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The Aerospace Industries Association estimates that there are 15,000 to 30,000 different materials used in manufacturing, many of which may be potentially toxic, highly volatile, flammable, contain chlorofluorocarbons, or contribute to global warming. In addition, energy and water are consumed in significant quantities. The resulting emissions, wastes, and effluents, and costs associated with these streams and regulations are sound reasons to implement pollution prevention and source reduction whenever possible. Motivation to conserve energy is especially relevant with current fuel and electricity costs and with pending or recently enacted legislation on greenhouse gas emission limits for higher emitters in many states. Beyond direct cost savings, in many cases, improved energy efficiency can increase product yield through time savings and improved productivity, and reduce emissions of greenhouse gasses from fuel combustion. Energy efficiency can also provide more flexibility over competitors who do not address efficiency issues, by reducing susceptibility to price changes in resources and industry downturns. Cost of Compliance and Managing Waste Streams The following table shows the different categories of costs associated with simply being in compliance and those costs incurred that are typically accounted for as oversight. Considering all of the costs associated with wasteful practices may motivate a business to change. (Note: Italicized items are costs that are often overlooked, but can truly add to the total costs of managing waste.) Receiving Area Raw Materials Process Area Solid and Hazardous Waste Air and Water Emissions Control Purchasing Engineering Production Marketing Management Finance
Using raw materials and processes that have an environmental impact are very costly. Most often, businesses usually only account for waste disposal costs rather than considering all of the associated costs with operating inefficient equipment and using toxic raw materials. Federal studies estimate that hazardous wastes cost around $2 per pound to manage and properly dispose of.
Compliance Costs
Oversight Costs
Spill response equipment
Emergency response plan
Storage facilities
Secondary containment
Right-to-know training
Reporting and records
Safety training
Container labels
Safety equipment
Right-to-know training
Waste collection equipment
Emission control equipment
Sampling and Testing
Reporting and records
Sampling and Testing
Containers
Labels and labeling
Storage areas
Transportation Fees
Disposal fees
Permit preparation
Permit fees
Capital costs
Operating expenses
Recovered materials
Inspection and monitoring
Recording and reporting
Sampling and testing
Emergency planning
Discharge fees
Product/vendor Research
Regulatory impact analysis
Inventory control
Hazard analysis
Sampling and testing
Employee training
Emergency planning
Medical monitoring
Re-work
Waste collection
Disposal management
Inspections and audits
Public relations
Regulatory research
Legal fees
Information systems
Penalties and fines
Insurance
Credit costs
Tied-up capital