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Re: EH&S in Capital Projects

Dear Joann,

Some of the costs to consider in environmental accounting include: direct, 
hidden, contingent liability, and intangible.  The direct, hidden and 
liability costs of using hazardous or toxic materials include:

 The initial purchasing price, 
 Shipping expenses for toxic or hazardous materials,
 Certified warehousing and storage,
 Training and personal protective equipment,
 Spill prevention and response kits,
 Occupational safety compliance requirements,
 Facility upgrades such as proper ventilation,
 Spill response teams including training and equipment,
 Environmental permits, and
 Environmental compliance experts on staff,

while the costs of disposal of waste or unused material include:

 Hazardous waste disposal fees,
 Shipping fees,
 Environmental compliance experts,
 Storage manifests,
 Regulatory reporting, and
 Life-long liability. 

In addition to the above, there are the intangible costs such as costs 
associated with corporate image, customer acceptance and goodwill.   
According some studies, some companies may be spending as much as 22 percent 
of their operating expenditures on environment-related activities.   
Sarah M. Diefendorf
Executive Director
Environmental Finance Center, Region IX
Alameda Point
851 West Midway Ave.
Alameda, CA 94501-5012
Ph:  415-664-4715
Fx:  415-664-1675