Fall, 1997
Intel inside Costa Rica
By Leslie Byster
Prompted by concerns about Intel's plans to build 2 test and assembly facilities in their country, two activists from Costa Rica recently visited with the Silicon Valley Toxics Coalition and the SouthWest Organizing Project (Albuquerque, NM). Julio Rojas, an epidemiologist at the University of Costa Rica and William Alvarez, a former elected official in Belen, were gathering information about the impacts of high-tech development on local communities like Silicon Valley and Silicon Mesa in New Mexico. Their visit to the US was sponsored by the Campaign for Responsible Technology and the Southwest Network for Environmental and Economic Justice.
Since their visit to the US, William and Julio have been actively organizing in their communities. A new commuity organiziation, Asociacion Ecologica Belemita, has been formed and has filed lawsuits with the Public Health Ministry, the Municipality of Belen, and the Ministry of Environment and Energy in an attempt to slow the fast-tracking of permits and construction schedule. Intel has been deemed an "inoffensive" industry in Costa Rica, and the community residents are challenging that classification given Intel's history of environmental problems in the US. The Asociacion states that the determination of Intel as as "inofensiva" contradicts the Precautionary Principle declaration signed at the Rio de Janeiro Earth Summit and ratified by Costa Rica.
So far, an Environmental Impact Assessment on the new plants has been approved, some permits have been issued and ground has already been broken. Intel plans to start operations at the first facility in April 1998, and the second facility in 1999. While Costa Rica is already host to some high-tech companies like Motorola and Acer, the Intel facility will be the first major high-tech development of its kind in Central America. It will likely lead to a new cluster of high-tech development and increased pressures to expand NAFTA.
WHY COSTA RICA?
The electronics and computer manufacturing industry is the largest and fastest growing manufacturing industry in the world. Its explosive worldwide growth has resulted in an international annual market for semiconductor chips of over $150 billion. Industry experts estimate that more than 100 new semiconductor facilities ('fabs'), each costing between $1-3 billion and using massive amounts of water may be built before the end of the century. The resource implications of this expansion poses challenges to environmental efforts.
Intel, the world's leader in microprocessor production (as well as profits), controls over 80% of the microprocessor market worldwide, and chose Costa Rica for several reasons: 1. a workforce with 95% literacy but paid with wages a fraction of U.S. wages; 2. the 'helpful environment' for investors; 3. the 'easiness, flexibility
and speed of the Costa Rican people to satisfy their needs', (Michael Splinter, Vice-President of Intel); 4. a sophisticated infrastructure (power grid, sophisticated telecommunications system, 2 seaports and 2 international airports).
Intel also had strategic reasons for choosing Costa Rica to 'establish a presence in Latin America, one of the world's fastest-growing markets for high-tech goods.' (Costa Rica Investment Board)
WHAT ARE THE ISSUES?
Today, it is widely known that electronics production uses a large number of highly toxic materials in the manufacture of its products. Over 1000 materials and chemicals are used to manufacture a computer workstation. Because of the widespread use of these highly toxic materials, the industrial illness rate among semiconductor workers called 'systemic poisoning' is higher than in other manufacturing sectors. Environmental releases from the high-tech industry have caused major problems in the past ranging from extensive groundwater contamination to significant air pollution.
Yet, in Costa Rica, 'a country well known for its environmental awareness' discussion of the toxic by-products, worker and community safety rules and the impacts on water resources have been absent from the public discourse.
Intel has said that it is voluntarily complying with California's strict environmental laws, yet, the public had only 8 days to comment on the Environmental Impact Report (EIR). Quite different than the 30-60 days required under the California Environmental Quality Act (CEQA)!
Community residents in Belen have identified several major concerns:
ENVIRONMENTAL IMPACTS
- The facility sits on the main aquifer for the central valley of Costa Rica that more than one million people depend on for their drinking water. When the plant is in full operation, Intel will be using more than one million gallons of water a day.
- The Intel facility is very close to the artesian springs and river, and parts
of the warehouse are being built within the "setback" area.
- Intel said it would implement a water conservation program and recycle some of the wash water but hasn't agreed to install closed loop recycling.
- Intel acknowledges it will use thousands of pounds of hazardous materials a year, but hasn't identified the specific chemicals, resins and epoxies to be used.
HAZARDOUS WASTE AND INTERNATIONAL WASTE IMPACTS
The assembly process at this facility will involve lead-intensive soldering. As a result, Intel will be generating 1000's of pounds of lead waste each year. Costa Rica currently does not have a hazardous waste recycling or landfill facility sufficient for Intel's wastes, and the US is not a signer to the Basel International Waste Trade agreement. Because of this, the Costa Rican government on Intel's behalf, is working out a 2-year arrangement with the US government. Under this agreement, the hazardous waste will be transported from Belen, over a mountain range to the port of Limon. From there it will be shipped to Houston, and then taken to the Romic facility in Chandler, Arizona (which is located near the Gila Indian Reservation.) Under this agreement, in 1998, Intel is expected to be shipping over 3000 pounds of waste solder paste, 7000 pounds of waste lead sludge, and over 5000 pounds of other waste. These amounts will double in 1999. (Memo from Costa Rica Minister of Health to EPA Administrator Carol Browner.)
This executive agreement while done in consultation with Congressional committees does not require Congressional approval and the US State Department is taking the lead. As of October 4, this agreeement has gone through the first approval steps at US State Department and is awaiting the next steps of approval from Costa Rica. (Staff member at Cong. Eshoo office)
ENVIRONMENTAL JUSTICE
Romic has a very bad reputation in East Palo Alto, California, a low income community of color in Silicon Valley. In a recent Cal-OSHA proceeding stemming from an accident where a worker suffered severe permanent brain damage, Romic admitted to 21 charges of occupational and environmental health violations. (see page 6). Romic's facility in Chandler, AZ receives the waste from Intel's Albuquerque and Chandler facilities.
CORPORATE WELFARE
Intel is touting this new facility as a wonderful economic opportunity for Costa Rica, but in reality the Costa Rican government has given Intel huge subsidies.
- Located in a 'customs-free' zone, Intel received a 12 year subsidy on its profits and taxes. Intel will pay no taxes on its profits and assets for the first 8 years, and then pay only 50% of the standard rate on the last four years.
- Intel will be receiving subsidized energy. A new electric substation, required for Intel's use, will be built by Costa Rica. Intel will also be receiving government-subsidized electric rates of nearly $0.42 a kilowatt hour.
- Intel's facilities will employ up to 3,500 people to assemble 1 million Pentium II chips a week. Workers at this plant will receive $3,000 a year in wages, a fraction of what Intel pays its US workers (about $18,000 to $30,000).
Intel claims to be the leader in environmentally responsible electronics manufacturing because it uses the best-available technology. Yet, Intel's new plant is not adopting the new and existing technologies such as lead-free solder or closed loop water recycling. Intel is also not paying its fair share of taxes for the resources it consumes or the profits it makes.
These activities greatly concern communities not only in Costa Rica, but also throughout the US and around the world, because they raise important political, economic, environmental and technical issues that must be addressed if this industry is ever to become a truly 'sustainable' industry.
Leslie Byster is SVTC Program Director
Write to Secretary of State Madeline Albright, US. State Department, 2201 C St. NW, Washington D.C. 20520, and tell her not to approve the international waste trade shipping agreement. Send a copy of your letter to your Congressperson. Also ask your Congressperson to tell the State Department how you feel about Intel's hazardous waste handling practices.
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