Cal/EPA Environmental Management System Project
Initial Observations of Pilot Projects

The following seven pilot projects were selected by Cal/EPA:

1. Anheuser-Busch in Fairfield,
2. Wastewater treatment facilities (Central Marin Sanitation Agency in San Rafael and San Diego Metropolitan Wastewater Department, Operation and Maintenance Division),
3. IBM Corporation in San Jose,
4. Lockheed Martin Aeronautics Company (formerly the Skunk Works) in Palmdale,
5. Metal finishing companies (Artistic Plating in Anaheim and Gene's Plating in Los Angeles),
6. Pentel of America, Ltd. in Torrance, and
7. Vineyards and wineries (Davis Bynum Winery and Benziger Family Winery in Sonoma County).

Initial observations of results from implementing EMSs are described. Observations are based on preliminary data shared by several of the Cal/EPA pilot projects. Preliminary results include notably positive experiences in the areas of

1. compliance,
2. compliance and EMS design,
3. employee involvement,
4. interested party involvement,
5. environmental performance and cost reduction,
6. pollution prevention,
7. public information, and
8. supply chain relationships.

Compliance
As a result of its EMS, Anheuser-Busch Incorporated (A-BI) has developed a report that is used to track timely correction of any deficiencies with regulatory or internal requirements. Further, root cause analysis conducted by a cross-functional team is used to mitigate recurring deficiencies. This information is communicated to all affected facilities through the company's intranet site. The team has had a significant impact on A-BI's ability to make meaningful process changes that reduce the recurrence of deficiencies.

Compliance and EMS Design When Central Marin Sanitation Agency (CMSA) began designing its EMS, the first step was to identify all of the regulations and contracts that govern their wastewater treatment activities. When the initial list was circulated to the entire working group, it became evident that only half of the requirements were known. We believe this situation is not unusual for regulated entities and can result in significant environmental improvements.

Employee Involvement
Prior to the implementation of its ISO 14001 EMS, individual employees at IBM were made aware of their potential contributions to and impact on the environment through training associated with their respective job responsibilities. Following implementation of the ISO 14001 EMS, employees additionally are required to complete annual ISO 14001 awareness training such that the interaction of their activities are more closely tied to the site EMS and overall environmental performance. This supplemental training has resulted in employees viewing their potential environmental impacts from a much broader perspective - one that includes their activities both on and off company property.

Interested Party Involvement
Interested party involvement in the Environmental Management Systems of Cal/EPA's pilots has been greatly increased through our sponsorship of two working groups operating in Southern and Northern California. Over 50 individuals representing environmental public interest groups, government, the regulated community, environmental consulting, and academia participate on the working groups. The purpose of the working groups is to act as a forum for the evaluation, analysis, and discussion of EMSs, in general, as well as Cal/EPA's Pilot Project EMSs, individually. In order to establish common understanding and knowledge of EMSs, Cal/EPA has sponsored three training sessions for regional working group members. These training sessions have helped pilots and other members of the working groups develop or refine their EMSs.

Environmental Performance and Cost Reduction
Prior to establishing their EMS in 1991, Lockheed Martin Aeronautics Company- Palmdale generated 3,692 tons of hazardous waste compared to 448 tons in 1998. Hazardous waste disposal in 1991 cost the company $1,421,000 compared to $375,000 in 1998. Emissions of ozone depleting chemicals have been reduced to zero from 403,000 lbs. in 1988. SARA Toxic Release Inventory chemicals were reduced from 1,430,000 lbs. in 1987 to a level below reporting requirements by 1998. Volatile organic compounds were reduced from 256,000 lbs. in 1990 to 41,000 lbs. in 1998.

Pollution Prevention
As part of an EMS review of metal finishing processes in their company, Artistic Plating phased out the use of perchloroethylene in favor of ultrasonic and aqueous cleaners.

Public Information
The City of San Diego Metropolitan Wastewater Department, Operation and Maintenance Division has achieved the distinction of becoming the first publicly owned treatment works in the U.S. to certify to the ISO 14001 EMS standard. San Diego is interested in better communicating the results of their EMS to the public and gaining greater public involvement and understanding of their EMS. To support this goal, San Diego is exploring making their EMS information available to the public on their web site, in a format that the public can easily use.

Supply Chain Relationships
IBM was so persuaded by the environmental benefits of its EMS that it took the leadership position of encouraging its suppliers to align their EMS with the requirements of ISO 14001 and to pursue registration. In a letter to suppliers, IBM underscored its interest in doing business with environmentally responsible suppliers.