SUBJECT: Coolant Recycling SystemREQUEST #:

FUNDS: $XX,XXX Strategy

EXECUTIVE SUMMARY:

Capital funds in the amount of $XX,XXX.XX are required in order to purchase, fabricate, and install a coolant recycling system. The current management process for coolant maintenance is to use it to end of life cycle, then dispose of it after processing through the evaporator. Annual average cost of new coolant purchases over last three years is about $XXX,XXX Through the recycling process, we will see a minimum 10% reduction within the first year of implementation ($XX,XXX). This percentage will improve as the program matures.

TECHNICAL DESCRIPTION:

The system will hold up to XXXX gallons of coolant. There are three holding tanks where contaminants are continuously removed from the coolant. System will require an air supply and standard electrical connection. There is a single control panel that measures coolant level controls the transfer and processing of coolant.

JUSTIFICATION:

Current coolant management practices result in high product cost and machine downtime due to servicing coolant sumps for draining and recharge of necessary metal working fluids. By withdrawing coolant from machines before it reaches the point of expiration, it can be reformulated and reused rather than disposed of. As the program evolves, the goal will be an annual reduction of new coolant purchases of approximately XX%. Additionally, used coolant/oil is a leading contributor to our Industrial process waste stream. This initiative supports environmental metric goal reductions for 20XX goals of recycled and non-recycled waste. Furthermore, it establishes a foundation to address recycling opportunities toward the 20XX Environmental goals. Directly affected metrics include Green House Gas by reducing natural gas burner use at the evaporator (XXKccf and $XXXXX), purchased city water will reduce by XXXKgals, used coolant disposal and transportation will be reduced by XXXKlbs, and $XXXXX in transportation costs. Total expected savings in year 1 of the initiative is $XXXXX dollars. This figure does not include oil services labor or down/service time on the production machines involved.

ALTERNATIVES:

Various companies were solicited for alternative solutions. EH&S staff and Site benchmarked manufacturing facilities in Connecticut utilizing different models of coolant recycling systems. One of the sites was the coolant management team selected as a finalist for the leadership awards in 20XX. (A copy of the leadership package can be supplied upon request). Based on the number of machines in the facility, floor space available, and volume of coolant that will be processed, this technology and eventual management strategy was selected. EHS research supports that recycling systems can reduce coolant purchases by the aforementioned minimum XX% to XX%, with growth potential to XX%. Associated disposal costs and volumes are also expected to be at least XX%. Simple system payback is anticipated to be XX months or slightly less, (when factoring in labor and down/service time) depending on energy and waste transportation costs.

Capital Appropriation RequestSupplemental Information

RISK & OPPORTUNITIES:

There are no risks associated with this investment only the opportunity for improvement; such as a cleaner more effective work environment and the continued support toward the reduction of environment, health and safety hazards in the workplace. The list below identifies additional opportunities:

Improvement on productivity, tool life, and partfinish

Superior coolant condition & reduced odor complaints

Overall cleanliness of coolant part of machines Reduced disposal/shipping liability associatedwith waste product

Green initiative with lower water consumption Cleaner less pungent odors from evaporatorPositive culture change among operators Less downtime for machines during coolant change

OPERATIONAL PLAN:

This is an out of plan request for Capital. Capital approval is expected in December 20XX, followed by a purchase order. Receipt of equipment and install will be completed in March, and system will become operational in April, with Capital Closure in July 20XX.