Managing Environmental Performance

Environmental Management System

Each business unit develops an annual environmental plan to guide compliance with appropriate regulations. The Environmental Protection Agency, agencies from states in which our operations are located, and our corporate audits provide external checks on the system. The needs of external stakeholders, such as the community, also influence the plans. Underlying the process is our Environmental Management System (EMS), which includes the organizational structure, planning, activities, responsibilities, practices, procedures and resources for implementing and maintaining the environmental policy.

We published our first EMS manual in 1996 to serve as a policy guide for the development and implementation of EMS at each business unit. We now update this manual yearly as part of our continuous improvement efforts. The manual is consistent with EMS requirements for certification set forth in ISO 14001. We are benchmarking other industries with respect to EMS and are involved in a pilot ISO 14001 project at our Burns Harbor facility. A handbook for developing an EMS plan and an environmental handbook for employees are currently under development.

Reducing Toxic Emissions

Toxic chemical release inventory data are reported to provide the public with information on the releases of listed toxic chemicals in their communities and to provide EPA with release information to assist the agency in determining the need for future regulations. Bethlehem Steel meets the regulatory criteria established for reporting of 41 listed toxic chemicals at its business units.

Bethlehem Steel reported a total of 5.4 million pounds of toxic chemical releases to the environment in 1996. For 1997, the total was 5.3 million pounds, a decrease of approximately two percent. Since reporting was initially required in 1988 for calendar year 1987, Bethlehem has reduced its total releases reported to EPA from 21.4 to 5.3 million pounds per year, a reduction of 75 percent. Total releases include onsite releases to air, water and land as well as offsite transfers that are treated or disposed of in landfills. Although the distribution of the releases fluctuates from year to year, the total of all the releases has continued its downward trend.

33/50 Program Participation

The Environmental Protection Agency 33/50 Program called for reducing 17 types of chemical emissions (from a 1988 base line) 33 percent by 1992 and 50 percent by 1995. Between 1988 and 1992, we reduced 10 of these hazardous chemicals produced at our facilities by 70 percent, from 5.4 million pounds to 1.6 million pounds. This surpassed EPA's 1995 fifty percent target three years ahead of schedule. By 1995, we had achieved an 88 percent reduction of the targeted chemicals and were recognized by EPA as an “Environmental Champion” for our participation in the 33/50 Program. In 1997, Bethlehem earned inclusion in EPA's publication of “Success Stories.” Although the program officially ended in 1995, we continue to track 33/50 chemicals as one indicator of our overall environmental performance.

Solvent Reduction Program

We have reduced use of the ozone-depleting degreasing solvent 1,1,1-trichloroethane (TCA) by more than 99 percent, replacing it with more environmentally friendly organic solvents that present fewer risks to the environment. As a result, TCA does not meet the minimum threshold reporting quantities and is no longer a reportable chemical for Bethlehem under SARA Title III.

Superfund Site Responsibilities

Under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund), the Environmental Protection Agency may impose liability for site remediation on past and current waste generators, site owners and operators regardless of fault or legality of the original activity. We are involved in 22 sites as of December 31, 1997, for which EPA or a state regulatory agency has advised that the company may be considered a “potentially responsible party” for site remediation. For the most part, we are minor contributors in terms of waste volume at those sites and do not expect Bethlehem's share of costs for remediation to be significant. We continue to follow our policy of managing our waste streams onsite whenever possible. We believe that this policy has proven to be very effective over the past few years.

Managing PCBs

All of our business units continue with their plans to manage the potential environmental risk from polychlorinated biphenyls (PCBs) by starting transformer/capacitor replacement programs. Business units have replaced or retrofitted many PCB capacitors and transformers, and have installed devices to control potential spills.

Underground Storage Tanks Containing Petroleum

Since 1985, Bethlehem has removed, closed or sold 389 regulated underground petroleum storage tanks. Based upon EPA's assessment that a high percentage of older underground storage tanks are leaking into the environment, we believe that our decision to eliminate from service as many tanks as possible has substantially reduced our liabilities resulting from accidental releases and spills and the costs of subsequent cleanup and remediation.

Energy Conservation

Bethlehem's energy policy is “to use energy, in all of its forms, in the most cost-effective and environmentally sound manner and to promote and apply best-available energy-use technologies.”

Bethlehem's energy consumption in terms of BTUs per ton of steel produced at our steelmaking operations decreased approximately three percent from 1996 to 1997. Over the past 25 years, Bethlehem's consumption of BTUs per ton has decreased by almost 30 percent.

Because of the energy-intensive nature of steelmaking and the cost of energy, we have a long history of energy consciousness and energy conservation is an integral part of our business process. We have continued to reduce consumption through a variety of conservation measures such as:

• Upgrading combustion controls and instruments decreasing the coking rate to better control blast furnace burden
• Retiring older, less efficient facilities, such as blast furnaces and other equipment
• Repairing steam leaks and deactivating unused steam lines
• Managing boiler systems
• Installing two world-class walking beam reheat furnaces at Sparrows Point
• Improving furnace maintenance and minimizing blast furnace gas bleed
• Improving refractory materials and practices

As indicated in the Stewardship through Partnerships section of this report, Bethlehem has entered into several partnerships with government involving energy conservation, including Climate Wise, Motor Challenge and Steam Challenge.

1997/98 Environmental Report Table of Contents