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Submission for Verification of Eco-efficiency Analysis Under NSF Protocol P352, Part B Almond Eco-Efficiency Analysis Final Report - August 2011 Submitted by: BASF Corporation Product Stewardship 100 Campus Drive, Florham Park, NJ, 07932 Prepared by: Thomas Laginess, Senior Sustainability Specialist Troy Schlundt, Value Chain Specialist Jeffrey Burkey, Manager Business Services and Dick Braden – President, Braden Farms David Long – President, Hilltop Ranch Copyright © 2011 BASF Corporation Table of Contents 1. Purpose and Intent of this Submission......................................................3 2. Content of this Submission.........................................................................3 3. BASF' Eco-efficiency Methodoloy …………………………………………………. 3 3.1. Overview …………………………………………………………………………………………………..3 3.2. Preconditions ..…………………………………………….…………………………………………… 3 3.3. Work Flow .............…………………………………………..……………………………………….5 4. Study Goals, Decision Criteria and Target Audience..................................5 4.1. Study Goals ...................................................................................................5 4.2. Design Criteria...............................................................................................7 4.3. Target Audience.............................................................................................8 5. Customer Benefit, Alternatives, System Boundaries and Scenarios..........8 5.1. Customer Benefit............................................................................................8 5.2. Alternatives…………………………………………………………………………………………………8 5.3. System Boundaries.........................................................................................9 5.4 Scenario Analyses ……………………………………………………………………………………10 6. Input Parameters and Assumptions.........................................................10 6.1. Input Parameters and Data Sources..............................................................10 6.2 C osts……………………………………………………………………………………………..…..……14 7. Data Sources.............................................................................................15 7.1 Environmental…………………………………………………………………………………………..15 7.2 Amounts and Costs…………………………………………………………………………………...16 8. Eco-efficiency Analysis Results and Discussion .......................................16 8.1. Environmental Impact Results.......................................................................16 8.1.1. Primary energy consumption.....................................................................16 8.1.2. Raw material consumption........................................................................17 8.1.3. Air Emissions............................................................................................18 8.1.3.1. Green House Gases (GHG).....................................................................18 8.1.3.2. Photochemical ozone creation potential (smog) ......................................19 8.1.3.3. Ozone depletion potential (ODP)............................................................20 8.1.3.4. Acidification potential (AP).....................................................................20 8.1.4. Water emissions.......................................................................................21 8.1.5. Solid waste generation..............................................................................22 8.1.6. Land use..................................................................................................23 8.1.7. Toxicity potential......................................................................................24 8.1.8. Risk potential ...........................................................................................25 8.1.9. Environmental fingerprint..........................................................................26 8.2. Economic Cost Results..................................................................................27 8.3. Eco-Efficiency Analysis Portfolio.....................................................................29 8.4 Scenario Analyses …………………………………………………………………………..………..30 8.4.1 Scenario #1: 15% Yield increase in Almond production in 2010 operations..……………………………………………………………………………………….……..30 8.4.2 Scenario #2: 15% Further decrease in water usage in 2010 operations...…………………………………………………………………………….………….…..31 8.4.3 Scenario #3: Higher fuel costs in 2010 operations…….…….………….……..32 9. Data Quality Assessment……………………………………………….……….…33 9.1. Data Quality Statement.................................................................................33 1 Copyright © 2011 BASF Corporation 10. Sensitivity and Uncertainty Analysis......................................................33 10.1. Sensitivity and Uncertainty Considerations.....................................................33 10.2. Critical Uncertainties.....................................................................................35 11. Limitations of EEA Study Results..............................................................35 11.1. Limitations...............................................................................................35 12. References................................................................................................37 Appendix A……………………………………………………………………..………………………38 2 Copyright © 2011 BASF Corporation 1. Purpose and Intent of this Guidance Document 1.1. The purpose of this submission is to provide a written report of the methods and findings of BASF Corporation’s “Almond Eco-Efficiency Analysis”, with the intent of having it verified under the requirements of NSF Protocol P352, Part B: Verification of Eco-Efficiency Analysis Studies. 1.2. The Almond Eco-Efficiency Analysis was performed by BASF according to the methodology validated by NSF International under the requirements of Protocol P352. More information on BASF’s methodology and the NSF validation can be obtained at http://www.nsf.org/info/eco_efficiency. 2. Content of this Guidance Document 2.1. This submission outlines the methodology, study goals, design criteria, target audience, customer benefits (CB), process alternatives, system boundaries, and scenario analysis for the Almond Eco-Efficiency Analysis (EEA) study, which will be conducted in accordance with BASF Corporation’s EEA (BASF EEA) methodology. This submission will provide a discussion of the basis of the eco-analysis preparation and verification work. 2.2. As required under NSF P352 Part B, along with this document, BASF is submitting the final computerized model programmed in Microsoft® Excel. The computerized model, together with this document, will aid in the final review and ensure that the data and critical review findings have been satisfactorily addressed. 3. BASF’s EEA Methodology 3.1. Overview: BASF EEA involves measuring the life cycle environmental impacts and life cycle costs for product alternatives for a defined level of output. At a minimum, BASF EEA evaluates the environmental impact of the production, use, and disposal of a product or process in the areas of energy and resource consumption, emissions, toxicity and risk potential, and land use. The EEA also evaluates the life cycle costs associated with the product or process by calculating the costs related to, at a minimum, materials, labor, manufacturing, waste disposal, and energy. 3.2. Preconditions: The basic preconditions of this eco-efficiency analysis are that all alternatives that are being evaluated are being compared against a common functional unit or Customer Benefit (CB). This allows for an objective comparison between the various alternatives. The scoping and definition of the Customer Benefit are aligned with the goals and objectives of the study. Data gathering and constructing the system 3 Copyright © 2011 BASF Corporation boundaries are consistent with the CB and consider both the environmental and economic impacts of each alternative over their life cycle in order to achieve the specified CB. An overview of the scope of the environmental and economic assessment carried out is defined below. 3.2.1. Environmental Burden Metrics: For BASF EEA environmental burden is characterized using eleven categories, at a minimum, including: primary energy consumption, raw material consumption, green house gas emissions (GHG), ozone depletion potential (ODP), acidification potential (AP), photochemical ozone creation potential (POCP), water emissions, solid waste emissions, toxicity potential, risk potential, and land use. These are shown below in Figure 1. Metrics shown in yellow represent the six main categories of environmental burden that are used to construct the environmental fingerprint, burdens in blue represent all elements of the emissions category, and green show air emissions. Figure 1. Environmental Impact categories 3.2.2. Economic Metrics: It is the intent of the BASF EEA methodology to assess the economics of products or processes over their life cycle and to determine an overall total cost of ownership for the defined customer benefit ($/CB). The approaches for calculating costs vary from study to study. When chemical products of manufacturing are being compared, the sale price paid by the customer is predominately used. When 4 Copyright © 2011 BASF Corporation ddiiffffeerreenntt pprroodduuccttiioonn mmeetthhooddss aarree ccoommppaarreedd,, tthhee rreelleevvaanntt ccoossttss iinncclluuddee tthhee ppuurrcchhaassee aanndd iinnssttaallllaattiioonn ooff ccaappiittaall eeqquuiippmmeenntt,, ddeepprreecciiaattiioonn,, aanndd ooppeerraattiinngg ccoossttss.. TThhee ccoossttss iinnccuurrrreedd aarree ssuummmmeedd aanndd ccoommbbiinneedd iinn aapppprroopprriiaattee uunniittss ((ee..gg.. ddoollllaarr oorr EEUURROO)) wwiitthhoouutt aaddddiittiioonnaall wweeiigghhttiinngg ooff iinnddiivviidduuaall ffiinnaanncciiaall aammoouunnttss.. 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TTaabbllee 11 aanndd TTaabbllee 22 oouuttlliinnee tthhee ooppeerraattiioonnaall cchhaannggeess bbeettwweeeenn 22000077 aanndd 22001100 tthhaatt wweerree eevvaalluuaatteedd iinn tthhiiss ssttuuddyy.. FFuurrtthheerr ttaabblleess iinn tthhee rreeppoorrtt wwiillll pprreesseenntt tthhee aaccttuuaall iinnppuutt vvaalluueess ffoorr eeaacchh ooff tthhee aalltteerrnnaattiivveess.. SSttuuddyy rreessuullttss wwiillll bbee uusseedd aass tthhee bbaassiiss ttoo pprroommoottee tthhee ooppeerraattiioonnaall cchhaannggeess mmaaddee aatt bbootthh ccoommppaanniieess aanndd tthhee eennvviirroonnmmeennttaall ssaavviinnggss ffoorr pprroodduucciinngg tthhee ssaammee aammoouunntt ooff AAllmmoonnddss.. TThhee rreessuullttss wwiillll bbee sshhaarreedd wwiitthh ootthheerrss wwiitthhiinn tthhee iinndduussttrriieess,, ssuucchh aass tthhee CCaalliiffoorrnniiaa AAllmmoonndd BBooaarrdd,, ootthheerr ggrroowweerrss aanndd pprroocceessssoorrss aanndd aaccaaddeemmiicc iinnssttiittuuttiioonnss.. TThhee iinnffoorrmmaattiioonn mmaayy aallssoo bbee sshhaarreedd wwiitthh ggoovveerrnnmmeennttaall aaggeenncciieess aatt tthhee ffeeddeerraall,, ssttaattee aanndd llooccaall lleevveellss.. Table 1: Operational changes evaluated at Braden Farms. 66 Copyright © 2011 BASF Corporation Table 2: Operational changes evaluated at Hilltop Ranch. 4.2 Design Criteria: The context of this EEA study compares the environmental and cost impacts for production and processing of 1 ton of Almonds. Since we are evaluating the changes made over time, the affect of these changes on yield are not being evaluated to quantify the changes made in the operations. The study design was planned for a 1 year season. The pollination of the almond trees begins around mid to late February and harvest usually is finished by end of October. This study evaluates the processing of Almonds from the growing season, which starts at harvest time in August and usually lasts until June of the following year. The study also evaluates work done at the farm such as tree pruning and selling of hulls and shells. Since Almonds grow on trees, we are assuming in this study that the Almond tree orchard has been established and that the orchard is 5 to 10 years old, which is the beginning of the peak for an Almond tree. Most Almond orchards last roughly 20 to 25 years before they are removed and new trees are planted. The Almond study will use data that is documented data from both operations or is known information within the industry. Data will also be used from published governmental agencies, university studies, or information within organizational trade 77 Copyright © 2011 BASF Corporation groups. The study will also look at transportation and equipment use in each of these areas. The study is informational driven and goals, target audience and context for decision criteria used in this study are displayed in Figure 3. Figure 3. Context of Almond Eco-efficiency Analysis 4.3. Target Audience: The target audience for the study has been defined as all parties involved with the study, as well as other potential Almond operations within the State of California. Future plans may include communication of the study results in marketing materials and at trade conferences. 5. Customer Benefit, Alternatives and System Boundaries 5.1. Customer Benefit: The Customer Benefit (CB) applied to all alternatives for the base case analysis is production and processing of 1 ton of Almonds per year. This study does take into consideration the hulls and shells that are generated in order to get the 1 ton of final Almond nuts. 5.2. Alternatives: The product alternatives compared under this EEA study are (1) production and processing of Almonds 2010 Operations and (2) production and processing of Almonds from 2007 Operations. In each of the alternatives the changes made at both operations were evaluated together and only the changes were assessed in 8 Copyright © 2011 BASF Corporation this study. This study is not a complete Life Cycle Analysis (LCA) of almonds since an industry standard LCA has not been established. 5.3. System Boundaries: The system boundaries define the specific elements of the production and use phases that are considered as part of the analysis. For this study, the system boundary ends at the Use phase (Hilltop Ranch), since subsequent Almond processing, consumption and disposal options remained unchanged from 2007 operations to 2010 operations for the purpose of this study. The system boundaries for the two alternatives are very similar since most of the changes made were for efficiency. The system boundaries for the 2010 operations are shown in Figure 4 and the system boundaries for the 2007 operations are shown in Figure 5. Sections of the production and processing not identified in these figures will not be evaluated in this study. Figure 4. System boundaries for 2010 operations 9

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scenario analysis for the Almond Eco-Efficiency Analysis (EEA) study, of environmental burden that are used to construct the environmental fingerprint, worksheets “Relevance” and “Evaluation” in the EEA model provided to
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