United States
Environmental Protection
Agency
&EPA    Public Water System
  I ln't + s*A O+i+^«                   ^
         Historical Significant
         Non-Compliers:

         National Trends
         Report

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Office of Water (4606 M)
EPA816-R-10-015
October 2010
water, epa.gov/drink/

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Table  of Contents
Introduction	1
   What does this report summarize? 	1
   What is the goal of identifying HSNCs and this report?	1
   How did EPA collect this information?	1
HSNC Trends by System Size & Type	2
HSNC Trends by Rule & Violation	7
   Microbials and Disinfection Byproducts (M/DBP) Rules 	7
   Chem/Rad Rules and Lead and Copper Rule	9
   Right-to-Know Rules 	11
   Types of Violations: M&Rvs TTvs MCL	12
Trends in Violations Linked to Technical, Managerial & Financial Issues	14
Conclusions	16
Appendix A- Changes to the PWSS Program Approach	18
Appendix B -Tables of Acronyms	20
Appendix C-HSNCs by State	22

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List of  Exhibits
Exhibit 1: Timeline of Rule Implementation	2
Exhibit 2: Total Number of Current Public Water Systems and HSNCs	3
Exhibit 3 :HSNCs by System Size, Over 4 HSNC Periods	4
Exhibit 4: Percentage of Systems that are HSNCs, 2006 - 2008	5
Exhibit 5: Percentage of HSNCs that are Small Systems, 2006 - 2008	6
Exhibit 6: HSNCs by M/DBP Rule, 2006-2008	7
Exhibit 7: HSNCs by M/DBP Rule, Over 4 HSNC Periods	8
Exhibit 8: HSNCs by Lead and Copper Rule and Chem/Rad Rules, Over 4 HSNC Periods	9
Exhibit 9: HSNCs by Lead and Copper Rule and Chem/Rad Rules, 2006-2008	10
Exhibit 10: HSNCs by Violation, Over 4 HSNC Periods	12
Exhibit 11: HSNCs by System Size and Violation, Over 4 HSNC Periods	13
Exhibit 12: HSNCs by Violation and Reason, 2006-2008	14
List of  Tables
Table 1: Rules and Abbreviations	20
Table 2: Definitions and Abbreviations of Reported Violations 	20
Table 3: Reason for History of Significant Non-Compliance'  	21
Table 4: Number of HSNCs and Small System HSNCs by State	22

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Introduction
What does  this  report summarize?

Capacity Development provisions under the Safe Drinking Water Act (SDWA), Section 1420(b)
(1), require that each state periodically submit to EPA a list of community water systems (CWSs)
and nontransient noncommunity water systems (NTNCWSs) with a history of significant non-
compliance. The states and EPA concurred that a public water system is a historical significant
non-complier (HSNC) when it has violations that meet the definition of a significant non complier
(SNC) as defined for a specific regulation for the duration of at least 3 quarters during a 3-year
period.1 This report summarizes over 10 years of HSNC trends nationwide in 4 time periods:
1997 - 1999, 2000 - 2002, 2003 - 2005 and 2006 - 2008.2

What is the goal  of identifying HSNCs and this report?

The central purpose of generating HSNC lists is to help states identify the CWSs and NTNCWSs
that consistently struggling to comply with drinking water regulations. This lack of compliance
can often be linked to inadequate technical, managerial, or financial (TMF) capacity that can
impede long-term sustainability.  States often use HSNC lists to prioritize technical assistance
and Drinking Water State Revolving Fund (DWSRF) resources. This report not only summarizes
the characteristics of the HSNC lists but also attempts to identify  challenges that might impede
system capacity, and presents examples of how some states have addressed these challenges.
EPA's goal is to work with states to develop the tools to identify systems without capacity,
prioritize capital improvements,  and apply funds from the DWSRF in the most efficient matter.

How  did EPA  collect  this information?

EPA generated the preliminary HSNC list from a Safe Drinking Water Information System
(SDWIS) query program developed by the Office of Enforcement and Compliance Assurance.
This HSNC list was shared with EPA Regions and states for their review and comment during  the
summer of 2009. The updated data were then used to generate this report.

EPA faced some data limitations in analyzing the HSNC data. Specifically, the data analysis
presented in this report is limited due to the following:

   •  HSNCs are treated equally regardless of the severity of the violation,  rule violated, or the
      type of violation.
   •  Challenges in  pinpointing the reason for a system's non-compliance.
   •  Lack of a standardized process used by states to achieve  a system's  return  to compliance
      for different types of violations.
   •  Inconsistent compliance data quality.
     1 Heare, Stephen F. 2009. Memorandum to Drinking Water Program Managers, Regions 1-10, Drinking Water
  Enforcement Coordinators, Regions 1-10, and Drinking Water State Revolving Fund Managers, Regions 1-10, regarding the
  2009 List of Systems with a History of Significant Non-Compliance. May 4, 2009. A SNC is a system whose serious, frequent,
  or persistent non-compliance of drinking water regulations has met the SNC criteria as defined by the EPA for a specific rule.
  The SNC designation is reserved for those systems that are considered to pose the most serious threats to public health.
     2 All states submitted data (with some missing components) for 1997 - 1999, 2003 - 2005, and 2006 - 2008. The
  following programs did not submit data for 2000 - 2002: ME, NJ, NM, NY, and Rl.

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EPA is aware of the limitations of the current HSNC structure and is transitioning toward a more
comprehensive enforcement approach. For more information on this new approach, please  refer
to Appendix A: "Changes to PWSS Program Approach."

Exhibit 1 shows the implementation timeline for various drinking water rules discussed in this
report. As the HSNC data in this report indicate, the initial implementation of rules often coincides
with an increase in violations as systems adapt to the new requirements. For example, as the
Stage 2 Disinfectants and Disinfection Byproducts Rule (Stage 2 DBPR), Long Term 2 Enhanced
Surface Water Treatment Rule (LT2ESWTR), and Ground Water Rule (GWR) enter their initial
compliance phase during upcoming years, violations associated with these rules will likely
increase.

                      Exhibit 1:  Timeline of Rule  Implementation3
                Please see Table 1 in Appendix B for a list of acronyms and their definitions.
     TCR
     LCR
CCR Rule


Stage

IES\
LT1ESWTR

DBPR

TR





P

                                                                Radionuclides Rule
                                                     PN Rule
LT2ESWTR

Rtane 9


LCR
Te
                                                                 DBPR
                                                                     Term
                                                                    Revisions
  1990
1992
                 1994
1996
1998
2000
2002
2004
2006
2008
                                                                          2010
HSNC Trends by System Size &  Type
For the purpose of this report, system sizes are defined as small, medium and large. Small
systems serve 3,300 and fewer people, medium systems serve between 3,301 and 50,000
people, and large systems serve more than 50,000 people. Also for this report, a system type is
classified as either a CWS or a NTNCWS. A CWS is a public water system that supplies water
to the same population year-round. A NTNCWS is a public water system that is not a CWS and
regularly supplies water to at least 25 of the same people at least 6 months per year, but not
necessarily year-round. Some examples of NTNCWSs are schools, factories, office buildings,
and hospitals that have their own water systems.4 For additional definitions of terms used in this
report, see Appendix B.

In this report, we examine HSNC trends for all sizes of CWSs and NTNCWSs, by rule and
violation. As shown in Exhibit 2, although less than 10 percent of CWSs and NTNCWSs are
HSNCs, there are still a fairly significant number of small systems that are identified as  HSNCs.
     3 Stage 1 DBPR had compliance deadlines of January 2002 for medium and large systems, January 2004 for small
  systems, and additional monitoring requirements in 2009. For Stage 2 DBPR, depending on system size and the extent of
  needed  construction, systems will begin the first year of compliance monitoring between 2012 and 2016 and must be in
  compliance with the Stage 2 DBPR MCLs at the end of a full year of monitoring.
     4 Public water system means a system for the provision to the public of water for human consumption through pipes
  or, after August 5, 1998, other constructed conveyances, if such system has at least fifteen service connections or regularly
  serves an average of at least twenty-five individuals daily at least 60 days out of the year. Source: EPA. 2009. Code of Federal
  Regulations. Part 141-National Primary Drinking Water Regulations. Section 141.2 Definitions.

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  •  Approximately 8 percent of the total universe of CWSs (or 4,209 out of 51,988 systems)
     were HSNCs during the period 2006 - 2008 (see Exhibit 2). Compared to previous years,
     this represents a slight decrease in the number of HSNCs for this group (9 percent, or
     4,929 of the 52,349 CWSs, were HSNCs during the 2003 - 2005 period).5

  •  Approximately 5 percent of the total universe of NTNCWSs (or 955 out of 18,742 systems)
     were HSNCs during the period of 2006 - 2008 (See Exhibit 2). The same percentage of
     NTNCWSs were HSNCs during the 2003 - 2005 period.

      Exhibit 2: Total Number of Current Public Water Systems and  HSNCs6-7
Small Medium Large Total
CWSs
CWS HSNCs

NTNCWSs
NTNCWS HSNCs
43,018
3,627 (8%)

18,595
951 (5%)
8,031
538 (7%)

145
4 (3%)
939
44 (5%)

2
0 (0%)
51,988
4,209 (8%)

18,742
955 (5%)
  •  Approximately 3 percent, or 138 of the 5,142 HSNCs, have been HSNCs continuously
     since 1997 (94 percent, or 129 of 138 water systems, are CWSs).7

  •  Approximately 7 percent, or 348 the 5,142 HSNCs, have been HSNCs continuously since
     2000 (91 percent, or 317 of the 348 systems, are CWSs). Approximately 28 percent, or
     1,452 of the 5,142 HSNCs, have been HSNCs continuously since the 2003 - 2005 time
     period (88 percent,  or 1,291  of the 1,452 systems, are CWSs).7

  •  The rules and violations affecting these systems can vary over the different time periods
     and the CWSs and  NTNCWSs are not always HSNCs over multiple time periods for the
     same reason.

  •  The most common  reason for a system to be an HSNC is lack of short-term technical,
     managerial, or financial capacity, which is cited for approximately 50 percent of the
     HSNCs.

  •  NTNCWSs are designated less frequently as HSNCs, when proportionally compared
     to CWSs. This is not only true in the 2006 - 2008 data, but also in the previous three
     time periods. One possible explanation is that NTNCWSs face fewer drinking water
     requirements than CWSs. The HSNCs reported were widely dispersed across  the country
     and included both surface water and ground water systems. With the GWR coming
     into effect  in 2009, public water systems that use ground water sources could face an
     increased  number of violations, particularly those small systems that lack the technical,
   5 In the period 2003 - 2005, there were 52,349 CWSs, of which 4,929 were CWS HSNCs. In the period 2006 - 2008,
there were 51,988 CWSs (a drop perhaps due to small system consolidation) and 4,209 CWS HSNCs.
   6 Total number of current water systems based on EPA SDWIS FY08Q3 frozen inventory table; total number of HSNCs
based on HSNC survey data for 2006 - 2008.
   7 Twenty-two water systems changed either their water system type or size category in the 2006 - 2008 reporting period,
and are therefore counted twice. Seven of these systems changed their size category,  14 systems changed system type, and
1 system changed size and type. These systems are not counted twice in Exhibit 4 because it is a state-by-state total and
does not include a size or type classification. Only 3 of the 22 systems were repeat HSNCs. These systems were HSNCs
continuously since the 2003 - 2005 time period. Of the 3 repeat HSNCs, 2 changed system type and 1 changed size. For the
purposes of this analysis, these systems were counted as CWSs.

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     managerial, and financial capacity to fully comply with new rules. The GWR will require
     quick turnaround compliance activities and public notifications that some small systems
     may find challenging initially as they learn the rule requirements.

  •  The number of large system HSNCs has remained consistently low across all four time
     periods (see Exhibit 3). This seems to indicate that large systems are able to adapt to rule
     requirements at a faster rate than the smaller systems.

  •  As shown in Exhibit 3, the number of medium system HSNCs remained relatively constant
     during the first two time periods,  but jumped after the 2000 - 2002 period. This increase
     may be attributed to the multiple Microbials and  Disinfection Byproducts (M/DBP) Rules
     that were implemented during this time, as shown in Exhibit 1.

  •  All four time periods of data appear to support the fact that small systems are still more
     likely to be on the HSNC list than medium or large systems. Between the 1997 - 1999 and
     2003 - 2005 timeframes, the number of small system HSNCs increased approximately
     10 to 15 percent per 3-year period. However,  after the 2003 - 2005 period, the number
     of small system HSNCs began to decrease (see Exhibit 3). The data indicate that small
     systems continue to face challenges with regulatory  compliance.

              Exhibit 3: HSNCs by System Size,  Over 4 HSNC Periods8
                  6.000
                  5.000
                £  4,000
                tn
                3)
                o
                M
                I
                  3,000
                  2.000
                  1.000
                         1997-1999
                                     2000-2002       2003-2005
                                          Reporting Years
                                                              2006-2008
                                             -< 3.300
                                                    -3.301-50.000
                                                               -> 50.000
  •  A 2006 report from EPA's Inspector General identified eight challenges small systems
     face that may impede regulatory compliance.9 The eight challenges listed below are
     possible reasons why the data indicate that small systems incur violations at a higher rate
     than the medium and large systems.

     1.  Lack of financial resources.
     2.  Aging infrastructure.
     3.  Difficulties obtaining financial assistance.
   8 The 8 water systems that changed size categories are double counted in this exhibit. See Footnote 7 for more details.
   9 EPA Office of Inspector General. 2006. "Much Effort and Resources Needed to Help Small Drinking Water Systems
Overcome Challenges." May 30, 2006. Report No. 2006-P-00026.

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   4.  Cost of scale.
   5.  Management limitations.
   6.  Lack of long-term planning.
   7.  System operator issues.
   8.  Challenges with understanding and/or complying with regulations.

   •  These eight challenges can broadly be categorized as technical, managerial, and
      financial capacity issues which affect the ability of small water systems to achieve and
      maintain system sustainability to provide safe drinking water. It is important to note that
      not all small systems lack capacity; however, the data show many of them struggle
      with compliance.

•  The data also indicate that the number of systems that are HSNCs due to lacking a
   qualified operator has increased since 2004. A certified and experienced operator is
   vital to the health of the public water system. Not having a certified or appropriately
   trained operator can lead to compliance problems that can in turn contribue to financial
   challenges.

•  The data also indicate that states are aware that many of the HSNC systems lack
   adequate capacity. According to recent EPA analyses of the use of DWSRF set-asides,
   48 states are using set-aside funds to implement or manage a capacity development
   strategy. States  use DWSRF set-asides to fund a number of specific efforts tied to
   capacity development,  including on-site assistance, small system trainings, sanitary
   surveys, data management,  and  upfront planning. The HSNC list may serve as a tool for
   states to identify and target technical assistance to the systems most in need.

•  Exhibit 4 displays the percentage of systems that were HSNCs in the 2006 - 2008 time
   period, by state  and territory. As shown, Arizona had the highest percentage of HSNC
   systems, followed by Alaska and Puerto Rico.

         Exhibit 4: Percentage of Systems that are HSNCs, 2006 - 2008
                  Please see Appendix C for the number of systems by state.
                                            U? Puerto Rico 39%
                                        16% '• Virgin Islands
                                                                  17%
                                                                 o
                                                               District of
                                                               Columbia
                                                  Total HSNCs from 2006-2008:
                                                  5,142 systems

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•  Exhibit 5 shows that in a majority of the states, small systems comprised over 90 percent
   of HSNCs in the 2006 - 2008 period. In Virginia and the Virgin Islands, 100 percent of
   HSNCs were small systems.

      Exhibit 5: Percentage of HSNCs that are Small Systems, 2006 - 2008
                   Please see Appendix C for the number of systems by state.
                                                ' Puerto Rico
                                         ! 100%'- Virgin Islands
                                                                      0%
                                                                    o
                                                                  District of
                                                                  Columbia
                                   67%-
                   How the State of Georgia Uses the HSNC List to
                    Increase the Number of Sustainable Systems in
                                   their Inventory

                 The State of Georgia has successfully utilized the SNC list
                 to target their assistance to systems in need. In Georgia,
                 very small systems (those serving fewer than 5 00 people)
                 represent 74 percent of all public water systems in the
                 state. However, these systems accounted for 88 percent
                 of the state's SNCs between July 1, 2007 and June 30,
                 2008. This disproportionate percentage of very small
                 systems that were designated as SNCs prompted the
                 Georgia Environmental Protection Division (EPD) to
                 increase their assistance to small public water systems
                 in developing their technical, managerial, and financial
                 capacity. This effort has produced positive results,
                 as Georgia has seen a decline in the number of SNCs
                 (HSNCs in Georgia dropped by approximately 51 percent,
                 or 77 systems, from the period 2003 - 2005 to the period
                 2006-2008).

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HSNC  Trends  by Rule  & Violation
To better understand HSNCs it is important to look at the regulations and violations that have
triggered systems onto the HSNC list, as well as the system's size and type. In this section we
explore the regulations and the violations that most often triggered systems onto the HSNC list
across the nation.

Microbials and Disinfection  Byproducts (M/DBP)  Rules

This section discusses the systems that achieved an HSNC listing due to the M/DBP Rules. This
group of rules includes the following:

      S Total Coliform Rule (TCR)
      S Surface Water Treatment Rule (SWTR)
      S Interim Enhanced Surface Water Treatment Rule (IESWTR)
      S Long Term 1 Enhanced Surface Water Treatment Rule (LT1/LT1ESWTR)
      S Stage 1 Disinfectants and Disinfection Byproducts Rule (DBPR/Stage  1 DBPR)
      S Filter Backwash Recycling Rule (FBRR)
      S Stage 2 Disinfectants and Disinfection Byproducts Rule (Stage 2 DBPR)*
      ^ Long Term 2 Enhanced Surface Water Treatment Rule (LT2ESWTR)*
      ^ Ground Water Rule (GWR)*
* The compliance dates of these regulations occur after 2008.

   •  Based on the 2006 - 2008 data, the most common HSNCs under the M/DBP Rules
      occurred under the Stage 1  DBPR (see Exhibit 6). However, Stage 1 DBPR violations
      declined in comparison to the 2,555 violations from the 2003 - 2005 period. Stage 1
      compliance deadlines passed in January 2002 for medium and large systems and in
      January 2004 for small
      systems.10

      Although a drop in
      violations between
      timeframes occurred,
      there still continues to
      be a large number of
      HSNCs during 2006-
      2008 due to violations
      of the Stage 1  DBPR,
      both for M&R and MCL
      violations.11 As noted
      above, compliance
      with Stage 1 DBPR
      requirements for
      systems serving fewer
      than 10,000 persons
    Exhibit 6: HSNCs by M/DBP Rule, 2906-2008
   Please see Appendix B for an explanation of applicable rules.
  3,000
  2.500
  2,000
£
IP
I
U)
u
<2 1.500

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started in January 2004. The large volume of violations could be due to systems serving
fewer than 10,000 persons still adapting to compliance requirements.

For TCR, the increase in M&R violations in the 2006 - 2008 period was more than twice
that of non-M&R violations, indicating that systems are still having difficulty meeting the
TCR monitoring and reporting requirements. TCR is the oldest drinking water regulation,
so lack of knowledge of the rule requirements cannot be the only reason for this lack of
compliance. The universe of systems that have the most violations under this rule serve
3,300 and fewer people. EPA hosted the Total Coliform Rule Distribution System Advisory
Committee (TCRDSAC) in 2008, where national experts representing states, water
industry, water systems, and other vested organizations discussed why small systems
have challenges complying with the TCR. The most common reason identified by the
group was the lack of apparent consequences for rule violations. For example, if a system
is on reduced monitoring and they receive a monitoring violation, the rule allows them to
remain on reduced monitoring.

The high  turnover rate among water system managers and operators also contributes to
the lack of understanding of the TCR, despite the rule's age. This lack of experience, and
thus knowledge of drinking water regulations,  can dramatically inhibit the technical and
managerial capacity of a system,  leading to increased numbers of M&R violations.

As shown in Exhibit 7, there was an 85 percent increase in IESWTR/LT1 HSNCs (driven
primarily by small systems, which jumped from 45 HSNCs in 2003 - 2005 to 95 HSNCs
in 2006 - 2008). This coincides with the  LT1 regulatory compliance date, which applies
to systems serving
fewer than 10,000
persons. Although
the rule was
promulgated in
2002, many of the
LT1 requirements
did not take effect
until 2005.

On the other
hand, there was a
moderate decline
in SWTR HSNCs
across all time
periods (Exhibit
7). This could be
due to the fact
that the newer
rule requirements
superseded the
SWTR.
Exhibit 7: HSNCs by M/DBP Rule, Over 4 HSNC Periods
     Please see Appendix B for an explanation of applicable rules.
   3,000
                         Applicable Rule

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Chem/Rad Rules and Lead and Copper Rule

This section discusses the systems that achieved an HSNC listing due to the following rules:

      S Phase II/V Rule
      •S Arsenic Rule
      S Radionuclides Rule
      S Lead and Copper Rule (LCR)

For the purposes of this report, the Radionuclides Rule, the Arsenic Rule, and the Phase II/V
Rule are grouped together as "Chem/Rad Rules."

    •  As shown in Exhibit 8, LCR HSNCs increased by approximately 10 percent (or 56
      systems) from the 2003 - 2005 period to the 2006 - 2008 period. However, the largest
      increase was in 2000 - 2002. Significant attention  was paid to the LCR after high lead
      levels were reported in the Washington, DC area in 2004.12 This heightened attention
      caused EPA and states to conduct a national review of implementation of the LCR to
      determine if there was a national problem related to elevated lead levels. The review
      placed a focus on determining if the rule was being effectively implemented by states
      and local communities and on identifying where additional guidance or changes to the
      regulation were needed to improve implementation. Congress also held a number of
      oversight hearings to further investigate implementation of the LCR in the District of
      Columbia and the nation. This wide-ranging review of the LCR likely led to an increased
      number of reported violations. Under this effort,  EPA developed short term rule revisions
      to help in the implementation of the regulation. However, as with all of the drinking water
      rules, the LCR
      violations data       Exhibit 8: HSNCs by Lead and Copper Rule and Chem/Rad
      likely has some                     Ru,e$> Qver 4 HSN<- perjods
      reporting errors,             Please see Appendix B for an explanation of applicable rules.
      for instance, the          3,500
      violations code
      for initial tap
      sampling is still
      very prevalent
      even though most
      systems are not
      new and in fact
      conducted their
      initial tap sampling
      in the 1990s.
      There are two
      reasons why the
      violation code for
      initial tap sampling
      is still prevalent
      today. First, states
      are incorrectly
      assigning an initial
Applicable Rule
    12 Source: 31 January 2004. Washington Post. Nakamura, David. "Water in D.C. Exceeds EPA Lead Limit." Pg.A-1.

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     tap sampling violation code as an M&R violation and/or assigned the initial tap sampling
     violation correctly, but did not properly close the violation. Second, states may have
     assigned the initial tap sampling violation correctly, but the systems did not follow the
     correct steps to return to compliance.

  •  States have indicated that particularly complex rules can cause water system compliance
     problems. For instance, water systems often face challenges with the sampling protocol
     and action level established under the LCR. EPA is currently undertaking an effort to
     develop long-term rule revisions.

  •  The 2006 - 2008 data show that there was a significant number of HSNCs under the
     Chem/Rad Rules (see  Exhibit 9).  In comparison to the 2003 - 2005 timeframe, the
     number of HSNCs increased by approximately 125 percent (or 1,276 systems, see Exhibit
     8).

  •  Some Chem/Rad HSNCs during the 2006-2008 period likely resulted from the
     implementation of
                              Exhibit 9: HSNCs by Lead and Copper Rule and Chem/
                                              Rad Rules, 2006-2008
                                   Please see Appendix B for an explanation of applicable rules.
                                 3.000
                                 2,500
                               en

                                 2.000
                                                 290
                              u
                                 1.500
                                                                         595
the new Arsenic
requirements starting in
2006.13 Water systems
faced a number of
challenges complying
with the Arsenic Rule,
including treatment
modifications and finding
alternative sources of
water. The rule tends to
significantly affect small
systems in particular
areas of the country
where arsenic levels are
high due to the treatment
cost.

Moreover, many water
systems neglected to
report monitoring results
for at least one of the
required contaminants
under the Radionuclides Rule, particularly gross alpha particle. During the 2006 - 2008
period, approximately 230 systems violated Chem/Rad Rules because of gross alpha
particle.

There are 65  contaminants regulated under the Phase II/V Rules. These 65 contaminants
are split up into three groups: Inorganic Chemicals (lOCs), Synthetic Organic Chemicals
(SOCs), and Volatile Organic Chemicals (VOCs). The data show a spike in violations
every three years. This is likely a result of the 3-year monitoring cycle in the regulation. If
                               £  1,000
                                  500
                                               Chem/Rad
                                                                         LCR
                                                         Applicable Rule
   13 EPA set the arsenic standard for drinking water at 0.010 parts per million (10 parts per billion) to protect consumers
served by public water systems from the effects of long-term, chronic exposure to arsenic. Water systems had to comply with
this standard by January 23, 2006.

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   a system misses the sampling during the required period, violations are assigned for each
   contaminant missed.

•  Due to the recent number of M/DBP Rules promulgated, states shifted their immediate
   attention and resources to early implementation of these regulations.  Emphasis by states
   on the LCR and Chem/Rad Rules may have
   decreased as states' efforts were redirected to
   Early Implementation, which in turn might have
   led to an increased number of violations.
                                                      How the State of Pennsylvania
                                                      Increased Monitoring Efforts
                                                During the 2006 -  2008 time frame,
                                                Pennsylvania actively worked to improve
                                                the  timeliness  of violations reporting.
                                                In particular, the state employed a new
                                                system to e-mail information on treatment
                                                technique violations to state staff nightly,
                                                to ensure that the staff promptly act on
                                                the violation. This may have led to an
                                                increase in violations tied to HSNCs over
                                                the previous period.
Right-to-Know  Rules

The rules known as "Right-to-Know Rules" include
the Public Notification (PN) Rule and the Consumer
Confidence Report (CCR) Rule. Implementation
of the CCR Rule began in October 1999. The PN
Rule applied to public water systems in states with
approved primacy programs in May 2002.

   •  According to the data, during recent periods
      there has been a significant decrease in
      HSNCs related to consumer confidence  reports, record keeping, and public notification
      violations.

   •  From 2006 - 2008, the CCR Rule continued to challenge many systems. However, CCR
      HSNCs declined by nearly 52 percent (or 1,104 systems) between the 2003 - 2005 and
      2006 - 2008 periods. Additionally, the data show that CCR HSNCs decreased from 576
      systems in 2007 to 268 in 2008. This could be due to an increase in the knowledge of the
      systems in terms of CCR compliance. In the 2003 - 2005 period, the number of HSNCs
      due to the CCR  Rule was high (up to 1,250 HSNCs in 2003). This further supports the
      trend that there  is an increase in violations following the start of implementation of a
      rule.  Although the CCR Rule was promulgated in 1998, the CCR SNC definition was not
      established until 2003.

   •  As discussed earlier, implementation of the GWR could lead to increased violations (e.g.,
      public notification)  in upcoming years, particularly for small systems.
                                      11

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Types  of Violations: M&R vs TT vs  MCL

The type of violation - monitoring & reporting (M&R), treatment technique (TT), or maximum
contaminant level (MCL) - is what identifies systems as HSNCs. Below are several findings
regarding the types of violations in the HSNC data.
                               Exhibit 10: HSNCs by Violation, Over 4 HSNC Periods
                                    Please see Appendix B for an explanation of violation types.
                                    4,500
•  As shown in Exhibit 10,
   failure to correctly monitor
   and report was the most
   common reason that
   systems became HSNCs.
   The data indicate that M&R
   HSNCs slightly increased
   (by approximately 5
   percent) in the 2006 -
   2008 period. During the
   2006 - 2008 period, the
   rules linked to the majority
   of the M&R HSNCs were
   Chem/Rad, Stage 1 DBPR,
   LCR, and TCR.

•  Exhibit 10 shows that
   the number of HSNCs
   due to M&R violations
   peaked during the 2000 -
   2002 period; there were
   approximately 4,000 HSNCs caused by M&R violations in this period, an increase of
   approximately 38 percent (or 1,121 systems) over the previous period. In 2003 - 2005,
   the number of HSNCs caused by M&R violations dropped back down towards the 1997
   - 1999 levels. HSNCs due to M&R violations slightly increased again in the 2006 - 2008
   period. EPA suspects this increase could be due to the 3-year monitoring cycle required
   under the Phase II/V rules as explained earlier in the document.

•  For some states, a significant number of M&R violations might be tied to a data
   management change implemented within the 2006 - 2008 period. For example, Oregon
   moved from using individual data systems to SDWIS/State, which features automated
   compliance tracking for some rules. This resulted in an increase in violations and HSNCs
   in Oregon in late 2006.

•  For other states, the increase in M&R violations could be due to an increase in the
   knowledge of implementing these rules. As state staff become more familiar with the
   drinking water regulations, they are better able to implement the rule requirements and
   assign violations when appropriate.

•  Another reason for this increase in M&R violations could be the decrease and/or high
   turnover rate of certified operators at the public water systems. The data show that the
   number of systems that were HSNCs because they did not have a qualified operator
   has increased in recent years. The lack of technical knowledge at a significant number
   of systems could be one reason why there is an increase in M&R violations. At least one
                                         12

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   state has reported that the number of certified operators in the state is far less than the
   number of systems that require a certified operator to manage the system.

   Approximately 90 percent of the HSNCs due to M&R violations continue to be small
   systems. This trend is evident in Exhibit 11.

   M&R presents a significant barrier in protecting public health since a missed sample does
   not allow the state to know the quality of the water being produced.

    Exhibit 11: HSNCs by System Size and Violation, Over 4 HSNC Periods14
                   Please see Appendix B for an explanation of violation types.
                                                                MRDL
                              Violation Type, Systems Size
                                                        01997-1999
                                                        • 2003-2005
12000-2002
I 2006-2008
•  HSNCs due to MCL violations were highest in the 2006 - 2008 period. HSNCs due to
   MCL violations in the 2006 - 2008 period increased by approximately 35 percent (or 378
   systems) over the previous period. Additionally, the number of HSNCs in the 2006 - 2008
   period was more than double that of the 2000 - 2002 period (see Exhibit 10). The majority
   of HSNCs due to MCL violations are small systems, as shown in Exhibit 11. In each
   reporting period, small systems comprised over 80 percent of all MCL HSNCs.

•  As shown in Exhibit 10, HSNCs due to TT violations have decreased by approximately
   30 percent, or 123 systems, between the 2003 - 2005 and 2006 - 2008 periods. HSNCs
   due to TT violations were highest in the 1997 - 1999 period. As shown  in  Exhibit 11, small
   systems have the highest number of TT HSNCs.

•  Regulations that contain TT requirements are the suite of SWTRs, LCR, and, in the future,
   GWR.

•  As evident in Exhibit 11, MRDL violations are not a major source of HSNCs.
 14 The 8 systems that changed size categories are double counted in this exhibit. See Footnote 7 for more details.

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Trends in Violations  Linked  to  Technical, Managerial &

Financial  Issues	

As part of enforcement data collection efforts, states were asked to identify if the reason the
system was an HSNC was due to the lack of technical, managerial, or financial capacity.  Based
on the information provided by some states, these were some of the findings the data reflected:

   •  When states were asked by EPA to identify the reasons for prevalence of HSNCs,
      they frequently noted the lack of short-term technical, managerial,  or financial capacity
      (see Exhibit 12).15 Short-term technical, managerial, or financial problems have been
      particularly common since 2004, with an increase of 45 percent from the time period 2003
      - 2005 to the period 2006  - 2008. Although this increase correlates with the timing of the
      implementation of Stage 1  DBPR requirements for systems serving fewer than 10,000
      persons, the data do not provide enough information to make a strong correlation.

              Exhibit 12: HSNCs by Violation and Reason, 2006  - 2008
     Please see Appendix B for an explanation of violation types and reasons for History of Significant Non-
                                      Compliance.
                           HSNCs with MCLor
                            MRDL Violations
HSNCs with M&R
   Violations
                         33%
                                                   HSNCs with TT
                                                    Violations
    15 Ohio identified long-term technical, managerial, or financial capacity as a reason code for HSNC prevalence, but did
  not specify the exact reason associated with technical, managerial, or financial capacity.

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  •  Other commonly cited reasons for violations include long-term technical, managerial,
     or financial capacity and long-term compliance schedule (particularly for MCL and TT
     violations). Long-term compliance schedule was noted for systems that are developing
     adequate technical, managerial, and financial  capacity to achieve compliance and are
     adhering to an approved compliance schedule. Other states noted problems such as:

     •S  Unresolvable disinfection byproduct exceedances.
     •S  Consecutive system compliance issues.
     S  Poor source water quality.
     •S  Inexperienced system operators and management.
     •S  Chronic failure to file CCRs.

               How the State of South Carolina uses Capacity Development
                            to Return Systems to Compliance

The South Carolina Department of Health and Environmental Control (DHEC) Capacity
Development team has been actively working to support return to compliance efforts for water
systems in need.  Several Capacity Development success stories are noted below:

    •  One system was detecting total coliform during regular sampling intervals. The system's
      service area is a high-growth area with significant construction,  and the state's Capacity
      Development team determined that the system 's  operator was not assisting local construction
      crews with locating water lines, and was not operating the system's chlorination system.
      With the help of the South Carolina DHEC Regional staff, the team learned that line breaks
      occurred routinely in the system, but that repairs were made without notifying the system and
      subsequently, disinfection was not performed. The Capacity Development team educated the
      system operator on the appropriate procedures to return the system to compliance.

    •  One system continuously exceeded the MCL for the disinfection byproduct Total
      Trihalomethane (TTHM). The system and a team from the DHEC participated in a 2.5 year
      EPA pilot program with the technical support center in Cincinnati, Ohio. The study confirmed
      the operator's belief that the problem was not in the plant, but in the  distribution system.
      Following the study, the operator was able to convince the system's board of the importance
      of a comprehensive flushing program and the need to improve the tank turnover time to stay
      under the MCL.

    •  Coliform bacteria were identified through monitoring at one system.  The bacterial hits
      were found both inside the water facility and at the wellhead. In response, the Capacity
      Development team participated in the system's sanitary surveys and visited the owner to
      negotiate the connection of the system to a nearby system. The connection was finalized and
      the contaminated well was taken out of service.

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Conclusions
Even though the number of small systems classified as HSNCs has decreased in recent years,
systems serving 3,300 and fewer people still represent the majority of the HSNCs identified
across the nation.  It is important to note, however, that small systems also comprise more than
90 percent of all water systems in the United States. Almost 1,500 water systems have been
repeat HSNCs since 2003, with over 90 percent (or 1,314 out of 1,452 systems) serving 3,300
and fewer people.  As such, these small systems clearly require additional technical, managerial,
and financial assistance to prevent violations.

States have identified "short-term technical, managerial and financial issues" as the number
one reason systems were  classified as HSNCs. Short-term technical,  managerial, or financial
capacity problems usually  address operation and maintenance activities such as inexperienced
operators, high turnover in management and operators, funding shortfalls or unexpected
expenses, inadequate sampling plans, and incomplete or lack of Consumer Confidence Reports,
among other issues.

The fact that states identified short-term technical, managerial, or financial capacity as the
primary reason for non-compliance highlights the importance of the state Capacity  Development
programs to help public water systems achieve sustainability. Currently, there are many tools
and approaches to help systems attain and maintain short- and long-term capacity. Below are
some programs and tools  that states employ to help systems achieve compliance and become
sustainable. The extent of the use of particular programs, tools, and concepts varies by state.
Some of the programs and tactics that states utilize are listed below; check EPA's Web site for
additional information: water.epa.gov/type/drink/pws/smallsystems/.

   •  State Capacity Development Programs - The focus of these programs is to assist systems
      to develop and maintain the technical, managerial, and financial capacity to ensure public
      health protection. State Capacity Development programs have been critical in addressing
      the small system challenges across the  nation. States evaluate the capacity  of new water
      systems to ensure non-viable systems are not added to the inventory, and continuously
      assess existing systems to ensure they  maintain their capacity or provide the assistance
      needed to attain capacity.

   •  Drinking Water State Revolving Fund -  Under this program,  states use funds to provide
      loan assistance to public water systems for infrastructure improvements to ensure safe
      drinking water. The set-aside funds can  provide targeted assistance  to small water
      systems.

   •  Water Efficiency & Availability for Water Suppliers - Only so much freshwater is available
      for consumption. As a result of population growth,  greater competition of resources, and
      early signs of climate change, drinking water suppliers will increasingly need to adopt best
      industry practices for water efficiency as well as new strategies that adjust for variable
      water quantity and quality. For more information visit water.epa.gov/infrastructure/sustain/
      main_wp.cfm.

   •  Asset Management & CUPSS - Managing assets (e.g., buildings, equipment, pipes, and
      operators) ensures  that a system gets the most value from each of its assets, has the
      financial resources  to rehabilitate and replace them when necessary, and can reduce

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   costs while increasing the efficiency and the reliability of a system. One EPA tool for asset
   management at small drinking water and wastewater utilities is the Check Up Program
   for Small Systems (CUPSS). CUPSS provides a simple, comprehensive approach
   based on EPA's highly successful Simple Tools for Effective Performance (STEP) Guide
   series. Effective asset management can address system challenges such as increasingly
   stringent regulatory requirements, setting appropriate rate structures, and potential
   system failures. Systems can use CUPSS to help develop records of assets, a schedule
   of required tasks, an understanding of a system's financial situation and a tailored asset
   management plan. For more information, visitwater.epa.gov/infrastructure/drinkingwater/
   pws/cupss/index.cfm.

•  Operator Certification Program - Recruiting, training and certifying water system operators
   is vital to the capacity and long-term sustainability of a water system. EPA has developed
   various materials on improving water system operation and developing experienced
   operators. For example,  see Water System Operator Roles and Responsibilities: a Best
   Practices Guide. www.epa.gov/safewater/smallsystems/pdfs/guide_smallsystems_
   operator_08-25-06. pdf

•  Restructuring of Systems - Water systems facing continuous compliance problems
   should consider restructuring, which involves changes to the operational, managerial, or
   institutional structure of a water system. Restructuring options can range from relatively
   minor changes in a system's procurement processes to transferring ownership of a
   system through consolidation or regionalization. EPA has developed case studies on
   restructuring, such as: Restructuring and Consolidation of Small Water Systems, www.
   epa.gov/ogwdwOOO/smallsystems/pdfs/compendium_smallsystems_restruct.pdf

•  Technical Assistance - In addition to states, many organizations across the country
   provide technical assistance to small systems. States can help identify a technical
   assistance provider.  For help in this selection, see the EPA Partner Web site at water.epa.
   gov/type/drink/pws/smallsystems/partners.cfm#partners.

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Appendix  A  -  Changes to the  PWSS  Program Approach

EPA is implementing a new, more comprehensive approach for enforcement of the Public Water
System Supervision (PWSS) Program under the SDWA. As part of this effort, a new Enforcement
Response Policy (ERP) and Enforcement Targeting Tool (ETT) will be used. This system-based
approach uses a tool that enables the prioritization of public water systems by assigning each
violation a "weight" or number of points based on the assigned threat to public health. One goal
of the ERP is for states and EPA to help water systems return to compliance.

The revised ERP and new ETT will allow EPA to maintain the consistency and  reliability of the
enforcement program, while increasing its effectiveness at protecting public health. The ETT will
rank systems with health-based violations, while revisions to the ERP will help ensure that these
systems return to compliance.

Currently,  EPA uses the SNC status to target enforcement efforts. SNC status reflects a system's
failure to comply with  individual drinking water rules. Under the existing system, all SNCs are
treated equally, without regard to the gravity of the violation and without considering other
violations a system may have that are not identified as SNC.

The ETT will evaluate and rank public water systems' non-compliance across all drinking
water rules. The ETT  consists of a formula to rank water systems based on the severity of the
violations and the number of years since the first unaddressed violation. Each violation will be
assigned a value based on the threat it poses to public health. The formula will incorporate all
open-ended violations and any other violations that have occurred in the past 5 years. It will not,
however, include violations that have returned to compliance or that are covered under a formal
enforcement action and are deemed on the "path to compliance." A formal enforcement action  is
defined as one which  requires specific actions necessary for the violator to return to compliance,
is based on a specific violation, and is independently enforceable without having to prove the
original violation. The enforcement targeting formula is shown below, where S is equal to the
violation severity factor, and n is the number of years for which the system's oldest violation
remains unaddressed.

                PWS Score of Non-compliance = Sum(S1 + S2 + S3+ ...)+ n

The formula assigns a higher weight for acute health-based violations, where S is equal to ten
points. For each other health-based and TCR repeat monitoring violation, or for each Nitrate
M&R violation, S is equal to five points. Additionally, S is equal to one point for each other M&R
violation, or any other violation.

By assigning each water system a score using the (IS) + n formula, all water systems will be
ranked nationally. During the initial trial period for the ERP and ETT, any water system with
a score of 11 or higher will be recognized as a priority system. The EPA and states will use
concepts of escalating enforcement and timely and appropriate response to achieve a return
to compliance. Under the escalating enforcement concept, the state and EPA are expected
to escalate the responses to violations as they recur or increase in severity. Under the timely
and appropriate response concept, states and EPA have two quarters to return a system to
compliance after it is identified as a priority. If states and EPA are unable to return a system
to compliance within two quarters, the ERP expects to prioritize the system under a formal
enforcement action (e.g., administrative orders with or without penalties, state or federal civil
case, etc)  and place it "on a path to compliance."  States and EPA  should track the systems on

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a path to compliance so that they ultimately return to compliance according to the enforceable
schedule in the formal enforcement action. The new policy will ensure that timely action is
taken by states to resolve violations and to achieve  EPA's ultimate goal - to return systems to
compliance.

Appendix A contains the information that EPA had available for when this report was written. For
the most up-to-date  information on this policy, see EPA's Web site at: www.epa.gov/compliance/
civil/sdwa/.

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Appendix B  -  Tables of Acronyms
The HSNC data submitted and analyzed for this report includes information on CWSs and
NTNCWSs; it documents the trends of HSNCs by system size, system type, rule, violation, and
reason. In particular, the following variables are included in the HSNC dataset:

                          Table 1: Rules and Abbreviations
Rules Abbreviation
Total Coliform Rule
Surface Water Treatment Rule
Interim Enhanced Surface Water Treatment Rule and Long Term 1
Enhanced Surface Water Treatment Rule
Stage 1 Disinfectants and Disinfection Byproducts Rule
Filter Backwash Recycling Rule
Stage 2 Disinfectants and Disinfection Byproducts Rule*
Long Term 2 Enhanced Surface Water Treatment Rule*
Ground Water Rule*
Phase II/V Rule - Inorganic Chemicals (lOCs), Synthetic Organic Chemicals
(SOCs), and Volatile Organic Chemicals (VOCs) - and Radionuclides Rule
Lead and Copper Rule
Consumer Confidence Report Rule
Public Notification Rule
TCR
SWTR
LT1/LT1IESWTR
DBPR/Stage 1
DBPR
FBRR
Stage 2 DBPR*
LT2ESWTR*
GWR*
Chem/Rad
LCR
CCR
PN
* Due to the compliance dates of these regulations, violations for these rules are not present in
the data.

           Table 2: Definitions and Abbreviations of Reported Violations16
Violation Definition Abbreviation
Monitoring and
Reporting
Maximum
Contaminant Level
Maximum
Residual
Disinfectant Level
Treatment
Technique
Other
A water system's failure to monitor for, or report to the
state, the level of a contaminant on the required schedule
The maximum permissible level of a contaminant in water
which is delivered to any user of a public water system
Level of a disinfectant added for water treatment that
may not be exceeded at the consumer's tap without an
unacceptable possibility of adverse health effects. MRDLs
are enforceable in the same manner as MCLs under
Section 1412 of the SDWA
A required process intended to reduce the level of a
contaminant in drinking water
CCR, PN, record keeping, and notification violations
M&R
MCL
MRDL
TT
Other
    16 The 1997 - 2002 HSNC dataset included older violation codes, which were adjusted to match up with the newer
 violation codes in the 2003 - 2008 HSNC data.

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           Table 3: Reason for History of Significant Non-Compliance17'
                                                                          18
             Reason
Short-term technical, managerial, or
financial (IMF) problem
                     Definition
The system was out of compliance because of a short-
term problem such as an inexperienced operator,
or a short-term funding shortfall due to unexpected
expenses. The system has already addressed or is
expected to address the problem shortly and it returned
to compliance or is expected to return to compliance
soon.
Long-term technical, managerial, or
financial problem
The system lacked the fundamental technical,
managerial, and/or financial capacity to achieve
compliance. Short-term assistance for the system would
not resolve the long-term compliance problem.
System was on a long-term
compliance schedule to correct the
problem
The system was developing adequate technical,
managerial, and financial capacity to achieve
compliance and was adhering to an approved
compliance schedule.
Recalcitrance
System showed no interest in attempting to resolve the
compliance problem.
Unknown
The reasons for the system's non-compliance are not
known.
   17 The following states did not submit reason codes for 2003-2005 data: AK.AZ, ID, IL, KY, Ml, OH, OR, PA, UT, WA,
andWI.
   18 An additional reason code "Data Error" could be used by states. Data Error are systems that were not actually a SNC
for 3 or more quarters during the period. These systems are not included in the analysis for this report.
                                          21

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Appendix  C -  HSNCs by  State
The following table lists the number of HSNCs and small system HSNCs that were used to
develop Exhibits 4 and 5.

          Table 4: Number of HSNCs and Small System HSNCs by State
                   State
Number of
 HSNCs
  Number of
HSNCs that are
Small Systems
Alaska
Alabama
Arkansas
Arizona
California
Colorado
Connecticut
Washington D.C.
Delaware
Florida
Georgia
Hawaii
Iowa
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Massachusetts
Maryland
Maine
Michigan
Minnesota
Missouri
Mississippi
Montana
North Carolina
North Dakota
Nebraska
New Hampshire
New Jersey
New Mexico
265
53
66
591
68
167
64
1
26
306
61
6
46
87
55
31
33
74
202
21
50
74
67
27
74
53
88
324
7
7
54
65
82
258
37
53
506
61
150
56
0
26
271
59
4
44
80
52
26
30
38
175
12
48
71
64
25
69
49
87
290
6
7
52
49
78
                                  22

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State
Number of
 HSNCs
  Number of
HSNCs that are
Small Systems
Nevada
New York
Ohio
Oklahoma
Oregon
Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Virginia
Virgin Islands
Vermont
Washington
Wisconsin
West Virginia
Wyoming
68
172
60
190
201
341
191
16
18
31
28
55
41
76
35
95
211
33
70
15
61
154
54
151
182
316
161
14
17
29
15
47
33
76
35
91
196
27
58
14
              23

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24

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