean technology has been

Not only

- Adhesives and Sealants - Aluminum Farming - Auto and Other Laundries - Battery Manufacturing - Coil Coating - Copper Forming - Electric and Electronic Components

- Electroplating - Explosives Manufacturing - Foundries - Gum and Wood Chemicals - Inorganic Chemicals

- Iron and Steel Manufacturing - Leather Tanning and Finishing - Mechanical Products - Nonferrous Metals

Manufacturing

Manufacturing

Manufacturing

43

- Ore Mining - Organic Chemicals Manufacturing - Paint and Ink Formulation - Pesticides - Petroleum Refining - Pharmaceutical Preparations - Photographic Equipment and Supplies - Plastic and Synthetic Materials - Plastic Processing - Porcelain Enameling - Printing and Publish.ing - Pulp and Paper Mills - Rubber Processing - Soap and Detergent Manufacturing - Steam Electric Power Plants - Textile Mills - Timber Products Processing

Manufacturing

Fig. la. Major primary industries in North Carolina

P P

300

LARGEST MANUFACTURING INDUSTRIES NORTH CAROLINA- 1980

NUMBER EMPLOYED IN FIRMS PROOUCING HAZARDOUS WASTE

nn

'I

45

LOCATION OF CLEAN PLANTS IN FRANCE AS % OF TOTAL FRANCE

Food/Agriculture Chemical Pulp and Paper Engineering Metallurgical Leather Iron and Steel

17.5% 14.0% 10.5% 9.5% 8.5% 7.5% 7.5%

Source: SEDES/Ministry of the Environment

Fig. 2. The level of development of clean technologies in France

~~

Item

Plant Investment, Pollution Control ($mi 11 ion)

Operating Cost ($AD/tonne) including

Net Purchased Energy (GJ/tonne)

Pollution Loads

Pollution Control

Water Volume (m/tonne)

BOD (kg/tonne)

TSS (kg/tonne)

Colour (kg/tonne)

Air Emissions

Particulates (kg/tonne)

TRS (kg/tonne)

Process

139

288

0.6

100

2

- a/ Aqueous effluent is low level contaminated water.

Fig. 3. Comparison of the Erco Envirotech process with standard Kraft slush pulp (new mill basis).

Standard Kraft

154

315

3.3

117.3

33

33

150

100

12

46

Investment

Running Costs

Old Process

Old Clean Process Process

520,000 3,200,000 800,000 90,000

Clean Process

FDtassivn

Economics $

Fig. 4. ammonia contamination of the river at a substantially lower annual running cost.

The use of a potassium carbonate wash eliminates

I

47

Old Process

Fig. 5a. phosphoric acid production

Diagram of the old, polluting process of

48

Investment

II I ;u; I 1; I

Old Clean Process Process

- 50,000

i 11 I I .................. ., 1

I I

I I I I I I I I

I I I L- i-

...

..... ........ -,---J i i i

............ ........

1 U

decantation

Running Costs I 1,400 I I Differentials 1 32'000

Fig. 5b. the new clean method of producing phosphoric acid. fluoride pollution is controlled and at the same time the running costs are substantially reduced.

Diagram and economic information illustrating The

49

FERTILIZER PRODUCTION - Nitric acid Effluent Reduction

Old Process

Clean Process

R"iundtlatBto- t

Economics $

Clean Process Process

Investment 100,000

Running Costs - 200,000

Fig. 6. process of fertilizer production was converted into a clean non polluting process. process were $200,000 less than the costs of operating under the old process.

For an investment of $100,000, the old polluting

The operating costs of the new

50

FERTILIZER PRODUCTION - Ammonia Recovery:

Old Process

Clean Process

TI I

Economics $


Investment S 70,000

Running Costs

Fig. 7. the new, clean process of fertilizer production that efficiently removes ammonia from the effluents and costs less to operate.

Diagram illustrating the old polluting process, and

Old Process

Sluage of ?rete

Clean Process

Economics $


Investment 1,800,000

2,400,000

51

Fig. 8. chlorate manufacture. electrodes with titanium electrodes. costs of the new process are substantially less.

Diagram illustrating old and new process of sodium The new process replaces the graphite

The annual operating

mi

N

In

53

Old Process

water caustic water -7

I U I I I calaiyw

ethyl chlori6-e aluninim trichkrci.de

I t to river I

Clean Process

Economics $ MM


Investment

Fig. 10. Diagram of old and new processes for styrene manufacture. The old wet process is replaced by a dry process that avoids pollution and generates a valuable by-product which pays for the process costs.

http://trichkrci.de

54

Economics $ MM


Investment

Running Costs - 0.2

Fig. 11. processes of managing chlorinated wastes. pollution-free process transforms wastes into useful products and yields a net profit.

Diagrams showing old polluting and new clean The new

56

Clean Process

I

e btel

Economics$ MM


Investment Running Costs 0.14 0.08

Fig. 12b. manufacture. from those of the old process.

Diagram of new non polluting process of detergent The investment and running costs are reduced

57

Old Process

- absorplDn

Clean Process

water tEchbral 4 q& inplrlues

Economics f MM

Clean

Investment Running Costs 8.5

Fig. 13. polluting processes of Chloral manufacture. The running costs are less for the new process.

Diagram illustrates old polluting and new non

m

m

aJ

0

F4 a rl 0

I (10

v)

0

I.

0

VI-

L

3 m

n

VI VI aJ u 0 L a

0 W

I Old Process

Investment 0.36

Running Costs 0.26

Clean Process

I

Clean Process

0.56

0.916

P

Fig. 16b. Chrome losses are reduced and running costs are substantially reduced.

Diagram o f clean chrome plating process.

61

62

Old Process

Economics $MM

Old I Process

Investment

Running Costs

Clean Process

Fig. 17. aluminum coating. problems are minimized at no additional running costs.

Diagrams illustrate old and clean processes of By recycling the solvents, pollution

63

Old Process

Clean Process

ultrafiltraion unit

l. I

T' Economics SMM


Fig. 18. biagrams illustrate ol& polluting and new clean processes of electrophoretic painting. eliminated and running costs are not increased.

Water pollution is

64

Hard Chrome

$MM

Tit ani um Nitrate

$MM

I Investment I -7

Total Treatment Cost $1/Sq, ft.

- Production

- AntSpollution I

85 49

I

0.4

0.08

0.4

0

Fig. 19. Data illustrating that by the replacement of the hard chrome process with the titanium nitrate process, pollution and pollution control costs are zero and the total production costs per sq. ft. are reduced by 50%.

Energy Consumption per 100 kg. of Carpet

Water

Continuous

Solvent

I I I

315,092 I

K. Calories 1 803,483 546,248

Fig. 20. dyed using wdter based dyes vs. using solvent-based dyes.

Comparison of energy useage per 100 kg of carpet

I

I

Old Process

I

Clean ProcBss 1

Economics SMM

Clean Process process

Investment Running Costs 0.10 0.002

Fig. 21. processes of textile dyeing. reduces pollution and reduces running costs.

Diagrams illustrate old polluting and new clean Recycling of dye vat materials

65

66

Old Process

phase1 ayeins

n

Economics SMM


Investment

Running Costs

Fig. 22. Diagrams illustrate old polluting and new clean processes of textile dyeing. rinse water reduces pollution and running costs.

New process of recycling the

67

Such clean technologies are also available for application in the

Thus re-cycling of acid in the treatment of plastic surfaces prior to

So does re-cycling of plating solutions to recover copper, Fig. 15. or

Figures 17, 18 and 19 show respectively how pollution problems in

engineering or machinery industry.

electro-plating brings considerable cost savings, Fig. 14.

the reduction of losses of chromium, Fig. 16.

aluminium coating and painting are avoided without incurring additional cost, and finally how, by radically changing a surface hardening process, pollution is avoided and running costs halved.

Finally, in the textile industry, so characteristic of North Carolina's structure, there are many examples of economic clean technology.

Figure 20 shows a good example of how a change of technology - from water to solvent dyeing of carpets - reduces pollution, costs energy. Figures 21 and 22 show how dye vat re-cycle and rinse water re-cycle

bring economic benefits. So what we see is that in all industries there are big chances of pre-

venting pollution and saving money. Thus while part of the strategy for developing industries in North Carolina should certainly be to attract high technology, high value-added and service industries which are economically interesting and clean, the other part of the strategy is to promote, through information dissemination and tax breaks, the introduction of clean technology so as to ensure now and in the future, that "POLLUTION PREVEN- TION PAYS".

REFERENCES

"Report of Governor's Task Force on Waste Management", State of North Caro-

"Les Techniques Propres dan 1'Industrie Francaise", Ministere de

lina, (Feb. 1981).

l'Environnement, Paris 1981.

IMPLICATION AND PROCEDURES FOR WASTE ELIMINATION OF HAZARDOUS WASTES

Dr. Michael R. Overcash Professor, Chemical Engineering Department

Professor , Biological and Agricu 1 tural Engineering Departmenr. North Carolina State University Raleigh, North Carolina 27650

ABSTRACT

The technology of waste elimination is evolving as a major alternative to end-of-pipe treatment of hazardous waste and to perpetual storage in landfills. economics of alternatives. At the present time, these comparisons are not on a basis of environmental equivalence, particularly in relation to long term storage. The inadequacy of present comparisons will be discussed.

Waste elimination can be categorized as 1) in-plant modification and 2) recycle/reuse, with different process characteristics for each group. For either group of techniques, a procedure is presented as well as the generic classes of technical solutions used in waste elimination.

The extent of usage of waste elimination thus depends on the

KEY WORDS

Waste elimination, ecbnomics of alternatives, inadequacy of present comparisons, procedure, generic classes, environmental equivalence.

INTRODUCTION

Waste elimination is a generic descriptor for a variety of techniques and processses that reduce the requirement for waste treatment before entering a receiving environment or for ultimate disposition of wastes. Such approaches are used regardless of whether the waste is hazardous or non- hazardous, but in the context of this paper attention will be directed toward hazardous industrial wastes. In any flow chart description of wastes there are three sequential categories that encompass a1 1 specific techniques and processes available to manage hazardous materials, Fig. 1. These categories are developed on the basis of the central characterization for these wastes, i.e., degree of hazard. tion or prevention; the second group yields a conversion from hazardous to less - or non-hazardous residues; while the third category centers on the perpetual storage of material primarily remaining in the hazardous condition. The distinctive character of these groups is important philosophi-

The first category involves elimina-

68

I

I

LINDFILL UNDERGROUND WASTE SURFACE INJECTION PILES IMWUNDMENTS

69

SALT REG1o"

FWIONS uNy$ymD

IN-PLANT ALTERNATIVES

PROCESS RECYCLE 8 MANIPUUTIDN REUSE

I I I ,, 1 I 1 2';

Fig. 1. Flow chart relating alternatives for managing hazardous wastes

cally as well as in terms of the economics of the categories, since the latter is the major consideration in most industrial decisions regarding management of hazardous wastes.

WASTE ELIMINATION IMPACT ON HAZARDOUS WASTE MANAGEMENT

In overview of hazardous waste management, waste elimination occupies a unique position as the first alternative for management of these materials, Fig. 1. It is the first opportunity to impact waste management, and therefore has a snowball effect by reducing all subsequent facilities for managing hazardous wastes. That is, the need is greatly reduced for manifests, record-keeping, approved transport, subsequent conversion to non- or less-hazardous condition, or ultimate disposition when hazardous waste is eliminated or prevented at the source (Overcash and Miller, 1981).

regulations and guidelines although such approaches are encouraged by the Resource Conservation and Recovery Act of 1976. factors such as proprietary process design, distinct operation and material flows in a plant, implications of information used for monitoring performance, etc. it is very appropriate that the waste elimination area remain outside specific technical control by government. In that regard, waste elimination is substantially different from subsequent areas of conversion or ultimate disposition of hazardous wastes, Fig. 1, and must be approached with these differences in mind. ensuring that maximum use is made of waste elimination approaches and that the entire environmental ramification of various approaches be carefully evaluated. In comparison to the treatment or perpetual storage methods, waste elimination may lend itself more clearly to the use of incentives in fostering widespread use.

The level of waste elimination undertaken by an individual hazardous waste generator will depend directly on the cost of managing such wastes by alternative means, such as perpetual storage options or conversion techniques.

On state and federal levels, waste elimination is typically outside the

Based on a variety of

The government role should be restricted to

*

mi oc cu ww m

mrc eo L ws vo .r c,.V mt cw c,>

t

rc* om r +c,

t W-0 Ea, WQ vo t-

>> oa, mw

mu

72

the primary production process and often has only limited options for elimination in-plant. The fourth group, the final product from manufacturing, is managed primarily by improved separation processes. That is, if a product is appearing in the waste stream then better separation into saleable form is usually the available approach.

comparison among The final stage in the process of waste elimination is an economic

(1) the technical alternatives developed to directly reduce or eliminate the specific chemicals of concern in an industrial waste,

the alternatives to waste elimination per se such as treatment/ conversion techniques or perpetual storage options (with due consideration of environmental equivalence.

(2)

Cost-effectiveness is thus the final factor in implementation of a waste elimination project. This economic facet is emphasized continually in the pther papers in this book and the successes of waste elimination signify the attractiveness of a detailed evaluation in almost all industrial hazardous waste situations.

SUMMARY

In most states it is clear that substantially more source control of hazardous waste can be implemented. waste elimination is primarily the implementation of existing technology. At this stage with relatively little waste elimination, modest investments can typically yield very attractive savings from reduction or recovery of waste constituents. Finally as a matter of perspective, the public and government should not view waste elimination as a complete solution for hazardous wastes, but only as a part of the entire system. The challenge is to assure that the potential of waste elimination is adequately achieved.

The current challenge in the field of

REFERENCES

Overcash, M.R. and D. Miller, Integrated Hazardous Waste Management, American Institute of Chemical Engineers, New York, p. 580, 1981.

,

I

I

I

I

I

CHEMICAL RECYCLING: MAKING IT WORK, MAKING IT PAY

Dr. Paul Palmer ChemSearch/Zero Waste Systems, Inc.

1270 61st. Street Emeryv i 1 1 e, Cal if orni a

ABSTRACT

The maximization of the reuse of industrial chemicals (recycling) is Many companies have tried to hang a sign

The obstacles to the achievement of immediate

no longer a job for the novice. saying "Environmental Specialist" on their junior tech with the least seniority. both chemicals and people. and widespread recycling can roughly be broken into the following parts:

In fact, recycling requires a knowledge of tested approaches to

POLITICAL (60%) 20% Bureaucratic resistance 10% Human conservatism 10% Unrealistic legislation 10% Media sensationalism 10% Public ignorance and misinformation

10% Scdrce money 10% Entrenched neutralizers, treaters,

10% Lack of assistance with individual

FINANCIAL (30%) 10% Subsidies for cheap dumping

incinerators and destroyers

applications

TECHNICAL (10%) 1oZ Lack of reliable, centralized information

Amateurs are likely to see only the technical problems and miss 90% of the game.

We need to be working now to build an industry that will be mature in twenty years. Waste Management, which means the fusion of all the still separate threads which impact on the reuse of chemicals. In it, the following threads are intertwined:

- Computerized mappings of the flow of chemicals through industry

- A close connection with the Chemical Engineering departments of universities for the training of professionals

The manifesto of that industry will be what I call Integrated

73

74

I - Building a social ethic which takes recycling for granted in all areas of material usage

short term emergency legislation

regulation, to that of expedition of competent work

failure as today

An informed and sympathetic legislature

- Elimination of media hysteria, bureaucratic obstructionism and

- Subordination of all functions of government agencies, especially

- The positive reporting and reinforcement of success, rather than

- The only available engine for driving these changes is the profit-

oriented business community as it searches for practical ways to make money by reusing chemicals. that recycling is effective and practical and insists on its widespread use

The social changes will follow as the public learns

KEY WORDS

Tested approaches, Integrated Waste Management, professionals, social ethic, reinforcement of success.

INTRODUCTION

My business for the last nine years has been making chemical recycling work and making it pay. That is, I set up the first waste exchange or clearinghouse in the US in 1973, and when I found that that approach didn't work, I set up the first, and one of the only, full spectrum chemical recycling businesses in the country. made that business work.

In this paper I will tell you what

THE APPROACH USED BY ZERO WASTE SYSTEMS

We have taken a unique approach to the chemical waste business. In- stead of the officially approved plan of trying to find efficient ways to move industrial excess chemicals into underground bunkers to undergo unknown reactions at unknown times with unknown consequences, we attempt to work out the benefits that flow from taking full responsibility for one"s unwanted excesses. We refuse to think of excess chemicals as "hazardous waste". That's what the dumpers call it, emphasizing the threat, rather than the opportunity, and emphasizing uselessness rather than usefulness. business consists of the application of new tools for avoiding the generation of wastes in the first place. First we show companies how to produce saleable byproducts. In the process, we have done more to keep toxic chemicals out of the air and water than all of the regulations of the EPA under the Resource Conservation and Recovery Act (which I call the Resource Destruction and Disposal Act because its philosophy of cradle-to-grave monitoring insures that chemicals will go straight into the nearest landfill.)

What's our secret? Simply to ask chemists and chemical engineers, rather than garbagemen, to deal with what are quintessentially chemical

Our

Then we sell what used to be their waste stream.

75

problems. form of garbage. present owner, they retain their wholly separate identities. bornly refuse, or are incapable of recognizing those differences, we will be faced with an irritating and insoluble garbage problem. Only by facing up to the inherent chemical differences will we be able to recognize an asset where once was only a liability.

understand it for itself. Since most people find this impossible, we must go to those special people who understand, even love chemicals. They are known as chemists. Since I am one of these myself, I can tell you that to chemists, chemicals are not threatening at all. A good chemist knows how to use chemicals for their desirable properties while making sure that they cannot cause him an injury. Each one is different. Yes, they do threaten us if we are not careful. But a chemist knows how to coax the most out of them, with the least danger. Industrial chemists work successfully in this area every day.

me. But in the real world of chemical waste mismanagement, it is a radical, incredible proposal. chemical garbagemen, or waste haulers, or dumpers, who would not know nitric acid from sodium chloride, make all the decisions about how to react to chemical excesses, such as wastes and spills. The system decides in advance that the word "garbage" adequately describes all chemical wastes which then differ only in their threats. bureaucrats usually set up the rules under which the garbagemen operate and even dictate the climate in which the knowledgeable industrial chemist must operate .

The all-too-common view is that chemical waste is just another

If we stub- But even when chemicals are no longer usable by their

If we are not simply to react to the threat of a chemical, we must

I hope this proposition seems simple, even obvious. It really is to

The way it works out there is that people called

Worse yet, is that chemically illiterate

APPLIED CHEMICAL RECYCLING

One resource found indispensable in making recycling work was a detailed knowledge of the uses that chemicals get put to in the industrial world. The reason that this is so important is that no chemical can be recycled unless a new use or a new user can be found for it. It is by no means the rule, it is not even very common, outside of the area of solvents, for a chemical to be "cleaned up" and then sold right back to the original user. Of course that does sometimes happen, particularly in the case of a chemically oriented company which sets up a recycling process for reusing one of its byproducts or raw materials. But I am talking about how we, as a service company, devised a general response to a wide variety of incoming problems. We find that the norm is that a manufacturer cannot accept back the product from his recycled excesses. It then is incumbent on us to be well acquainted with other users of the same materials.

Today, in the still young electronics industry in Silicon Valley, we have a problem situation with a waste of hydrofluoric acid which is widely used for silicon dioxide etching. At times the supply of new acid has even been short enough to hinder chip manufacturing. single company has enough waste HF to justify building the kind of chemical plant needed to recycle it, though it appears that there is ample supply if all the electronics companies teamed up. But to date, the electronics companies have shown themselves incapable of cooperating in even such a simple way, to solve a common problem. Fairchild is now installing a plant to react the waste hydrofluoric acid with lime to produce a disposable calcium fluoride sludge to take to a dump and a number of other companies are contemplating similar moves.

One problem is that no

Here is an example of a recycled product

76

which ought to go right back to the users. arrangement will probably be made and no one will afterwards remember that HF was once a problem waste.

industry. Dry cleaners universally use large quantities of perchloroethy- lene which could be distilled and reused by them. And, in fact, for many years now, it has been standard in that industry to erect a still right at the plant for distilling and re-using the cleaning solvent. When the generator is the user of the recycled product, he has a built-in incentive to keep his product clean and never thinks of it as garbage. Also, there is no need to spend effort marketing the product. The resulting recycling concept is simple enough so that most of those arrangements were made long ago.

One of the most successful projects that I developed at Zero Waste Systems was the recycling of Laboratory chemicals. tons of clean, usable laboratory reagents were being thrown away by industry, schools and the government merely because the configuration of user and laboratory had changed. Examples include a testing laboratory that goes out of business, a university professor that moves to another institution, a hospital that removes obsolete reagents from its lab to pass an inspection or a government lab that buys a case of bottles and samples only one. each case, the chemicals were discarded for reasons that did not reflect in any essential way on the suitability of the chemicals for further use. Waste Systems charges a fee to take these reagents from a client, sorts through them, discards the bad ones and then markets the remainder to other users in a retail setting. mately half a million dollars in gross sales.

that it is a problem which is primarily the concern of the chemical companies. Nothing could be further from the truth. Remember, the chemical companies are in business to make and sell chemicals. just be continuously shifting their different chemicals around among themselves in a tight, incestuous circle. No, instead they are making products for consumers, usually non-chemical companies. So we have Tenneco making driers for the paint and printing industries. factants for the compounding industry. We have Exxon making oils for the auto industry. And it is these chemical consumers who have the worst problems with chemical excesses. Remember, the chemical companies have access to chemists, chemical engineers, chemical processing equipment, etc. But what access to chemical expertise does a printer have? Or an Intel or a Del Monte. Yet they use enormous quantities of chemicals. And these are the organizations that the recycling industry must be prepared to serve.

which there are a hundred within fifty miles of where I live in the San Francisco Bay area. One of the chemicals used by all of these shops is some form of etchant for removing the copper film off the surface of the PC board in the intricate patterns that are needed by the electronics industry. A few years ago, this was universally a hydrochloric acid solution of ferric ch 1 or i de.

The PC board is immersed in the etchant until all of the exposed copper dissolves. When the etchant has dissolved out a limiting, maximum amount of copper, it is "exhausted" and must be discarded. The copper that was dissolved has now become a copper chloride which is present in the etchant along with ferric and ferrous chlorides, as well as the hydrochloric acid.

The growth of the PC board industry in the Bay Area in the early 70's led to the establishment of a few recyclers who took back the used etchant. Copper metal was extracted by reducing the copper salts with iron metal and then sold. The dissolved iron salts were crystallized out by evaporation and sold to water treatment plants for water clarification, as a competitor

As the industry matures, this

In the dry cleaning industry, on the other hand, we have a mature

We learned early that

In

Zero

In 1981, this project accounted for approxi-

An unwarranted assumption that people sometimes make about recycling is

They could hardly

We have Emery making sur-

Let us look at the example of a printed circuit production shop, of

77

to the aluminum salts which are more commonly used for that purpose. remaining residues were then sent to a Class One dump. Note that no chemicals were sent back to the PC board shop itself.

Gold plating solutions and metallic solder are two other chemical products which are widely recycled out of the PC board shops. the metals are extracted and sold to refiners, thus eventually getting back to the same uses. Note, however, that the material goes back into any other metal using industry including the supplier of the baths and solder bars to the PC board shop, but it does not go back to the shop directly. The recycler is basically in the business of finding = way to use a chemical excess. It would not be normal for him to develop the detailed technical knowledge needed to supply gold plating baths or solder bars to the PC board industry directly . You can see then, why a detailed knowledge of industrial chemical usage is needed to reintroduce once-used materials back into the industrial materials pool at some other point. The mixture of xylene and ethanol that comes out of the histology labs in hospitals can go into the paint business. Excess chlorine that the army once kept around for decontamination can be used in the swimming pool supply business. Chloroform that is used to make acrylamide resins for electrophoresis may be clean enough to be used again in rocket fuel manufacturing. Amine byproducts from the surfactant industry can be used to fight corrosion or to produce resins for adhesives. These are all reuse loops that Zero Waste Systems has set up when the need arose.

We have also taken pains to provide a strong technical backup. This includes a well equipped laboratory, chemically competent personnel, our own library and a sophisticated data processing facility. One learns early that it is unwise to rely on what you are told about any waste, particularly by someone from the old school of throw it away at any cost. Laboratory analysis of incoming waste materials is just a sensible precaution. But in addition, every project is a research project in this field because each process leads to a different mix of waste chemicals. A method that works for recycling one waste may fail for a similar one, even if the generating processes are supposed to be the same.

Next the right kinds of chemical processing equipment must be available. For example, we are fortunate in the Bay Area in having available one of the best distillation facilities in the country. Though we have our own wiped film evaporator, we need vastly more distillation capacity to meet the demand. California is preparing to ban the disposal of wet solids and this is going to generate a need for specialized equipment for removing the last few percent of solvent from a sludge. We should have a mill or grinder for pulverizing caked, dry chemicals as this is a common reason for discarding usable chemicals. In this regard, we are only beginning. Nevertheless, to the extent that we do our own processing at all, it has been imperative that it be designed and operated at a reasonably high technical level. have been slowly building our plant, I have heard of dozens of other entries into the recycling field who flopped because they thought that chemical processing, especially distillation, is so simple that a gorilla could handle it.

Any

In both cases,

While we

It really doesn't work that way.

GOVERNMENT FUMBLING - BUREAUCRATS HAVE BREAD TO BUTTER TOO No discussion of making a small business pay could be concluded without

an extensive section on the role of the government. business, the government is a major influence. One of the best things that the government could supply, aside from tax breaks, is the legal climate to insure that recyclable chemicals are not easily and cheaply discarded instead.

In the recycling .

You may be surprised to learn that this climate does not exist

78

today except in superficial forms - a kind of window dressing. opposite is the case. Everything that the government can do to insure that chemicals are speedily deposited into dumps is made into law supported by severe penalties. Every attempt by private industry to increase recycling is snarled in delays and red tape and penalties. all of the past ten years. view. Recyclers all around the country have come to understand and vociferously state in the strongest language that the government is their worst enemy.

The role of the government, especially the Environmental Protection Agency in the field of so-called hazardous wastes, is a peculiar story and difficult for some people to accept. Coming from California as I do, where we have Proposition 13 and the Sagebrush Rebellion, it is not too hard to explain to people that bureaucrats worry about their own pockets and empires first and the public good only if it fits into their plans. The role of the citizen or businessman is to justify the bureaucrat's job, no matter how unjust it may feel or how much useless work it may cause. On the east coast, however, the liberal tradition is strong and people expect that the root of all evil has got to be a multinational corporation. I have seen too many counterproductive laws and too many interfering officials in this business to worry about big corporations. In fact, the most progressive element of our society, when you look at government, environmentalists, the private sector or the public, is business. Even making allowance for those corporations that have stubbornly resisted change or that have needlessly polluted whole rivers and neighborhoods, I still say that none of this compares to the scurrilous, mendacious role of the EPA in establishing the abomination of legal dumps and then using every trick in the book to con- vince the lay public that this is a solution of the chemical waste problem, rather than merely a futile postponement of the day of reckoning.

In order to understand this, one must stand back from the barrage of propaganda dispensed by the EPA over the past ten years and take an independent view of dumps. sewers filled with unknown chemicals in quantities and mixtures that stagger the imagination is the best way of dealing with excess chemicals? I certainly don't and most of the public agrees with me (1). Yet this is the path that has received 98% of the support from the EPA. You may wish to point a finger at Congress, who, after allYllpassed RCRA, but take a closer look at RCRA. but we don't know how to get it. Here are some good ideas, show us how to implement them." (2) For example, Section 6002 (c) of RCRA includes a very strong provision for using federal purchasing power to encourage recycling. That section has yet to be used even once. fillip for recycling. But the provisions for encouraging landfilling are enforced with penalties of $25,000 per day and jail terms for any executive who puts a single foot wrong (3). late 1979, the EPA sponsored a six month campaign of terror - that is an accurate description of what occurred - in which it sponsored hundreds of seminars and symposia around the country where it scared the pants off of businessmen with threats of the penalties that could be applied if they did not scrupulously fill out their manifests and ship off their hazardous wastes to an approved landfill. (4) business my company, and other recycling companies, lost due to the insis- tence of potential clients and future clients that every drop of their wastes had to go into a dump. Recycling was all but outlawed and all of this happened while the EPA was implementing a law that had been intended to foster recycling.

Lest you imagine that this was an unanticipated unfortunate side effect of an honest attempt by EPA to solve hazardous waste problems, I refer you

In fact, the

And this has been true for Incidentally, this is not merely my private

Do you really think that building vast underground

What it says to the EPA is, we want resource conservation

It could be a very powerful

After the regulations were published in

I can't begin to tell you how much

I

79

to the discussions in the May 19, 1980 Socratic dialogues (5) with which the EPA announced the RCRA regulations. the notion of using economic value as a determinant of the definition of waste "because recycled goods have value by definition and that would exempt recycled chemicals" from all the red tape. (6) Instead they adopted a definition that says a waste is anything which is "sometimes discarded". Can you name anything which is never discarded? To me this is a way of saying "we intend to regulate everything on earth". If this is not a classical bureaucratic power grab, I don't know what is.

wastes had its expression in California in a Health Dept. definition which specifically defined recycled materials to be hazardous wastes, in the face of all logic. (7)

One pharmaceutical house in the Bay Area wished to discard a truckload of drums of chemicals which they had only sampled. We were anxious to take these chemicals and resell them to a user less fastidious than the pharmaceutical trade. thousand dollars and the donor company would have saved a few thousand dollars. Note well, that these chemicals were pure, clean and new, identi- cal to the same products sold every day by chemical distributors. But in this case, because the thought of discarding the materials had at one time flashed thru the mind of the plant manager, these brand new materials were now suddenly transformed into hazardous waste. Meanwhile the legal staff had recently attended one of the EPA and Health Department sponsored scare seminars and were all sweating at the vision of getting fined $25,000 per day. The result, as you can guess, is that a truckload of brand new, pharmaceutical grade chemicals was thrown into the dump. And this is not an isolated instance. It happens hundred of times every single day.

Another time, I made an offer to a waste hauler to purchase 200 drums of polyester resin from him for immediate resale to a user. sale was ready to go thru, the Health Department descended on him and declared his yard an abandoned dumpsite, in spite of the fact that he had not abandoned anything. secure in his towering ignorance, stood in that yard and physically prevented me from taking the 200 drums out for resale on the grounds that they were "not recyclable". The drums were loaded instead on a truck by Chemical Waste Management and removed to a dump. Instead of selling the drums to me for about three thousand dollars, the poor waste hauler was forced to pay about three thousand dollars to a dumper for disposal. One quickly loses one's illusions in this business about whose side the government is on.

public support and media attention to this issue. sensationalized and exploited as far as possible. cancer, that many began to call the carcinogen-of-the-month syndrome, also helped. Numerous hour long documentaries on television carried the message of fear of chemicals into our homes (8). The environmental groups, such as the Sierra Club, the Environmental Action Foundation and the Izaak Walton League, albeit with the best of intentions, also helped to spread the EPA scare campaign by participating in programs such as Waste Alert. other environmental arenas these same groups have been battling the government to set aside more wilderness area or sell fewer mineral leases. In the chemical arena only, they meekly accept EPA preachments as gospel, even, in the case of the Sierra Club, mobilizing their members to search for abandoned dumpsites in a program orchestrated by the EPA.

The Abandoned Dumpsite program, provides another example of how a legitimate public concern can be milked for its hysteria value and leveraged into voter pressure for an increased agency budget.

At one point, they explicitly reject

This pernicious approach to defining recycled chemicals to be hazardous

The results are ludicrous.

We could have made a few

Just as the

The worst part was that a Health Department official,

One may wonder how the government has been so successful in mobilizing The Love Canal issue was The somber warnings about

In all

Of course none of US

80

like to think of acres of rusting drums, half-full of dangerous chemicals, lying around our country for innocent people to stumble on. Such locations are a disgraceful indictment of the garbage mentality and cry out for immediate repair. framework of a larger policy which includes the handling of today's chemical wastes as well as yesterday's. And viewed as a whole, the policy is to pick up one drum in an abandoned dump, with fanfare, hoopla and the glare of publicity, while throwing ten drums of undifferentiated chemicals into the ground in another location under the pretense that a landfill can be sani- tary. An abandoned dump is an honest monstrosity. A class one dump is a dishonest monstrosity. To put it another wa the worst problem is not the illegal dump - it is the legal dump! The tru function of the abandoned

criticism away from the EPA's darling - the class one dump. they might cost industry five billion dollars to implement, (9) all targeted at moving chemicals from theirwe- their "graves". Out of EPA research money, hundreds of millions of do!!ars more in grants and contracts have been spent to find ways to throw chemicals away. Throughout this period they have claimed that recycling is their most favored strategy. (10) Yet in all that time, they were unable to come'IIIfj'with a single penny to study or apply recycling methods, except perhaps one small academic contract. For all of the past seven years, the entire btaff committment to recycling of this gigantic agency with tens of thousands of employees has been one single half-time person who is responsible for municipal trash recycling as well as chemical recycling.

for all those chemical dumps if only the smallest fraction of those millions and billions had been spent in good faith - on waste reduction!

But any work on these dumpsites takes place within the

dumpsite program is not environmental improve 1 ent but the deflection of

When the RCRA regulations were first announced, the EPA declared that

Imagine how much progress could have been made in eliminating the need

POST-HOC RECYCLING VS. PROCESS CHANGE FOR RATIONAL RE-USE

What many people fail to realize is that recycling cannot succeed as an Once you are geared add-on, post hoc device for turning garbage into goods.

up to make garbage, any recycling attempt will fail. failure of recycling - only a failure of an amateurish approach. becomes spectacularly successful when the production of byproducts becomes the goal right from the start. Think of a particular waste stream or process you are familiar with, one which you cannot imagine any recycling process for. What design decisions were made which assumed a garbage waste would be produced? How is the material even collected? Do the employees refer to a "slop-bucket"? To what extent did the existence of a nearby dump influence decisions?

The confusion between post-hoc recycling and process design for by- products has been exploited by the dumping industry in a caluminous campaign which is widely echoed by the press and uninformed agency bureaucracies. It begins when hearings are held on an upcoming piece of legislation affecting chemical excesses and the only industrial representatives invited are from either the dumping industry or the chemical industry, neither of which has anything to gain by encouraging recycling or educating the public concerning it. This has happened innumerable times in Congressional hearings and EPA hearings. It continues when these witnesses state vociferously that "about 5%", or some ridiculously low figure, of current chemical excesses could be reused. What they mean, of course, is that if our society continues to design its manufacturing processes from the point of view that unnecessary chemical entropic degradation is acceptable, then the untangling of the

But that is not a Recycling

Ask yourself why that waste exists.

81

resulting mess by add-on chemical processing will be so expensive that only a tiny fraction of it can be treated this way. This is like the prediction, made a hundred years ago, that petroleum would never be more than a curios- ity because it was too expensive to refine it. Instead, I estimate, and in the past seven years many others have joined me, that 80% of what now goes into landfills should be removed from waste streams altogether by the mere application of chemical and regulatory common sense.

THE FUTURE

Working out the implications of these new lines of thought is going to occupy the attentions of generations of chemists and engineers. be done. called Recycling Research, Inc. for the purpose of welding together a coalition of companies with an interest in advancing recycling. establish a Recycling Research Institute in the next year or two for carrying on developmental and applied research into the avoidance of chemical waste production. We will need to establish laboratories, a pilot plant, library and other facilities for such research. I invite anyone interested in promoting this concept to contact me.

I have started a new company, CHEFSEARCH CORPORATION, to assemble one of the tools that I view as essential to the further development of chemical recycling. I am building a computerized data base covering industrial chemicals from every viewpoint which is germane to their industrial use. This includes their industrial functions, their manufacturing sources, their tradenames, distributors, toxicity data, upcoming regulations, their availability in wastes and surpluses and most important of all, complete details on their uses including processes, products and specific companies. package will be sold as a reference service at first but later it will become a purchasing service as well. Ultimately it will be the most complete source in the country for data on the industrial uses of chemicals.

CHEMSEARCH CORPORATION is now working in one part of the chemical recycling business, namely the re-marketing of surplus chemicals to new users.

But it must To get the process started, I have formed a non-profit corporation

I intend to

The

We are available to work on any problems you may have in this area.

APPENDIX

I will present some actual recycling occurrences or potentialities

A. CHEMICAL EXCESSES - BENZAL CHLORIDE. This illustrates the power

which illustrate some of the approaches taken in the above discussion.

of the approach which treats chemicals as distinct chemical entities. It also shows the similarity between collected excesses (wastes) and distributed excesses (spills).

nated with benzal chloride when a fork lift had punctured a drum.

acid in the lungs and eyes upon exposure. without a respirator.

traditional tools would have required use of a respirator with the always present possibility of exposure.

sodium hydroxide to form benzyl alcohol, a sweet smelling product safe enough so that it is used as a sterilizing alcohol.

A trucking company hired ZWS to clean a truck which had been contami-

Benzal chloride is a severe lachrymator which generates hydrochloric The truck could not be entered

To have attempted to clean out the truck by means of steam or other

We took advantage of the reaction of benzal chloride with alcoholic

82

We dissolved a small amount of sodium hydroxide in 95% ethyl alcohol and sprayed it into the truck, in mist form, from the doorway, without entering the truck.

When the truck was opened, the lachrymator had vanished and the air was permeated with the sweet smell of benzyl alcohol. Any residual sodium hydroxide had long since reacted with carbon dioxide in the air to become sodium carbonate -ordinary washing soda. A hose removed it and the truck was as good as new.

B. CONTAMINATED PAPER WASTES - PIGMENT SACKS. The Fuller paint company has come up with a very innovative way to recycle the empty sacks left over after paint raw materials are emptied from them.

Dry powders are often packaged in heavy wall paper sacks which are slit open and the contents poured out. chemicals they have contained and must therefore be sent to a class one dump for disposal. reason.

Fuller realized that many of the chemicals which came in bags were not only paint chemicals but were also chemicals which were used in the paper industry as fillers, sizes or pigments.

They segregated out those bags whose former contents were compatible with paper pulp and found that these were the majority of their empty bags. They invested in a baler and now bale up these bags for sale directly to a paper mill. The baler was paid for in the first year of service.

chemicals by different industries. Normally workers in any given industry are completely unaware of the ways in which their chemicals can be used in another industry. Detailed knowledge of these relationships is one of the most important assets an experienced chemical recycler brings to his work.

C. RATIONALIZING THE WASTE COLLECTION PROCESS. Much discussion has centered on the need to alter chemical processes to aim at recycling rather than disposal. An industrial fact of life, especially in small businesses, is that there is no chemical "process" with a greater impact on the fate of wastes than the method of collecting and storing chemical materials which have been used. The most pristine of perfectly recyclable chemicals can instantaneously become rank garbage if the employee controlling its flow confuses his personal disinterest in the material with an attribute of cosmic uselessness. Frequently, the most significant process change that one can make is provide a safe passage for used materials to a safe haven where they can collect in repose until called once more into service. must not be collected in filthy drums with the bungs out, collecting rain water, other wastes and cigarette butts. The drums should not be invited to rust and fall apart. Sporadic (one-time) excesses and surpluses are often placed in a back yard for several years until the contents have decayed along with the containers. The supervisor who wanted to hang on to them, "just in case", finally admits that they will never be used. Instead, the collection of recyclable chemicals should proceed on a regular schedule which will insure that wastes remain clean and surpluses are still marked and identified.

I was asked by a large electronics firm to design a program to ratio- nalize their chemical handling. As with so many of these firms, they used large amounts of chemicals but pride would not let them accept the notion that they were a "chemical company". isopropyl alcohol, acetone, methylene chloride, pump oils, strippers with phenol, epoxy resins, an adhesive with ethylene diamine, solders, acids, reflow oil and more. They did not know how these chemicals entered their

We then closed up the truck for two days.

The sacks are contaminated with the

The paper values cannot normally be reclaimed for this

This illustrates the need for knowledge of the modes of usage of

They

Some of the chemicals used were Freon,

I

83

plant, where they all got used or how they were collected. got delivered without being ordered and waste barrels got filled by line employees from small cans. The chemical flow ran itself but management had lost control. its area which was why someone could take charge enough to hire an outside consultant.

I embarked on a plan to chart the flow of chemicals thru the plant. Who ordered them (some standing purchase orders were signed by employees long since terminated), who distributed them, who used them, who collected the wastes? Where was the ethylene diamine (a sensitizer) used? What were the ambient air levels of the solvent vapors and could they prove it?

We developed a color coded labelling system for all containers. Adhesive labels were applied to incoming containers, small line containers, collection containers and to the drums in special collection areas. For example, freon had a green label. Green labelled new drums were dispensed into small green labelled jars for use. The excesses were collected in green labelled cans and poured into green labelled recycling drums. While this scheme will not work everywhere, employee organization was excellent here and the new labelling schemes were well adhered to.

The first few drums were monitored closely to see if contaminants would show up in the drums. In fact, this never became a problem so we knew that the employees had all been well instructed and understood that the chemicals would be recycled.

The drums were picked up by Zero Waste Systems on a regular basis. Instead of charging the company for throwing out most of their excesses, as previously done, we were able to pay them for the valuable solvents, charge them a nominal recycling fee for others and only discard those which were as yet unrecoverable. The payoff for the consulting work, in savings on waste reduction, was of the order of a year for them. For Zero Waste Systems, a continual supply of recyclable acetone, freon, etc. was obtained.

New chemicals

Yet this was certainly one of the better managed companies in

In the event of a fire, where were flammables being used?

- NOTES

I attended two public meetings that stand out in my mind. In one, sponsored by the California State Solid Waste Management Board in Oakland in 1980, the public was invited to make up lists of priorities for dealing with various waste topics. By an astounding margin, recycling of chemical and other wastes was endorsed, demanded and recommended by the public. "experts" from the Board and the Health Department tried to play down the recycling and get back to landfilling. Sally Tanner, a California assemblywoman, in 1981, in Sunnyvale, the heart of Silicon Valley, to plumb the feelings of environmental managers concerning waste handling. The presentation dealt with landfills, regulations and the usual trappings of RCRA. The word "recycling" was never mentioned. Yet the first five questions from the floor were about recycling and nothing else. assembly doing to assist recycling?, etc. Larger surveys back up these anecdotal impressions.

(1)

The

The second meeting was called by

How could the paperwork around recycling be eased? What was the

(2) Garbage, a Neglected Resource, Congressional Record, Senate, Vol. 120, No. 76, May 30, 1974. Inserted by Sen. John V. Tunney in connection with the pending RCRA act.

(3) Title 22, California Health and Safety Code, section on penalties.

(4) A. The New EPA and Environmental Regulation, Conference sponsored by Inside EPA and Center for Energy and Environmental Management, Wash. DC

84

Oct. 21-22, 1981. B. The 2nd National Conf. and Exhibition on Management of Uncon-

trolled Hazardous Waste Sites, Sponsored by EPA, Hazardous Materials Control Research Inst., and Amer. SOC. of Civil Engineers, Chem, Mfrs. ASSOC., National Wildlife Fed., U.S. Coast Guard; Wash. DC, October 28-30, 1981.

4th Annual Conf. on Environmental Regulation, sponsored by the Calif. Business Law Institute and The Assoc. of Energy Engineers, December 8-9, 1981, Los Angeles Calif.

D. 4th National Conf. on Hazardous Waste Management, "Regulation, Enforcement and Response"; March 15-16, 1981, Wash. DC.

E. An Environmental Compliance Program, Strategic Planning for RCRA and Superfund, Sponsored by the Center for Energy and Environmental Manage- ment, Four two-day sessions, 1981.

F. by Transportation Skills Programs, Inc., in 15 cities, 3 days each, 1981.

NOTE: This sampling is probably less than 1% of the conferences, etc. held this year on essentially the same subject matter - compliance with new EPA hazardous waste regulations.

(5) Federal Resister, Vol 45-No. 98. Books 2 and 3 of 3 books. oaaes

C.

The First "Hazardous Materials & Waste Train-the-Trainer'' Seminar,

33063-33588, Environiental -Protection Agency - Hazardous Waste and toh-- solidated Permit Regulations. This document is a must for anyone trying to understand the attack on the recyclinq industry by the EPA. This torturous set of rules have, in turn, beeninterpreted by the states for their own programs resulting in a spaghetti plate of interwoven inconclusive forms, penalties and constraints guaranteed to bring tears to the eyes of any man with an honest goal to reduce pollution thru waste avoidance.

(6) E, p. 33093.

(7)

1.

2.

The chilling effect of such an apparently academic point as a definition can be seen in the series of events which enveloped Zero Waste Systems in early 1982:

reselling surplus chemicals or distilling a solvent, they were forced to register as a "Hazardous Waste Facility" or face closure.

Because ZWS was now a Hazardous Waste Facility, (to focus on only a single consequence among many), they were required to place signs in two languages on every outside wall warning passersby that dangerous HAZARDOUS WASTES were being handled inside.

As a result, the neighborhood activists, who had been familiar with the operations of ZWS from the start (it is in a mixed residential- industrial neighborhood) suddenly organized a committee to remove the "Hazardous Waste Facility" from their midst.

- The Killing Ground. problems, it devoted 80% of its time to views of chemical disasters and hysterical meetings at Love Canal. than five minutes at the very end.

Because ZWS was, by definition, handling "wastes", even when simply

3.

(8) I participated in a documentary filmed by ABC television called Although its mandate was to document solutions to

My discussion of recycling occupied less

(9) Waste Age, January 1979, "Washington Wire".

(10) Federal Register, vol. 41, No. 161, pp. 35050-1. Quoted in

le options in supposed order of preference,

I

rtz OW S

e,W sr * 2. 3m ms -30

m * 5.+ OS re, In* 5 +

on

d. A sm

3 m 1 W * m

n* d.

n VI v,

* 3 m z w v, * m -h 0 1

-5 m U 1 0 n m VI VI

S a

* 0

d.

0 1 W

0 S

2

73 -3 m 0

U I

d.

d.

d.

-h

S a * J m

S

S VI I

5.

2.

a

WASTE EXCHANGES: AN INFORMATIONAL TOOL FOR LINKING WASTE GENERATORS WITH USERS

Elizabeth W. Dorn Piedmont Waste Exchange, Urban Institute University of North Carolina - Charlotte

M. Timothy McAdams Pacific Environmental Services, Inc.

Durham, North Carolina

ABSTRACT

Every company produces some amount of waste or by-product. companies seek in-house uses for these materials; however, such efforts require time, money, and, often, considerable research. Moreover, many companies or industries, even those with considerable resources for research programs, may not be aware of uses for their wastes or by-products in other industries.

companies that can reuse or reprocess these materials. Companies are encouraged to list materials available or materials wanted with the waste exchange, which then periodically publishes a catalogue of listings for distribution to clients or potential clients in its service area. Parties interested in listed items contact the exchange, which relays the request to the listing firm.

Two exchanges currently operate in the Virginia-Carolinas service area. The Piedmont Waste Exchange (PWE), operated by the Urban Institute of the University of North Carolina at Charlotte, services companies in North Carolina and South Carolina. The Atlantic Coast Exchange (ACE), operated by Pacific Environmental Services, Inc., a private engineering consulting firm located in Durham, services businesses in Virginia and the Carolinas.

This paper discusses the activities and experiences of both exchanges and explains the potential benefits to companies which use their services.

Most

Waste exchange is a means to link waste or by-product generators with

KEY WORDS

Waste exchange; reuse or reprocess; materials available; materials wanted; Piedmont Waste Exchange; Atlantic Coast Exchange

INTRODUCTION

There are three general options for preventing industrial pollution:

86

I

87

1. modifying the manufacturing process to reduce the amount of pollutants (wastes) generated,

2. recycling or reusing the materials in-house, or

3.

The following report focuses on the third or these alternatives.

transferring the materials for reuse or reprocessing by another industrial firm.

Specifically addressed is the use of waste exchange services to locate buyers and sellers of potentially valuable waste materials. applications, and benefits of waste exchange are discussed and the descrip- tions of two exchanges- serving Virginia and the Carolinas are presented.

Throughout history, industries have sought further uses for their waste products in an effort to lower their operating costs. Some materials such as silver from photographic processing were once thrown away, but today are routinely recycled, at considerable savings to the generator. However, many potentially reusable by-products often are discarded. A 1976 estimate by Arthur D. Little, Inc., showed that about 6 million metric tons/year of materials discarded could be reused or recycled, with a value estimated to be about $300 mi1lion.l resents a sizable cost: cost of disposal, lost value of material discarded, and cost of material used in place or reused or recycled materials.

products and waste management alternatives are providing incentives for many industrial firms to reevaluate their waste disposal and emission practices. transportation costs are forcing upward the cost of energy and raw materials. For example, aluminum and rubber prices have increased approximately 150 percent while energy costs have skyrocketed about 870 percent since 1970.*

Secondly, many materials previously regarded as useless waste products are becoming more valuable, due to their greater availability and frequently lower extraction energy requirements in comparison to virgin resources. Still, however, a company may not be aware of the potential value of its scrap for use in another company.

ment, particularly to land disposal of hazardous wastes, plus the scarcity of appropriate sites for the disposal of all types of waste, have prompted federal and state governments to adopt policies and regulations which make disposal more difficult and encourage companies to explore waste management alternatives. As a result, companies throughout the U. S. are seeking viable means of preventing or reusing the waste materials they generate.

The background,

This discarded material rep-

Increasing pressures affecting the cost and availability of both input

Declining natural resource reserves and rising labor and

Public opposition to the deposition of toxic substances in the environ-

WASTE EXCHANGE

Since not all wastes can be avoided or recycled in-house, and since

2Wall Street Journal (First Issue of October, 1980-1981). "Cash Prices. "

88

transferring a material "as is" to another company for reuse may be cheaper and require less energy than recycling it internally, many firms are seeking buyers or users for their waste products. companies are seeking cheaper materials to substitute for some of their input products.

for many "waste" materials. In many cases, the ability of a generator simply to locate someone who will accept a particular material at no charge can result in net savings to both generator and user, if disposal of the material is costly.

One method for companies to determine whether their industrial residues have value in the market place or whether a by-product is available for use as feedstock is to list with a waste exchange. Such services help bring together waste generators and potential users by publishing at regular intervals a bulletin containing listings of items available or wanted by companies in its service area.

Usually, listings are published by code number to protect the identity of the lister. Companies inquiring about listed items will contact the exchange, which forwards their inquiry to the listing firm. Confidential listing provides a unique opportunity for companies to advertise their waste marketing and input product needs without disclosing proprietary information that may benefit their competitors or arouse public suspicion.

exchanges or clearinghouses. They are operated by a small staff, and typically are non-profit and subsidized for the most part by the sponsors. Other exchanges actually buy or accept wastes, identify potential uses, reprocess them as needed and sell at a pr~fit.~ These are called waste materials exchanges. Functioning like any scrap dealer or broker, they actively seek specific materials for resale and seek buyers for such materials. Materials exchanges operate for profit, and thus handle wastes most likely to attract the highest value.4

involve marketing of products with relatively little known value, those which are regarded as wastes rather than established by-products. They do not compete with industrial, chemical, or commercial brokers of established by-products.

Currently, there are about 34 waste exchanges operating in the United States and 17 in foreign countries. The first exchange began operations in the Netherlands in 1972. The Midwest Industrial Waste Exchange, established in 1975 in St. Louis, was the first of its type in the UniEed States.6

At the same time, other

These factors and others are markedly enhancing the marketing potential

Waste exchanges offering this type of service are called information

A distinguishing characteristic of waste exchanges is that usually they

31bid., Arthur D. Little.

'Porter, C. H. "Development of a Data Base fop tH& Exchange By14 Recycling of Hazardous Wastes," Industrial Waste Managemen€=;S@Ven Conference Papers, U. S. EPA, pp. 7-8 (February 1975).

5Water Technology Corporation (December, 1980). Waste Exchanges: Background Information. U. S. EPA Report SW-887.1.

6I bid. , Water Technology Corporation.

0 Existing (1981)

A Proposed

Fig. 1: Waste Exchanges in the United States

L 0 Y-

s 0

c, m

0

.r

E % .r

w c, VI m 3 r- m t 0

0

L

.r

U S m

VI w c m C

.n

m

: w *c, VI m P rc 0

L 0) c,

w c, m L w t a, m 0

I-

w

c V

VI c, V m c, s 0 V

U s. dv,

w VIL c,

wn -ou vw

n

m

Sh .r

L ww Vu-

C VVI *r w sv 3 .r > CL ma SVI 0 LY- -reo c,

w wm rs vm .r L C ww >T c,

m u- VI0

m U

ww >E LL wo VI%

S 0 *r C

VI mu

a, r- van SLE mmw

VI n -VI

91

The Piedmont Waste Exchange

The Piedmont Waste Exchange (PWE) is a non-profit information clearing house in operation since 1978. Waste Exchange, it was sponsored and administered by the Mecklenburg County Engineering Department to facilitate waste recycling and reuse within a 100-mile radius of Charlotte, North Carolina.

county, sponsorship of the exchange was transferred to the Urban Institute and the Department of Urban and Environmental Engineering at the University of North Carolina at Charlotte. was expanded to include all of North and South Carolina.

Like ACE and other exchanges, the PWE encourages companies to list materials available or wanted in a bulletin which it publishes and distri- butes to companies in its service area. companies will also be able to list services they want or have available in the field of industrial waste management.

but firms in other states use the exchange as well. regarding items available listings originate beyond the Carolinas.

mately a quarterly basis. As with ACE, companies have the option of listing confidentially or nonconfidentially. procedures are maintained to protect confidentiality as requested. Listings are identified in the Waste Watcher by code number and general geographic location only. Inquirers are encouraged to submit their requests in writing for PWE records. lister and inquirer are notified of each other's identify. when the listing is confidential, only the listing firm is given information about the other party. Hence, the confidential lister has sole discretion to initiate contact with the inquirer. All negotiations are left entirely to the participating firms. The PWE is not involved in this process, nor does it charge a commission or finder's fee; it simply brings two potential trading partners together.

In addition to listings, the PWE Waste Watcher contains a section called "Waste Watcher Notes." Like the ACE newsletter, the PWE presents information of potential interest to its subscribers. While the newsletter focuses primarily on regulatory changes, pending litigation, and federal agency actions; "Waste Watcher Notes'' focuses on subjects including state government activities, upcoming conferences and workshops, research break- throughs, results of surveys pertaining to industry and current PWE activities. No subscription fee is charged for the bulletin which is distributed to a list of approximately 1,000 firms.

services in the areas of research and education. of the University at large, the program will provide further assistance to companies with acute waste management problems. Needs assessments will be performed of specific industry groups, then activities and services to meet these needs will be provided or widely promoted by the University throughout the Carolinas. Waste Information Research and Exchange.

Both WIRE and its Piedmont Waste Exchange are subsidized in part by the University, but rely primarily on private donations, nominal service charges, and grants for specific projects.

Originally called the Mecklenburg County

To meet the growing demand for the service from companies beyond the

Additionally, the territory of the exchange

Beginning with the June 1982 issue,

Subscriptions and listings are actively solicited from Carolina firms.

PWE's bulletin is called the Waste Watcher and is prepared on approxi-

Strict information processing

Many of the inquiries

When an item or service is listed nonconfidentially, both Alternately,

The Urban Institute is currently expanding the PWE to offer additional Drawing upon the resources

This expanded program is entitled WIRE, an acronym for

92

Potential Users of a Waste Exchange

Whether speaking of ACE, and PWE, or waste exchange in general, any company which generates a potentially reusable or recyclable waste product or can substitute a used material for a raw material feedstock could potentially benefit from listing with a waste exchange. easiest and least costly methods of determining whether a waste has value and whether there are suppliers for secondary materials available for reuse is by listing with a waste exchange or by consulting a waste exchange direc- tory. of an exchange to locate new suppliers and test the market for materials they reprocess.

In fact, one of the

Resource reclamation and recycling firms regularly use the services

In general, transfers are most likely to take place:

- from large companies with continuous processes to small companies

- from chemical manufacturers to formulators;

- from companies with high purity requirements (e.g., pharmaceuticals) to companies with lower purity requirements (e.g., paints).

using batch processes;

The types of materials most likely to be transferred include:

- acids and alkalis - solvents - catalysts - residues containing heavy metals - oils - combustibles - plastics and rubber - textiles

In order for a transfer to occur it must meet the following conditions:

Technical feasibility. The chemical and physical properties of the materials to be transferred must match the specifications of the raw materials it might replace.

Economic feasibility. The administrative and transport costs of implementing a transfer must balance the disposal costs foregone or raw materials costs saved.

doing business with each othe: and the transfer must be allowable by law.8

plete and frequently inconsistent. 22 U. S. exchanges were known to have performed follow-up evaluations. A larger number of foreign exchanges have attempted such studies, but many

Institutional feasibilit . The generator and user must feel comfortable

Quantitative information on the success of transfer attempts is incom- As of March 1980, only three of the

8x, Arthur D. Little, Incorporated.

93

had difficulty obtaining responses from their clients. for this are insufficient funds and/or staff to perform such studies and negligence on the part of participants in returning q~estionnaires.~

the total number of items listed with each exchange are thought to have resulted in successful transfers.

1980 and research performed by both the Piedmont and Atlantic Coast Exchanges suggest that a large potential for waste exchange exists in the Virginia/ Carolinas region. However, actual experiences of the two local exchanges show that this potential is not being utilized. Both exchanges feel the primary reason for this lower-than-expected use of their services is a lack of awareness on the part of industry regarding the value and uses of its "wastes". As evidence of this, the PWE obtained close to five times as many inquiries regarding items listed in the last catalog issue than it obtained new listings to put in the next one. Moreover, out of 100 or so calls and letters received per month requesting information about the PWE, only a handful of firms ever submit a listing.

Currently, the PWE and ACE are exploring means to cooperate in educating industry about the benefits of waste exchange and in increasing their catalog distribution. network of waste exchanges located throughout the southeast so that exchanges servicing neighboring states can cross-list each others' listing and pool their resources in other ways to improve the success of their programs.

industry is:

- Give waste exchange a try. - Examine your waste streams. - Keep potentially valuable materials separated. - List those items which might have value to someone else; and - Consult your local waste exchange for materials to use as input

products.

The costs of participating in a waste exchange program are low and

- Reduce your disposal problems and costs. - Find a cheaper source for your input materials. -

Primary reasons

Of the data which are available, between 9 percent and 50 percent of

National estimates performed by Water Technology Corporation for EPA in

In addition, efforts are being made to establish a

In conclusion, the message the PWE and ACE wish to communicate to

the potential benefits are many:

Feel good about helping to protect the environment and conserving valuable resources while improving your production efficiency.

9Turner, Jr., A., and Dorn, E. W. (1981). Survey of Waste Exchange Operations. Department of Environmental Sciences and Engineering, 'LI NC -C H .

94

REFERENCES

Arthur D. Little, Incorporated. Waste Clearin houses and Exchan es: - New Ways for Identifying and TransferrmekirP& Wastes. U.S. E.P.A., Report SW-13OC.

Porter. C.H.. "DeveloDment of a Data Base for the Exchanqe and Recvclinq of Hazardou; Mast&, Industrial Waste Management--Seven Conference Papers, U.S. E.P.A., (Feb. 1975); 7-8.

Turner, Jr., A., Dorn, E.W., Survey of waste exchange operations,

--- Wall Street Journal. (First Issue of October, 1980-1981). "Cash Prices".

Department of Environmental Sciences and Engineering, UNC-CH (1981 ).

Water Technology Corporation. Waste Exchanges: Background Information. U.A. E.P.A. Report SW-887.1. (Dec. 1-

I

Ill

U E

A; 0

e 3

ID 3

'I 0

m 3 rt

5

a

5.

z f", n

n 0 3

m 'I =I

2. 3

rt 3 m

8 'I 'I m 3 ,-t

P 3 Q

-h E rt E 1 m

n

'I m m E

rt VI

-h 'I 0 3

A

P

B 2

m 'I 'I

r+ m 7 2.

2 P 3 CL

5 VI * m

E P VI

rt

IDU

00 om

n-r so

om 3. K VIQ

VI

mm 4. VI ark 31

m PP u3

PO no

n 2. ma

:.? 0 3-3 .< m 1

VI

0 3

0 -h

2.

m0-O 7-7 mso smm

-- 00 -3 -2-0 mrt3<3 " (DQ2.P

v)s m2.a owso

SO 1 zz s5mm OD 3 3 P P -3 P VI 'I (Dam 0 03 m 0 -0 *'I 3 d.7 P 3-3 - PO

'Im P3

N W2.2. a0 3 os m Nm 'I

m -. n

4. - 3 VI-

525.3 P

2. 3 u3

V W

-00 00 rm rv)

CIY m3 v)Y

N m

I S 0 S

S

c,

Y- 0 L 0.

.r

.r

w s +

w L 0 E S .r

VI a aJ L m w VI w .. SE c,o L

VI m 3

w L)

VI VI 4 m

VI 3 --c mu L *r 3 w LVI w 6 0.. 7

kh EE2 2 w-3 c, VI0 I ass 0 ssm c, c,uw

w- h %+V - 0 .r ++ L

ass m -ww E u .r > .r hv- L v-7 0 n

w wv s 3 w smu

3mF- -0 w L mm

=I a, s+ mu s .r *r c, 'rmn VIinvVIm oc, s w v v U7-r v 0 OL

- VG L w .r x oag

11 I1

w S +I

-0 os c,3 0

3 vw wn

c, mm sc, 'r VI - ow LS me

S V S 'r c,r Lc, 0 .r zz sa, .r c,

r a, 3

VIVI La) Oc, +a V+ @VI

L Y-

aw VIS wo so c,

o Y-s om

wm m mc, L 5 -x

t; = =- CII 0

0 z I V W I- W c v,

55 z 0 z

L 3L 00 ltlt

wVI LW

0-2 wo L- wo xs c,r

V +w mc, S +w c,

VIVI .r m 3

w1 us so wr LY- a0 9. xc, w s .. wVI L €7 3 nm

ww >+ wm -0E

m .-

.r

0 ,o *E I I I I

I

97

Of these four methods the first two are the methods that we at Daniel have used most often. already investigated methods three and four prior to bringing their process to Daniel.

In general, the clients that we work with have

RECYCLE OF PROCESSED SIDESTREAM - CASE STUDIES An example of a plant that processes a sidestream to reduce raw material

usage is a plant we designed seven years ago and which has been in operation for the past five years. a food grade product. The process depicted in Fig. 1 takes beef hide protein and converts it into an edible product. Briefly, the process ‘consists of deliming and size reduction of the hides and then treatment of the resulting slurry with coagulating and softening agents which include aluminum sulfate, ammonium sulfate and glycerine. The resulting salt-rich streams are processed first to remove the aluminum by precipitation and then to recover the ammonium sulfate by evaporation and crystallization. This by-product is returned for use in the process. The aluminum sulfate recovery depicted in Fig. 2 consists primarily of evaporation, crystallization and centrifugation. The primary motivating force for this recycle process was environmental regulations. Fig. 3. This project was essentially a break-even, but due to the substantial nature of these waste streams the client chose to process and recycle this stream.

The plant, built in South Carolina, produces

The cost and savings are shown in

Other examples are:

- The recycle Qf filter pads at Coors Brewery and the recycle of

- In the biotechnology area our work with Genentech in South San

carbon dioxide from the fermentation for carbonization of the beer. In both those cases the incentive was profit.

Francisco lead us to develop a recovery process for solublizing agents used in protein isolation. off.

- At the new Anaconda facility in Russellville, Kentucky there are many examples of recycled streams including: of rolling oil and burning any excess in furnaces, and recycle of aluminum process scrap. environmental requirements and the second economic.

organic synthesis project and Allied Corporation in Hopewell depoly- merizes off-spec material to recover and recycle the caprolactam. Both of these had a good return on investment.

This step had a significant pay-

collection and recycle

The motivation for the first item was

- For Eli Lilly we designed a solvent recovery operation for their

CONVERSION OF WASTES INTO SALABLE PRODUCTS - CASE STUDIES

An example of the conversion of waste into salable products is the general application of the production of corn syrup. involves the separation of the components of corn; fiber, germ, starch and protein. The by-product streams have high nutritive value, are rich in protein and fiber and therefore are ideal for animal feed. process is diagrammed in Fig. 4. It involves the physical separation of the components of corn. streams have a substantial impact on the economics of a corn wet milling plant. Their primary incentive is to minimize the waste treatment costs and to increase their production of by-product feed. costs and savings for the concentration of steep water and sale as gluten feed. Other examples of conversion of waste to Salable products are shown in Fig. 6.

Corn wet milling

The basic

The recycling and efficient use of the water

Fig. 5 gives the

98

The Anaconda project is an example of a major faeility built specifically to convert scrap aluminum cans and stock for sale to industry. motivation is strictly profit. costs required to recycle aluminum are only !j% of the costs to convert bauxite to aluminum stock.

Their It is a well-known fact that the energy

PROCESS DESIGN - A METHODICAL APPROACH

These examples demonstrate how industry is utilizing clean technology Our experience is that with a new project, the in new plant construction.

earlier a company focuses on their hazardous or non-hazardous waste problem, the better their chance far Pinding an economical solution. A technique that Daniel applies to all process plant designs is that of process engineering. This technique includes:

- a detailed examination of objectives and available technology, - followed by an analysis of alternative methods for production of

- disclosure of areas where data or information is missing or where

Figure 7 lists the practical considerations involved in Process Engi- neering.

This technique allows the process engineer to communicate the technical details with the involved departments in the client organization. It provides them a mechanism to review the work done and to input their experience and knowledge to the problems and opportunities available, Our success in the development of clean technology for our clients rests primarily with our use of good process design practices.

the product, and

substantial opportunities exist for process improvement.

BEEF HIDE PROTEIN

SOLIDS REMOVAL (SLUDGE TO LAFI0FILL)I

AMMONIA REMOVAL

H '...' XIINATION ANU

DELlMlNG (PRESERVATIVE

CHLORIDE AND REMOVAL) HYDROCHLORIC ACID - STREAM HIGH IN GLYCERINE k-

BOD REMOVAL It STREAM HIGH IHI

SIZING MACHINES AND OTHER

PROCESSING STEPS I ORGANIC ACID

AlUMlNUMSULr ATE AND AMMONIUM SULFATE

b& (SOME DRGANIC ACID)

TREATMEN1 WlTfl ALUMINUM SULFATE AMMONIUM SULFATE ALUlJllNUM SULFATE REMOVAL

AMMOWiUM SULFATE (PRECIPITATION AND ALUNIINUM GLYCERINE CLARIFICATION) HYORDXIDE

AMMONIUM SULFATE

AMMONIA t-- REMOVAL

PRODUCT FINISHING AND PACKAGING

t FOOD GRADE PRODUCT

Fig. 1. a beef hide by-p'roduct into a food grade product.

Diagram depicting the process involved in converting

102

Evaporation Steam Drying Steam Power and ODerations

cost Cents/Pound Solids

1 .o .5 .5

Cost of Capital 1.5 Total 3.5

Selling Price of Feed 5.0 Net for Profit, Distribution, Etc. 1.5

Avoided waste treatment cost estimated at substantially more than 10 cents/pound

Fig. 5. Economics of steepwater recycle based on 31,000 bushelslday - corn facility

Company

- Corn Products Corp. Winston-Salem, N.C.

- Olin Chemical Corp. McIntosh, Ala.

- Coors Golde-n, Col.

- Anaconda Russel 1 vi 1 1 e, Ky.

Description Motivator

- Production of by-products for use as animal feed (gluten & fiber)

- Hydrogen gas from chlorate cells - economic scrubbed for use as fuel for boiler

- Fines and yeasts used as a feed - economic supplement for dairy cattle - Collection and conversion of - economic can and scrap aluminum

- economic

Fig. 6. Other examples of the successful conversion of wastes into salable products.

A.

B.

C.

Functionality 1. Operabi 1 i ty 2. Ease of Maintenance 3. Ease of Expansion

Safety Responsibility of process engineer to protect operators and the local environment

Economics Continual search for viable economic alternatives

Fig. 7. Practical considerations i,. process design

A SYSTEMS APPROACH TO WASTE MANAGEMENT

James C. Dickerman Rad i an Corporation 3024 Pickett Road

Durham, North Carolina 27705

ABSTRACT

This paper reviews how a systems approach can be used by an engineering services company to provide waste management services to industry. concept of a "systems approach" is defined and typical activities associated with implementing this approach for the management of industrial wastes are discussed. The types of services and capabilities routinely used to provide integrated, cost-effective solutions to waste problems are presented. Process engineering concepts that can be utilized to maximize recycling, reuse and process modification options for waste control are highlighted. Emphasis wi 11 be placed on environmental control technology selection and integration to reduce pollution control costs. Examples will be given of situations where a systems approach has been successfully used to yield cost-effective solutions.

The

KEY WORDS

Systems approach, process engineering concepts, environmental control technology selection and integration, cost-effective solutions.

INTRODUCTION

Environmental regulations have been promulgated in the last several years to control the emissions of air, liquid, and solid waste streams from industrial combustion and process streams. medium and, in many cases, for control of specific pollutants within a given medium, make it difficult to design an efficient, reliable, cost-effective waste treatment system. Control technologies have been developed to comply with environmental regulations and are often applied only to control a single medium; or in many cases, a single species within a given medium. Interface problems, requirements for auxiliary systems, and increased costs are the unavoidable results.

The current level of environmental regulations in the United States has evolved over a period of several years. Public pressure back in the

Separate regulations for each

103

104

late 1960s for clean air and clean water evolved into a set of federal regulations in the 1970s. These federal regulations were, in turn, followed by promulgation of many state and local regulations, many of which pushed the application of control technologies to both their technical and economic limits. This process has been evolutionary and, by its very nature of promulgation along single medium lines, has forced both emission control vendors and users to develop and install various control technologies along single medium lines. The result of this is that the design of today's technologies, in general, does not consider the effects of one control process upon another. This, in turn, results in duplicate treatment steps with increased costs. For these reasons, the systems engineering approach discussed in this paper, which considers interactions between various control technologies, has the potential of improving the overall design and performance of existjng control systems to result in significant cost savings to the industrial cowynity.

with several clients to assist them in selecting the optimum integrated design of their air, liquid, and solfd waste control technologies. Basi- cally, an engineering services firm like Radian gets involved with the client performing evaluations of this type at either of two main stages in the life of a project. First is in the preliminary planning stage, which encompasses the development of the conceptual process design for planned new facilities. In this role, a technical services engineering company can work with a company's engineering department or with their architect/engineer to assist in sel'ecting the appropriate control technologies to effectively integrate process waste streams into the design of the waste treatment system. The othqr stage in which technical services firms get involved with clients is in the optimization or modification of existing facilities. Generally, when a consultant is requested to assist someone in this area, it is to solve a problem that exists with their existing control equipment. Either it is not performing satisfactorily and they are having compliance problems, or the operating costs are higher than they anticipated and they are looking at ways of improving the overall equipment performance. The remainder of this paper will be focused on providing examples of problems in which a systems engineering approach was successfully used to solve a client's problems.

Radian Corporation has used a systems engineering approach in working

PROGRAM 1 - DEVELOPMENT OF WASTE MANAGEMENT STRATEGY FOR A SYNTHETIC FUEL PRODUCTION FACILITY

In this particular program, Radian's role was to optimize the design of a wastewater/solid waste disposal system to achieve zero discharge with a minimum production of hazardous wastes from a synthetic fuel production facility. Figure 1 presents a simplified flow diagram of the conceptual design of the waste management approach resulting from this effort. This example is a case in which Radian got involved with a client at the very front end conceptual design stage, and therefore, could develop an overall systems design without any constraints that are sometimes brought about by the presence of existing equipment.

In developing a waste management approach, there are three items that need to be considered. First of all is the feed material; in this case, coal. chemically change the feed material. management or emission control approach. The chemical characteristics of the feed material will dictate the optimum conversion process. characteristics of the conversiQn process will, in turn, dictate the quantity and quality of waste streams emitted from it, which, in turn, will

Second is the conversion process that is used either to combust or to And, third is the eventual waste

The

I

105

determine the most appropriate waste management approach for treating these particular waste streams.

be used as the conversion process. This type of gasifjer prudlrces a rather large aqueous waste stream which must be treated. particular waste management design was to maximize the amount of recycle or process waste streams back to the process, and to minimize th@ amount of discharge. Basically, the waste management approach consisted of a tar/ water separator, a phenol-extraction unit, an ammonia stripping unit, and a biological oxidation unit, These are rather common control devices which are often used to treat the waste from a Lurgi-gasifier. The resulting waste from the biological oxidation unit is a biological sludge which has some heating value. mixing it with gasifier ash or to recycle it back to the gasifier to recover its heat content. This design was based on recycling the sludge to the gasifier. Other units that are included in the waste management approach include a forced-evaporation unit and a wet air-oxidation unit. The forced evaporation unit processes the product from the biological oxidation to produce a clean process water stream which can be recycled to the process. Finally, a brine produced in the evaporation unit is submitted as a feed to a wet-air-oxidation unit which oxidizes the residual organics to produce a sludge which is suitable for disposal. air oxidation unit is classified as non-hazardous, and therefore allowed this facility to achieve its goal of maximizing the amount of recycle while producing a non-hazardous stream.

In this case, the coal properties dictated that a Lurgi-type gasifier

The approach used in this

There is an option to either dispose of this sludge by

The sludge produced from this wet

. . . . __ - . -.. . . -.-. Coal Gaslfler ICondensateY warator Tars

I Phenols Phenol

Fb Stripping NH3

Biological

I I

Fig. 1. Synthetic fuel production facility waste management approach

106

PROGRAM 2 - OPTIMIZATION OF COOLING WATER TREATMENT SYSTEMS

The objective of this program was to develop a method to decrease both the amount of blowdown and make-up water required for cooling tower operation. As shown in Fig. 2, which is a simplified flow diagram of a cooling treatment system, makeup water which enters a cooling tower recycle loop may or may not undergo pretreatment steps. heat in a stream condensor, and the hot water goes to a cooling tower where evaporative cooling takes place. become concentrated by the evaporative cooling process, and build-up in the system which results in such problems as scaling, corrosion, and fouling. The most prevelant method currently used to combat these problems is the use of chemical additives, but these additives also build-up in the system, and eventually a blowdown stream is needed to maintain a safe level of chemicals in the cooling tower recirculating system.

Cooling water is used to extract

Any salts or impurities in the water

steam'-Q- COND.

r-- lm!--l r--

I Treatment I :$:"pi Pretreatment 1

L -- - - - - J I

L---T--A I

destream' \ reatment I -----J

I 1 Sludge b Sludge

Fig. 2. Simplified flow diagram cooling water treatment system

Other potential treatments are also available to cooling tower users. One is pretreatment of the make-up water whereby any impurities will be removed before the make-up water enters the system, and therefore can circulate without building up scaling and corrosion chemicals. Another potential treatment step would be to withdraw and treat a sidestream of the cooling tower recirculation water. Both of these treatment processes involve the precipitation of calcium and magnesium chemicals in the form of sludge.

treatment system to increase the number of water concentration cycles which would result in a decreased blowdown rate, and decreased additive rate by effective use of make-up water and sidestream treatment processes. The approach to this cooling tower optimization basically consisted of four steps. various chemical species that were circulating in the cooling tower water. Secondly, based on these kinetic and equilibrium data, a theoretical water chemistry and process simulation computer model was developed whereby the

It was the goal of this project to optimize the overall cooling water

First of all kinetic and equilibrium data were developed for the

I

107

operations of various control processes could be simulated to predict their effect on ultimate water quality. The third step was to validate the results of the predictive computer model in a series of pilot unit test runs. A pilot unit was designed and constructed whereby the cooling tower treatment steps could be evaluated and their results could be used to validate the computer model. The fourth and final step is to evaluate the cost impacts or cost savings to cooling tower users from implementation of the design modifications resulting from this program.

PROGRAM 3 - DEVELOPMENT OF ADIPIC ACID ENHANCED LIMESTONE SCRUBBING SYSTEM

The objective of this program was to develop process modifications to

Fig. 3 shows a simplified improve process performance, reduce operating problems, and lower the costs of a limestone flue gas desulfurization system. process flow diagram of a limestone scrubbing system. figure, the limestone scrubbing system consists of three main process areas; the scrubber, the reaction tank, and the solid separation unit. The goal of this prticular project was to improve the scrubber performance to achieve compliance with applicable SO2 regulations.

As shown in this

Flue Gas > Scrubber t-

f\ 1

Water c_+ React ion Additives: Tank LimelLimestone, Organic Acids

Disposal

Fig. 3. Simplified process flow diagram limestone scrubbing system

There are two approaches which could be taken to modify the system to achieve compliance. that-would alter the design of the scrubber itself. some operating changes which were essentially to use organic additives to improve the capability of the existing system for SO removal. The first alternative would result in rather high capital cost$ with moderately increased operating costs. alternatives would be best for this given situation.

One was to make some rather expensive equipment changes The second was to make

It was our job to determine which of these

108

Table 1 presents a summary of the results of experimental testing that was conducted as part of this program. forced oxidation and natural oxidation conditions to evaluate the performance of the organic additives. conditions, which are conditions without the use of an additive, SO removal varied from around 50 percent under forced oxidation to aboh 70 percent under natural oxidation conditions. When adipic acid was added, the SO removal improved to 90 percent under both conditions. In fact, by cagefully controlling the process operations, the unit was able to operate for a period of 17 days with over 95 percent removal.

The testing was conducted under

As shown in this table, under baseline

TABLE 1 Summary of Results

Forced Oxidation

Baseline

Condition 1

Condition 2

Natural Oxidation

Baseline

Condition 1

Condition 2

DBA

Operating Time (days) - PH

44 5.2 - 5.4

6 5.4

49 5.1

24 5.6

39 5.2-5.4

17 5.4

18 5.4

Adipic Acid SO, Concentration Removal

(PPW (OW

0 46 - 58

1340 89

2375 92

0 70

640- 1000 89

1750 . . 96

550 90

Also shown in Table 1 are the results of testing with DBA, a waste material which is produced during the manufacture of adipic acid. able to show that addition of this material, which is currently a waste stream, had the same beneficial effects on overall SO removal as did the addition of pure adipic acid. has been projected to be about a third the cost of the pure adipic acid, plus it has an additional advantage of getting rid of a current waste stream.

Fig. 4 shows the results of the cost analysis which compares the costs of various alternatives that could be used for this particular client to achieve compliance with the SO2 regulations. As shown on this curve, the addition of the waste dibasic acid is the lowest cost alternative throughout the projected life of this project. The result of these activities was that our client has modified his system to use dibasic acid to improve its performance and is now achieving compliance with the applicable SO2 regulations.

We were

Furthermore, the cost 8f this waste material

Fig. 4. Comparison of costs to meet 85% removal

109

Adibic Acid

6s lo 2.0

r r s 2 E 1.0 - 2

5

c

1 m 3 -

0

5 10 15 Time (years)

SUMMARY

In summary, a systems engineering approach, which considers the integration of emission controls with process operations, is effective for reducing waste management costs. engineering approach is most effective if it can be implemented during the early conceptual design stages of a project whereby process alternatives are not constrained by existing equipment. However, opportunities for emission control optimization are still available even after construction is com- pleted and operating problems are identified.

Results have shown that a systems

WASTE REDUCTION - CONCEPT TO REALITY

A. Brent Brower, P.E. Environmental Design Manager

J. E. Sirrine Company Research Triangle Park, North Carolina

ABSTRACT

In the present economic atmosphere of scarce capital and high interest rates, industry management requires positive proof of a project's profitability before making a decision to proceed. Waste reduction projects that are not enforcement-driven require well-documented feasibility studies and economic analyses of alternatives to win management approval. waste reduction feasibility studies performed for the pulp and paper industry are used in this paper to illustrate the range of issues that were addressed before funding was appropriated. A comprehensive multi-discipline team approach is recommended to assure that study results are a realistic predictor of a project's profitability.

Recent

KEY WORDS

Profitability, feasibility studies, economic analyses of alternatives, pulp and paper industry, multi-discipline team approach.

INTRODUCTION

Industry in North Carolina is extremely diverse, resulting in a wide size range in manufacturing operations. not have the engineering resources in-house to evaluate and implement waste reduction alternatives. Even the largest operations in the state depend heavily on outside engineering consultants to supplement their engineering staff on specialty waste reduction projects.

One of the most important services consulting engineering firms provide to industry is an objective evaluation of alternative system modifications and improvements. when considering waste reduction projects, which many times are viewed by management as non-production oriented.

But in the present economic atmosphere of scarce capital and high interest rates, industry management requires positive proof of a project's return on investment before making a decision to proceed.

Most of the firms in the state do

This objective viewpoint is especially valuable

Waste reduction projects can increase profit.

This is particularly true when the

110

I

I

11

proposed waste reduction project is not enforcement-driven. driven projects obtain funding by identifying the lowest life cycle cost alternative for end-of-pipe treatment options.

Enforcement-

FEASIBILITY STUDY

A conceptual feasibility study and economic evaluation of the alternatives can be a powerful force that can motivate management to allocate capital for profitable waste reduction projects. The feasibility study not only demonstrates the project's potential for increasing profit, but also assures management that numerous alternatives were considered and the optimum solution was selected based on presently available data and technology.

Since the feasibility study will be used to communicate with management, it is important that it speaks management's language. study must include a thorough evaluation of the technical aspects of the project as well as an economic and financial analysis of the project, including rate of return on investment, tax credits, cash flow projections, etc.

A complete

RECENT FEASIBILITY STUDY RESULTS

I have been associated with recent feasibility studies for waste reduction projects in the pulp and paper industry. the impact waste reduction projects can have on a company's profit. Two particular projects that are very similar in nature involve reduction in the volume of solid waste requiring land disposal. Solid waste disposal has become an ever-increasing problem as industry (at the government's direction) established the clean-up of water and air as top priorities. The result has been an increase in generation of solid waste requiring disposal.

In both the waste reduction projects mentioned above, burning the solid waste in the mill's power boiler proved to be the most profitable alternative. two feasibility studies (See Table 1).

These two studies demonstrate that even projects of a very similar nature are unique and require careful analysis. for land disposal for Study No. 2 ($2/ton) was extremely low when compared to that for Study No. 7 ($14/ton). Further, the fue? value of the waste solids was far less in Study No. 2 (5920 Btu's/ton) than in Study No. 1 (9200 Btu's/ton). At first glance, it appears Study No. 1 would project a greater savings. revealed that the annual savings and capital cost requirements were similar. This resulted in the projection of similar rates of return on investment for these two unique projects. ductions in the solid wastes requiring land disposal. Waste reductions from 150 tpd to 3 tpd in Study No. 1 and from 585 tpd to 33 tpd in Study No. 2 were accomplished.

These projects demonstrate

Let us look at some of the very interesting results of these

For example, the unit cost

However, the detailed analysis for the two studies

Also, note the achievement of drastic re-

STUDY DOCUMENTATION

The results of these two studies clearly show that pollution prevention, via a reduction in waste material requiring land disposal, can pay. But it should be noted that these results and projections were arrived at through a well-documented study that was clearly supported by reliable data, technical performance evaluations, and economic analyses. The completeness of the supporting documentation is a critical element in convincing management of the validity of the analysis. tion that accompanied these studies includes:

A list of the supporting documenta-

112

TECHNICAL EVALUATION

Laboratory Analysis Equipment Pilot Testing Results Equipment Performance Evaluation Description of Alternatives Systems Considered:

Flow Diacjhm General Arrangement Drawings Major Equipment List Summary of System Impact on Present Operation Detailed Construction Cost Estimate

ECONOMIC ANALYSIS

Construction Cost Maintenance Cost Operational Cost Cost of Capital Tax Rates Tax Credits

Energy Investment

Escalation Labor Equipment Power Fuel

Operational Savings Fuel Savings Energy Savings

Benefits

NON-CQST CONSIDERATIONS

Operability Environmental Factors (odor, space demands, etc.) Public Relations

The economic analysis must address the timing of cash flows over the life of the project because of the time-value of money. cash flows to their present value, a proper evaluation of alternatives can be conducted.

By discounting all

113

Table 1 Two Pulp & Paper Industry Waste R~eduction Projects

Conditions Before Waste Reduction Improvements

Summary of Feasibility Study Results for

STUDY NO. 1 STUDY NO. 2

585 TPD Waste solids to Dispose - 150 TPD - Consistency of Waste - 20% Solids - 21% Solids

Unit Cost of Disposal $14 /ton $2/ton

Annual Disposal Cost $ 750,000 $ 400,000

Fuel Value of Solids (Dry) - 9200 Btu/ton -. Btu/ton

Conditions After Waste Reduction Improvements

Capital Cost of Improvements $ 2,900,000 $ 2,600,000

30% Solids 35% Solids Cons i s t ency of Waste - Waste Solids (Ash) to Dispose ___ 3 TPD 33 TPD

Consistency of Ash - 90% Solids 90%

Value of Fuel Savings $365,00O/yr. $534,00O/yr.

System Operating Costs $305,000 $34,000

Net Annual Savings $81 0,000 $900,000

50% - 44% Rate of return on Investment -

MULTI-DISCIPLINE TEAM APPROACH

Developing complete documentation for a feasibility study requires in- A well-coordinated team approach is required to put from many specialists.

ensure that input from all the engineering disciplines, plant operators, financial analysts, and management is received. A multi-discipline team approach to studying waste reduction alternatives will ensure that important issues are not overlooked that could significantly impact the study recommendations.

The multi-discipline team approach to feasibility studies requires a strong project management organizational structure to produce well coordinated results. Fig. 1 depicts the overlapping of responsibilities required to achieve proper coordination between the team members. The importance of both the consulting firm's project manager and the client organization's input, which is utilized by this team approach cannot be overemphasized. The report resulting from a study performed in this manner will be a strong communication to management. It will present findings agreed upon by the specialists in both the consulting firm's and the client's organizations. The report is management's primary tool for making a decision on waste reduction investments.

114

Fig. 1. Project organization

SUMMARY

In summary, waste reduction projects that are not enforcement-driven require well documented feasibility studies and economic analyses of alternatives to win management approval. The level of documentation must be comprehensive enough to demonstrate clearly that the technical performance projections are achievable and that the economic assumptions are sound. documentation is complete. study results will be a realistic predictor of the project's ability to increase the company's profit.

A multi-discipline team approach is recommended to assure that the This greatly increases the likelihood that the

POSITIVE INCENTIVES FOR POLLUTION CONTROL IN NORTH CAROLINA: A POLICY ANALYSIS

Dr. Carlisle Ford Runge Public Policy Analysis Program Department of Political Science University of North Carolina

Chapel Hill, N.C.

ABSTRACT

North Carolina faces the challenge of promoting economic development

However, while maintaining a high level of environmental quality. Prevention Pays" philosophy is that these goals are compatible. economic and political incentives are necessary to implement this approach at the state level. The major question is: how can profit-seeking entrepreneurship be harnessed to reduce pollution? After examining a variety of regulatory and economic responses to pollution, this paper developes a new approach based on investments in change-in-production process technologies. The major policy innovation proposed is a "negative pollution tax". pollution prevention pays, the role of such a tax must be to make it pay faster, and with more certainty. In addition to clearly targeted levels of pollutants in a series of categories, the tax proposal rewards firms innovating technologies which reduce pollution levels below the targeted level. sities to assist in the adoption of these technologies. Information sharing is also promoted by tax credits to firms engaged in "waste exchanges". Together, these incentives promote more rapid adoption of new technologies, as well as climate of increased certainty and higher quality information. The result can be compatibility of investment and growth and continuation of North Carolina's high quality of life.

The "Pollution

If

Further information can be provided by state agencies and univer-

KEY WORDS

Economic development, environmental quality, economic and political incentives, profit-seeking entrepreneurship, "negative pollution tax".

STATE ECONOMIC DEVELOPMENT AND THE QUALITY OF LIFE

North Carolina is currently at an important point in her long and distinguished history as a leader in both economic development and quality of life. vestment climate while protecting a high level of environmental quality.

State policy makers confront the challenge of improving the in-

115

116

Achieving both goals simultaneously is important, since many industry decisions to locate are based not only on an attractive investment outlook, but on growing markets and the desire by workers and executives to live in a clean and healthy environment.

Simultaneous achievement of these goals implies a two-fold policy commitment to economic growth and pollution reduction. conference is that these aims are compatible if private firms realize opportunities for profitable pollution prevention. firms will reqlrire new economic awl paljtical incentives to realize this potential. emphasize North Carolina's progressive image as a center of investment opportunity and a highly attractive living,environment.

The theme of this

This paper argues that

Implementing these incerrtibeb as part of state policy can re-

I/ 1

THE BOTTOM LINE: PROFITS AND POLLUTION - YI

How can the profit-seeking behavior of firms be harnessed to reduce overall levels of pollution? analysis of the economics of pollution and alternative policies which can affect individual firm behavior. an economic problem, examining the range of alternative incentives likely to lead to its reduction. It concludes with a new proposal for pollution reduction which captures the profit incentive and puts it to work in the form of a "negative pollution tax."

The answer to this qwstion requires an

The discussim below treats pollution as

Pollution and 'Externalities'

Environmental pollution results from what economists call 'negative externalities'. the public in the form of lowered air and water quality, waste products, noise, and other reductions in the quality of life. They are negative because they reduce total welfare; they are external since the firm does not absorb them. nalities, as when a waste product generated by one firm can be used as an input by another, reducing costs to the second firm. Externalities occur at different time intervals. others almost simultaneously or over long periods.

Externalities thus describe the interdependence of individual firms, and the "spillover effects" of firm behavior on one another and the public. This interdependence is a feature of all economies. inherently "wrong" with externalities, since actual firms, like individuals, aw never islands unto themselves, unconnected from other firms and groups. The structure of interdependence resulting from externalities means that the prpfitability of individual firms is interconnected. If a firm re- leases chemicals into a river to save on the costs of disposing of them elsewhere, firms further downstream using water from the river may have to absorb these costs by filtering before using it themselves. Similarly, if releasing chemicals into the river requires filtering drinking water by downstream communities, costs are passed from the firm to the public at large, which must absorb the expense of filtration facilities.

size of firms grow, these external effects become increasingly important. Sharing an economic environment is not unlike sharing a house; as more people come to inhabit it, a more complex structure of interdependence arises as well as greater possibilities for both conflict and cooperation. Assigning responsibility for "chores" becomes a crucial feature of maintaining a successful household. Without such assignment, living in the

These are the costs which firms pass on to one another or

Production processes can also involve positive exter-

It is possible to imagine costs passed on to

There is nothing

As the volume of industrial production increases and the number and

'I

117

house will become a less pleasant experience for all, perhaps leading some to leave.

Increasing interdependence in production creates analogous problems over who shall bear certain costs, and the method by which liability for costbearing can be assigned. In North Carolina, this increasing interdependence has given rise to widespread public concern over water pollution and hazardous wastes, for example (Haskins). North Carolina's rapid economic development has also increased the volume of externalities. The state is now the 11th largest producer of hazardous wastes in the nation.

If a sufficient number of external costs are imposed on firms by other firms, and on the public at large, both private profitability and public welfare will suffer. This appears to be occurring, for example, in some of the older industrial areas of New England, drawing firms to areas such as North Carolina where such costs do not currently impinge on production processes. But there is nothing to prevent North Carolina's "house" from going the way of other places as the volume, number, and size of firms grow. To prevent this from occurring, and still keep an attractive investment climate, a variety of policies have been proposed to deal with pollution externalities (see Dick, 1976).

The Regulatory Option: Negative Non-Market Incentives

government attempted to restrict firms through a wide variety of regulations on pollution of water, air and land uses (Kneese and Schultze, 30- 50). The market, it was argued, failed to provide the public with clean air and water, and direct regulation was required. effectiveness of federal subsidies and enforcement procedures led to even more stringent measures in the 1970's. The 1970 Clean Air Amendments, for example, sharply expanded the federal role in setting and enforcing air quality standards and auto emission controls. States were to prepare plans to implement a wide array of standards relating to injury to human health, while the Environmental Protection Agency set limits on specific types of pollutants and "new source performance standards" limiting air pollution to levels consistent with "the best adequately demonstrated control technology." effluent standards for individual plants, mandatory use of best available technologies for water pollution control, permit requirements for industrial and municipal discharges, and a number of legal measures and heavy fines enforcing these provisions.

centered on three major problems: the public costs of monitoring and enforcement, the private costs of compliance, and philosophical objections to government interference in individual decision making. problems merit attention.

regulations are difficult to estimate, especially if an effort is made to assess not only costs but benefits (Baram). Estimates may not include a wide array of indirect costs such as restrictions on travel or reduced levels of production necessary for compliance with air and water quality standards. Two recent General Accounting Office reports give some insight, however, into the magnitude of public costs. In a July, 1980 study, the GAO concluded that many water quality standard violations may not be significant enough to justify prevention costs, especially when these costs fall largely on the states and localities. Costs associated with advanced waste water treatment, for example, are often higher than those of initial construction.

Beginning in the 1950's and continuing through the 1960's, the federal

Disenchantment with the

The 1972 Water Pollution Control Act Amendments similarly set

These and related actions have been the object of increasing criticism,

These three

The public costs of monitoring and enforcing complex environmental

A 1978 EPA survey identified $10.3 billion as needed for

TABLE 1

Expenditures fsr Pollution Abatement and Control in Current and Constant (1972) Dollars (Nillions)

1972 1973

9,004

- 5,319 2,942 2,377 1,134

Pollution abatement-and control Pollution abatement Personal consumption Durable goods Nondurable goods 6 services

On capital account On current account

Buslness

Private Covernvlent enterprise Costs recovered

Government Federal State and local Governmont enterprise fined capital

Rag.ulatioi~ and monltorlng Federal Stnte and local

Prlvate Faleral State and local

Research and development

3,542

2,351 353

1,999 1,999

1 Total Air I- 18,220 17,031 1.536 476

1,060 10,722 5,451 5,271 4,538 1,148 -415 4,774 139

1,311

3,324 367 200 167 823 519 205

99

- 6.516 5,843 1,536 476

1,060 4,165 2,533 1.632 1,612

20

142 56

(*I 86 143 48 95 531 411 104 17 -

Watar

8,523 8,237

- - 4,752

2.621 2,132 1,004 1,128 - 3.485 75

171

3,238 144 79 66 142 64 34 44

Solid vasts

3,405 3,364

2,220 298

1,922 1,922 (*) - 1,144 5

1,140

14 9 5 27 12 6 10

Other Total Air Solld

Water Waste

-224 -412

-415

-415 - -

(*) -415

3 3

(*)

66 64 2

122 32 62 28

20,530 19,224 1.965 670

1.295 12,254 6,437 5,816 4.955 1,268 -407 5.005 190

1,331

3,484 458 261 197 840 534 253 61

7,780 7,078 1,965 670

1,295 4,900 3.143 1,847 1,822

25

123 45

(*)

78 154 47 107 548 424 118 6

I_

3,685 I 1,191 124 I 16

3,406 I - 178 j 17 93 14

155 31 12

j 3

I

-177 I -401 , I

-407

(i) I -407 6' 6

(*) 8

115

65 17 j

33 ~

I * Lass than $500,400,

Source: Survey of Current Business, March, 1981

Table 1, continued

-379 -84

-383

-383

(*)

-

1975 1974

i

22,941 21,570 2,589 1,184

12,978 1.405

6,691 6.287 5,409 1,333

I Total Air

-383 -455 4 I 6,003 3 336

I - -

122 122

173 39 126 8

(*I

Pollution obatient and control izi,ii3 119,755

2,116 I 651 Durable goods

Nondurable goods6 servlcas , 1,465 I12.191

Pollution abatement Personal consumption

4.325 73 524 163 311 54 213 109 847 444 461 354 348 64

38 6

Buslness On capital account On current account Private Government enterprise Cosrs racovercd

Ccvommont Fede ra 1 Scatc and local Government cncerprise fixed capital

Regulation and monitoring Federal State and local

Pr ivot e Federal State and local

Research and development

1 Less than $500,000,

5,055 1.291

, -383 I 5,448

247 [ 1,285 I

i '*!: 212

I

- 7,968 7,304 2,116 651

1,465 5,057 3,156

1,879 23

130 46

1,901

(*)

84 157 46 112 507 415 86 6 -

Water

9,579 9,234

-

- 5,100 2,689 2.411 1,143 1,268

4,134 166 137

3,832 215 119 96 131 48 67 16

Solid Waste Other Total Air

, Water

Solid Waste

3,650 3.597

2,416 382

2,034 2,034

(*I 1,180

32 1,148

23 20 4 30 11 15 4

9,100 8,493 2,589 1,184 1,405 5,768 3,610 2,158 2,135

24

137 63

(*)

10,212 9.861

5,247 2,756 2.491

1,309

4,615 216 147

4,252 224 125 99 127 51 60 15

1,181

3,709 3,651

2,418 325

2,093 2,092 ("1

1,233 38

1,195

25 21 5 32 16 11

5

Other

-80 -435 - - - -454

-454

(*) -455 19 19

- -

(*)

- 111 111

244 1' 1 192 I1

(*I

Table 1, continued

10,850 10,453

- 5,977 3,023 2,954 1,405 1,549

-I

pollution abatement and control Pollution abatement

Personal conswpcion Durable goods Sondurab1e goods L services

On capital account On current accoun:

Business

Privare Government enterprise Costs recovered

Federal St.xtc and local Govi.rnnen: cncerprise

fixed capital

Government

Regulat Lon and muilltoring Federal State and local

Priv:l:e Federal State and local

Rewarch and dzvelopmant

4,037 4,034

2,765 349

2,416 2,416 (*) -

1976 1977

Total Air - 24,187 22,733 2,857 1,489 1,368

13,653 6,791 6,862 5,970 1,447 -555

6,224 341

1,347

4.535 543 309 234 911 491 385

35 -

- 9,492 8,872 2,857 1,489

5,840

2.397 2,368

29

176 70 1

105 150

53 98

470 370

95 5

1,368

3,443

-

-

Water - L0,887 L0,515

5,753 3,012 2,741 1,323 1,417

4,762 190 142

4,430 244 116 128 128

53 61 14

-

-

Solid Waste

3,906 3,857 - -

2,615 363

2,279 2,279 (*)

1,242 - 38

1,204

- 21 16

5 29 15 10

3 --

Other

-98 -511

- -555

-555

1 -555

44 44

(*)

- -

128 125

3 284

53 218 13

Total Air - 24.503 22,917

2,945 1,683 1,262

13,996 6,703 7,293 6,275 1,583

5,976 331

1,357

4,288 585 311 274

1,002 571 394

37 -

- 9,658 8,917 2,945 1,683 1,262 5,818 3,331 2,487 2,154

33 -564

188 65 1

122 168

58 109 540 437

98 5 -

Solid Water Waste

4,476 1,269 193

1 30 117 1,239

4,166 I - 258 27 106 I 19

8 % 1 26

65 14 10 3

Other

-92 -521

-564

-564 -

-564 43 42

(*)

133 129

5 296 55

225 17

* Less than $500,000.

N N

Table 1, continued

Pollution abatement an Pollution abatement

control

Personal consumption Dura!,le goods Sundurable goods 5 services

On capital account On current account

Nusiness

Privace Covcrnment enterprise Coscs recovered

isvernmcnc Federal Stsie and local Gcvernrnent enrerprise

fixed capital .<egu?ac ion 2nd meni to ring

Federal Stdte and locnl

Prlvste Federal State and local

Research snd develupment

1978 1979

Solid Total Air k'ater Xastc Other

25,771 24,126

2,990 1,740 1,250

14,555 6,685 7,870 6,727 1,725 -583

6,581 282

1,406

4,893 616 339 277

1,029 605 385 40

---

9.945 9,210 2,990 1,740 1,250 6,054 3,330 2,274 2,685

38

166 48 1

11,687 11,278

- 6,215 3,009 3,206 1,520 1,686

5,063 188 100

i 4,264 1 4,202

2,868 346

2,522 2,522 (*)

I 1,;34 29

I 1,305

14 30

116 139 556 145 451 17

5 3

-125 -565 -

-582

-582

(*I -583

18 18

-

(*)

- 141 133

8 299

71 208

19

Total Air Water Solid Waste

- 26,112 24,433 2,990 1,833 1,158

15,019 6,700 8,318 7,101 1.810 -592

6,424 297

1,387

4,740 648 375 273

1,032 622 367

43 -

10,198 9,485 2,990 1,833 1,158 6,315 3,445 2,870 2,830

40

180 50

(*I 130 174

63 111 539 465

69 5

11,150 11,101

6,195 2,846 3,350 1,580 1,770

4,905 195 101

4.610 250 147 103 159

68 80 12

4,511 4,413

- - 3.101

409 2,691 2,691 (*)

1,312 29

1,283

62 23 39 36 18 16

2

-107 -566 - - -592

-592

(*) -592

27 23

3

161 142 19

298 71

202 24

* Le88 than $500,000,

123

Private costs of compliance are even more significant. In 1973, the National Water Commission estimated costs to industry of achieving the 1983 oal of "best available technology" at $116 billion for the period 1972-83

9 Kneese and Schultze, p. 73). However, plant and equipment expenditures for pollution abatement have exceeded expectations. The March 1981 and July 1981 Survey of Current Business (m) reported that industry spent $9.2 billion in 1980 for new plant and equipment to abate air and water pollution and dispose of solid waste - a 9 percent increase over 1979. Real spending for pollution abatement and control increased 1% percent in 1979, compared with 5 percent in 1978 and an average annual rate of 6 percent during 1972-1978. The comparative role of business, government and consumers in pollution abatement and control indicates that business is the major carrier of these costs. This is shown in Fig. 1, reflecting the cost figures of Table 1.

Billions of 1972 $

301 I Consumers

Government

Business

Note.-Data are from table 1. Business is the sum of lines 28 and 42; government, lines 34, 38, 43, and 44; consumers, line 25. U.S. Department of Commerce, Bureau of Economic Analysis Reprinted with permission of Survey of Current Business

Fig. 1. Pollution abatement and control expenditures by sector, 1972-79.

Table 1 indicates that business expenditures on pollution abatement have increased in constant 1972 dollars from $10.7 billion in 1972 to over $15.0 billion in 1980. While a large percentage of the expenditures result from compliance with existing regulations, business also increasingly seeks to change production processes to reduce pollution by recycling, reuse, or modification processes which reduce waste. These techniques "internalize" pollution externalities as part of the production process. This trend is significant when compared to various "end of line" methods. Table 2 shows that new plant and equipment expenditures for these changes-in-production process methods increased from $1.05 to $1.55 billion from 1973 to 1980, and that a $1.63 billion expenditure was planned for 1981 at the time of data collection. From 1977 to 1981, the increase in these methods of

124

pollution reduction grew from $1.34 to $1.63 billion, or by 22%. In the same period, "end-of-line'' expenditures in water pollution alone rose 34%. As will be discussed in detail below, the comparative cost advantages to firms of change-in-production process techniques of pollution control is an important focus of the "pollution prevention pays" philosophy, and requires careful attention.

Table 2

New Plant and Equi?-ent Expenditures for Air and Water

Pollution Abatcnen: 2::' Changes-in-Production Process Methods 1

(Billions of dollars)

Planned 1973 1974 1975 1976 1977 1978 1979 1980 1981

Total nonfarm business 1.05 1.09 1.24 1.31 1.34 1.42 1.59 1.55 1.63

.61' .58 .83 .95 .88 .83 .92 .94 1.GO

.2i .27 .21 .25 .28 -31 .40 -46 .43

.35 .32 .56 .71 .60 .52 .52 -48 .57

No~iiil:inu f:ic timing .43 .51 .41 .36 .46 -59 .66 .61 -63

.33 .4l .28 .22 -34 .43 .53 .45 -43 El wti- i c util-ities

Otl~r nonicunufacturing .ll .10 .13 .14 .12 .15 .14 .16 .20

I . Ci~nn$:i'o-in-production-process methods involve the modification of existing product .ion processes or the substitution of new processes to reduce or eliminate tlw pol I ut:uits gcncrated.

Suurc:.: Survey of Current Busixss, Narch, 1981. - .-

The aggregate data reported in Tables 1 and 2 do not adequately capture costs of regulation at the firm level. An example relevant to North Carolina industry may help to convey the uncertainty and costs associated with compliance. The reissuance of Section 307(a) which permits regulating toxics under the Federal Water Pollution Control Act poses new difficulties for small industry. Take a small textile dyeing operation in the Piedmont, employing 500 persons and discharging 60,000 gallons per day on a stream. The effluent from this operation is discharged about 15 miles above the raw water intake for a public water supply (see Bellanca, 1979). draft permit for this discharge covered phenol, sulfide, chloride, chromium, and other chemicals. It was known that new chemicals would have to be covered under the new permit, but which ones? Dyes are candidates for inclusion but not on a generic basis, so the constituents of the dyes such as benzidene had to be identified. The plant manager was unable to provide specific information; the vendor in turn claimed that information had already been provided to other state agencies. samples were taken. ducted according to EPA methodology. effluent was moderately toxic, and that the waste produced high mutagenic

The original

In the absence of data, Ames tests for mutagenicity and bioassays were con-

The results indicated that the

125

response in the tester strains, implying potential carcinogens. In addition, analysis of the chemical structure of the dyes indicated the presence of benzidene, one of 65 compounds listed by federal law as a priority pollutant. Eleven additional but unidentifiable compounds were found in the scan.

What action should be taken? How much will it cost? One option is to treat the waste to a non-toxic state. But how is "non-toxic" to be con- strued: in terms of acute toxicity or mutagenicity? Mutagenicity means that even a tiny amount of the waste may be carcinogenic. that the discharge should be reduced to zero to protect public health downstream? the small industry, since the cost of shifting from the stream to land based deposits may be prohibitively expensive. firms and public officials charged with state-level monitoring, the Deputy Executive Secretary of the Virginia State Water Control Board stated:

The question facing the firm is: how are these data to be interpreted?

Does this mean

The consequence may well be the loss of 500 jobs provided by

Speaking for both small

The feeling pervades that instead of being unable to see the forest for the trees, we're lost in the forest. What do we do? This is our dilemma - the sum total of which leads us to the conclusion that we are facing a crisis in regulation (Bellanca, p. 487).

Without greater clarity in regulations setting socially acceptable levels of pollution, firms are incapable of making judgements regarding pollution control.

A last factor affecting the regulatory option is philosophic: to what extent can government at a1 1 levels successfully pol ice private firms' microeconomic decisions, and to what extent should it attempt to do so? These questions are related, since even with the ability to intervene, many businesses and private citizens feel strongly that government ought not to become involved in private decisions. This position is countered by those who draw attention to the fact that pollution externalities are not, by definition, matters internal to the firm, so that a case for public intervention exists (Bator, 1958). Even if government ought to be involved, questions of practicality and costs arise. Can government successfully command the technical information and legal resources to impose its authority on the microeconomic decisions of firms? important in the monitoring and enforcement of end-of-1 ine pollution control equipment. night than it is for the government to catch it. Even if caught, the firm may find paying a $5000 or $10,000 fine preferable to compliance in terms of total costs.

Whether or not one feels that government ought to play a smaller role in our lives, the information asymmetry which makes discovery and enforcement of non-compliance so difficult places government at an inherent disadvantage if it emphasizes a purely regulatory approach to pollution. Rather than trying to impose its will from above, government may be better off attempting to guide market-based decisions through economic incentives. Enforced regulation will still be necessary but shodd be regarded as a "second order" solution to pollution externalities (Runge, 1981). This is the conclusion of a recent study at Resources for the Future, the Wash- ington based research organization. The study emphasizes as especially important the uncertainty inherent in the regulatory process: industry does not know how or to what degree regulations will be implemented and whether standards may change in the future. The result is a chilling effect on a new plant investment, technological innovation, and thus on growth and

Which way to go?

This issue is particularly

It is much eas-ier for a firm to shut off filters at

126

productivity (Peskin, Portney and Kneese, 1982). The need suggested by this study is a closer look at economic incentives. It is these incentives to which we now turn.

Pollution Charges: Negative Market Incentives

Many economists feel that pollution charges imposed on firms can lead to significant reductions in externalities without the costs of direct regulation. into the market system, causing firms to absorb the costs of polluting behavior. If the charges accurately reflect the costs of pollution to society, and the firms are assumed to behave rationally, they will reduce the level of pollution to the point that the marginal cost of the charge equals the marginal benefit of continuing to pollute (Anderson, et. al., Kneese and Schultze).

creating external costs, based on a predetermined level of ambient quality. On the basis of a preset regional level of water quality, for example, charges can be raised to firms emptying effluents until the desired quality level is achieved. Since the charge is the same for all producers of a given pollutant, not all firms will control pollution at the same level. Marginal costs of the charge may equal marginal benefits of continued pollution for one firm at effluent levels 20 percent below the precharge output, and for another at 30 percent below this output. A charge might cause the first factory, with higher control costs, to reduce its effluent less than the second, which has lower control costs. The advantage of such a charge is that it presents the firm with an immediate incentive to control its generation of effluents. tion in this activity, even if individual firms respond differently. questions of control techniques and technology are left to the firm (Anderson, et. a1 .) . The difficulty with such a system is that there is no real incentive for one firm to outperform another by internalizing pollution costs. Indeed, the opposite may be true. chargej amounting to a uniform increase in average costs, then reductions in pollution will only eliminate the charge if all of the firms together achieve the preset level of ambient quality. firm to "free ride," paying the charge wyithout reducing its own level of pollution (thus avoiding the added costs of such reduction) in the expecta- tion that other firms will do their share and the charge will ultimately be removed. If many firms respond in this way, the charge will not have the desired effect, and may even lead to incentives by firms to collude by hiding polluting behavior. The only way in which this incentive structure can be avoiged is if (a) firms develop a cooperative agreement designed to guard against "free riders"; (b) government or administrative rules are imposed to provide the same guarantee. In either case, firm-specific enforcement measures are required, leading to some of the same private and public costs which a charges system is ostensibly designed to avoid.

More sophisticated charges systems are possible, applied on a firm-by- firm basis. Charges can be directly linked to the level of effluent generated by a firm, and reduced in proportion to the level of effluent output. Such charges can also be adjusted to firm size, another difficulty of flat charges imposed across all firms. However, each attempt to develop more exact application of incentives raises costs of administration and enforcement, shifting the burden from the firm to the public agency, and thus undermining the "market" philosophy underlying a system of charges.

In general, however, the achievement of an efficient charges system

It is argued that charge systems bring pollution externalities

The simplest system of charges sets a flat price on all resource uses

The overall effect will be a reduc- The

If each firm in a region faces the same

An incentive exists for each

127

requires charges tailored to the discharges. To the extent that firms of particular size classes are similar, charges may be applied based on size characteristics without requiring firm-by-firm enforcement and inspections. Although the informational requirements of a charges system rise as more specific charges are tailored to suit individual firms and pollutants, such a system introduces no more, and perhaps less, bias than direct regulatory controls. Public agencies must be prepared to accept the burden of infor: mation process and much depends on how the system is administered (McKean, 1980). Russell (1979) suggests that there is no logical or technical ban to running an effluent charge scheme on a self-reporting basis, with random "audits" to encourage honesty. Both the existing income tax system and the National Pollution Discharge Elimination System (NPDES) provide analogies. Individual sources can file reports of their own sampling results with state agencies and EPA. require fewer resources to audit and enforce a self-reporting effluent charge than to ensure compliance with regulatory standards.

of industry, they may be seen as a form of punishment for operating behavior which reduces the level of environmental quality arbitrarily identified by some public agency. relationship between industry and government, leading to incentives for misrepresentation and litigation opposed to the public interest. effect, charges can be employed as another way of "shaking a stick" at polluting industries rather than as market signalling devices. leads to greater flexibility in terms of firm compliance, it does not alter the essentially negative incentive structure found wanting in our prior analysis of the regulatory option.

Roberts (1976) suggests that it might actually

A final problem with charges systems is that, from the point of view

Used alone, charges may create an adversary

In

While this

Positive Market Incentives: Making Pollution Prevention Pay

Like a system of pollution charges, the philosophic basis of positive

A well known

incentives is that market signals are a highly efficient way of conveying information to firms. overcome the incentive by firms to respond noncooperatively. principle of modern psychology holds that rewards exceed punishments in their capacity to elicit desired behavior. is not immune from this principle. This has important implications for public policy designed to reduce pollution externalities.

tion-process can reduce pollution levels at the same time that they raise firm profits. reuse, or eliminate waste by process modification, a wide range of firms find that bottom line profits are actually increased. What were formerly external costs can not only be internalized, but can actually be converted to benefits by technological or managerial innovation. The way in which this is accomplished will naturally vary widely from industry to industry, and is treated in detail by others (Royston). The general principle is what is important: by taking effluents considered waste products in one phase of production and converting them to inputs in another, costs are transformed to benefits, raising total profits. back in" to production, yielding an increase in overall operating efficiency. This phenomenon has a clear thermodynamic rationale; industries find it profitable to slow down the rate of entropic degradation of the production system (Bryant).

If pollution prevention pays, then why doesn't it happen by itself? There would seem to be little reason, given its profitability, for public

A charges system working alone, however, cannot

Presumably, economic behavior

An increasing number of case studies indicate that changes-in-produc-

That is, by modifying production processes to recycle,

Externalities are "tucked

128

policies designed to enforce pollution reduction or charges to make it happen. The answer lies in the investment cycle of individual firms. The information required to develop technological innovations which reduce pollution is often unavailable. Even if the information and technology are known, bringing them on line involves front-end capital costs. Neither regulations setting limits on pollution nor charges designed to make pollution more expensive address the questions of uncertain information or capital costs to the firm. Investments in new equipment and processes usually take three to five years to perfect. capital budgeting systems demand an earlier payback - so that essential new technology is turned down. taking and hold back adoption of new technologies. pollution-process pay off over the long term, reduced uncertainty and improved possibilities for financing these initial expenditures may thus be critical in promoting firm decisions to undertake them.

These two elements also suggest why firm size may be an important factor explaining the rate at which such changes in production have occurred thus far. Technological requirements, large system efficiencies, and capital costs of profitable pollution prevention are reasons why major advances may come first to large, well-integrated firms and industries. First, the ability to innovate technological changes designed to convert externalities to inputs may require information provided by an in-house staff of engineers and scientists unavailable to smaller firms. Second, the more facets of a production process there are, the more opportunity exists to "tuck externalities back in" to other production processes. Larger, more well-integrated firms will find more opportunities for such recombination. Third, larger firms are more able to raise long-term capital and to plan over an investment horizon in which the profitability of changes-in-production processes are clear. exists for policies which discriminate between firm size, type of pollutant, and method of production process (Elkington, 1981). In the steel industry, for example, recycling is less efficient than in paper or chemicals industries (Hannon and Brodrick, 1982).

becomes clear. The purpose of these incentives is (1) to provide information and expertise; (2) to reduce the capital costs of changes-in-production process treating pollution externalities. capital must, in turn, be suited to the different needs of industry. By reducing the uncertainty surrounding investment in new technology, it is possible to lower expected long-run average costs to firms undertaking these investments. In effect, if pollution prevention pays, the role of positive market incentives is to make it pay faster, and with greater certainty.

If the analysis of firm size above is.correct, the role of positive incentives is even more pronounced where firms are small. more vulnerable to both investment uncertainty and capital costs, and may require additional inducements, including technical expertise and facilities sharing such as "waste exchanges,'' in order to undertake changes-in- production-process (EPA, 1980). In other words, besides capital investment incentives, positive incentives to small firms may include information which large firms generate in-house. Through mechanisms such as waste exchanges, externalities become inputs to other small firms, rather than inputs in one's own well-integrated production process.

Carolina are increased stability in the regulatory environment and tax reductions of various kinds. their financing will be taken up in a discussion of policy below. concluding the economic discussion, however, the relationships between non-

In too many U.S. companies,

Management reward structures discourage risk- Although changes-in-

A clear basis therefore

With these elements in mind, the role of positive market incentives

This information and

Small firms are

The positive incentives most readily available to states such as North

The specific form of these reductions and Before

129

market regulation and both negative and positive market incentives must be integrated in a form amenable to policy formulation.

A Negative Pollution Tax Proposal

In this section, a proposal for positive economic incentives for pollution control is developed, based on the idea of a "negative tax" or subsidy paid to firms which innovate pollution reduction technologies. negative pollution tax (NPT) is not treated in isolation from the other incentives discussed above. Instead, it is part of a total mix of incentives designed to: (1) provide information and expertise to firms; (2) reduce capital costs for change-in-process technologies leading to reduced effluent levels.

including Milton Friedman, who argued for it as a substitute for welfare programs to the poor. It was the centerpiece of President Richard Nixon's Family Assistance Plan, proposed in 1969 and ultimately defeated in Con- gress. The basic idea was that market forces are preferable to regulation. Given a particular level of income defining a "poverty line," families above that level would be treated at the rate corresponding to their income. to some maximum allowable limit. A great deal of research went into demonstrating that such subsidies would not lead to disincentives to work (Pechman and Timpane, 1975).

The negative pollution tax is simply an application of the same idea. The first job is to establish a particular standard of pollution for a given hazardous substance, or "pollution line." This line would be set on the basis of best available knowledge of toxicity or potential hazard. This hazard implies a particular level of social cost associated with the waste effluent. At the level dictated by the pollution line, this cost is socially acceptable. generating this waste would be charged at an increasing rate the higher the level of waste production. At a certain point, (the "control line") charges would reach a maximum, and direct controls would be imposed in the name of public health and safety. reporting basis. These are no more than applications of the regulatory and negative economic incentives identified above. The sequential application of pollution charges and direct controls operationalizes the idea that direct regulation should be a "second order" solution. As will be shown in the discussion on policy below, setting "pollution" and "control" standards is analogous to the rate-making job of Public Utilities Commissions.

be paid to firms to finance capital improvements leading to effluent levels below the.pollution line. level set by the line, the higher the subsidy, up to a point, where the waste emission level is zero. At this level, no subsidy is paid.

tax/subsidy rate. sidies) are paid; to the right, taxes are levied on firms in a given size category. The vertical axis measures the pollution production level of a particular effluent or waste. At point P, the "pollution line" is crossed, so that what were subsidies become charges. point Cy where the "control line" is reached, and direct controls are put in force (see Appendix 1).

The

The idea of a "negative tax" was first made popular by economists,

Below the poverty line, a negative tax or subsidy would be paid, up

Above this line, firms in a given size category

Such a system would operate on a self-

The new element is that subsidies in the form of negative taxes would

The more the firm can reduce effluent below the

This concept is illustrated in Fig. 2. On the horizontal axis is the To the left of point 0 negative pollution taxes (sub-

These charges increase to

130

pollution 7 level "control line"

subsidy rate (negative tax)

tax rate

Fig. 2. Tax/Subsidy scheme for pollution prevention for a given waste for firms in a given size category

The job of policy makers is to arrive at four critical decisions. The first is the appropriate level of the pollution line for any particular waste. The second is the appropriate level of the control line for this waste. The third, given a tax and subsidy rate, is the slope and shape of the tax subsidy line NPC. The fourth is the particular firm size category to which the scheme is applied.

Before examining these four issues, emphasis should be given to the area defined by the shaded triangle NPO, the potential subsidy available to firms investing in change-in-process technology reducing wastes below the pollution line. First, in order to be attractive, this subsidy must be sufficient to reduce significantly the capital costs of technology leading to reduced effluents. To be attractive in this sense, the subsidy must amount to an advance paid to the firm to help finance investment in capital equipment, based on a simple plan submitted in confidence to a private agent of the state. The greater the proposed decrease in the level of waste under the new technology, the higher the subsidy paid. To promote flexibility, the subsidy might be available either as a direct write-off on current year taxes, as an accelerated depreciation allotment, or as a direct transfer of funds to the firm. To ensure that technology will be brought on line, the subsidy should be paid in installments, the largest at the front end, and subsequent payments in the years up to and after installation of new equipment - during which performance standards would be expected to comply with the projected decreases in effluent. This is known as "carryover provision."

Two aspects of these subsidies are of particular importance. First, they should be granted primarily on the basis of reduced levels of pollution, however firms choose to achieve them. This means that if one firm is able to contract with another to utilize its waste products as an input through a waste exchange, it is eligible for the payment, assuming it can demonstrate its dealings with the exchange. Thus, information leading to such linkages is treated as comparable to technical innovation, since both 1

131

have the same pollution reducing effect. Second, general increases in efficiency leading to reduced effluents, even if they occur due to changes in other processes "upstream" in the production cycle, are fully eligible for subsidies. policy over "end-of-line'' technologies. This is so because they are more efficient, and thus profitable, for the firm itself. An important role of the state is to provide additional information on change-in-process techniques and opportunities, as well as to specify the "pollution line" for firms of various sizes. The thermodynamic efficiency (see Bryant, 1982) of these change-in-process techniques may have a problematic effect on the nature of effluents, however, since they may emerge from the new process in more concentrated form (Ling). Thus, "pollution" and "control" lines should not be defined in terms of pollutants in parts-per-million (PPM) of air or water, but in terms of total output of the wastes in units appropriate to their measurement.

reducing effluents by changes-in-process technologies may be much more attractive from a capital budgeting standpoint that subsidies for end-of- line pollution control. all operating efficiency unless they capture recyclable effluents. In contrast, change-in-process technologies can increase efficiency overall, reduce energy costs and thus raise profits. Subsidies designed to assist in this conversion process make pollution prevention's pay-out occur sooner, increasing the incentive to adopt them. Once adopted, they offer no incentive to be "turned off," since they are an integral part of the production process.

Subsidies may also be desirable on formal economic grounds where the only politically feasible alternative is direct controls. First, direct controls are likely to allocate pollution quotas more arbitrarily than either taxes or subsidies which work in a manner consistent with cost- minimizing goals of the firm. Second, as noted above, subsidies offer inducements for positive contributions to environmental quality, while direct controls and charges offer no incentive to go beyond reducing effluents to the level specified by regulation or sought by imposition of the charge (Oates and Baumol, n. 71).

nation of regulatory, negative and positive economic incentives. The negative pollution tax (NPT) combines these elements in the form of "control" and "pollution" lines, charges, and subsidies for technical changes or participation in waste exchanges reducing effluents below the level set as acceptable. subsidies, and treating charges and direct controls as alternative, "higher order" policy responses, the NPT is designed to make pollution prevention pay. individual firms.

These changes-in-process should be preferred as a matter of

Subsidies paid to firms in a given size category for capital equipment

End-of-line controls provide no increase in over-

In summary, policy promoting pollution reduction requires a combi-

By emphasizing the provision of information and role of

It does so by decreasing uncertainty and reducing capital costs to

STATE POLICIES AND PROFITABLE POLLUTION CONTROL

The appropriate combination of regulatory and economic incentives requires careful attention. approaches relying on regulation and negative economic incentives impose high costs on both the public and private sector, and provide neither sufficient information nor sufficient capital to private firms. In the absence of this information and capital, potentially profitable opportunities for pollution prevention are foregone. In the last section, the negative pollution tax proposed positive economic incentives designed to

The theme of this paper is that current

132

promote capital expenditures on change-in-process technologies. In this section, specific policies are considered which would lead to such a program in North Carolina, and the rationale for negative taxes as part of pollution prevention policy is further developed. Such a policy can lead not only to increased profits, but to both direct and indirect reductions in public expenditures for pollution control.

Elements of State Policy

State policy for pollution prevention requires the provision of both information and capital to firms prepared to undertake changes-in- process to reduce wastes. This policy can be formulated in terms of the four parts of the negative pollution tax (NPT) proposal developed above.

First, what is a socially acceptable level of pollution associated with a given waste? socially acceptable "pollution line"? the main purpose of the analysis currently underway by the Toxic Substances Project in North Carolina, begun in July 1980. Section 28 of the Toxic Substances Control Act of 1976, the project is entitled "The Identification, Assessment and Control of Toxic Substances in North Carolina", and is directed by Dr. Don Huisinqh in the Governor's

In terms of the NPT, where should we draw the The answer to this question is

Funded under

Office.

1.

2.

3.

4.

Specific objectives of the project are to

Develop a profile of chemical substances produced, used and that accumulate as wastes in North Carolina;

Assess the human health effects of selected toxic chemical substances profiled. Those selected will be the ones most likely to present significant adverse health or environmental effects ;

Identify sources, levels and duration of human exposure to the substances profiled, particularly those selected for more intensive study;

Develop a comprehensive plan to control those toxic substances for which the adverse effects are judged to exceed the beneficial effects.

As of spring, 1982, 100-150 substances had been chosen for study, and detailed dossiers on each substance compiled, providing concise factual information about the known effects of the substance, current regulations (if any) and recommendations for emergency response (Huisingh, 1982). The information on fifty-one of those substances will be published during the fall of 1982 as "The North Carolina Toxic Substances Management Guide".

This information was supplemented by other efforts to identify types and quantities of wastes produced. The Triangle J Council of Governments Hazardous Waste Management Program, for example, undertook a study of 261 generators, transporters and managers of wastes in its region, and recommended an information exchange to facilitate recycling of wastes (Triangle J Council, 1981).

133

Together, this effort provides a prototype for establishment of socially acceptable levels of pollution, based on best available scientific knowledge of specific po1lutants.l By setting the "pollution line," it is also possible to delineate what socially unacceptable levels of particular wastes may be. posal, the "control line." Above this line, generators of wastes would be subject to direct control over pollution, enforced by agencies of the State. This control, while a second-order solution, would bolster public confidence in the primary market-based incentive system. fidence, as noted above, there is no reason why the particular level of waste cannot be identified by firms on a self-reporting basis. for example, each industrial user and producer of select substances is required to report annually to state government the quantities of substances on a list that their company has produced or used during the preceding year. A similar report can act as the basis of proposed subsidies for change-i n-process technology and confirmation of participation in waste-exchanges. The development of these reporting systems is consistent with the recent emphasis by EPA returning responsibility to the states, especially in hazardous waste management (Science, 1982).

change-in-process technologies or waste-exchange participation, determine the regulation, charge or subsidy confronted by a particular size class of firms. The function of establishing "control" and "pollution" lines is to make the regulatory environment more certain by providing this information. State agencies can also promote more direct ties with universities and other public sources of information bearing on technical processes of interest to firms. One way in which this flow of information can be made even more secure is by establishing private sector organizations to "broker" technology in the area of process modification and recyclelreuse processes. Contracts established with such a facility would presumably make more secure confidential industry information. For smaller plants without internal research and development capability, such a corporation could be an especially important source of information and support (Overcash, 1980).

charges and negative taxes paid. charges for each additional unit of waste generated. Below this line, negative taxes can be designed to reduce front-end capital costs of change- in-process technology. a one time only basis) for involvement in waste exchanges, such as the Piedmont Waste Exchange System. The particular package of negative taxes promoting such changes can take a number of forms. incentives includes property tax exemptions, accelerated depreciation, reductions on equipment taxes, state corporate income tax exemptions, and sales, use, franchise, and excise tax exemptions, as well as direct payments in the form of non-refundable credits. options should be developed, allowing firms to exercise those most attractive. This would be analogous, in some ways, to existing federal tax credits available on new equipment and 10 percent credits for "energy"

This accounts for the second major part of the NPT pro-

With this con-

In Michigan,

Information on levels of waste generated by firms, as well as proposed

The third part of the NPT proposal specifies the actual schedule of Above the "pollution line," firms face

In addition, they can be paid to firms (perhaps on

The range of tax

Perhaps a flexible set of

'At the local level, a number of U.S. municipalities levy sewer sur- charges in a manner analogous to the charge system proposed here. charges are levied above the "normal" waste level, defined in terms of concentrated biochemical oxygen demand.

Sur-

134

property and recycling equipment, except that non-refundable credits would also be available.

These negative taxes directly promote recycling and reuse, creating major in-plant incentives to prevent waste at the state level. In Wiscon- sin, for example, machinery and equipment used for treating hazardous waste is exempt from state property tax. Oregon has the most extensive set of incentives, including a 100 percent tax credit to industries for pollution control facilities which produce either a usable source of energy or another item of real economic value from something that would otherwise have been a waste. Among the facilities eligible are air, noise, and water pollution control facilities, solid waste, hazardous waste, and used oil facilities. percent tax credit for 10 years against income or excise taxes, or a 5 percent credit per year for 20 years against ad valorem or property taxes. Oregon is the only state to condition eligibility for tax credits on the recovery of energy or real-valued substances (Bulanowski, et. al., 1981). No state has proposed nonrefundable credits to firms preventing pollution, however. North Carolina would be the first to oDerationalize this neaative

The allowed tax credit in Oregon can be taken either as a 10

tax concept. - In North Carolina. the beainninas of a Droaram of neaative tax incen-

tives are already in piace. cleaning, waste disposal, air and water pollution treatment and resource recovery are all excluded from the property tax (N.C. General Stat. sec. 105025(8)). General Stat. sec. 105-122(b)). In addition, state statute a Department of Human Services to develop standards for special to be applied to "recycling, reduction or resource recovering or equipment" (N.C. General Stat. sec. 130-166(a) (3)). The Task Force on Waste Management has recommended that income ta various types of industrial investments be extended to hazard treatment and disposal equipment (see N.C. General Stat. Sec. 105-130.5(b) (6)). These policies can, however, be significantly expanded to increase the number of industries covered by negative tax provisions related directly to capital expenditures for recycling, reuse, or process modifications, as well as participation in waste exchanges. In addition to tax credits, a variety of direct subsidies can also be developed. important, however, that emphasis be placed on incentives which result in change-in-process technology, compared with end-of-line methods also important that subsidies or tax reductions for change-in-p innovations be directly tied to reductions in specific pollutants deemed to be of importance. In this way, tax policies can "target" hazardous wastes of special concern, creating especially strong incentives where they are most necessary. taxes must be worked out by state administration (see Majone, 1976).

force particular levels of waste output on a pollutant-by-pollutant basis. While such enforcement will sometimes be necessary, its "second-order" status provides insurance of compliance where levels of pollution are socially unacceptable, and lets economic signals work otherwise. In many ways, the rationale for this intervention is that market signals must be adjusted by public agencies to reflect true social costs. ing devices should still be primarily economic. A similar rationale (founded in the theory of imperfect competition) is used to justify rate- making by Public Utility Commissions. The tax and subsidy schedules are analogous "rates" charged on polluting and non-pol luting behavior. system of charges will coexist with a system of negative taxes, incoming

RGal esiate and' eqiipment used for air

A parallel provision allows franchise tax exclusions (N.C.

It is

The particular structure of both charges and negative

While this job is complex, it is less difficult than attempting to en-

But the signal-

Since a

I I,

135

revenue from charges will help offset reductions from tax exemptions and subsidies.2 In addition, increased operating efficiency and overall profitability resulting from implementation of the "pollution prevention pays" program should lead to increased tax revenues from corporate sources overall. This provides an additional public incentive to promote change- in-process technologies through negative taxes.

to promote new technology, either in the form of a private information "broker" or a quasi-public or public clearinghouse. of special assistance to small firms. from the charges system, a revolving fund could be established to subsidize work on new technology on a pilot basis, as well as to promote resea5ch by university and state offices devoted to new technical possibilities.

Since the problems associated with a firm adopting new technologies are closely related to the degree of integration in production, smaller industries are likely to face special difficulties. It follows that the schedule of charges and negative taxes, as well as the "pollution" and "control" line themselves, should be set with considerations of firm size in mind. If higher subsidies are paid to promote change-in-process technology, the overall effect on revenues will be in proportion to the representation of small firms in the state economy as a whole. When consideration of the employment provided by these firms is given, together with their contribution to the waste picture in the state and the difficulty of separate enforcement in each case, the revenue implications of promoting change-in-process technology are compara- tively attractive. The alternative is costly end-of-line technologies or direct controls which, if they can be adequately enforced to begin with, may force many small firms out of business altogether, leading to substantial long-term unemployment and lost tax revenue.

It is also possible to imagine a specific funding arrangement designed

This center could be By utilizing funds partially drawn

Firm size is the fourth part of the NPT proposal.

Further Policy Considerations

A final set of policy considerations involve the technical and

The technical requirements of political feasibility of implementing the NPT, as well as several exten- sions and modifications of the plan. identifying pollutants and determining appropriate "pollution" and "control"

'Palmer et. al. (1980) and Palmer and Quinn (1981) compared a tax on The

However, tax revenues

chloroflourocarbons to regulations yielding the same emission level. costs of abatement under the tax scheme were estimated to be 58 percent of compliance costs under direct control regulations. from the charges were estimated to be nine times the total cost of com- pl i ance.

31n their survey of European pollution policies, Johnson and Brown (1976) found three democratic nations with charge/subsidy systems similar to those proposed here. In West Germany's Ruhr River Basin, France, and the Netherlands, revenues from charges are used to subsidize waste treatment by industry and municipalities; indeed, their primary purpose is to raise revenue for water quality management and for subsidies (Bower, et. al., 1981). In a similar set of incentives, British charges are designed so that they finance sewage treatment, although direct regulation remains the preferred policy response (Webb and Woodfield, 1981).

136

levels are large, but no larger than any alternative schemes of enforcement or control monitoring. strides toward developing the sort of information base required. corresponding job of setting charges and subsidies is also feasible within existing administrative structures, even if new additions to these structures, such as implementation of a reporting system and technical information "brokerages" must be undertaken.

The real difficulties lie in the area of political feasibility. however, a number of auspicious conditions favor implementation of a comprehensive incentives plan. and more responsibility on the states in the environmental protection area, making political action imperative. At both the federal and state level, growing appreciation of the public and private costs of forced compliance and direct controls are leading to a search for more market-based incentives. Second, North Carolina has taken a leadership role in promoting innovative approaches to science and technology policy, as evidenced by this conference. It is now opportune to extend this role in the development of further incentives and a part of state law and administration. Third, industry and government increasingly recognize that it is to their mutual cost advantage to develop cooperative, not conflicting, approaches to pollution control and environmental regulation.

require a number of legislative initiatives, not only in the tax code, but in a variety of other areas. on pollution to those currently covered under federal law (the so-called "Hardison Amendment") may need to be modified so that appropriate pollution and control levels can be set by the state. Just as private companies must undertake front-end capital costs to innovate new technology, so public agencies must be prepared to absorb the start-up costs of new programs.

The search for alternative positive economic incentives need not be restricted to tax measures alone. In North Carolina, bonds may be issued for resource recovery for promotion of waste management, if the facility promotes employment and current industrial practices. The Governor's Task Force on Waste Management proposed that industrial revenue bonds be used to finance reduction, recovery, and recycling facilities (1981, pp. 51-52, n. 17). This and other modifications can help broaden the negative pollution tax proposal's appeal.

The appropriate form of this incentive program is a matter for public discussion and debate. Its function, however, is clear: to promote positive incentives for pollution prevention in North Carolina. Waste Management Board can continue and expand the search for these incentives. Perhaps an even broader mandate can be given to a commission with responsibility for identifying the appropriate form of incentives program. Such a Governor's Commission could provide a prototype for state policy designed to promote both North Carolina industry and the preservation of our quality of life.

The Toxic Substances Project has already made The

Here,

First, federal policies are forcing more

In North Carolina,-promoting a comprehensive incentives plan will

Current legislation restricting regulations

The Governor's

APPENDIX 1

A Formal Approach

capture the critical issue of uncertainty. First, introduce an environmental "damage function" (Oates and Baumol, 1975) associated with production of pollutant j by firms of size i. Assume that a vector of pollutants (ranging from 0 to n) are defined as policy-relevant by the state, as well as a

The negative pollution tax (NPT) proposal may be made more detailed to

137

vector of firm sizes (ranging from 0 to k). periods (years) are involved.

written

Assume further that multiple

The level of environmental quality in year s, defined as qs, may be

qs = f(ms, Es)

where m environmental conditions such as wind velocity, rainfall, etc. variables over which there is no policy contra. function may then be defined as a function of qq, such that

is the level of waste emissions and ES is a vector of exogenous S Es defines

The environmental damage

Zs = g,(qs) = h(msy Es) where qz indicates the state of environmental quality and Zs denotes the social cost associated with qs. From this definition, it follows that the "pollution line" and "control line" are simply alternative levels of social cost (Z) associated with the hazards or toxicity of particular wastes and firm sizes. In a given period s, a level of social cost for firm size i producing pollutant j may be expressed (dropping the time subscript s) as

where Zij = g(q..) = h(mij, E)

i = (0, 1 .... i ... k) 1J

j = (0, 1 ... j ... n) denote the range of firms and pollutants respectively.

We may now reexpress Fig. 1 in terms of the function Zij, such that the "pollution line" and "control line" are defined as alternative levels of social cost associated with a particular firm size and pollutant. Let Z:; equal the social cost associated with the pollution line and 7;; the 'J control line. Clearly

- * - -

'J

L.. > L. JJ ij

The policy problem is to find the combination of incentives such that waste emissions (m..) by firms of all sizes aggregate to an optimal level of pollutants of various types from the point of view of social costs (see Appendix 2). This level may well differ over time and with respect to different exogenous conditions.

However, uncontrolled determinants of environmental quality create uncertainty, as does an absence of knowledge about the character of certain wastes. This implies that the "pollution" and "control" lines are best thought of stochastically; specifically, a particular level of social cost Z.. may be thought of as a mean value in a probability distribution which will vary from pollutant to pollutant and with the set of relevant exogenous variables at any time. Thus, the "pollution line" and "control line" are distributed with means and variances

1J

1J

ZTj Q (E(Z*.); oZ* 2, 1J ij

Together this information can be incorporated in Fig. 2, to produce Fig. A-1 below.

138

pollution t level

"control line" =

acceptable risk "pollution

subsid (negat

F

rate ve tax)

g. Al. and PO

line"

tax rate

Tax/subsidy scheme for pollution prevention for firm i lutant j, showing social costs (Z..) and probability

distributions "control ;IJ

The distributions defined around the "control" and "pollution" lines are important for a number of reasons. distribution around the pollution line end at the control line and at a 0 level of pollution. This is intuitively what a plausible policy based on social costs would look like, since at one extreme, one wants to be sure that socially acceptable but uncertain colts do not surpass one's mean estimate of unacceptable levels given by Zij. At the other extreme, one can be confident that costs will not go below the level associated with zero levels of pollution. Perhaps more importantly, the distribution around the "control line" may have sufficient variance that socially unacceptable levels of pollution may occur below the "control line" set by policy, and within the distrubition defined around the socially acceptable pollution line. While unlikely, this outcome is clearly possible, and provides a rather clear definition of "socially acceptable risk" (see Viscusi and Zeckhauser). reduction in the shaded zone to zero. This requires either increased certainty respecting the socially acceptable and unacceptable levels of pollution (reduced variance around Z?j and 7. .) 1J values defining the "pollution line" downward, assuming that socially unacceptable levels of pollution Zij are fixed. reduced, in other words, by lowering the socially acceptable level of pollution to the point that there is no overlap between the two density functions. This may not be possible, of course, even if Z. is reduced

Public costs of defining and enforcing the pollution and control line can

First, note that the tails of the

To reduce this risk to zero is equivalent to a

a movement of the mean

Risk can only be

* to zero levels of pollution. 1j

A number of important points emerge from this treatment of uncertainty.

be reduced by reducing

This is the purpose of Task Force designed to

139

2 *2 the variances o7 and uz around their means.

the research conducted by the N.C. Toxic Waste ih ih

increase our knowledge of the effects of various A second point is that high levels of uncertainty arising

This is the effect of direct intervention in a

generated wastes. from exogenous forces may require lowering the "control line" very close to the "pollution line". situation of crisis. The effect of this action, however, may be to raise the enforcement costs associated with lowered social costs of pollution (McKean, 1980).

APPENDIX 2

Optimal Programs: A Model

described by a simple economic model. standard engineering function (Oates and Baumol, 1975), the time path of environmental quality in year s is

The appropriate combination of taxes, subsidies, and controls may be Utilizing a simplification of a

as = ks a(s-1) + mS

where

qs is the level of environmental quality in year s,

ks is a random exogenous variable such as average rainfall in year s,

m is the aggregate level of waste emissions in year s,

be a function of the taxes levied or subsidies paid. let

S

Given the tax and subsidy program, the level of waste discharges will For a given waste, j,

m = waste emissions of firm i in year s is Ci(m isj....) = the total cost function of the firm in year s

t = tax/subsidy per unit of waste emission

Cost minimization implies that the firm will set the marginal cost increase of reducing emissions (e.g. the cost of pollution prevention) equal to the emission charge/subsidy. This is expressed as

Note, however, that this single year decision is unrealistic if the firm budgets over a longer horizon. In particular, if the costs of the firm are a function of wastes in year s, and the horizon runs from year s = 0 to some terminal year, s = T, then the present discounted value of these costs becomes the relevant piece of data.

140

Present Value of Cost = Ci(m io...) + Ci(m il...) m (PVCi 1

+ Ci(mi2...) + ... ci(m iT...)

(1 + rIT z

(1 + r)

where

r = discount rate

This reduces to

T

s=o PVCi = z Ci(m is...)

(1 + rlS

With this planning, horizon cost minimization implies that the marginal cost increase of reducing emissions, or cost of pollution prevention, will be set equal to the charge or subsidy in each year over which budgeting occurs. By considering this horizon, the role of subsidies become clear, since this equality may only be achieved at levels below the "pollution line" where negative taxes are paid, i.e. where subsidies are granted to firms to purchase technologies in year s=O which yield waste reductions in the year s=T. In other words, the benefits to firms in terms of waste reductions in future years are worthless because they are discounted by the firm. In order to yield equality between the marginal cost of reducing effluents and the tax at levels below the "pollution line", (even if this is the profitable strategy over the long run) subsidies may be necessary today (see Sims, 1981). In addition, it can be shown that the higher the discount rate, the less the firm will value future benefits from waste reduction, and the higher the subsidy required. It may be that smaller firms manifest exactly such a characteristic.

Using the percent value of costs for the firm and its cost-minimizing emission condition, the relationship between the level of waste discharges

of the ith sized firm and of the unit tax/subsidy on the jth pollutant is derived for any year s as

mi = hi(ts)

Aggregating over all i firms, the aggregate waste emission function for pollutant j is:

m = h(tsj) = xh..(t .) sj 1J SJ

From this equation, we can determine the total level of waste j discharged into the environment in year s associated with each level of the tax or subsidy. This information is sufficient to determine the slope or shape of the tax/subsidy line, given a set of "pollution" and "control" lines.

REFERENCES

Anderson, F.R. et. al. Environmental Improvement Through Economic Incen- tives, Baltimore, Johns Hopkins University Press for Resources for theuture, 1977.

Baram, M.S., "Cost-Benefit Analysis: An Inadequate Basis for Health, Safety, and Environmental Regulatory Decisionmaking," Ecoloa 8 (1980): 473-531.

Bator, F.M., "The Anatomy of Market Failure," Quarterly Journal of Economics 72 (1958): 351-79.

Pollutants," in Air Pollution Control Association, S ecialt Conference on Control of Specific (Toxic) Pol lutant-a Section APCA, February, 1979.

Blackman, S.A. and W.J. Baumol, "Modified Fiscal Incentives in Environmental Policy," Land Economics 56 (Nov., 1980): 417-431.

Bower, B.T. et. al., Incentives ~ Water Quality Mana ement in France and --- the Ruhr Area, Washington, D.Cxsources for t!e 'Futuz,1981. -

Bryant, 3. , "A Thermodynamic Approach to Economics," Energy Economics, (Jan., 1982): 36-50.

Buchanan, J.M. and G. Tullock, "Polluters' Profits and Political Response: Direct Controls versus Taxes," American Economic Review 65 (March, 1975): 139-47.

Bulanowski, G.A. et. al., A Survey and Analysis of State Policy Options to Encoura e Alternatives to Land Dis osal of Hazardous Waste, National ConfereSnce of State Legislatures, !enverFColorado, JK1981.

Dick, D.T., "The Voluntary Approach to Externality Problems: A Survey of the Critics," Journal of Environmental Economics ycJ Management 2 (1976): 185-95.

Elkington, John, The Ecology of Tomorrow's World - Industry's Environment, New York, Wiley, and Sons, 1981.

Environmental Protection Agency, Waste Exchanges: Background Information, publication SW-887.1, U.S. E.P.A., 1980.

General Accounting Office, Better Monitorin Techni ues Are Needed to Assess - the Quality of Rivers andreams, Volime I., ieport to the Congress, April 30, 1981.

General Accounting Office, Many Water Quality Standard Violations May Not Be Significant Enough to Justify Costly Preventive Actions, Report to the Congress, July 2, 1980.

Governor's Task Force on Waste Management Report, Raleigh, N.C., February, 1981. ---- Hannon, B. and J.R. Brodrick, "Steel Recycling and Energy Conservation," Science, 216 (30 April 1982): 485-91.

Haskins, Paul, "Who's Killing Our Water?" Series on surface-water quality, Winston-Salem Sentinal, October 10, October 12-16, 1981.

YHuisingh, Don, "North Carolina's Approach to the Control of Toxic Substances- A Report on Progress Made to Date," Toxic Substances Project, Office of the Governor, Raleigh, N.C., 1982.

Johnson, R.W. and G.M. Brown, Cleanin L& Euro e's Waters: Economics, Management and Policies, New Yor!, Praege;, 1976.

Kneese, Allen V. and Charles L. Schultze, Pollution, Prices, and Public Polic The Brookings Institution, Washington, D.C., 197r -

Leman&:'How to get there from here: The Grandfather Effect and Public Policy," Policy Analysis, 6 (Winter, 1980): 99-116.

Ling, Joseph T., "A Plea for Establishing the Conserver Society," Chemistry - and Engineering News, (November 9, 1981): 40-42.

Quarterly

ellanca, M.A., "Problems in Technology for the Removal of Specific

141

142

Majone, Giandomenico, "Choice Among Policy Instruments for Pollution Control," Policy Analysis 2:4 (Fall, 1976): 589-613.

McKean, Roland N., I'Enforcement Costs in Environmental and Safety Regula- tion," Policy Analysis 6 (1980): 269-89.

Mumy, G.E., "Long-Run Efficiency and Property Rights Sharing for Pollution Control," Public Choice 35: 1 (1980): 59-74.

Oates, W.E. and W.J. Baumol, "The Instruments for Environmental Policy," in Edwin S. Mills (ed.), Economic Analysis of Environmental Problems, National Bureau of Economic Research, New York, Columbia University Press, 1975.

Overcash, M.R., "Background Information in Hazardous Waste Technology," Department of Chemical Engineering, N.C. State University, Raleigh, N.C., November, 1980.

Palmer, A.R., et. al., Economic Im lications of Re ulatin Chloroflouro- carbon Emissions from NonaehaEons? Techngcal Report, Rand Corporation, Santa Monica, California, June, 1980.

Palmer, A.R. and T.H. Quinn, Allocating Chlorofluorocarbon Permits: & Gains, &Loses and What is the Cost? Technical Report, Rand Corpora t i onzt a Mon i ca ,Tamorn i a , Ju 1 y , 1981 .

Peahman, J.A. and P.M. Timpane (eds.), Work Incentives and Income Guarantees: The New Jersey Income =Experiment, Brookings Institution, Washington, D.C., 1975.

Peakin, H.M., P.R. Portney and A.V. Kneese, Environmental Regulation -- the U.S. Economy, Baltimore, Johns Hopkins University Press for Resources for the Future, 1982.

Roberts, Marc J., "Environmental Protection: The Complexities of Real Policy, Choice," in N.A. Swainson (ed.) Managing the Water Environment, Vancouver, University of B.C. Press, 1976.

Rose-Ackerman, S. , "Effluent Charges: A Critique," Canadian Journal of Economics 6 (Nov., 1973): 512-28.

and W'eaknesses," Public Policy, 25 (Summer, 1977): 383-406. Royston, M., Pollution Prevention Pa s, 1979. Runge, C.F. , "Common Property Extedkities: Isolation, Assurance, and

Resource Depletion in a Traditional Grazing Contest," American Journal of Agricultural Economics 63:4 (November, 1981):06.

Russemfford S., "What Can We Get from Effluent Charges," Policy Analysis (Spring, 1979): 155-80.

Scienke, "EPA Relaxes Hazardous Waste Rules," Science 216 (16 April 1982):

Sims, W.A. , "The Short-Run Asymmetry of Pollution Subsidies and Charges," -- Journal of Environmental Economics and Mana ement 8 (1981): 395-99.

Survey of Current Business, "Pollution Amehontrol Expenditures, 1972-79," SCBm, 1981): 19-27.

Tietenberg, T.HTITransferab1e Discharge Permits and the Control of Stationary Source Air Pollution," Land Economics 56 (Nov., 1980):

Triangle J. Council of Governments, Draft Position Pa ers on Hazardous - and Low-level Radioactive Waste-9, Researchnge Park, N.C., December 30, 1981.

Viscusi, W.K. and R. Zeckhauser, "Environmental Policy Choice Under Uncertainty," Journal of Environmental Economics and Management 3( 1976): 97-1 12. -

Webb, M.G. and R. Woodfield, "Standards and Charges in the Control of Trade Effluent Discharges to Public Sewe-s in England and Wales," Journal - of Environmental Economics and Management 8 (Sept., 1981): 272-86.

, "Market Models for Water Pollution Control: Their Strengths

75-76.

391-416.

-.I

P w

ECONOMIC AND ENVIRONMENTAL HEALTH THROUGH EDUCATION AND COOPERATION AMONG INDUSTRY, GOVERNMENT AND CITIZENS

Claud "Buck" O'Shields Chairman

Governor's Waste Management Board

ABSTRACT

Prevention of pollutants must be the backbone of waste management programs. more be balanced with environmental concerns. This balance can be achieved as technology is available for bringing this about. Pollution has been efficiently lessened, not by installing pollution control plants, but by reformulating products, redesigning equipment, modifying processes, or recovering materials for reuse.

"Pollution Prevention Pays". We must also have facilities available to recycle, treat, and detoxify those wastes that cannot be handled on site. We must educate oursleves about positive waste management approaches and then all must cooperate to facilitate this implementation. The alternatives to not having a good waste management program in North Carolina are unacceptable to North Carolina's industry and its citizens.

Future economic growth of industries and states will more and

North Carolina's program must be based on this same concept that

KEY WORDS

Waste management programs, North Carolina's program, positive waste management approaches, cooperate.

It's a pleasure for me to be here today and to participate in the Pollution Prevention Pays Symposium. I would like to personally thank those who have put forth the time and effort to make this symposium a success and to thank the program participants, some who have traveled thousands of miles to be with us and to share their experiences.

responsibility of formulating a waste management program for North Carolina so that we can properly manage and dispose of our wastes.

handsome dividends to us ail. dividends are ones that we all want to participate in and share, and should do so, according to our willingness to participate as investors. Before any dividends can be paid, an investment must be made. What are these investments that we as citizens of North Carolina must make? Most would

The Governor's Waste Management Board takes seriously its charge and

As this conference emphasizes, pollution prevention can and does pay The monetary value associated with those

144

145

say it would be money. by both the public/governmental agencies and private enterprise. What other type of investment could be required that helps bring about this dividend? Most people feel that if enough money is spent, we can cure all the problems that lie before us! simply not the case. What then is the other ingredient in this investment formula? TIME!

The attendance at this symposium today consists of a cross-section of North Carolinians and others from outside our state. We have industrial leaders, engineers, chemists, doctors, lawyers, environmentalists, elected officials, both state and local, city and county staff, federal and state regulatory staff, and last, but not by any means least, North Carolinians who are concerned about the waste problem and what are we going to do about it?

What does time have to do with all these folk that have been mentioned? It's an investment that we must make to educate ourselves to the problems, and understanding the processes and time involved in bringing about this solution.

Time, for one thing is money. Time is what industry needs to take to understand the concerns of the public who do not understand the technical problems faced by industry. Time is necessary for keeping communications open with the public. must be given to understanding the real and perceived dangers that the public feels are in the marketplace today. Industry must take time to be more visible and available to employees and the public.

ourselves as to industries' needs and concerns. We must make ourselves available to become part of the solution to the problem and not just be a part of the problem by refusing to listen and learn and become informed. Those who would say only that "they" created the problem and "they" can take care of it, most certainly don't understand, and maybe don't want to understand. I think that "we" created the problem. "We", meaning all of - us collectively, have demanded more and better products to improve our quality of life so "we" are in the boat together, some willing to pull on the oars to get us where we need to go and others only wanting to complain about the way it's being steered.

Time is needed by regulatory agencies to enforce rules and regulations promulgated by state and federal government. Time is personnel to do the job necessary in a reasonable length of time. regulation, then why have it? If we cannot have time for enforcement, then how can we have an effective program, one in which both industry and the public can have confidence?

At the initial meeting of the Governor's Waste Management Board, Governor Hunt gave this charge to the Board: tasks as a board, will be to serve as a direct link between state and local governments, industry and the general public. It will be your responsibility to insure that all lines of communications between the different state and local agencies, private enterprise and the public are kept open." happens .... to the entire program, and that is cooperation. operation between industry, government and the general public in order for this or any other program to be successful. the cooperative efforts put forth so far, but this must continue.

acceptable solution to this problem.

Money most certainly will be one that is required

I think we are finding aut that that is

How does this question of time affect industry?

Time

We, as interested and concerned citizens, must take time to educate

If we cannot enforce a

"One of your most important

The Waste Management Board will take the time to be sure this

Time is the factor that brings us to the concluding point that is vital There has got to be co-

I have been very pleased by

This state's future depends on its ability and commitment to seek an A well-conceived and strictly enforced

waste management program that provides for waste prevention and in-state treatment and disposal of non-preventable waste, wi 11 enable North Carolina to be healthy both economically and environmentally. be achieved by North Carolina.

These two goals can

"WHERE DO WE GO FROM HERE, AND HOW DO WE GET THERE?"

Dr. Bernard Greenberg, Dean UNC School of Public Health Chapel Hill, North Carolina

With this last session, I hope we have saved the best for last. We've heard some of the problems we have in North Carolina; we've heard some of the solutions, some technical, some legal, and some public policy solutions. The question is, now, "Where Do We Go From Here, and How Do We Get There?" That, basically, is what this panel is supposed to answer. In selecting this panel, Don has put together representatives from the education field, government (both the regulatory and legislative side) , industry, and environmental groups. Statements of the eight panelists follow:

Mr. Arthur Jackson President, N.C. Textile Manufacturers' Association

Eden, North Carolina

The quality of life in our beautiful state will directly depend on how we, as industrialists, scientists, educators and as concerned citizens, answer many of the questions that have been addressed during this symposium. It is essential that we, as North Carolinians, recognize and strive to implement the Pollution Prevention technologies that will lead to clean air, water and landscapes in our state, for the present and future. Our environmental efforts must be done in such a way, however, so as to make our labor and capital more productive and to ensure economic growth and stability of North Carolina. promulgated laws at the state and federal levels that provide the legal framework to meet these challenges. It is our job as productive members of our society, to apply these laws and regulations in such a way as to make full use of our current knowledge of pollution prevention, and to continue to develop new ideas that will expand our capabilities in this area. We, as industrialists, commend each of you for your interest in, and commitment to, a clean and safe environment that has prompted you to attend this meeting .

We know what the challenges are and have

Dr. Don Huisingh Toxic Substances Project Leader

Office of the Governor Raleigh, North Carolina

This symposium, sponsored in part with funds from the Babcock Founda- tion, is envisioned as the first in a series of interrelated educational projects to be provided during the coming years through the joint efforts of the Waste Management Board, faculty from several campuses of the University of North Carolina, and from the community college system. Also, to insure that effective and needed programs are developed, representatives from industrial and trade associations will be involved in the planning and delivery of the follow-up educational efforts.

While the details of the follow-up activities are yet to be developed, the following broad categories of action appear to be necessary to insure that all appropriate industrial, governmental and private citizen groups be fully informed of the potential economic and environmental benefits of applying the PPP concept throughout their firms and community.

147

148

a.

b.

C.

d.

e.

The industrial leadership and management level personnel in decision-making positions of each industrial type should be provided opportunities to learn of the economic benefits, technical feasibility and ecological soundness of preventing the production of pollutants. Once they are shown that pollution prevention works better than pollution control, they are more likely to send their plant engineers to training sessions to learn the technical details and to allocate the necessary funds to make the process modifications. Plant engineers and other key technical personnel in industry should be offered industry specific and/or process specific educational workshops and in-plant case studies focusing upon the state-of-the-art pollution prevention technologies. They should be taught how these approaches can most effectively be incorporated into new plants or become part of the process modifications in presently existing plants. The general public should be informed about and encouraged to support the change of philosophy from sole emphasis on pollution control to emphasis upon pollution prevention. Faculty and graduate students at our colleges and universities should be challenged to develop and pursue research projects designed to apply the Pollution Prevention approach to additional manufacturing processes. They should, of course, emphasize the integrated and system-wide approaches presented earlier. Federal, state and local governmental support should be provided for the entire educational and research program designed to enhance the economic health of our industries and the environmental quality of our communities.

These general recommendations will be expanded upon in M. Royston's "Big Nine" recommendations for PPP implementation in N.C. a little later on in this panel.

Mr. Sam Johnson, Attorney Counsel for Industrial Associations

The clients I represent are usually industrial associations, and their concerns frequently are in opposing legislation, in the field of taxation, or wages, employment security, workman's compensation, environmental matters, things they fear are happening. The educational process needs to continue so that instead of opposing legislation, they participate in it. The type of leadership I've tried to carry to them during the last 2-3 years I've represented these types of associations is to become effectively involved. So I pledge to you that I am willing to work with organizations and do that. In fact, I participated in the writing of certain paragraphs creating the Governor's Waste Management Board.

there's been a central theme among the presentations that suggests that we, for many years, have been concerned about cleaning up pollution at the end of the pipe -- and, we need to be more concerned now about chanqinq our focus to concentrate won

Here is something to think about:

Pollution Prevention through in-plant process modifications. There' are a lot of groups represented here today, ranging from state agencies to volunteer groups. An instrument in our state that is a,forum to discuss some of these changes is the North Carolina Revenue Law Study Committee which has been working six months and which will report 22 or 23 items to

149

the legislature (which meets next week). credits for energy - alternative energy sources, whereby you receive tax credit in corporate or individual income tax for implementing certain alternative energy and conservation practices. In addition, we already have North Carolina statutes that provide industries tax exemptions for installing pollution control equipment. As the Revenue Law Study Committee meets again during the next six months we will have the opportunity to prepare legislative proposals that will foster the implementation of pollution prevention among North Carolina industries. recommendations should be given serious consideration by the Committee.

Additionally, I strongly recommend us to recognize outstanding employee and corporate accomplishments in the pollution prevention area by developing an annual awards mechanism.

The universities and technical institutes have a significant role to perform in providing detailed technical information to industries on ways they can prevent or minimize the production of pollution.

In conclusion, one time when I was a member of the legislature, I headed a study group and I put out a news release to all the papers in January about what we were working on. more months - the same story. And the next legislature enacted what we call "home rule" in North Carolina. That was my theme. You have a very simple theme here - easy to understand - "Pollution Prevezon Pays." I would tell this story again and again. tion meetings, chambers of commerce, civic clubs. Just tell the story again and again, "Pollution Prevention Pays".

Some of these items include tax

Some of Ford Runge's

I re-wrote the same release for 11

I would have speakers at associa-

N.C. Representative Joseph Mavretic N.C. Legislature

Raleigh, North Carolina

Great comedy has its roots in tragedy, and I am beginning to develop a sense of humor about pollution. Not long ago, at a Water Quality Con- ference, I remember one panelist discussing the quality of inflow that was acceptable to his wastewater treatment plant. You know we're in a mess when our waste is too dirty for the waste treatment facility. Perhaps that's what the landfill problem is about -- there is industrial garbage that no one will accept - it's too dirty for even the garbageman. The other day, a lady on a panel on delisting said that we should delist one chemical because we will die before it kills us.

Acid rain has been getting a lot of attention lately and Webster is doing something about it. --- Have to Die? "Professor Dwight Webster of Cornel1 is trying to develop new strains of brook trout with a high tolerance of acidity." A low pH trout -- we could name it Brook Trout-SO may mean no vinegar in the mariiating water. seafood, it may mean that you don't have to put lemon on it before eating. A low pH trout -- isn't that marvelous?

I'm not only interested in the problems of pollution, but I'm fasci- nated by them as well -- this excellent gathering that Dr. Huisingh has put together, for example; isn't it curious that we have to have a conference to advocate common sense? We have to have gatherings like this because it has not yet become part of our national psyche to abhor pollution. Isn't it incredible that we have stronger social mores against public flatulence than the dumping of Kepone in the Chesapeake or the use of dioxin against other human beings? The great irony of the entire pollution issue is that what we are actually doing is making our environment uninhabitable for ourselves.

I quote from the pamphlet, How Many More Lakes

For those of you who like to cook, it For those of you who eat

.

150

The fight against pollution is currently an uphill battle because we are victims of our culture -- our politics are based upon a religion that tells us we have dominion over the earth -- our market economy tells us that value can always be measured in gold -- we have an almost fanatical confidence in crisis management -- our society and technology lead us to believe that we can handle any engineering problem and correct any chemical mistake - and, most tragically of all, we agree to bury ignorance in landfills. As you think about what Americans have done, and are doing, to their environment, do remember that we tried to exterminate the American Indian because he disagreed with our view of the world.

Local, regional and national surveys are now showing high public acceptance of the idea of pollution prevention. surprised by this kind of public support, but I'm not -- for you see, I am a disciple of Herbert Maslow and I believe Maslow's theory that air, water and food are first level, survival needs with powerful political overtones. The pollution of air, water and food is a political issue where emotion rules because it deals with the perception of survival. In my opinion, pollutants -- defined as anything that man abandons upon the environment -- have become fair game and a political truth is -- we have decided to be rid -- of them. "Pollution Prevention Pays'' is the current rage, and I've sub- titled it "The Indians' Revenge". However, if it's such a good idea, why are we having a hard time selling it? I suspect that the reason is that it assumes that the managers of firms are asking what they should be doing, which implies an R&D budget line. flows are an impediment to that budget line. So much for the truth -- now for some myths.

Thecmyth of nature's capacity. Or. Joseph T. Ling, in his forward to Dr. RGton's book, Pollution Prevention w, states that we rely on a technology to support us which defies the ability of nature to absorb its impact. 1 take the opposite view. Nature, in fact, can absorb the impact of any technology. That is the essence of our current problem. Nature, our air, water and soil -- our environment -- absorbs it all; the clean air of Aspen that John Denver sings about, and the mutagens of the nuclear industry; the clean steams of South Dakota and the carcinogens of the chemical industry; the rich soil of Iowa and the teratogens of the pharmaceutical industry. Nature can absorb the crude of the Amoco Cadiz spill and the ash of Mt. St. Helens. and trillions of tons of concrete and steel. It will take all the waste the human animal carefully, or carelessly, tosses upon it and hold that waste until we come back to breathe it, drink it, or eat it. The truth is: We are not exceeding Nature's capacity to absorb pollutants, we are exceeding capacity to absorb pollutants. What nature cannot do is protect us - neither from nature nor from ourselves. inherit the earth!

discurthe acceptable lEvels of various toxins that government should permit industry to inject into our environment. Great debates then follow about what levels of toxicity are acceptable. The problem with acceptable levels is that acceptable is a relative word. It has nothing to do with science or technology. control problem. Here are some acceptable levels: That level at which we have no data; that level at which no one has yet complained; that level at which we haven't been scared - yet. The truth is: Acceptable is conditional and therefore will seldom be acceptable.

The myth that we can solve the problem -- or micro vs. macro --or the gorillastory. of an enraged gorilla - the team leader pondered the solution to getting

Now, some folks may be

The realities are that current cash

It can take thousands of miles of asphalt

The meek shall

The myth of an acce table u. From time to time, experts seriously

It is neither precise nor finite and causes a

A scout team in equatorial Africa came upon the territory

151

past the gorilla -- the leader had been taught to break complex problems into manageable parts: teeth; the upper body -- "no way", arms that can crush steel drums; the lower body -- "out of the question" -- legs that can kick like a horse; but wait - gorillas are ticklish around their belly button. So, the team leader called forward a private and said, "There is a small patch of leather-like material, about a foot square, covered with coarse hair that has an indenta- tion about one inch in diameter and about a half-inch deep -- go out and tickle around that depression so we can pass. About ten minutes later, the private came back, chewed and torn to pieces, and said, "There's a whole gorilla out there!" Well, there's a whole pollution out there - from the bathroom over to the kitchen sink, by the city dump, through the chemical factory, on to the nuclear power plant. The truth is: We must prevent because we cannot manaqe the current macro problem and the micro view isn't

The head -- "no way" said his assistant --slashing

- up to the job.

to focus political pollution solutions on costs because I believe businesses Before closing, let me touch on the issue of incentives I am inclined

react more quickly to them. decided to go into the business of baking health muffins. killing - my wife, Ruth, bought all their suppliemll their mistakes. All that the girls sold was net profit. Business uses that same principal - costs that another will absorb, business will transfer. In my opinion, this is the key to the political (economic) attack on pollution. eliminate the generator's ability to transfer the costs of pollution. We must make it more expensive, by several orders of magnitude, to generate pollutants, rather than to prevent them. On the other hand, I have some difficulty with government incentives to pollutant generators. Phi lo- sophically, I find it hard to reward a firm for doing what it should be doing anyway. The arguments that big firms like 3M can afford to reduce pollutants, but that small generators cannot, seems to violate the principle of equity from government, and also seems to assume that the government should mitigate the risks for some firms but not for others. that small generators need help because without it they would fail and society would lose their jobs; the market, the multiplier, and governments, the taxes. The other side of that coin is that the true cost to society to treat the results of a firm's pollution may be greater than the benefits of that firm. Just a word about costs; I am suspicious of the fiscal numbers of those who describe the costs of pollution prevention -- on both sides -- because there is usually the problem of concensus on what the cost elements are. cost differentials between pollution prevention and the several pollution control alternatives.

Where do we gg from here and how do we get there? Stat u-rtheM anaenm maaura3 L ow-L ev e 1 R ad i o ac t i v e Waste, upon careful reading, is a very good guide. In my opinion, as time goes by, people are going to be surprised by just how good it is. The general public does not care where the prevention of pollution occurs - what they care about is keeping pollutants from penetrating their first level world: air, water, food. should be directed at generators; therefore, every incinerator, detoxification facility, waste exchange, collection point and storage facility is another monument to the failure of prevention -- but those monuments to failure are the currency of political success if pollution is diminished. There is no question about the priorities of effort -prevention is the first priority.

prevention, we reduce, detoxify, exchange or incinerate only where there are compelling reasons to do so.

Several years ago, our two teen-aged girls They made a

We must

Some argue

One of the things that State government can do is help clarify the

The North Carolina

The State leadership has clearly said that prevention

Where do we from here and how do we get there? We emphasize - - - - - - - - - We adopt public policy, and create laws,

152

rules and regulations, that make long-term storage so expensive that it becomes a short-term expedient. pollution is the 20th Century's equivalent of leprosy.

And all these things we do soon, for

Mr. Bill Holman Environmental Lobbyist Raleigh, North Carolina ._

I am an environmentalist and I lobby the General Assembly on behalf of the Conservation Council of North Carolina and the North Carolina Sierra Club.

Environmental organizations share the responsibility for the present narrow view that pollution is to bb controlled versus prevented and that waste is to be disposed of versus recycled. We also share the responsibility for getting ourselves out of this mess.

Prevention Pay. Jane Sharp, now President of the Conservation Council of North Carolina, brought to my attention the HARVARD BUSINESS REVIEW article by Dr. Michael Royston early last year. As a lobbyist I shared the article with Representative Joe Mavretic and his Hazardous and Low-Level Radio- active Waste Subcommittee of the House Committee on Water and Air Resources as they considered the Waste Management Act of 1981. Awareness and support of Pollution Prevention Pays is expressed in the Act in a statement of policy by the General Assembly.

North Carolina conservationists strongly support making Pollution

The General Assembly of North Carolina hereby finds and declares that prevention, recycling, detoxification and reduction of hazardous wastes should be encouraged and promoted. These are alternatives which ultimately remove such wastes' hazards to human health and the environment. When these alternatives are not technologically feasible, retrievable above-ground storage is sometimes preferable to other means of disposal of some types of waste until appropriate methods for recycling or detoxification of the stored wastes are found. Landfilling shall be used only when it is clearly appropriate.

Making Pollution Prevention Pay is the policy of the State of North

Let me back up a moment.

GS 143B-216.10(c).

Carolina. Our challenge is to implement this policy.

vation Council, Sierra Club and other conservation organizations - is a clean and healthy environment. that goal than that we continue to make progress towards it.

citizens an extraordinary opportunity to work together and to trust each other. Trust is the key. North Carolina conservationists are open to new ideas and we're flexible. willing to listen to the problems of industry. The issue to us is pollution not regulation.

Conservationists strongly support national standards for pollutants. I've been pleased to hear many of today's speakers also support strong standards. I believe that the Reagan Administration's attempts to substantially weaken the Clean Air Act, Clean Water Act and to dismantle the Environmental Protection Agency are wrong. I believe that these actions delay implementation of "Pollution Prevention Pays'' and invite public backlash and mistrust.

Our goal - that is the goal of the Conser-

We're less concerned about how we arrive at

Making Pollution Prevention Pay gives industry, government and

Regulations are not sacred to us. We are

153

We in North Carolina need to create the right climate for Pollution I believe that some components of that climate are: 1) Prevention Pays.

strict enforcement of environmental standards to protect our air, water and land resources from pollution; 2) economic incentives, such as investment tax credits, to industry to assist them prevent, reduce, detoxify, neutralize and recycle pollutants; 3) economic disincentives to dispose of waste. costs to society for monitoring landfills; 4) trustworthy industry committed to protecting the environment; and 5) an educated, skeptical but understanding sitizenry.

In terms of legislative or governmental action, we would support: 1) tax incentives for pollution prevention versus pollution control; 2) tax incentives for research. It's clear that our government and our industry must invest more in research to compete in world markets; 3) state appropriations for pollution prevention research; 4) expanding the activities of the Industrial Extension Service; and perhaps 5) a state revolving loan fund to help small generators assemble the necessary capital to plan and implement "Pollution Prevention" technologies.

Hazardous Waste Management Branch will soon release the first annual hazardous waste report. This report will indicate where hazardous materials are generated and who generates them, how much they generate, and the wastes' composition. We should take this report -- this list of generators examine their processes and compare them to the clean technology brought to our attention by Dr. Royston. We should, through in-depth workshops and training sessions, make the pollution prevention and other clean industry information available to each appropriate industry.

I believe that protecting the environment is the right thing to do. responsibility to be stewards of this beautiful state, nation and earth. I'd also like to strongly second a point made by Buck O'Shields, Chairman of the Waste Management Board. We must cooperate. North Carolina conservationists recognize that its problem. We're willing to help.

The costs of disposal to the generator should reflect the long term

North Carolina conservationists want to cooperate.

We have an opportunity coming up soon. The North Carolina Solid and

Let me conclude with a couple of attitudinal points. All of us have a

Mr. Paul Wilms Department of Natural Resources and Community Development

North Carolina State Government Raleigh, North Carolina

I think I can at this point ...p rovide a bit of a recap of what we've heard today. exchange of ideas. this again very soon. From what I've heard today, though, it's my opinion that waste reduction, resource recovery, reuse, whatever you want to call them, are, first and foremost, the responsibility of industry. But government, particularly state government, has an important role in that process, too. We are in an excellent position, I think, in state government, to stimulate, encourage and assist industry in these waste reduction efforts. As Ford Runge discussed in his talk, government is in a position to provide incentives. incentives" have been used for many years in Europe and elsewhere with very positive results. There are some regulatory and legal hurdles in this country that would present somewhat of a barrier, but they are not in- surmountable. nity Development, as well as many other governmental agencies, are actively

I think this has been an excellent forum, discussion and I wish it had been a bit longer -- perhaps we can do

These "user charges" or "negative incentives" and "positive

Our agency, the Department of Natural Resources and Commu-

154

pursuing this type of alternative in regulating wastes going into the environment. Government can act as an information clearinghouse -- a technology transfer point. We already do that; we share with an individual firm, information about industrial processes that we've gained from dealing with the industry as a whole. With our industrial recruitment efforts we are in a position to seek and recruit those industries that have demonstrated the ability and inclination to employ waste reduction alternatives. We should be pursuing those types of industries for North Carolina. In our permitting activities, as we have the opportunity to review detailed plans and specifications, we are in a good position to counsel a particular firm on waste reduction alternative techniques that we've seen employed elsewhere. Our department will certainly give priority to the issuance of those permits for waste reduction processes, and for permits that employ waste reduction techniques under the existing laws of North Carolina.

One concluding point that is touched on in most every conference of this type and which is a most appropriate program for government to undertake - a conservation program. When you mention conservation or voluntary conservation, you usually are greeted with a yawn, or guffaws, or even jeers. But, voluntary conservation (I think history of this country will tell you) WORKS. Through conservation, every citizen has the opportunity to be involved in providing a solution to an environmental problem. reminded again and again of the country of Sweden, which has about the population density/kilometer as this country, a much higher standard of living, and on a per capita basis, consumes about half the energy we do. If they can do it, we certainly can too! conservation in energy usage and in consumerism. If we can do that, we'll have a myriad of environmental and economic benefits. Conservation should be an integral part of our economic progress on the national level but also of our environmental push here in North Carolina.

I'm

That points to the need for

Dr. Michael Royston Environmental Management Center for Education in International Management

Geneva, Switzerland

There are nine points I'd like to propose as to how we might achieve the goals we have seen so graphically described during these two days:

1. ,The Governor could initiate an award scheme -- perhaps on an annual basis -- where an award could be given to the company that has implemented the most imaginative and agressive scheme for in-process reduction and prevention of pollution.

the many activities that are already going on in this state in different companies in pollution prevention and in-process pollution abatement. In my experience, most of the activities in this area are unknown even to the top management in the company. Very often, it is the process, plant or maintenance engineer on the shop floor who is, in fact, carrying out modifications - the chairman or president of the company doesn't even know what is going on. What we need is a way of getting this information out, letting it surface, and letting it be an inspiration to everyone in the company, and to all other companies in the state.

examples of successful PPP programs from other nations and the UN organizations could be collected and used as additional informational guides to assist North Carolina industries in planning and implementing PPP practices.

2. North Carolina should develop a compendium of cases that describe

3. In addition to such a North Carolina-specific compendium,

155

4. I believe that what is needed is a set of clear guidelines for companies, to show them how to tackle their own in-process pollution abatement problems. I believe there is genius, ingenuity, and more than a wealth of knowledge in the engineers working in companies, to solve their problems, provided one gives them a framework within which to work. lists, processes, approaches, etc., can be provided to an industry to stimulate their search for alternatives at every stage of the process. They will use, as a matter of routine, mass balances to determine the sources of the wastes and to look very carefully at the way in which yields can be improved via changes in process. paid to the segregation of all input and output streams -- that is the key to cost effective pollution abatement at the source. that worker participation plays in this must be acknowledged. Every company that has succeeded in this area has done it through a process of stimulating and encouraging the powerful observation, productive powers and ingenuity of the operators on the shop floor. The success of "Pollution Prevention Pays" -- yet another "P" -- is participation of the total work force.

There certainly should be the support of government, the experts in the environmental protection area, and also the universities and the university extension services for the development and encouragement of management and worker training programs in industry. extension services play a very important role in helping companies see the way of solving their problems in an ecologically and economically sound manner.

6. Education There is obviously a great task here with regards to formal and informal education. Through the universities, professional associations, engineering assistants, and the media, educational channels must be pursued, recognizing that education is a vital component in at least three separate dimensions:

--the acquisition of new knowledge about ways and means, and examples --skills development, of diagnosis and cost-effective implementation --ATTITUDE. This is where I'm sure the media in particular will play a tremendously important role. 7.

Check-

Very careful attention must be

The tremendous role

5.

The University

One of the major obstacles we have is an attitudinal one.

I agree with the point made by Ford Runge on the tremendous implications of the economic forces -- positive and negaitve incentives. The application of suitable charges on effluent of all kinds, charges which are pitched sufficiently high to force management to act in a way not of adding on end-of-line solutions, but act in their normal decision-making way; that when they are called upon to make an investment or solve a problem, they require there to be a positive return on that investment.

8. I recommend that a strictly no-nonsense approach to pollution itself, particularly to toxic and bioaccumulative substances be taken. In particular, bans should be put on emissions to the natural environment and to controlled dumps. This is going to force companies to deal with the problems at the source level. agree with Ford, that this has proven to be extremely effective in Europe -- the positive aspects of financial subsidies. I believe this is best illustrated by the case of France where substantial financial grants are available for R&D expenditures associated with the development of clean technologies. Such subsidies can apply, then, in the area of the stimu- 1 ation and encouragement of innovation, of in-process modifications and/or pollution abatement.

cooperation. What we need is cooperation and mutual understanding between industry and government. In particular, the development of a greater

The other side of the coin is, and I again

9. What we are seeing at this symposium is a fine example of

156

degree of flexibility in government that is going to enable industry, in fact, to pick up the challenge and solve these problems in a way which is fitted best to the industrial approach - that of innovation. It is through this method that we are seeing a stimulus to innovation; the old pollution control approaches imposed from above by government tended to crush innovation. A great strength of this country has always been its capacity for technological innovation. The thing that will make and maintain America great is technological innovation.

I believe that pollution prevention does, can, will, and MUST pay. It has been most exciting to be here with you to share in this mutual discovery and to see the scope and the opportunity of this basic principle of "Pollution Prevention Pays". I believe that North Carolina can play a leadership role not only in the United States, but in the world at-large, in implementing this principle.

Buck O'Shields, Chairman Governor's Waste Management Board

Raleigh, North Carolina

It is obvious from the many excellent presentations made during this

North Carolinians have an investment and obligation in and to the

I look forward to the continued cooperation and input from North

symposium that there is a big task in front of us, one that the Waste Management Board cannot accomplish by itself.

State as citizens.

Carolina's citizens and industries as we work collectively to formulate North Carolina's Waste Management program.

If we leave here this afternoon and go back through North Carolina, to its people and industry and generate the enthusiasm there that has been generated here in the past 24 hours, it will turn our problem into a great opportunity, willingly and enthusiastically shared by all North Carolinians

I

Making Pollution Prevention Pay - P2 InfoHouse · towards energy conservation, electro- nics,...

Documents

Transcript of Making Pollution Prevention Pay - P2 InfoHouse · towards energy conservation, electro- nics,...