Environmental Compliance
In 2002, Koppers U.S. employees followed and documented compliance with hundreds of applicable environmental regulations. Thousands of operating procedures ensure that processes operate properly and assure that emissions and discharges are below legal and acceptable limits.

Koppers is responsible for complying with more than 10,000 data points annually just to meet Clean Water Act requirements. Therefore, 100 annual exceedences would translate to a 99 percent compliance rate. Koppers has cut exceedences by a total of 68 percent since 1996.

Improvements for Environmental Protection
Capital improvement projects at a number of locations in 2002 will help Koppers in its efforts to reduce pollution and increase overall compliance.

• North Little Rock, AR installed new control equipment that will significantly reduce emissions into the air.
• Improvements to the Tar Plant Thermal Oxidizer in Stickney, IL will control volatile organic compound emissions and odors from two fume system vents.
• The Longford, TAS timber plant in Australia undertook a trial to identify ways of reducing levels of arsenic and chromium in the plant's stormwater settling ponds. The results are encouraging.
• While Australia is experiencing drought conditions, the Kurnell, NSW plant of Continental Carbon has signed on to the Sydney Water "Every Drop Counts" program to reduce water consumption.
• The flaking operation of the phthalic anhydride plant at Stickney, IL. was modified for better dust collection, improving the work environment for employees. New access platforms at the pitch valves will create a safer work environment.

Settlement–Moving Forward
In August, Koppers agreed to pay $3 million in fines and restitution to settle allegations that it violated the Clean Air and Clean Water Acts in 1997 at its former Coke Plant in Dolomite, AL, just outside Birmingham. In addition, the company will implement an ISO 14001-based, industry-leading environmental management system at its U.S. plants and has agreed to a three-year probation period.

The case stems from a 1997 discovery by Koppers that a former plant environmental engineer falsified a discharge monitoring report. Also, in certain instances, employees failed to properly maintain and operate the gas-blanketing system at the plant. There is no information that suggests the environment or any individuals were harmed by this incident.

Koppers immediately terminated the environmental engineer, repaired the gas-blanketing system, corrected the discharge report and self-reported the incident to the government. Koppers also conducted a thorough compliance audit to ensure future operational compliance. Due to the downturn in the steel and coke industries, the plant was closed in January 1998. The company regrets this incident, but has taken all appropriate measures to learn from and prevent similar occurrences.

Innovative Co-generation Plant
Each year the Koppers Co-Generation plant in Muncy, PA converts approximately 110,000 tons of used creosoted wood products into enough electricity to power more than 700 households. It also reduces the waste that goes into landfills. The $9 million co-generation plant was built in 1988 when Koppers joined in a strategic alliance with Conrail and Pennsylvania Power and Light (PP&L) to convert crossties to electricity in a safe and environmentally sensitive manner.

By burning used utility poles and railroad ties that have been removed from service in a permitted and controlled facility, the plant produces steam, which is converted to electricity by an eight megawatt turbine generator. The electricity is supplied to PP&L.

Treated wood cannot be burned in ordinary incinerators, so most used treated wood is destined for landfills. With most public policy initiatives seeking to reduce or eliminate the unnecessary use of landfills, industry was left with a challenge. Providing an attractive solution, Koppers, since 1988, has converted 1,392,000 tons of used creosote treated wood into energy, saving the nation's railroad industry millions of dollars per year in landfill costs and saving 56 million cubic feet of landfill space.

Environmental Awards
Koppers presents Environmental Compliance Awards to U.S. locations—based on specific levels of improvement in environmental management; and meeting or exceeding Koppers corporate environmental goals. In 2002, the Clairton, PA, Portland, OR, Roanoke, VA, Superior, WI, Stickney, IL. and Woodward, AL plants earned Environmental Compliance Awards.

Environmental Stewardship Awards are given to U.S. and international plants that address an environmental issue in the workplace or community in a unique and exemplary manner. In recognition, a donation is made to an environmental or community organization chosen by the plant’s employees. In 2002 these plants were honored:

• In Stickney, IL, a new residue exhauster recovers 65 to 70 percent of the waste stream from phthalic anhydride (PAA) production. The project reduces the hazardous waste generated, reduces truck traffic, provides saleable PAA and cuts disposal costs— saving $1.3 million a year. Stickney’s $5,000 award was donated to the City of Stickney, which used it to build a skateboard track at the Stickney Skateboard Park.
• In Roanoke, VA, a study in waste management revealed ways to recycle more efficiently, saving about $18,000 a year. Roanoke’s $2,500 award was donated to Glenvar High School.
• Koppers in Nyborg, Denmark worked with a local utility to transfer excess heat energy from the plant, supplying power to meet 7 to 8 percent of the community’s energy needs, enough for 1,000 houses each year. The project also reduced chemical discharges and electricity use by the plant. Nyborg’s $2,500 award bought a new exercise bicycle for a senior citizen center in Nyborg.

Other Environmental Contributions

Koppers Europe is working toward achieving an integrated management system, which simultaneously complies with ISO 9000 (Quality), ISO 14001 (Environmental) and ISO 18000 (Health and Safety).

• Continental Carbon, in Kurnell, NSW, Australia, received a certificate of recognition from the New South Wales Sustainable Energy Development Authority for installing a variable speed drive on a recycled water pump, an improvement that will significantly reduce the generation of greenhouse gases.
• In June 2002, employees from Koppers locations in Pennsylvania participated in the Ohio River Sweep, the largest river cleanup effort in the United States.
• Koppers planted trees in Gainesville, FL and North Little Rock, AR providing a visual and sound barrier between those plants and their neighborhoods. It also donated crossties to protect a green area at the North Little Rock Fire Department station.

Security and Emergency Response
The September 11, 2001 terrorist attacks caused many companies to consider the vulnerability of their manufacturing facilities. Koppers has taken appropriate measures to assure that its plants and materials are protected and controlled. Evacuation exercises have been conducted at several locations, including evacuating staff from the Koppers Building in Pittsburgh.

Koppers regularly conducts emergency response drills at all of its locations, so local fire, police, rescue squads and hazardous materials containment teams are ready for any crisis. In Galesburg, IL, Somerville, TX, Gainesville, FL, Logansport, LA and Denver, CO, simulated rescue drills involved local authorities and plant emergency teams.

In Victoria, Australia, the Trentham plant of Koppers Arch worked closely with the Regional Country Fire Authority to ensure that plant emergency plans were incorporated in the regional plan. Because its arsenic acid production classifies the plant as a Major Hazard Facility, Koppers Arch has worked to educate the community about the plant, and what to do if an emergency occurs.