1	Waste Reduction & Cost Analysis – What It Means To Your Bottom Line
2	TCEQ Small Business & Environmental Assistance Division (SBEA) Our Mission:
3	What Is Source Reduction? Any practice which reduces the amount of any hazardous substance, pollutant, or contaminant entering any waste stream or otherwise released into the environment prior to recycling, treatment, or disposal; and reduces the hazards to public health and the environment associated with the release of such substances, pollutants, or contaminants.
4	What Is Pollution Prevention (P2) Pollution Prevention (P2) is a method of analyzing and modifying processes and inputs in an effort to minimize non-product outputs.
5	Local Economic & Environmental Pressures
6	Often Overlooked Opportunities Profit = Revenue – Expenses Everyone in every organization has a role to identify wasteful practices and reduce expenses that do not add value to the business’ products or services ! Inventory & Storage Loading/off-loading Manufacturing area Wasted time, raw materials, and resources
7	How much does “waste” really cost? It costs our company $200 to dispose of a 55-gallon drum of hazardous waste; Our solid waste disposal cost is just $60 a ton; Our wastewater disposal costs are only 10 cents per gallon; or The solvent in our parts cleaner is replaced every month for $50.
8	How much does “waste” really cost? Disposal costs are typically only about 15 percent of a waste’s total costs. What about the other 85% ? Could hidden waste costs could be sinking your company’s profit margins?
9	Examples of Hidden Waste Costs Raw materials Purchased, but not used Off-spec product Expired materials Spilled material Labor Manage the waste Rework Water & Energy Produce off-spec products Less efficient equipment and procedures
10	Examples of Hidden Waste Costs Waste management Storage space value Equipment cleaning Treatment Monitoring Paper work Training Permit fees Consulting fees Potential fines and penalties for violations
11	Conventional Cost Accounting
12	Activity-Based Cost Accounting
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14	Sample Process Map Inputs Top Coat Water Packaging Paint Filters Spray Heads Steel Parts Shop Rags Energy Labor Outputs Sludge Wastewater VOCs to air Used Paint Filters Empty Paint Cans Cardboard Dirty Rags Dirty Spray Heads Scrap Steel Painted Parts
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16	Pollution Control Equipment Property Tax Exemption Property must be wholly or partly used for pollution control to be eligible. It must have been purchased or installed after January 1, 1994, and must meet or exceed a federal, state, or local environmental regulation.
17	Pollution Control Equipment Property Tax Exemption The following specific types of property are also eligible for determination: dedicated-purpose vehicles used solely for pollution control (vacuum trucks, street sweepers, surface-watering trucks, spill-response vehicles); land (acquired after January 1, 1994) with pollution control property (e.g., the actual square footage containing a baghouse, scrubber, settling pond, or wastewater containment); and used equipment (if it has been acquired, constructed, or installed by the new owner after January 1, 1994 and if it has not been taxable by the property’s taxing unit).
18	Pollution Control Equipment Property Tax Exemption The following types of property are not eligible: motor vehicles residential property property for recreational, park, or scenic uses property subject to a tax-abatement agreement executed before January 1, 1994, except for property acquired, constructed, or installed after the agreement has expired.
19	Pollution Control Equipment Property Tax Exemption Three tiers of application fees: Tier I: for property on the predetermined equipment list (PEL), with no variances requested on that determination, the fee is $150; all property listed on the application must be located on the PEL or must be necessary for the installation or operation of property located on the PEL. Tier II: for property not on the PEL and used 100 percent for pollution control, the fee is $1,000. Tier III: for property not on the PEL and partially used for pollution control, the fee is $2,500.
20	Prop 2 Contacts
21	Texas Sales Tax Rebate for Natural Gas and Electricity Utilities directly used in manufacturing, processing, or fabricating tangible personal property for sale > 50% of the utility is consumed in a non-taxable manner Conduct Predominant Usage Study to verify http://window.state.tx.us/taxinfo/audit/salestax/2g.htm
22	Assessments for Pollution Prevention and Energy Efficiency EPA 625/R-99/003 June 2001 Opportunity assessment guidance Project implementation guidance Waste generation information Energy use information P2E2 opportunities References and case Studies http://www.epa.gov/ttbnrmrl/
23	"Newletters" Newletters Webcast links Workshops and Seminars Publications Calculators: Texas-Size Energy Savings! A Step-by-Step Assessment Guide and Calculator for Small and Medium-Sized Manufacturers http://texasiof.ces.utexas.edu/
24	Questions?