This came from the Campaign for Responsible Technology (CRT) with a request that it be circulated and reposted. ====================================================== Dear CRT Friend: We are very excited about our latest project, the release of our new book, SACRED WATERS:--LIFE BLOOD OF MOTHER EARTH-Four Case Studies of High-Tech Water Exploitation and Corporate Welfare in the Southwest. This report is a product of the Electronics Industry Good Neighbor Campaign (EIGNC), a collaborative effort of two networks the Campaign for Responsible Technology (CRT) and the Southwest Network for Environmental and Economic Justice (SNEEJ). It is the culmination of many years of hard work, not just by CRT and SVTC, but also SNEEJ and three other environmental justice organizations (SouthWest Organizing Project, Albuquerque, NM; People Organized in Defense of Earth and Her Resources, Austin, TX; and Tonatierra Community Development Institute, Phoenix, AZ) in the Southwest that are working in communities impacted by rapid high-tech development. SACRED WATERS not only chronicles the history of high-tech development in Silicon Valley, it provides information on the extent of groundwater contamination in Santa Clara County. Each community--Silicon Valley, CA, Phoenix AZ, Albuquerque, NM, and Austin, TX--has a separate story to tell, but the common threat that binds us is the electronic industry's major impact on the quality and quantity of one of our most precious resources--water. The book was researched and written by people in each of the four communities who are on the front-lines facing high-tech development. Besides providing extensive documentation and well-researched data, the book also takes the responsibility of making recommendations for communities, industry and public officials to follow in an effort to promote sustainable high-tech development into the 21st Century. Attached you will find a copy of the Executive Summary which is also available at our website at www.svtc.org/svtc/execsum.htm. If you would like to purchase a copy of the book please send $10.00 plus $2.25 for postage and handling ($3.00 if you want it send priority mail), to SVTC at 760 N. First Street, San Jose, CA 95112. If you want to put it on your charge card, send us your card number, type (Visa/MasterCard), expiration date and your name as it appears on the card. Fax this information to us at 408-287-6771, since I don't believe the IGC server is secure. Please feel free to call me at 408-287-6707 if you have any questions. Sincerely, Ted Smith Executive Director _______________________________________________________________________ Sacred Waters: High-Tech Water Exploitation and Corporate Welfare in the Southwest Executive Summary Introduction While the benefits of the computer to the day-to-day operations of industry and the general public are undeniable, so are the costs, as this comprehensive study of the computer industry in America's Southwest makes clear. This report is meant to sound the alarm for communities courting the computer industry as the key to economic security - and as a call to action for communities that have already succumbed to the siren song of high-paying jobs and minimal environmental impact' of this fast growing industrial sector. The report focuses specifically on the impacts of high tech electronics manufacturing on the water resources and infrastructure of four key high tech communities - Albuquerque, New Mexico; Austin, Texas; Phoenix, Arizona; and Santa Clara County, California. The study documents massive water pollution and water resource depletion by a who's who of high-tech giants, including Intel, IBM, Hewlett-Packard, Fairchild Semiconductor, Advanced Micro Devices, Raytheon, Teledyne, TRW, National Semiconductor, Motorola, and others. It also documents and challenges the billions of dollars of 'corporate welfare' subsidies given away to some of the wealthiest corporations in the world. The Cost: Toxic Flight Contrary to industry public relations, manufacturing of computers and their components is anything but a 'clean industry.' The original Silicon Valley in Santa Clara County, California has experienced a series of environmental tragedies associated with the computer industry. Today, Santa Clara County has more Superfund sites than any other county in the US (29), 80% of which were caused by the high tech electronics industry. As of 1996, 20 of the 29 Superfund sites in Santa Clara County were directly caused by the processes of producing silicon wafers and other high tech electronics components. Another five Superfund sites were caused by related industries (equipment manufacturers, chemical suppliers and waste disposal). Over the past 20 years, as California strengthened environmental and labor regulations to clean up the industry's mess, corporations have sought out other southwestern sites as new technology growth centers. This 'toxic flight' now puts Austin, Albuquerque and Phoenix in the environmental cross-hairs of this highly polluting industry. The process of computer manufacturing requires huge quantities of water, and produces a steady stream of toxic waste. An inventory list of chemicals used and discarded for any given company often shows dozens of pages of highly toxic chemicals that have been shown to damage the central nervous system, reproductive system and cardiovascular system of humans, as well as cause cancer. Many of the new manufacturing sites are now located in poorer communities of color, where people have little or no power to withstand the clout of multinational computer giants. The Cost: Disappearing Water The high tech electronics industry, as it currently functions, has proven itself to be a highly unsustainable industry, especially in the desert environment of the Southwest. Besides the massive amounts of chemicals used, the process of chip manufacturing requires massive amounts of water -- millions of gallons per day in the newest chip plants! On average, the production of each six-inch silicon wafer uses the following resources: * 2,275 gallons of deionized water * 3,200 cubic feet of bulk gases * 22 cubic feet of hazardous gases * 20 pounds of chemicals * 285 kilowatt hours of electrical power. In addition, vast amounts of groundwater reserves are contaminated in the chip-making process. In Arizona, for example, about 25-30% of the groundwater beneath and around Phoenix has been contaminated resulting in 15 mile long toxic plume - 70% of this by the high tech electronics industry. The explosion of high tech development in the Southwest means that the region's already sparse water supplies must meet the needs of one the world's fastest-growing - and thirstiest - industries. The Cost: Corporate Welfare To lure high tech companies to their jurisdictions, officials in Austin, Phoenix, Albuquerque and Santa Clara County have provided an array of incentives to corporations, including property tax relief, infrastructure improvements, off site sewer and water systems, and direct water subsidies. These subsidies have been extracted from the communities as local politicians scrambled to respond to industry's whipsawing tactics and have occurred during an unprecedented growth spurt - semiconductor industry estimates project that over 100 new chip plants will be built over the next few years, each costing between $1 and $3 billion. In many jurisdictions, individual residents now pay higher rates than corporate users, providing an enormous indirect subsidy to high tech companies. In addition, the costs of cleaning up contaminated sites and water supplies often fall on local and state governments costs again borne by average citizens and which make corporate claims of overall economic benefits to the region questionable. Many of the costs of high tech development are consistently passed on to the communities, workers and environment, and increasingly to communities-of-color. This kind of high tech corporate welfare has become a sophisticated chess game played increasingly by large high tech companies to reduce their costs of production and gain an advantage over competitors. More often than not, the jurisdiction that lured them is the loser. This report describes the high-tech Pandora's Box being opened in communities across the arid West. These industries are extremely resource hungry and create toxic by-products which will become the burden of communities long after the silicon boom ends. But with commitment and conscience, the computer industry can become a responsible member of the community: first, by adopting a policy of "sustainable development;" and secondly, by taking responsibility for previously externalized costs, be it for the real cost of water resources, or of environmental pollution. The report concludes with a call to action for the industry, regulatory agencies and communities to meet this formidable challenge to endangered western water supplies. A Collaborative Report From the Grassroots To study and challenge the impacts of high tech development and to attain sustainable development and responsible manufacturing, two networks, the Southwest Network for Environmental and Economic Justice, and the Campaign for Responsible Technology have come together in a collaborative effort to strengthen the work of four local organizations-the Silicon Valley Toxics Coalition in California, People Organized in Defense of the Earth and Her Resources in Texas, the Southwest Organizing Project in New Mexico, and Tonatierra in Arizona- in developing common strategies to affect high tech industrial development. Discussions between CRT and SNEEJ in the early 1990's led to the creation of the Electronics Industry Good Neighbor Campaign. The EIGNC is a community-based, multi-racial collaborative effort to address environmental and occupational health and safety protection, labor rights, and economic development concerns facing electronics workers and their communities. Lessons from California and Arizona Silicon Valley (San Jose, California) Any questions about the true costs of high tech manufacturing can be answered with an in-depth look at the experience of the original Silicon Valley since the first technology boom of the 1960s. Many of the corporations seeking their place in the Southwest sun have fled Silicon Valley, leaving behind a shameful legacy of pollution, waste, and exploitation. Massive contamination of soil and water supplies led to stricter environmental and labor regulations - and to the 'toxic flight' of high tech companies to areas more willing to overlook the dark side of the computer chip revolution. Among the companies that EPA has listed as Superfund clean-up sites in Silicon Valley are Intel, Advanced Micro Devices, Fairchild Semiconductor, Hewlett-Packard, IBM, National Semiconductor, Raytheon, and Siemens to name a few. Many of these same companies have moved production, or are looking to expand, to the other 'silicon sites' of the Southwest. Those jurisdictions would do themselves and their citizens a huge favor by consulting the information contained in this report. In the City of Santa Clara, for example, the high tech electronics industry alone used almost 24% of the City's water in 1994/1995. Of the top waste water discharging companies in Santa Clara County in 1994, 65% were electronics companies. Today, Santa Clara County has more Superfund sites any other county in the United States (29) - 80% of which were caused by the high tech electronics industry. Silicon Desert (Phoenix, Arizona) The Silicon Desert was developed long before the costs associated with the high tech industry were well understood by the general public. And in this way, many of the patterns evident in Santa Clara County have also been revealed in the desert around Phoenix. Every major urban area in Arizona, as well as the entire agribusiness industry, depends on groundwater for at least half of their supply of water. Based on available supplies and projected growth, the demand for water will exceed supply as early as 2010 at current growth rates. Yet the city of Phoenix persists in luring the water-intensive high tech industry to its environs, without any increase in water supply on the horizon. In September of 1995, for example, Sumitomo Sitix, a huge Japanese wafer manufacturer, chose north Phoenix for a $400 million plant. They were lured to Phoenix by a promised property tax cut of 80%, duty free import/export privileges, $7 million in immediate infrastructure improvements, $5.5 million for off site sewer and water systems, and $1.5 million for street improvements. This same Sumitomo plan is projected to use 2.4 million gallons of water per day - or 750,000,000 gallons per year. Sumitomo will also be discharging contaminated water to the public treatment plant, requiring additional investments by the city of Phoenix. Today, a fifteen mile plume of contamination floats in the groundwater underneath Phoenix, Arizona. Contamination has reduced the overall availability of groundwater by about 25% in and around the Phoenix area. Today, there are seven Superfund sites in the Phoenix area - three caused by high tech manufacturing. These high tech Superfund sites have contributed to well over 60% of the total contaminated groundwater area in the Phoenix area. The cost of cleaning the aquifer beneath Phoenix has been estimated as high as $800,000,000 -and clean up efforts have been glacially slow as the companies responsible for the pollution have resorted to legal maneuvers to resist paring cleanup and health costs. Public officials estimate that another 20% of the city's water supply will be lost to contamination over the next fifty years. A hazardous waste facility on the Gila River Indian Reservation containing toxic residues from the manufacture of computer products also poses serious concerns about groundwater contamination, soil and air pollution, as well as long term health effects. The New Silicon Rush: Texas and New Mexico The third and fourth sections of the report describe areas that have seen the most industry activity over the last five years, with the most generous government subsidies, water and tax deals. Now that the costs of computer manufacturing are more out in the open, the dirtiest and hungriest (for access to resources) sectors of the industry - semiconductor and circuit board manufacturing and assembly - are locating with increasing frequency in communities-of-color and low-income communities, where costs can continue to be minimized. Silicon Hills (Austin, Texas) There are currently 17 major high tech electronics companies in the Austin area, including IBM, Samsung, Texas Instruments, Applied Materials, Motorola, Sematech, Apple, Advanced Micro Devices, and 3M. Most of these companies have only started operating in Austin over the last 15 years, after the extensive contamination was discovered in Santa Clara County, California and Phoenix, Arizona. The consumption of water by the high tech industry has tripled in just 3 years, supported by an industrial water rate that is less than two-thirds what residents pay for water. These firms have also been enticed by generous tax breaks - most recently $125 million to Samsung. As high tech companies continue to relocate to Austin, the consumption of water by high tech electronics firms will continue to increase. According to an Austin American Statesman article, "Austin could exhaust its current water allocation by 2030." The cost of water scarcity will subsequently be transferred, as is currently occurring, to residential users, impacting most significantly the low-income populations around Austin (the majority of whom are people-of-color) who can least afford it. According to EPA's Toxic Release Inventory from 1985, Austin's high tech industry legally emitted over 730,000 pounds of toxics into the environment - about a ton of toxics per day. Most of this impacted poorer communities of color. Also, the four major wastewater facilities for the City of Austin are located in communities of predominantly lower-income people-of-color. More and more, we have seen that the many costs associated with high tech development in Austin are borne by low-income, people-of-color, whether it is in the form of additional wastewater treatment plants, higher water prices, or access only to the lowest paying, most dangerous jobs in the computer industry. Silicon Mesa (Albuquerque, New Mexico) New Mexico is the third most arid state in the nation. Yet the high tech electronics companies are being welcomed by local politicians, agencies, and residents for the short-term gains they create: jobs, higher wages for a few, and a perception of an increasing sophistication of their cities. Eighty seven percent of the water used by the top industrial users in the Albuquerque area is by the five high tech companies: Intel, Philips, Sumitomo, Motorola, and Honeywell. And the demand for water by high tech industries continues to grow, fueled by generous subsidies from government officials. The average residential user in Rio Rancho (a suburb of Albuquerque) pays $1.75 per 1000 gallons of water. Intel pays, on the average, 41 cents per every 1000 gallons it uses - four times less than residential users. Not surprisingly, Intel is using enormous amounts of New Mexico's scant water supply. Today, Intel is using between 4 to 4.5 million gallons per day (1.6 billion gallons per year), and is expected to increase this amount to 5.5 to 6 million galls per day (or 2.1 billion gallons per year).This will be equal to about 6% of all the water used in the city of Albuquerque. This increased drawdown of Albuquerque's water from the Rio Grande and its underground storage areas threatens the traditional irrigation system in northern New Mexico called acequias. The acequias have sustained subsistence farming for indigenous peoples, Mexicans and Chicanos, for more than 400 years. In Albuquerque, corporate welfare has grown increasingly complex and difficult to track (one obvious example was the $250 million tax incentive and $8 billion Industrial Revenue Bond awarded to Intel).What is not so difficult to see are the long-term impacts of the high tech electronics industry on the water resources and infrastructure of Albuquerque. This includes the threatened destruction of ancient cultural practices and value systems;water pricing mechanisms and policies which penalize residents in order to reward high tech companies; the depletion of Albuquerque's life-blood aquifer, and extensive contamination of precious water resources. A Call to Action The alarming facts regarding water usage and toxic contamination of a computer industry rapidly expanding throughout the Southwest has led to the creation of the Electronics Industry Good Neighbor Campaign. The time has come to demand candor and honesty from these highly profitable industries that have never been "clean." Communities of color especially, who have taken the brunt of the toxic waste and resource mining of the computer industry, must be heard. The people currently being threatened by water shortages and environmental toxics constitute more than a public relations problem. They are the future of the Southwest. A sustainable electronics industry must benefit communities as well as corporations for the long-term. Creating a new way of doing business will require the commitments of industry, government and community working together. The report concludes by outlining a far-reaching vision of what needs to be done: Corporate Responsibility * Adopt closed-loop industrial re-use of treated waste water. * Develop toxics-use reduction plan to phase out of the use of toxic chemicals. * Zero discharge of treated waste water into aquifers. * Reduce water use by increased investment into water-saving technologies. Regulatory Responsibility * Initiate closer monitoring and inspection of high tech facilities * Provide access to company records on chemical discharges, permitting language, chemical inventories, actual chemical usage, and any other information the surrounding community could use in the protection of its health. * Penalties for contaminating our environment must be SIGNIFICANT enough that the polluting companies find it in their best interest to innovate environmentally friendly products. * A system must be developed to protect the workers, the most "at-risk" population to high tech chemicals, from chemical exposure. Community Responsibility * Recycle and Reuse computer products. Upgrade, but don't discard. Buy environmentally safe products where practicable. * Develop a full cost pricing system to reflect the true costs of business and its impact on the host community. * Public subsidies of companies must be accompanied by a strict set of conditions such as chemical use reduction, local employment of all diversities of people, long-term investments in the community, and a commitment to stay. Commitment to Environmental Justice * Maximum participation by ALL interested residents in any community decision. * Environmental and environmental justice guidelines must be adhered to by the companies to ensure that: 1) low-income workers of color are not exposed to toxic chemicals; 2) contaminants are not shipped for disposal toward the path of least resistance (to low-income, communities- and countries-of-color); 3) facilities moving into low-income, communities of color are not subject to less stringent environmental regulations than those in affluent or white communities. Leslie Byster Silicon Valley Toxics Coalition 760 N. First Street San Jose, CA 95112 408-287-6707-phone 408-287-6771-fax [EMAIL PROTECTED] >NOW AVAILABLE AT OUR WEBSITE -- New information on the >grassroots politics of regulatory reinvention. Includes >a new chart comparing Project XL other models of community participation. Also information on the the impacts of high-tech industry. > > http://www.svtc.org/svtc/ > >