2007 Green Tier Biennial Progress Report May 1, 2007
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I. Executive Summary
The key to Wisconsin’s environmental future can be found in its tradition for innovation – a tradition that has lead to the formation of DNR’s successful Green Tier program.
The businesses, communities, and trade associations participating in Green Tier are committed to continuous improvement in our state’s environment, economy, and quality of life by voluntarily going beyond what Wisconsin regulations require.
In exchange for outstanding environmental performance, businesses participating in Green Tier are allowed the freedom to think creatively about ways they can improve environmental performance while boosting productivity, cutting costs, and growing their business. They enjoy benefits such as streamlined environmental requirements, regulatory flexibility, lower transaction costs, shared responsibility for environmental performance, and public recognition.
Through Green Tier we have demonstrated that economic development and environmental protection can go hand-in-hand.
Green Tier is new, but the companies involved in the pilot program have already seen big economic impacts:
- Flexibility in materials reduced one company’s need to mine nearly 2,000 railroad cars of coal. They did this by recovering and re-burning discarded ash that had residual energy value;
- Another company reduced hazardous air pollutants 85 percent by using ultraviolet screening and a single DNR permit to cover multiple company facilities;
- Changes to reporting requirements saved one company 3,000 staff hours per year;
- One facility’s flexible bubble permit resulted in the addition of three new production lines with a three to seven day turnaround, without needing a new permit.
- Participants are realizing cost savings that contributed to more than $1 million in profitability.
And there have been big environmental impacts:
- Green Tier pilot companies have achieved a 31 percent reduction in emissions of hazardous air pollutants since the year 2000, bucking an overall statewide trend;
- Water conservation of more than one million gallons resulted from the innovation of one participant.
This report highlights four main areas of work done on the Green Tier program since it was signed into law by Governor Jim Doyle in 2004: 1) making the law operational; 2) building participation and interest in the program; 3) identifying methods to tap the environmental and economic potential that Green Tier presents; and 4) examining opportunities, both legally and operationally, necessary to make Green Tier an integral part of Wisconsin’s environmental and economic strategies.
Thus far, the Department has:
- Completed the initial program implementation framework;
- Created ongoing processes to enroll participants in Green Tier and negotiate contracts and charters;
- Delivered basic incentives specified within law for the participants;
- Established functional working relationships with University of Wisconsin to effectively learn about Green Tier’s new way of doing business; and
- Established strong groups of external and internal advisors providing environmental focus, guiding operational decisions and, most importantly, exploring the next steps to make Green Tier ever stronger.
Of the nine “Powers and Duties” (Appendix, Table D) of the Department, all nine have been faithfully pursued. Of the 14 elements of “Program Administration” (Appendix, Table E) seven are well underway, with the expectation that the remaining seven will be logically addressed as the program matures.
Green Tier is, by design, tasked to be continually improving and changing to meet environmental and economic issues that emerge. The processes and initial resources are in place for this nationally-recognized program.
Participation is now the steady focus of Green Tier. Almost 400 entities have expressed interest in Green Tier, and there are many others with good environmental and economic reasons to consider enrolling in the program. Therein, however, lays the greatest challenge to continuing the initial success of this program. Reaching both those with interest and those with a reason to be interested takes time and will bump up against overall resource limits that are highlighted in the “Barriers and Challenges” section of the report.
Another opportunity to cement the program’s success rests in addressing the sunset clause in current law. By fine tuning the law and paving the way for more innovation through legal channels, we have the opportunity to affirm that Green Tier is, in fact, a long-term way of doing business and is here to stay.
We also look forward to implementing the overall Green Tier strategy: that progress will result from delivering coordinated, documented environmental results over time by systematically drawing in more participants and taking the necessary steps to assure cumulative, consequential environmental and economic outcomes.
II. Organization/Infrastructure
A. Internally
When Governor Doyle signed the Green Tier Law in April 2004, Bureau of Cooperative Environmental Assistance staff began developing an infrastructure that would ensure a smooth beginning for Green Tier. Staff created and refined pieces of the process for moving a potential applicant to an active participant. These pieces include flow charts, tracking systems, timelines, templates, web pages as well as a simple, two-page application form and instructions. There are several internal teams in place to help institute the cross-media nature of Green Tier throughout DNR. With clear direction that Green Tier is a high priority for the agency, these teams help take-on the challenge of culture change, education, and program implementation from many different angles and at many different levels.
i. Green Tier Coordinators
With the passage of Green Tier, DNR was immediately challenged to make it an integral part of all programs. After developing an understanding of Green Tier’s initial impact on traditional programs, the Green Tier Coordinators were formally established in September 2005 as a group of DNR’s senior managers, currently under the direction of the DNR Deputy Secretary, to engage across program lines to accomplish the development and implementation of Green Tier participation. DNR has established this group to manage change within DNR and facilitate meaningful exploration of the kinds of change that Green Tier could bring not only within specific programs but also the use of Green Tier tools to create environmental and business value. Meeting monthly, the group is comprised of bureau directors or their designees from each of the bureaus with direct environmental program responsibilities along with senior managers from other divisions in DNR. In addition to the operational elements of the Coordinator’s work, they have also sought to identify how additional business value can be created, how Green Tier provisions can be effectively integrated with federal program requirements/delegation and explore environmental issues that might be well suited to the use of Green Tier tools. The group has made it a priority to develop, implement and improve Green Tier in the context of multiple program needs and capabilities.
ii. Green Tier Regional Support Teams
As Green Tier develops, support from regional environmental staff is critical. To address this need, a team of interested staff was assembled in DNR’s Southeast Region to promote the use of Green Tier approaches within the respective regulatory programs, and to identify good candidates for Green Tier. Building on the success of this initiative, Northeast Region also assembled a team. Members of the team were deliberately chosen to represent each of the regulatory programs in the Air & Waste Division, the Environmental Analysis program, Environmental Enforcement and the Water Division. In addition to providing leads on good Green Tier candidates, this team sought to understand the philosophy of the Green Tier approach and became much more of an advisory body on how best to implement Green Tier within the region. The Southeast team also serves as an advisory body within the region and will help integrate Green Tier ideas into the regulatory programs.
iii. Single Point of Contact
In the spirit of Green Tier, the role of the Single Point of Contact (SPOC) adapts with both the expectations of the participant and the capabilities of the staff person designated to be the SPOC. Each participant at the Tier 1 and Tier 2 levels of the program have had the opportunity to help decide who becomes their SPOC at DNR, and so far all requests have been honored. On June 15, 2006, the first meeting of the designated SPOCs was held in Oshkosh to explore how the role might be developed and what activities might be the logical core for those designated as SPOCs. The SPOCs have been instrumental in working on permit issues, developing a better understanding of the facilities by participating in Environmental Management System (EMS) audit processes and generally maintaining more contact with the participants on environmental performance issues. Since this work is just getting started, evaluation information is not currently available. Based on recommendations from the La Follette School of Public Affairs (UW Madison) survey instruments have been developed and tested to establish baseline information and ultimately trend information for the ongoing working relationships between participants and DNR.
iv. 
Logo and Certificate
Various incentives for participation in Green Tier are enumerated in the statute, one of which is the “use of a logo selected by the department on written materials produced by the participant”. In order for a logo to communicate an appropriate message with target audiences, DNR engaged pro bono services of exceptional marketing and media firms.
Green Tier participants can use the logo to promote their environmental efforts.
Marketing surveys guided the selection of the Green Tier tagline that equates Green Tier with “Environmental Excellence”. DNR then began the work to design the logo, again using pro bono services, to incorporate the tagline with the visual presentation. The logo was “unveiled” October 3, 2005.
Guidelines that address usage, typography and color standards have been drafted and shared with Green Tier participants with the intent of protecting the visual integrity of the logo as well as the Green Tier program message.
Many new participants choose to host a celebration ceremony/media event at their facility to announce their enrollment in Green Tier. DNR helps coordinate the event and produces a media advisory and press release. The event serves as an opportunity for the participant to talk about their environmental successes and receive some publicity for their endeavors. Speakers generally include the CEO, plant manger and a senior manager from DNR. Invitees usually include local media, neighbors, representatives of environmental organizations, trade associations, local government, interested persons, group members, employees, and DNR staff. As part of the event the participant is presented with a framed, numbered, and signed certificate-of-recognition.
B. Externally
i. Green Tier Advisors
The department secretary has appointed 16 Green Tier Advisors (See Table A) representing a variety of interests and perspectives. One quality common to each Advisor is his or her unique experience and significant expertise. The Advisors meet no less than quarterly.
The charge of the Green Tier Advisors (as outlined in statute) is to advise DNR about:
- The implementation and operation of the program, including the setting of goals and priorities for the program.
- Evaluating the costs of applying for the program and of entering into a participation contract or a charter, and the administrative costs of participating in the program.
- Assessing whether incentives provided under a participation contract are proportional to the environmental benefits committed to under a participation contract.
- Procedures for evaluating the program and the results of the program.
- Changes that should be made in the program.
During 2006, the following topics were discussed by the Advisors:
- Areas of Emphasis as those aspects of superior environmental performance that the DNR should use when considering Green Tier Contracts and when setting goals and priorities for the Green Tier Program. (A recommendation to the DNR Secretary was developed and submitted in 2007.)
- Green Tier Issues/Concerns specific to the Environmental Community-at-large.
- Performance Indicators to assess the effectiveness of the Green Tier program at using an incentive-based market approach for promoting superior environmental performance.
- Emerging Green Tier brand and marketing issues.
- Development of a Communications Plan (A recommendation to the DNR Secretary was submitted in 2007.)
Table A: List of Green Tier Advisors
Green Tier Advisors |
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ii. Green and Growing Event
Participants in the Green and Growing bus tours saw innovative efforts firsthand - including facilities powered by the biodigester at Holsum Dairies.
The bus tours all convened at a reception in Madison. Here EPA and DNR are signing a Memorandum of Agreement that links Green Tier with EPA's Performance Track.
On October 3 and 4, 2005, DNR officially launched Green Tier through the Green and Growing regional bus tours and reception on October 3 and the conference the following day on October 4. The tour made it possible for a wide range of state residents to get a first-hand look at the innovative efforts to protect our environment, create jobs and support economic development across the state. Over the two days, more than 300 people took part in the events that highlighted innovation, the first steps towards a sustainable future and the partnerships that would be needed to get us there.
iii. Working Session
On January 22, 2007, DNR hosted a working session that was designed to bring Green Tier participants, Environmental Cooperation Pilot Program participants and DNR representatives together to discuss pertinent issues and share relevant experiences.
Green Tier and Pilot Program participants spent a day together sharing, networking and discussing issues.
Planned according to results from a survey of Green Tier and ECPP participants, the day started with a discussion on annual reports. There was time for participants to share ideas, successes, and best practices. An interactive discussion on performance metrics followed, and a panel of regulators provided a session on the innovative efforts they are employing to accomplish environmental excellence. About 70 people attended the working session. Prior to the full Working Session, about 10 invited representatives of Green Tier companies participated in a focus group to help DNR gather qualitative information and perspectives on the "business value" of participating in Green Tier. Evaluations indicate that the majority of working session participants favors getting together again to continue sharing, networking and discussing issues.
III. Recognition and Analysis
Wisconsin is again poised to be both a national and international leader in environmental protection. Green Tier’s new style of environmental governance has received significant recognition. Perhaps illustrated best when, in 2006, the Green Tier program was one of 18 finalists of a total of 1000 applicants, for the Innovation in American Government Award given by the Ash Institute for Democratic Governance and Innovation at Harvard University. Senator Neal Kedzie, R-Elkhorn, who authored the Green Tier program legislation said, “This innovative program is receiving accolades at the state, national and even international level, and its popularity will only grow…Green Tier is cutting edge regulatory reform and this nomination recognizes the years of hard work that so many people dedicated to see it come to fruition.” Governor Doyle also has expressed enthusiasm for Green Tier’s recognition, “The innovation this program promotes is essential to demonstrating that environmental results and economic gains can be achieved together. We’re showing that businesses can grow and also improve the environment at the same time.”
DNR staff display the Innovation in American Government Award given by the Ash Institute for Democratic Governance and Innovation at Harvard University.
In 2006, Green Tier was also recognized as “Environmentalist of the Year” by the Wisconsin Builder Magazine. There have been over 50 press accounts of Green Tier work and that doesn’t include the individual stories when someone joins the program. The groundbreaking work has been described and discussed in over 20 newsletters and magazines, 20 academic and research papers and at least two books. In a world shaped by the internet, there are at least a dozen sites that independently maintain information about Green Tier. It is refreshing to note that the majority of this outreach was conducted by others, outside the DNR. Green Tier has created a ‘buzz’ and people are not relying solely on DNR to spread the word. Specific examples of Green Tier’s recognition include, but are not limited to the following:
- Wisconsin State Journal editorial (10/5/05): “There should be no controversy about the DNR's new Green Tier program of environmental regulation, the first of its kind in the nation. Wisconsin should embrace Green Tier as an idea whose time has come for the benefit of the state's economy and environment.”
- Stevens Point Journal (10/19/05): “Wisconsin has the chance to seize upon a new brand, one that ties with its past as well as its future. It is a brand that could attract business from outside our borders while nurturing homegrown commerce. Green Tier is a way to leverage Wisconsin’s status as a “green” place to do business – which means, ultimately, a greener place to live.”
- Massachusetts Institute of Technology (10/2004): Reframing Regulation: Changing forms of Law and Practice in U.S. Environmental Policy: “The importance of Green Tier is the way in which it changes the relationship between law and practice.”
- Hands-On Environmentalism. Haglund, Brett and Still, Thomas (2005): “Wisconsin’s “Green Tier” program is a prime example of the new way of thinking. It’s an attempt to move beyond unilateral enforcement of minimum standards to partnerships that aspire to maximum levels of environmental protection. Green Tier offers a way to go beyond compliance, to address unregulated environmental problems and to restore natural resources in return for incentives that are tied to superior performance.”
- "Environmental Law in a Connected World” conference, sponsored by the University of Wisconsin-Madison, La Follette School of Public Affairs (2005) The event was highlighted with a presentation, “Wisconsin Style: New Approaches to Regulatory Innovation” and attended by over 300 people from eight countries and 10 states.
IV. Participation and Results
A. Participants
Participation in Green Tier is formally recognized through Tier 1, Tier 2 and Charters. We have come to understand that building a new working relationship and providing a focus on performance starts during the application process during which the parties start by collaborating rather than relying on more traditional review and approval processes. When an entity reaches the point of celebrating their participation in Green Tier, there is already a foundation for performance and working together. Tier 1 participants commit to superior environmental performance for two of three statutorily specified elements of superior environmental performance and commit to have an EMS in place if they don’t already have one. There is a statutorily specified set of incentives (recognition, single point of contact, use of the logo, publicity and limited civil immunity). Once the EMS is in place, participants are also eligible for the lowest inspection frequency under law. Tier 2 recipients must demonstrate superior environmental performance and have a functioning EMS in place. They may negotiate for customized incentives proportional to the superior environmental performance. Charters, new to United States environmental law, provide for groups of businesses or other entities to group together to address environmental risks and jointly manage environmental performance. Green Tier currently has three Charters, one Tier 2 participant and eleven Tier 1 participants.
| Table B: Participants and their Senate and Assembly Districts | ||
| Green Tier Participant | Senate District(s) | Assembly District(s) |
| Tier 1 | ||
| Holsum Dairies, LLC | 9 | 25 |
| Plymouth Foam, Inc. | 9 | 27 |
| Federal Foam Technologies, Inc. | 10 | 29 |
| Roundy’s Distribution Facility | 11 | 31 |
| Veridian Homes, LLC | 16, 26, 27 | 48, 76, 77, 78, 79, 81 |
| Kimberly-Clark Corp. Experimental Mill | 19 | 55 |
| Serigraph Inc. | 20 | 58 |
| Times Printing Co. Inc | 20 | 59 |
| Stericycle, Inc. | 21 | 63 |
| Edgewood College | 26 | 76 |
| American Transmission Co. | 33 | 98 |
| Tier 2 | ||
| MEGTEC Systems Inc. | 2 | 4 |
| Charter | ||
| Scrap Metal Recycling Industry’s CCP, Inc. Charter | 13 | 37, 38 |
| Clear Waters Initiative Charter | 13, 16, 26, 27 | 37, 46, 47, 79, 80, 81 |
| WI Builders Assn. Development Council EccoDev Charter | 19 | 56 |
Since we are still in the early stages of Green Tier and in keeping with the lessons learned during the pilot program that preceded Green Tier, performance has been summarized by participants. While construction is well underway for overall performance evaluation techniques and generation of data that will enable the effective analysis of trends, it is still too early to have the information that would be needed for comprehensive performance evaluation and trends analysis. There is a constant dynamic tension for the program in that one goal is to keep the burdens of administrative overhead like reporting to a minimum while at the same time striving to have metrics that adequately demonstrate the outcomes that participants are achieving. One applicant expressed appreciation for the flexible reporting method selected, easier for the participants but likely more difficult for the state to summarize the reported information. Here is a brief summary of each participant:
American Transmission Company – Tier 1
American Transmission Company (ATC) provides linear infrastructure for the transmission of electricity. ATC's involvement focuses on improving their electric transmission line project implementation. Through their Environmental Management System, ATC has built environmental sensitivity, environmental protection and environmental restoration into both the design and construction of transmission lines.In addition, last year, ATC recycled more than 300,000 pounds of scrap metals and more than 52,000 pounds of oil. By diverting this material, ATC generated more than $1 million in salvage. ATC has also been a pioneer in working with DNR for the protection of endangered species, having most recently been recognized for their work with the Karner Blue Butterfly. ATC has also made extensive use of their project management systems to begin integrating environmental considerations into business decision making processes.
Clear Waters Initiative – Charter
The Clear Waters Initiative Charter aims to reduce the overall sediment delivery to Dane County's lakes and streams beyond current state and local requirements. The Charter is a partnership effort between the regulatory community (Dane County, City of Madison, City of Sun Prairie, and DNR) and the building community (Veridian Homes LLC, a builder of single and multi family homes). This Charter allows other developers and municipalities to join the Charter by demonstrating an ability to comply with the terms and condition of the Charter. Their first year of operation has included work on “silt socks” to control sediment runoff, auditing of sites, and continued development of a virtual inspection methodology.
EccoDev – Charter
The Wisconsin Builders Association Development Council's Environmental Compliance Corporation for Development and Economic Vitality, Inc. (EccoDev) represents residential land developers from across the state. The group has identified specific areas where their efforts can provide a healthy and sustainable environment, while creating quality, safe and affordable housing. The goals of the charter are environmental performance; relationships between developers and regulatory agencies; and the performance of others that follow developers at a site, such as builders and homeowners. Most recently this work was manifest in the first applicant under the EccoDev Charter (Casaloma Developers) proposing a development with innovative storm water controls that will retain storm water on the site to enhance the value of the properties and significantly improve the environmental performance of the development.
Edgewood College – Tier 1
Edgewood College's "Green Campus Task Force" has engaged Edgewood's students, faculty and staff in creating an environmentally sustainable living and learning community. Through participation in Green Tier, Edgewood has developed and approved a formal Environmental Policy, and is developing its first annual environmental indicator report. The college is also in the process of institutionalizing a formal Environmental Management System that will help augment its role as an environmental leader in academia, thus enhancing the strong synergy between the college's academic credentials and environmental standards. The entire institution is focusing on waste minimization, energy use, recycling, and water conservation, as exemplified by the college's annual Eco-Olympics competition among students in its five residence halls. Edgewood's renovation of the Mazzuchelli Biological Station included the creation of rain gardens and other eco-friendly structures, leading to an Environmental Excellence Award in 2005. Edgewood is pursuing LEED certification by implementing numerous innovative and sustainable practices in the construction of a new 200-student residence hall. Edgewood is also constructing an eco-friendly 1,100 foot long boardwalk along the picturesque Lake Wingra shoreline for the purposes of student curriculum, environmental stewardship, lake management, public education, and community enjoyment. Participation in Green Tier provides Edgewood with the advantage of attracting environmentally aware students and parents, while marketing themselves among peers as a green college.
Federal Foam Technologies, Inc. – Tier 1
Federal Foam Technologies, Inc. (FFT) of New Richmond, Wisconsin was accepted into the Green Tier Program on September 26, 2006. The company’s first Annual Report is due in January 2008. The company has committed to changing packaging in its supply chain, reducing energy consumption, reducing production noise, and conserving resources through increased recycling efforts. The company is ISO 14001 certified and has developed their own automated systems to track the business impact of environmental improvement efforts to account for cost savings and improvements that have led to more profitability. They have utilized new technologies to reduce Volatile Organic Compound (VOC) emissions by 28 percent and are currently engaged in process line changes that will further reduce plant emissions. Through Green Tier and its EMS, FFT has found encouragement for innovative processes that have reduced both the environmental and economic costs of doing business. By changing processes and working with its suppliers, FFT has diverted a cumulative 1,167,120 pounds of Closed Cell Polyurethane foam and foam composites from landfills since 2004. In fact, in 2006 alone, FFT recycled roughly 601,440 pounds of previously non-recyclable scrap foam, which was utilized in producing a material currently used in the production of new products. In 2006 this recycling effort generated $61,141.08 in revenue plus the $24,391 saved from not incurring disposal/land fill costs for a total profit contribution of $85,532.58. It would take $342,130.32 in sales at a 25 percent margin to equal this contribution to the "bottom line". FFT is committed to working with its customers and suppliers to further reduce the impact of their operations on the environment while maintaining a healthy economic benefit to their plant and community.
Holsum Dairies, LLC – Tier 1
Holsum Dairies is a 3600 head, large-scale dairy farm located in Hilbert, Wisconsin, midway between Lake Michigan and Lake Winnebago. Holsum Dairies has focused on improving their nutrient management and storage, as well as surface and groundwater protection. Holsum Dairies is one of the leaders in the industry in using manure as a digester bio-fuel, generating electricity and beneficial by-products from the digestion process. Holsum is one of the first dairies in the country to develop and implement an environmental management system to be functionally equivalent to ISO 14001.
Kimberly-Clark Corp. Experimental Mill – Tier 1
Kimberly-Clark Corp. Experimental Mill is located in Neenah, Wisconsin. The facility's primary function is to develop and deliver a continuous stream of innovative product and process solutions for the Family Care business sector. The Experimental Mill implemented their Environmental Management System in late 2006. The company has targeted beyond compliance steps to save 8.4 million gallons of water and to continue their waste minimization efforts. Frequent dialogue between its environmental and cost teams has helped the company focus on innovative strategies to make changes in lighting, reduce water usage, increase recycling, and change its methods for use of compressed air.
MEGTEC Systems Inc. – Tier 2
MEGTEC Systems is a manufacturer of air flotation dryers and air pollution control equipment used in many industries including: printing, paper making, automotive, metals coating, and numerous others. Under Green Tier, MEGTEC Systems is working with its supply chain on environmentally preferable products and practices, by encouraging those businesses in their supply chain to develop their own Environmental Management System and by sharing environmental improvement results with others. MEGTEC Systems is also working on several ways to minimize the creation of hazardous waste, with the goal of becoming a conditionally exempt small quantity generator.
Plymouth Foam, Inc. – Tier 1
Plymouth Foam, Inc. of Plymouth, Wisconsin is a facility that processes expanded polystyrene used for packaging and various construction and insulation applications. Plymouth Foam, Inc. is committed to superior environmental performance and is in the process of implementing their environmental management system. Their focus will be on air quality, looking for VOC emission reductions achieved by expanding their recycling efforts and reducing the use of natural resources in their processing procedures. Plymouth Foam is also looking to reduce energy usage through innovation and technology. Many of their current expanded polystyrene products carry the Energy Star label and several of their products are between 10 and 100 percent recycled product. Strategic partnerships with other companies allow Plymouth Foam to accept clean scrap material and process it into usable product. They have also resolved storm water issues by developing covered storage areas for finished products and designated trailers for scrap material destined for recycling or disposal.
Roundy’s Distribution Facility (Oconomowoc) – Tier 1
Roundy's Supermarkets, Inc. (Roundy’s) is a leading grocer in the Midwest. Their warehouse distribution facility in Oconomowoc serves grocery stores under the Pick 'n Save, Copps and Rainbow Foods names in Wisconsin and Illinois. Roundy’s has done business in Wisconsin since 1872 and has a history of environmental performance. The design and construction of the Oconomowoc Distribution Center heavily considered the environment and includes features to conserve energy and protect the environment from unforeseen events. Roundy’s has also established programs on recycling and repackaging. Roundy’s has packaged several features to reduce the environmental impacts associated with idling diesel engines, pulled together multiple forms of control, and put in place many safeguards associated with diesel refueling.
Scrap Metal Recycling Industry’s CCP, Inc. – Charter
Scrap recyclers that participate in the Charter are required to adopt an Environmental Management System that sets objectives and targets to result in improved environmental performance. Targets identified in the Charter include: management of the by- products from shredding (shredder fluff), continued intensive management of mercury (especially mercury vehicle switches) and use of best management practices. In 2006 the CCP, Inc. worked with DNR staff, held several meetings with roughly 110 representatives from 75 different scrap recycling operations around the state. The purpose of the meetings was to provide insight to the program and lay out the goals of the Charter for the industry while introducing the concept of implementation and development of an EMS. While some initial applications were received, CCP Inc is re-evaluating the charter participation in light of the costs of EMS development, impacts felt by market volatility, the overall members that will be needed to sustain participation and additional elements that might be needed to create value for charter members.
Serigraph, Inc. – Tier 1
Serigraph Inc., a privately held screen and sheet fed lithographic printer in West Bend, Wisconsin, supplies products (generally plastic) for the appliance, computer, and electronic markets. For nearly two decades Serigraph has maintained a steadfast commitment to the environment. Serigraph was one of the first printers to recover solvent from used wipes in order to minimize air emissions. The company was a pioneer in the use of no VOC UV inks for offset printing on plastic substrate. Internally, the company has reduced VOC emissions over the years by 75 percent. Serigraph operates a corporate-wide recycling program which resulted in the reuse of 2.5 million pounds of material during 2005.
Recent accomplishments include:
- Pioneered the use of a bio-filtration system to reduce VOC emissions from the printing process.
- Developed programs that reduced electrical consumption by about 280,000 KW per year and increased the use of low VOC coatings.
- Reduced generation of hazardous waste at one plant to the point that the plant was reclassified from a large quantity generator to a small quantity generator.
- Reduced water use by 20 percent, and
- Identified corporate savings by recycling steel mesh and converting from steel to plastic pails.
Stericycle, Inc. – Tier 1
Stericycle, Inc. is a regulated medical waste management and regulatory compliance services company. In addition to collecting and treating medical waste, Stericycle provides training to customers to help them reduce the amount of medical waste they generate and to improve safety in the workplace. Stericycle’s Electro-Thermal Deactivation (ETD) technology effectively treats infectious medical waste while producing no regulated air or water emissions. Stericycle, Inc. also pioneered development of dedicated reusable sharps containers which reduces waste volumes treated and increases transportation efficiency over conventional container options. Stericycle’s BioSystems sharps management program replaces single use plastic sharps containers in hospitals with reusable ones that can be recycled up to 500 times. Because these containers are recycled instead of thrown away, they can be replenished on a frequency that minimizes the risk they become full, creating a safer workplace by reducing inadvertent needle sticks. In the future, Stericycle, Inc. will continue to develop new ideas, and to guide customers toward environmentally superior performance. They plan to use their Environmental Management System to accomplish fuel consumption reduction, additional recycling, and reduction in water and energy usage. They will also use the system to help with proper handling of pharmaceutical waste.
Times Printing Co., Inc. – Tier 1
Times Printing Company, Inc., is a general commercial and periodical printer in Random Lake, Wisconsin. Originally a newspaper publisher, the company has grown as a family owned and managed business for the past 86 years to a full scale printing operation. The company achieved improved environmental performance when they replaced 3 catalytic oxidizers with one regenerative thermal oxidizer. This resulted in a dramatic reduction in energy use and an increased destruction of VOCs. In addition, Times was able to minimize waste by finding a second-hand user for its press inks. Instead of being discarded, the used inks are converted by American Re-Fuel into energy in the form of steam and electricity. The company is currently working on ways to reduce VOC emissions, recycle waste oil, minimize solvent use and reduce energy consumption.
Veridian Homes, LLC – Tier 1
Veridian Homes, LLC is the largest builder of residential homes in Dane County. They have identified aspects of their land development, home building operations, and business processes that have significant impacts on the environment. Veridian has committed to including all contracted trade activities at its building sites that have the potential to impact the environment. Veridian has worked extensively with contractors and suppliers to address environmental issues and business processes. Recently the Veridian EMS was determined to be functionally equivalent to ISO standard 14001, utilizing the land development and building industry’s "first" Environmental Management System. Veridian Homes, LLC is also a participant in the Clear Waters Initiative Charter. Just a few of their innovative initiatives include: reuse and recycling programs for drywall scraps; investigating the feasibility of reusing or recycling vinyl siding scraps; implementing a concrete spoils recycling program; and identifying opportunities to turn wood debris into mulch, cover or erosion control materials.
B. Applications in Process
There are a number of prospective participants who have applied for participation in the program. Each has completed an application, describing their historical environmental performance and listing areas of superior environmental performance that they will commit to in the future. Some of these applicants are in the public comment phase, some have completed the public comment phase and others are working out remaining details prior to entering public comment. The applicants for the program include:
- Arandell Corporation (Menomonee Falls)
- Bay Towel (Green Bay)
- Carver Boat Corporation Incorporated (Pulaski)
- Casaloma Development Corporation (Appleton)
- Goldschmidt Chemical Corporation – Janesville Plant (Janesville)
- Jon-De Farm (Baldwin)
- Lucas-Milhaupt Incorporated (Cudahy)
- Plastic Ingenuity Incorporated (Cross Plains and Mazomanie)
- Rockwell Automation (Mequon, Ladysmith, Richland Center and Milwaukee)
- Stresau Labs (Spooner)
- Veolia ES Technical Solutions, LLC (Milwaukee)
- WRR Environmental Services, Inc. (Eau Claire)
Each represents growing interest in the program as each has identified ways to deliver superior environmental performance and commitments to systematically manage their environmental performance. In addition, there is work underway on two new charters that would potentially affect a significant number of small and medium sized businesses as well as extending the reach of the program to the provision of municipal services based on superior environmental performance.
C. Results
DNR recognizes the importance of developing quantitative performance measures that can demonstrate the environmental outcomes from Green Tier. Though we cannot report comprehensive, overall results in this report there are four elements for results assessment that will be integrated for the next biennial report. Those elements are:
- Results from participant specific commitments;
- Results from “generic” environmental performance indicators;
- Results mined from existing data/reporting systems; and
- Results that assess changes in working relationships.
Each will play a key role in understanding not only how the program is doing overall but also in identifying where program improvements and adjustments need to be made.
First, we are just starting to get results from agreement specific commitments. While those are characterized individually above, those results reveal that there have already been impacts on water, air, sustainable materials management, and energy efficiency. Correspondingly, their actions are producing bottom line results for the participants.
- Water Consumption - 8.4 million gallons reduced consumption at Kimberly Clark and a 20 percent reduction at Serigraph.
- Surface Waters Protection - Silt socks enabled through the Clear Waters Initiative. Reduced storm water discharge (virtually zero) for residential development at Casaloma Development.
- Air Emissions - 28 percent reduction in VOC emissions at Federal Foam with more to come. Times Printing, Plymouth Foam and Serigraph have emission reduction goals in place. Roundy’s has made significant strides towards air quality improvement through the diesel idling reductions at their distribution facility, an area that is essentially unregulated, as well as working with the DNR to establish baselines of performance for those outside of Green Tier.
- Sustainable Materials Management – This is seen in the reduce, reuse and recycle objectives of MEGTEC as they move to eliminate hazardous wastes, and Federal Foam and Plymouth Foam as they increase the levels of recycled content. American Transmission Company recycled 352,000 pounds of material and Federal Foam recycled 601,440 lbs of foam. Along with work that Veridian is already doing for recycling, they worked diligently to identify new markets for previously unused construction wastes.
- Energy Efficiency – Holsum Dairies is a leader in the use of bio-digestion to produce electricity, and 280,000 Kilowatt hours have been saved at Serigraph.
- Economic Results – American Transmission Company’s recycling efforts netted over $1 million. Federal Foam has a sophisticated capacity to track economic benefits and demonstrated $85,533 in material savings that would have required $342,130 in sales to have an equivalent effect on the bottom line. Permitting for both Holsum Dairies and Casaloma were efficiently and effectively handled within the context of business timing needs while assuring precise attention to environmental needs and concerns.
We continue working to improve the integration of performance information from widely divergent sources ranging from four employees to several thousand and equally diverse capabilities ranging from those unaccustomed to reporting environmental information to those bound by prescribed, rigorous reporting systems. Tradition might suggest a prescribed format, requirements and tolerances but that level of prescription is what the Green Tier law challenges us to minimize.
Second, a generic list of environmental, economic, and social performance indicators has been shared with the Green Tier participants that may be used to track their performance and contribute to an overall assessment methodology. Some indicators are not relevant to every entity. Some of the performance indicators are based on data that have been routinely collected by some of the participants, especially the larger, more heavily regulated entities. But other performance indicators have not previously been tracked by even the largest entities, or if tracked have not been reported publicly. And in some cases, especially for the smaller participating entities, there is virtually no pre-existing data for most of the generic indicators. In these cases the participant’s entry into Green Tier marks the beginning of a new focus on performance and quantitative results. The first submissions of this generic information are just now arriving and are not ready for analysis in this report.
Third, a comprehensive, quantitative picture is dependant on time as well as receiving annual reports from more participants. The model for quantitative analysis accomplished by mining data that participants already supply was developed during the Environmental Cooperation Pilot Program and can be viewed at (http://dnr.wi.gov/org/caer/cea/ecpp/p2/index.htm). This evaluates key environmental performance indicators and looks at those indicators in the context of overall state performance. Just as individual commitments and generic indicators can give individual performance information, mining the existing performance reporting can supply information about program performance. Working with both the University of Wisconsin and Yale University, we continue to refine our ability to use this information and assure through regression analysis and other techniques that the information is relevant. For Green Tier, there are two limitations. First, as mentioned above, is time. We are just in the process of developing the baseline information. Time is also needed to show trends from information mined from data already reported. The value of trend information over time was a lesson learned from the Environmental Cooperation Pilot Program. Second, the data will be limited. Not all participants in Green Tier will be reporting this information either because the participants are below reporting thresholds or because they simply don’t have the means or reasons to gather the information. Nonetheless, the data will provide insights on the performance of program participants in comparison to others who are similarly required to report such information and are not part of the Green Tier program.
Fourth, one of the really new expectations coming from Green Tier is the goal to improve working relationships. This is an entirely new element for environmental performance management that anticipates drawing the environmental, community and business decision making processes closer together. The two key concepts from the law are “trust” and “collaboration”. Understanding what those terms mean, finding ways to get management information about them and sharing the results has been a challenge. Volunteer interns, student class projects and pro-bono faculty time from the La Follette School of Public Affairs has helped to refine the issues, evaluate tools that could be used to gather information and begin the design and testing of tools that appeared to have the most promise. That work has just been completed so that a baseline of information can be developed for the current participants.
V. Issues and Potential
A. Barriers and Challenges
Long Term Future of the Program – There is always the lingering question of longevity for a program that has a sunset provision attached to it. Even though the title of the program may not include “pilot”, an individual business’ decision to join the program or the propensity of a business sector to use the program to build a new working relationship is limited when the window for the program has a specified end date. Even though the contract and charter provisions would last beyond the sunset date, there remains a lingering question about the level of commitment to the program.
Business Value – The questions that seem to linger are about the levels and types of results for business. The incentives at Tier 1 are generally described by business as modest. The incentives at Tier 2 are unspecified and, given 30 years of prescribed environmental responses, very difficult both for business to conceive and environmental agencies to anticipate. The unstated question is whether there is value in being different and establishing that difference with a collaborator. This is also consistent with advice given to organizations to maintain as low profile as possible with state and federal environmental agencies. Stated more simply, is the nail that is sticking up the one that will get pounded. Both the perception of incentives and the perception of participation have a very direct impact on how potential participants see business value.
Environmental Results – The challenge is having enough time to get the kind of environmental results that show trends and to build enough participation with the right participants addressing common environmental risks that there is demonstrable impact. At this stage in the program (as was the case with the Pilot Program) we can provide anecdotal information about environmental results. Generally the assessment of overall trends and the ability to discern legitimate trends from baselines takes some time, especially when dealing with small and medium sized enterprises that report very limited information.
Environmental Management System (EMS) Requirements - The Green Tier statutory requirement for each participant to have an EMS may limit the number and type of companies that seek to participate. The development of an EMS can, in many cases, be a confusing, costly, and/or time-consuming process. However, DNR has made significant improvements--through outreach, the Green Tier website, and coordination with the other knowledgeable individuals and groups to foster an EMS equivalency option that is expedient and transparent.
Fiscal Limitations – The DNR has implemented both the Pilot Program and Green Tier without the addition of resources and done so at a time that the overall level of resources for the program tasked with implementation have been cut nearly in half. While the program has done what it could, limited resources are available to conduct communications and outreach or the marketing and publicity that have been identified as a key incentive for program participants. There are also limited resources available to accomplish anything beyond the incremental attraction of companies into the program and development of charters over extended periods of time given competing demands for available time.
Transaction Costs – Each time that a customized flexibility is identified, there is a learning curve associated with the development of the flexibility. Once the flexibility is developed, the costs associated with managing agreements between DNR, businesses, and non-governmental organizations is low. DNR and business costs are principally driven by demands from traditional command and control approaches. Currently, Green Tier charters offer an alternative to tradition by providing lower transaction costs than one-to-one. Similarly once the one-to-one incentives are developed, they can be applied to others. However, the initial investments continue to remain high as investments to educate both business and regulatory staff about not only the flexibility that will be provided but also the reason to provide the flexibility in the first place. The initial transaction costs are actually the combined cost of creating the flexibility and addressing the culture change needed to implement the flexibility and recognition
Start-ups – DNR has received numerous Green Tier inquiries from potential start-up businesses who want to ensure from the outset that their business is committed to environmental excellence. These inquiries pose unique challenges that seemingly were not anticipated by the Legislature when the statute was crafted. It seems likely that the Legislature would have wanted to encourage the kind of environmental leadership exhibited by these start-up businesses, yet the requirements of Green Tier seem to be based on an assumption that applicants will have an established record that DNR and the public can review. Specifically, Green Tier requires applicants to have a good recent compliance record and to describe their record of environmental performance. Neither requirement makes much sense for a start-up business. DNR has struggled to offer clear guidance to start-up businesses because it isn’t clear to us whether start-up businesses should be accepted into the program, or whether they should be asked to first establish a track record and only apply later.
B. Environmental Potential
Green Tier has come to be viewed as the place where we begin to realize our potential and explore what is possible and sustainable. Green Tier is also about conducting the exploration and enabling the subsequent innovation in a systematic way. Unlike the over 100 discrete voluntary programs that address unique issues and concerns, Green Tier challenges companies and the environmental agency staff to look at the full range of environmental issues. In addition, the purpose for looking at all of those issues is to identify actions and execute them to move beyond what the regulations require and reap benefits from those actions. The potential is to move from random acts of environmental kindness to systematic delivery of environmental performance. Each of the “X’s” in Table C represents steps beyond compliance minimums. In some cases, these are steps that the participants have taken and have chosen to publicly commit to keep them going. In other cases they are new, uncertain steps in areas where the participant thinks that they can make a difference and, even though they aren’t sure, they are prepared to publicly commit to giving it a try. In other cases, the steps are addressing environmental issues across traditional environmental program boundaries and would not have a place for consideration, facilitation and recognition.
The number of participants also has significant potential to grow. A group of almost 400 companies has been identified, many of whom have identified themselves, as having an interest in Green Tier. In addition, close to 200 other companies have been identified that would have reason to be interested in the program because the product(s) that they manufacture produce environmental benefits or the ways that they manufacture products are environmentally superior to other similarly-situated companies. The process of reaching these companies and the requirements, even though they are minimal, dictate a deliberate and measured approach. With 12 individual entities now in the program, that number is expected to double in the next three months based on applications in hand. Charters that deal with larger blocks of participants are also expected to grow as well as increasing participation for those charters that already exist.
There is every reason to believe that participation can address a broad range of environmental issues as evidenced by Table C that follows. As greater focus is given to the areas of emphasis, single points of contact work more closely with participants and more benefits of participation become clear we anticipate more collaborative environmental problem solving and coordinated pursuit of desired economic and environmental outcomes. The dimensions of environmental challenges like climate change, energy efficiency, and water quality and quantity suggest that there will be many opportunities to use the tools that Green Tier provides.
VI. Conclusion
Wisconsin’s Green Tier Program is based in law and provides tools that give legal standing to what we are doing through the program. A certainty associated with a long term future for the program is needed as a foundation for continuing to build upon the results that we are starting to see as well as to address the issues that have surfaced during the early stages of implementation. Just as we would have no sooner thought about discarding environmental protection 30 years ago because there were unresolved issues, we can ill afford to set aside Green Tier because there are issues that remain to be addressed. In this instance there is reason for optimism because we are indeed not in an adversarial mode. Participants, communities and environmental agency staff are working together on reporting approaches that are done different from traditional approaches, setting environmental objectives in areas that are not addressed through regulations, finding ways to save money and ultimately create jobs and improve our economic health. At a time when the environmental issues are acute and the economic issues are intense, tools which give credence to both environment and economy need to be pursued with vigor. With the pool of prospects, the preliminary results, the breadth of environmental issues addressed and the potential to contribute to growth, Green Tier seems to offer a reason to be pleased with our progress but more importantly to be optimistic about the future.
VII. Appendix
The Green Tier law contains two sections that specifically list the powers and duties of the Wisconsin Department of Natural Resources (DNR). Table D and Table E (below) show DNR’s progress on these responsibilities.
Table D: Powers and Duties of the Department
§299.83 (8) Wis. Stats. lists these powers and duties of the department: |
Status as of 05/01/2007 |
(a) To facilitate the process under sub. (6), the department shall develop model terms that may be used in participation contracts. |
In 2005 the model Tier 2 participation contract was completed. For each party interested in Tier 2 participation, flexibilities developed during the pilot program and any new flexibility proposed by the parties have been available through those contracts. |
(b) After consultations with interested persons, the department shall annually establish a list identifying aspects of superior environmental performance that the department will use to identify which letters of intent it will process under sub. (6) in the following year and the order in which it will process the letters of intent. |
In December 2006, the Green Tier Advisors recommended the Green Tier “Areas of Emphasis” to the DNR Secretary. The 8 areas identified represent a “broad list to use in establishing priorities for the program.” Work is underway to draw these areas of emphasis into Tier 1 commitments and Tier 2 contracts. |
(c) The department may promulgate rules for the administration of the program. In the rules, the department may specify incentives, that are consistent with federal laws and other state laws, that the department may provide to participants in tier II of the program. |
DNR has chosen not to immediately promulgate rules to meet the intent of Green Tier as a self implementing law. DNR has considered additions to Air, Water and Waste rules to recognize Green Tier but has in each case deferred to the general authority given in the legislation to grant flexibility proportional to the commitments to superior environmental performance. |
(d) The department shall encourage small businesses, agricultural organizations, entities that are not subject to environmental requirements, local governments, and other entities to form groups to work cooperatively on projects to achieve superior environmental performance. |
To date, 7 of the 25 applicants have been from small and medium sized enterprises. Two of the three charters focus on small and medium sized enterprises with the third charter having been designed to easily integrate small and medium sized enterprises. Development work is underway with the Dairy Business Association, Municipal Environmental Group and with Wisconsin Printers to further extend program benefits to the groups specified in the statute. DNR has succeeded in getting one program participant who is not subject to environmental requirements. |
(e) The department shall select a logo for the program. |
The logo was completed and unveiled in October 2005 at the Green and Growing event. Guidelines for the use of the logo were completed in July 2006 and are used by program participants in the development and management of printed materials. |
(f) The department and the department of commerce shall jointly provide information about participation contracts and environmental management systems to potential participants in the program and to other interested persons. The department shall consult with the department of commerce about the administration of the program. |
DNR advises the Department of Commerce of all Green Tier activity, provides quarterly updates and solicits input through the Small Business Environmental Council and works with the Department of Commerce on targeted outreach/flexibility development. The Department of Commerce has also been engaged through joint conversations with key stakeholders for both agencies. |
(g) The department shall collect, process, evaluate, and disseminate data and information about environmentally beneficial and innovative practices submitted by participants in the program. The department may conduct or direct studies, experiments, or research related to the program in cooperation with participants and other interested persons. The department may enter into agreements with the Robert M. La Follette institute of public affairs at the University of Wisconsin−Madison to assist in the promotion, administration, or evaluation of the program. |
In January 2007, DNR held the first working session for Green Tier and Environmental Cooperation Pilot Program participants to share both environmental gains and business value derived from program flexibility. Since passage of the law in 2004, the La Follette Institute of Public Affairs has authored two comprehensive works on the program and has, in addition, supplied over 2000 hours of unpaid student intern studies, experiments and research on the program. |
(h) The department shall submit a progress report on the program to the legislature, in the manner provided in s. 13.172 (2), no later than May 1, 2007, and every 2 years after it submits the first report. |
2007 – Complete. |
(i) The department shall implement a process to obtain advice from a balanced public group about all of the following: 1. The implementation and operation of the program, including the setting of goals and priorities for the program. 2. Evaluating the costs of applying for the program and of entering into a participation contract or a charter and the administrative costs of participating in the program. 3. Assessing whether incentives provided under a participation contract are proportional to the environmental benefits committed to under a participation contract. 4. Procedures for evaluating the program and the results of the program. 5. Changes that should be made in the program. |
The DNR secretary appointed 16 members to the Green Tier Advisors. (See Table C.) They first convened in December 2005 and now meet quarterly to discuss Green Tier issues and provide guidance to DNR. To date the Advisors have utilized their wide-range of expertise to provide advice on each of the five elements identified in the statute. In the upcoming year they plan to address:
A list of Advisors along with the details of their work is on the Green Tier Website |
Table E: Status of Program Administration
§299.83 (1m) Wis. Stats. states, “In administering the program, the department shall attempt to do all of the following:” |
√ Indicates DNR has attempted the activity |
Links for more information |
(a) Promote, reward, and sustain superior environmental performance by participants. |
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Participant and Applicant web pages
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(b) Promote environmental performance that voluntarily exceeds legal requirements related to health, safety, and the environment and that results in continuous improvement in this state’s environment, economy, and quality of life. |
√ |
Summary of applicants and participants in Green Tier and Environmental Cooperation Pilot Program |
(c) Provide clear incentives for participation that will result in real benefits to participants. |
√ |
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(d) Promote attention to unregulated environmental problems and provide opportunities for conservation of resources and environmental restoration by entities that are subject to environmental requirements and entities that are not subject to environmental requirements. |
√ |
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(e) Make the program compatible with federal programs that create incentives for achieving environmental performance that exceeds legal requirements. |
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(f) Increase levels of trust, communication, and accountability among regulatory agencies, entities that are subject to environmental requirements, and the public. |
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(g) Reduce the time and money spent by regulatory agencies and entities that are subject to environmental requirements on tasks that do not benefit the environment by focusing on more efficient performance of necessary tasks and eliminating unnecessary tasks. |
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(h) Report information concerning environmental performance and data concerning ambient environmental quality to the public in a manner that is accurate, timely, credible, relevant, and useable to interested persons. |
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(i) Provide for the measurement of environmental performance in terms of accomplishing goals and require the reporting of the results. |
√ |
Performance Indicators under development by Green Tier Advisors |
(j) Implement an evaluation system that provides flexibility and affords some protection for experimentation by participants that use innovative techniques to try to achieve superior environmental performance. |
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(k) Remove disincentives to achieving superior environmental performance. |
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(l) Provide for sustained business success as well as a reduction in environmental pollution. |
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(m) Promote the transfer of technological and practical innovations that improve environmental performance in an efficient, effective, or safe manner. |
√ |
Early work has sought ways to extend environmental performance through participation contracts. |
(n) Lower the administrative costs associated with environmental requirements and with achieving superior environmental performance. |
Welcoming participants into Green Tier
Row One: ATC (Tier 1) 10/03/2005, EccoDev (Charter) 10/03/2005, Holsum Dairies (Tier 1) 10/03/2005, MEGTEC Systems (Tier 2) 10/03/2005
Row Two: CCP Inc. (Charter) 10/03/2005, Times Printing (Tier 1) 2/07/2005, Serigraph Inc. (Tier 1) 05/15/2006, Clear Waters Initiative (Charter) 02/09/2006
Row Three: Kimberly-Clark Experimental Mill (Tier 1) 09/06/2006, Federal Foam Technologies (Tier 1) 09/06/2006, Edgewood College (Tier 1) 10/09/2006, Roundy’s Warehouse Distribution Facility (Tier 1) 12/22/2006
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