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Records of the Council on Environmental Quality (Clinton Administration)
Kathleen McGinty's Files
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FOIA Number: 2012-0769-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
Council on Environmental Quality
Series/Staff Member:
Kathleen (Katie) McGinty
Subseries:
OA/ID Number:
2902
FolderID:
Folder Title:
Massachusetts
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S
61
6
3
3
MEMORANDUM
TO:
Leslie Dach
per afile - make
FR:
Will Stelle
RE:
New England Scheduling
Massachusetts
DATE:
August 4th
of
quick
A couple of items for Gore in New England.
Carpongh
1. Go to either the Boston Museum of Science (in Boston) or
files
Woods Hole Oceanographic Institute (cape Cod) and give a speech
about the business of enviro-tech and the, enormous export
the
opportunities for that sector. It is the future.
Surround himself with the head of the major academic and
research instituttions in the region (Woods Hole, MIT) and the
CEOs from big business in the region like Raytheon (guns to
environmental plough shares is what they are very interested in,
and the irony of the Patriot missle manufacturer supporting the
greening of DOD is very nice) and the head of the Environmental
Business Council, a trade association of enviro tech businesses
throughout New England.
Location: Boston is more central, but Woods Hole is a
spectacular setting with a world class research institution which
would better loop in the need to support basic education, our
great university systems, etc. I recommend Woods Hole because it
is far more attractive and luring a setting.
617-248-5110
Contact:
Don Conners of Choate, Hall and Stuart at
617-227-5020. Don is a senior partner and knows his way around.
He put together the Environmental Business Council, has spoken
with Katie McGinty about the enviro-tech stuff in the past and
will work hard to help put this event together. A strong
supporter. Don thinks Raytheon would love to participate and
will arrange it.
If Woods Hole is preferable, also contact Mark Forest in Studds'
Hyannis (Cape Cod) office at 508-771-0666. He knows the enviros
tech stuff cold and Woods Hole cold, and could help with
logistics very quickly. It would be a great setting.
2. Burlington, VT
A speech that the environment in our economy will resonate
well thoughout New England. (Main coast, Mass tourism industry
and Cape cod, etc.) Lake Champlain is at a cross-roads in efforts
to come back, and is a big issue. Leahy and former Madaline
Kunin could form a good backup, with a speech in a major
population center and with good scenic backdrop.
Contact Leahy's office (as you know).
DUSINESS
THE BOSTON SUNDAY GLOBE
JUNE 14, 1992
The greening of Rayt
Defense contractor's
might turns to
the environment
By Paul Hemp
GLOBE STAFF
Raytheon Co. is attempting a major shift in its corpo-
ate focus, and in a significant way the defense giant's
ew priorities reflect the world's.
As the Cold War fades and as fears of global warming
eplace the threat of a nuclear holocaust, nations are
noving resources once devoted to building military might
to the battle against pollution.
Likewise, Raytheon - which as the nation's fifth-larg-
st defense contractor is seriously threatened by declin-
ng military spending - is forging into new business areas
elated to the environment.
The Lexington-based company
ays it wants to triple the sales
Raytheon-owned
and profits of its existing environ-
Badger Co. de-
nental businesses over the next
signed this Louisi-
live years as part of a broader ef-
ana plant to pro-
ort to equalize the size of its de-
duce a substitute
ense and nondefense operations.
for chlorofluoro-
The company else is consider-
ng a major acquisition in the field,
carbons, or CFCs.
chairman Dennis Picard said at
last month's annual meeting. Al-'
though he didn't name a candidate,
analysts say they believe it prob-
would be a business with sales
if $300 million to $500 million.
The importance of the environ-
mental business to Raytheon's fu-
ture is highlighted by recent hir-
ing trends at the company. In the
past year, the company's total
work force has dropped to 69,400
from 74,800, including layoffs of
1,650 mostly defense workers in
New England.
By contrast, Raytheon's Bad-
ger Co. engineering unit - much of
whose work involves redesigning
refineries to produce cleaner gaso-
line - has hired 500 people at its
Cambridge headquarters during
that period, bringing the work
force there to 1,700. Across its en-
tire operations, Badger has added
1,100 workers in the past 12
GLOBE STAFF PHOTO SUZANNE KREITER
months and expects to hire up to
Sarney: Focus on the environment "from the chairman on down."
another thousand in the next sev-
eral years.
quarters of its profits are defense-related, analysts esti-
"The emphasis on growing this part of the business
mate.
exists from the chairman on down." savs George Sarney.
And environmental work still makes up only a fraction
the company's en-
of Raytheon's overall business. The company's recently
reorganized and renumed Energy and Environmental
maker of the
Group-had 1931 operating income of $125 million on sales
and
of $1.67 billion. just 12 percent of the total company oper-
half of its sales
ating i: one of $1.04 billion on sales of $9.27 billion.
ome from longstanding commercial operations - includ-
Environmental business made up an even smaller per-
ing Beech aircraft and Amana appliances - nearly three-
RAYTHEON, Page 85
08/05/92
11:36
*202 225 2212
environment
RAYTHEON
Continued from page 81
centage, about one-quarter of the
new sector's sales, or $400 million,
Sarney says. The group - comprised
The US Army's chemical weapons
of Badger, United Engineers & Con-
structors, Raytheon Service Co. and
Cedarapids Inc. - also is involved in
clear power plants - including, sev-
the engineering and construction of
eral years later, Seabrook. When the
big projects such as power plants.
nuclear power industry crashed in
Thus, the environmental busi-
the 1970s and the petroleum indus-
ness provides a growing alternative
try bottomed out in the mid-1980s,
to government defense contracts -
so did those Raytheon subsidiaries.
but hardly a safety net. "It's a prom-
When environmental cleanup and
ising area and they have a number of
pollution control regained promi-
irons in the fire," says Cai von Ru-
nence on the national and interna-
mohr, an analyst at Cowen & Co. in
tional agendas soveral years ago,
Boston. "But if the government busi-
Raytheon saw an opportunity to take
ness really goes, they will have a
the very engineering experience it
problem."
had built up designing nuclear plants
Whatever its ultimate position
and oil refineries, and apply them to
within the company, the environ-
the new market.
mental business is bound to grow,
For some time, says Peter Aseri-
Raytheon officials say. New regula-
tis, an analyst at First Boston Corp.
tions such as the US Clean Air Act
in New York, the diversification
of 1990 and a heightened awareness
strategy "didn't look so good, espe-
of the dangers of pollution around
cially in the 1980s when the defense'
the world bodes well for environ-
business was 80 strong. But looking
mental firms, they add.
back. they did the right thing."
Ironically, a lot of the new envi-
The trend toward reducing pollu-
ronmental contracts will come from
tion by designing controls into the
the government - just as defense
manufacturing process particularly
contracts always have. Even the
benefited the company, executives
Pentagon, Raytheon's longstanding
say.
customer, faces major environmental
"We have been successful in
cleanup projects as bases and weap-
building an environmental business
ons facilities close.
because we bring chemical engineer-
"The fastest-growing budget ele-
ing skills to the solution of environ-
ment in the Department of Defense
mental problems." says L.G. Modi-
today is not the B-2 bomber, it's not
gliani, Badger's president and chief
SDI, it's not Seawolf, it's environ-
executive officer. "In the past, the
mental." says Patrick M. Roddy.
environmental business was an end-
president of Raytheon Service,
of-the-pipe approach, but today the
whose work includes the manage-
problem is attacked at the root."
ment of environmental cleanup pro-
Badger, 70 percent of whose
jects. "So although [Defense Depart-
work is outside the United States,
ment] dollars are contracting, that
has been involved in projects rang-
area is growing."
ing from the design of a Louisiana
For example, the Army awarded
plant to produce 8 chemical refriger-
United Engineers a $429 million con-
ant less environmentally damaging
tract last year to operate a chemical
than chlorofluorearbons, of CFCs, to
weapons destruction facility on
the development of a hazardous
Johnston Atoll 800 miles southwest
waster treatment facility in Thai-
of Hawaii, which United Engineers,
land.
helped design and construct. Other
Philadelphia-based United Engi-
recent major United Engineer con-
'neers has primarily been involved
tracts include one from the Depart-
with the study and design of scrub-
ment of Energy to store hazardous
ber systems to reduce sulfur dis-
wastes at the Hanford atomic site in
charges at coal-fired power plants.
Washington state.
Cedarapids of Iowa, a leader in the
"Uncle Sam has to spend a lot in
somewhat clunky and recently de-
this area," says Robert C. Marini,
pressed road-building industry, has
chairman and chief executive officer
developed in conjunction with Bad-
of Camp Dresser & McKee Inc., an
ger a portable machine to reclaim
environmental engineering firm that
petroleum-contaminated soil.
is a sometime Raytheon competitor
The success of its subsidiaries is
but also a partner in a consulting
likely to lead to further acquisitions
venture in Europe with the com-
in the environmental field. This year,
pany's Badger unit. "Raytheon has
Raytheon unsuccessfully bid for two
tremendous alliances with the gov-
defense-related businesses that Gen-
ernment. knows all those people and
eral Dynamics Corp. had put on the
how to do business with them."
block - its Cessna aircraft unit and
Raytheon is currently building
its missile division. The failure to
its environmental operations around
pick up those businesses means
two engineering businesses it ac-
Raytheon's balance sheet is strong
quired in the late 1960s, Badger and
enough to make a substantial acqui-
United Engineers. At that time, the
sition, the company says. Analysts
company embarked upon a diversifi-
probably
Badger specialized 111 the design
seem 3 long way from making mis-
and engineering of oil refineries and
siles, Raytheon's best-known busi-
United Engineers specialized in nu-
ness. But a complex engineering
08/05/92
11:37
202 225 2212
CONG. STUDDS
Fish + Wildlife
004/005
THE BOSTON SUNDAY GLOBE
JUNE 14. 1992
UNITED ENGINEERS & CONSTRUCTOR
destruction facility on Johnston Atoli In the Pacific Ocean.
project is similar to the massive de-
fense contracts that Raytheon knows
well, executives say.
"Building a large refinery or a
power plant involves thousands of
drawing and steps along the way,
not unlike managing a Patriot
program" or other defense systems
contract, says Sarney.
Still, the culture of a company
whose primary customer has been
the government can sometimes seem
a bit alien to executives dealing with
private-sector customers.
"I won't tell you that there hasn't
been a learning curve at times to
PATRICK M. RODDY
find a middle ground. Sometimes it's
Environmental dollars growing
a little painful," says Charles Miller,
president and chief executive officer
reaucracy.
of United Engineers. "But I've never
"Overall, there has been a useful
hit a stone wall or been unable to get
exchange of ideas on how to get a
something done because of a bu-
project done."