OSW-FR-85-073)
Friday
January 43 1985
Environmental
                Agency
40 CFR Parts 260, 261, 264, 265, and 266
Hazardous Waste Management System;
Definition of Solid Waste; Final Rule

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614          Federal Register / Vol.  50,  No.  3 / Friday,  January 4, 1985  / Rules and Regulations
ENVIRONMENTAL PROTECTION
AGENCY

40 CFR Parts 260,261,264,265, and
266

[SWH-FRL 2703-7]

Hazardous Waste Management
System; Definition of Solid Waste

AGENCY: Environmental Protection
Agency.
ACTION: Final rule.

SUMMARY: On April 4,1983, EPA
proposed to amend its existing
definition of solid waste used in
regulations implementing Subtitle C of
the Resource Conservation and
Recovery Act (RCRA). Most of the
proposal dealt with the question of
which materials are solid and hazardous
wastes when  they are recycled. The
Agency also proposed general and
specific standards for various types of
hazardous waste recycling activities.
  We are finalizing much of the rule as
proposed, but have made a number of
changes and clarifications. The effect of
the rule is to clarify the extent of EPA's
jurisdiction over hazardous waste
recycling activities and to set forth the
regulatory regime for recycling activities
subject to the Agency's jurisdiction.
DATES: Effective Dates: These rules with
exceptions noted below, become
effective on July 5,1985. Sections
261.1(b), 261.2(e), and Part 266 Subpart F
(rules for which the regulated
community does not need time to come
into compliance) are  effective December
20,1964.
  Compliance Dates: All persons who
generate, transport, treat, store, or
dispose of wastes which are covered by
today's regulation must notify EPA or  a
State authorized by EPA to operate  the
hazardous waste program of their
activities under Section 3010 of RCRA
no later than  April 4,1985 unless these
persons previously have notified EPA or
an authorized State that they generate,
transport, tre,at, store, or dispose of
hazardous wastes and have received an
identification number. 'Notification
instructions are set forth in 45 FR12746,
February 26,1980.'
  All existing hazardous waste
management  facilities which treat, store,
or dispose of  hazardous waste covered
by today's rule and which qualify to
manage these wastes under interim
   1 Under the Solid Waste Disposal Amendments of
 1980 (Pub. L. 96-452 (October 21,1980)), EPA was
 given the option of waiving the notification
 requirement under section 3010 of RCRA, following
 revision of the section 3001 regulations, at the
 discretion of the Administrator.
status under section 3005(e) of RCRA
must file with EPA or a State authorized
by EPA to operate the hazardous waste
program to notification by April 4,1985,
and a Part A permit application by July
5,1985. Under the Solid and Hazardous
Waste Act Amendments of 1984, a
facility is eligible for interim status if
they were either in existence on
November 19,1980 or were in existence
on the effective date of any statutory or
regulatory change under RCRA that
requires them to obtain a section 3005
permit. See RCRA amended section
3005(e). Facilities which have qualified
for interim status will not be allowed to
manage the wastes covered by today's
rule after July 5,1985, unless: (1) They
file a notification with EPA or an
authorized State by April 4,1985, and (2)
they submit an amended Part A permit
application with EPA or an authorized
State by July 5,1985 (see 40 CFR
270.10{g)).
ADDRESSES: The official record for this
rulemaking is located in Room S-212A,
U.S. Environmental Protection Agency,
401M Street. SW., Washington, D.C.
20460 and is available for viewing from
9:00 a.m. to 4:00 p.m., Monday through
Friday, excluding holidays.
FOR FURTHER INFORMATION CONTACT:
RCRA Hotline, toll free, at (800) 424-
9346 or at (202) 382-3000. For technical
information, contact Matthew A. Straus,
Office of Solid Waste (WH-562B), U.S.
Environmental Protection Agency, 401M
Street, SW., Washington, D.C. 20460
[202) 475-8551.
PART I: Introduction and Background
I. Legal Authority
II. Alternatives
  A. Alternative Approaches of Determining
    When Secondary Materials Which Are
    To Be Recycled Are RCRA Solid Wastes
  B. Alternatives for Regulating Hazardous
    Wastes That Are To Be Recycled
HI. An Overview of the Final Definition of
    Solid Waste
  A. Materials That Are Solid Wastes
    1. Types of Recycling Activities That Are
    Within the Agency's Subtitle C
    Jurisdiction
    2. Types of Secondary Materials That
    Are Within the Agency's Subtitle C
    Jurisdiction
    3. Secondary Materials That Are Subtitle
    C Wastes When Recycled in Particular
    Ways
  B. Secondary Materials That Are Not Solid
    Wastes
  C. Variances From Classification As Solid
    Wastes
Part II: Secondary Materials That Are
    Subtitle C Solid And Hazardous Wastes
    When Recycled
I. Definitions of Particular Terms Used in the
    Amended Definition of Solid Waste
  A. Spent Materials/Sludges/By-Producta/
    Scrap Metal
    1. Spent Materials
    2. Scrap Metal
      a. Classification
      b. Recycled Hazardous Scrap Metal Is
    a Solid Waste
      c. Definition of Scrap Metal and
    Regulatory Distinctions Between Scrap
    Metal and Other Metal-Containing
    Wastes That Are Recycled
    3. By-Products Versus Co-Products
  B. Definitions Of Incinerator, Boiler, and
    Industrial Furnace
    1. General Classes of Combustion Units
    2. Definition of Incinerator
    3. Definition of Boiler
      a. Adoption of a Standard Based on
    Integral Design of the Device
      b. Supplementation of Integral Design
    Standard With Additional Physical
    Standards
    4. Definition of Industrial Furnace
II. Discussion of Specific Provisions of the
    Revised Definition of Solid Waste
  A. Section 261.l(b): Purpose and Scope
    1. Use of the Regulatory Definition of
    Solid Waste Only for Purposes of the
    Subtitle C Regulations
    2. Use of the Statutory Definition for
    Purposes of Sections 3007, 3013, and 7003
x B. Section 261.2(b): Materials That Are
    Solid Wastes Because They Are
    Abandoned
  C. Section 261.2(c)(l): Wastes and Waste-
    Derived Products That Are Used in a
    Manner Constituting Disposal
    1. The Proposed Provision
    2. Extension of Jurisdiction to Hazardous
    Waste-Derived Products That Are
    Applied to the Land
    3. Regulatory Strategy for Commercial
    Products Containing Hazardous Wastes
    That Are Placed on the Land
  D. Section 261.2(c)(2}: Wastes That are
    Burned to Recover Energy, are Used to
    Produce Fuels, or are Contained in Fuels
    1. Materials That are Wastes When
    Burned as Fuels
    2. Determining When a Waste is Burned
    for Energy Recovery and Applicability of
    the Rules to Burning for Materials
    Recovery
      a. Burning for Energy Recovery
      b. Burning for Material Recovery
      c. Amendment to Applicability Section
    of Subpart O of Parts 284 and 265
      d. Examples of How These Provisions
    Operate
    3. The Agency's Future Plans for
    Regulating Burning of Hazardous Waste
    for Ene_rgy Recovery
    4. Regulation of Generators,
    Transporters, and Storers of Hazardous
    Wastes Before the Wastes Are Burned
    for Energy Recovery
  E. Section 261.2(c)(3): Reclamation
    1. Definition of Reclamation
    2. The Status of Reclaimed Products
  F. Section 261.2(c)(4): Wastes That Are
    Accumulated Speculatively
    1. Grouping of Speculative Accumulation
  •  and Overaccumulation Provisions
    2. Section 261.2(c)(4)(A): Wastes That
    Are Accumulating With Expectation of
    Recycling But Which Have Not Been
    Recycled
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              Federal Register / Vol. 50, No. 3 /  Friday, January 4, 1985  / Rules and Regulations
                                                                              615
   3. Section 261.2(c)(4)(B): Wastes
   Accumulating Before Recycling That Are
   Not Recycled in Sufficient Amounts
     a. The Proposed Provision
     b. The Final Regulation
     c. The Requirement That Materials of
   the Same Class Being Recycled the Same
   Way be Counted Together
     d. Means of Satisfying Burden  of Proof
     e. Response to Comments
     f. Variances for Secondary Materials
   Not Recycled In Sufficient Volumes
 G. Section 261.2(d): Secondary Materials
   That Are Designated as Solid Wastes
   1. The General Standard
   2. Application of the Standard to Specific
   Wastes
 H. Section 281.2(e): Secondary Materials
   That Are Not Solid Wastes When
   Recycled
   1. Secondary Materials Used As
   Ingredients to Make New Products or
   Used as Substitutes for Commercial
   Products
     a. The Agency's Subtitle C Jurisdiction
     b. Redrafting of the Exclusion  in the
   Final Rule
     c. Distinguishing Sham Situations
   2. Closed-Loop Recycling
     a. The Agency's Proposal
     b. Modification of the Proposal
     c. Explanation of the Requirements
   That Secondary Materials Not Be
   Reclaimed, and That They be Returned
   to the Original Process
     d. Variance for Hazardous Wastes
   That Are Reclaimed and Then Returned
   to the Original Process
     e. Examples
   3. Recycling of Secondary Materials By
   Primary Facilities
     a. The Agency's Proposal
     b. Modification of the Proposal
     c. Examples
  I. Secondary Materials Specifically
   Excluded From the Definition of Solid
   Waste
   1. Section 261.4(a)(6): Black Liquor
   Reclaimed and Reused in the Kraft Paper
   Process
    2. Section 261.4(a)(7): Spent Sulfuric Acid
    Used To Produce Virgin Sulfuric Acid
  J. Section 261.2(f): Burden of Proof in
    Enforcement Actions
PART HI: Standards for Managing Hazardous
    Wastes That are Recycled
1. An Overview of the Final Regulations
  A. Outline of the Final Regulations
  B. Elimination of Conditional Exemptions
  C. Summary
II. Discussion of Specific Provisions  of the
    Regulation
  A. Section 261.6(a)(l): Recyclable Materials
  B. Section 261.6(a)(2)(i) and Part 266
    Subpart C: Recyclable Materials Used In
    a Manner Constituting Disposal
    1. The Proposed Rule
    2. The Final Rule
    3. Exemption for Hazardous  Waste-
    Derived Products
    4. Exemption for Commercial Hazardous
    Waste-Derived Fertilizers
    5. Regulation of Transport and Storage of
    Hazardous Waste Before Processing of
    Waste-Derived Products To  Be Placed on
    the Land
   6. Example
 C. Section 261.6(a)(2)[ii) and Part 266
   Subpart D: Recyclable Materials Burned
   For Energy Recovery in Boilers and
   Industrial Furnaces
 D. Section 261.6(a)(2)(iii) and Part 266
   Subpart E: Recycled Used Oil
 E. Section 261.6(a)(2)(iv) and Part 266
   Subpart F: Precious Metal Reclamation
   1. Retention of the Partial Exemption
   2. Definition of Precious Metal
   3. Distinguishing Sham Operations
   4. Status of Wastes From Precious Metal
   Reclamation When Hazardous Wastes
   Are Reclaimed
 F. Section 281.6(a)(2)(v) and Part 266
   Subpart G: Spent Lead-Acid Batteries
   Being Reclaimed
 G. Recyclable Materials Exempt From
   Regulation
   tl. Section 261.6(a)(3)(i): Reclaimed
   Industrial Ethyl  Alcohol
   2. Section 261.6(a)(3)(ii): Used Batteries
   Returned to a Battery Manufacturer for
   Regeneration
   3. Section 261.6(a)(3)(iii): Used Oil
   Exhibiting a Characteristic of Hazardous
   Waste
   4. Section 281.6(a)(4)[iv): Scrap Metal
 H. Section 261.6 (b) and (c): Requirements
    for Generators, Transporters, and
   Storage Facilities
    1. The Generally Applicable  Standards
    2. Conforming Amendments to §§ 261.5,
    264.1, and 265.1
    3. Revision of §  260.10: Definition of
    "Designated Facility"
 I. Variances
    1. Case-by-Case Regulation
     a. The Substantive Standard
     b. Procedures for Case-by-Case
    Determination
    2. Variances From Classification as a
    Solid Waste
     a. Materials Accumulated  Without
    Sufficient Amounts of Materials Being
    Recycled
     b. Materials That Are Reclaimed and
    Then Reused  Within the Original
    Primary Process in Which They Were
    Generated
     c. Materials That Have Been
    Reclaimed But Must Be Reclaimed
    Further Before Recovery Is Completed
    3. Variance To Be Classified as a Boiler
    4. Procedure for Variances
    5. Should EPA Adopt a Variance for
    Batch Tolling Agreements
PART IV: Economic, Environmental, and
    Regulatory Impacts
I. State Authority
  A. Applicability in Authorized States
  B. Effect on State  Authorizations
II.  Regulatory Impact
III. Regulatory Flexibility Act
IV. Paperwork Reduction Act
V. List  of Subjects
SUPPLEMENTARY INFORMATION: Under
Subtitle  C of RCRA, EPA is granted the
authority to regulate hazardous wastes.
Hazardous wastes, however, are defined
in the  statute as a subset of "solid
waste."  (See Sections 1004(5) and
1004(27).) It thus is necessary to define
what a solid waste is in order to
determine the extent of EPA's
jurisdiction under Subtitle C.
  On April 4,1983, EPA proposed to
amend the existing regulatory definition
of solid waste. See 48 FR14472. The
proposal defined which materials were
solid wastes when disposed of, burned,
incinerated, or recycled. The greater
part of the proposal dealt with the
question of which materials are solid
wastes when recycled—the area  where
the extent of the Agency's authority is
not explicit on the face of the statute.
EPA also proposed regulatory standards
for various types of hazardous waste
recycling activities, with the standards
varying according to the type of activity.
  EPA received well over one hundred
comments on the proposed rule,
including comments from states,  waste
generators, waste recyclers,
environmental groups,  and members of
the public. The Agency also held three
public hearings on the proposal, at
which we received additional
comments. Virtually all commenters
agreed that the proposed rule was a
substantial improvement over the
existing regulations because it replaced
the "sometimes discarded" feature of
the existing definition.2The majority of
the commenters also supported the
proposal  (or at least key parts of it).
Many commenters, however, expressed
concern that the proposed rules were
very complicated. Other criticisms  were
substantive. Some waste generators
challenged the Agency's classification of
certain recycling activities as waste
management, or even reiterated a
challenge to EPA's authority under
Subtitle C of RCRA to regulate recycled
materials as solid wastes. Commercial
recyclers were divided in their reaction,
with commercial chemical  waste
recyclers (who would generally be
regulated more comprehensively under
the proposal than under the existing
rules) being generally favorable,  while
recyclers of metal-containing waste
were generally opposed.
   Reaction from states also was
divided. (There were fourteen comments
from state or government agencies. The
State of Nebraska also conducted an
informal  survey of 25 states for their
reactions to the proposed rules. Some of
the survey respondents were among the
direct commenters to the Agency.)
Although there were favorable
comments, some state officials
expressed concern with some of the
   MO CFR 261.2(b) (2) and (3) indicate that spenl
 materials and by-products that sometimes are
 discarded are solid wastes. This standard applies to
 all materials of a given type and so charges
 generators with knowledge of what other generators
 do with the same material.
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Federal Register-/ Vol.  50, No. 3  /  Friday. January 4, 1985./ Rules and Regulations
 proposed conditional exemptions from
 regulation. They argr^d that the
 exemptions were too broad, particularly
 with respect to lack of notification,
 recordkeeping, and waste tracking
 provisions. Some states also criticized
 the absence of storage controls on
 certain recycling operations. States and
 administrative agencies were virtually
 unanimous in urging the Agency to take
 more and immediate action against
 burning hazardous waste-derived fuels
 and contaminated used oil.
   The major environmental group to
 comment on the proposal was critical of
 many of the provisions, particularly the
 conditional exemptions for certain
 hazardous waste recycling activities.
 The Congressional Office of Technology
 Assessment voiced similar criticisms.
 Certain (but not all) segments of the
 non-recycling commercial hazardous
 waste management community also
 criticized the conditional exemptions.
   After reviewing the comments, EPA
 has decided to adopt the proposal as a
 final rule, but with a number of
 modifications and clarifications. In
 defining s solid waste, the key concept
 of the proposal was that ordinarily one
 must know both what a material is and
 how it is being recycled before knowing
 whether it is a solid waste. We are
 retaining this concept, which had
 substantial support from  commenters, in
 the final rule. Although we are adhering
 to this conceptual approach, we are
 making substantive changes regarding
 which secondary materials are wastes
 when burned as fuels and when placed
 on the land, and also regarding certain
 of the proposed exclusions, which we
 now think were ambiguous or
 overbroad. In addition, we are clarifying
 how the regulations apply to the
 recycling of hazardous scrap metal; we
 are also indicating explicitly that certain
 types of materials being recycled are not
 solid wastes.
   We are also altering the proposed
 regulatory regime. The most significant
 change is to eliminate most of the
proposed conditional exemptions. These -
 exemptions, we now believe, would not
have adequately protected human,
health and the environment from the
risks of leaks and spills.
  We also have made a number of
 drafting changes to clarify the definition
 of olid waste and its accompanying
re jlatory provisions. We have revised
 th • definition to  state more clearly the
 types of recycling activities that do or
 do not constitute waste management,
 and have included a chart of materials
 and recycling activities (Figure 1 to the
proposed rule) as part of the final rule.
Accompanying definitions have been
transferred to a new applicability
                          provision in § 261.1. We also are
                          expressing certain exceptions to general
                          principles as variances, contained in
                          Part 260.                       '
                            Today's preamble is organized into
                          four large sections. Part I contains a
                          background discussion and a summary
                          description of the final regulation. Part n
                          deals with the question of which
                          materials are solid wastes, and
                          especially the question of which
                          materials are solid (and hazardous)3
                          wastes when recycled. Part III discusses
                          the management standards for
                          hazardous waste recycling activities,
                          and Part IV addresses the regulatory
                          impacts of the final rule.
                            Described in more detail, Part I of the
                          preamble'describes briefly the Agency's
                          legal authority, and alternative
                          approaches the Agency considered
                          instead of the one actually adopted. The
                          final section of this part of ths  preamble
                          summarizes the portions of the final rule
                          stating which hazardous secondary
                          materials are and are not RCRA Subtitle
                          C wastes when recycled.
                            Pert II of the preamble discusses  the
                          Agency's jurisdiction (under Subtitle C)
                          over secondary, materials that are to be
                          recycled. We explain each provision in
                          the rule that states which hazardous
                          secondary materials are and are not
                          RCRA Subtitle C wastes when recycled.
                          We first explain the new definitions
                          involved in the rule—principally
                          regarding types of secondary materials
                          and types of thermal combustion units.
                          We next discuss each provision of the
                          rule stating when hazardous secondary
                          materials that are to be recycled are
                          wastes. For each provision, we discuss
                          the proposed rule, the final rule, how
                          and why it differs from the proposed
                          rule, and respond to major comments.  (A
                          separate background document
                          responding to each comment is part of
                          the record for this rulemaking.)
                            Ir Part III,'we describe the regulatory
                          standards for hazardous wastes that are
                          to be recycled. We also discuss in this
                          section the variance provisions tvst are
                          part of the final rule.
                            Part IV summarizes the economic and
                          regulatory impacts expected to result
                          from this regulation. A separate report
                          on the economic impacts is part of the
                          record for this rulemaking.  ,
                            'Although hazardous wastes are a. subset of solid
                          wastes under RCRA. EPA's regulatory authority
                          under Subtitle C applies only to hazardous wastes.
                          Since the present regulations apply only to Subtitle
                          C, we, have chosen to make the definition of solid
                          waste applicable to those materials that also are
                         .hazardous wastes. See Section H.A. of Part 2 below.
                          The terms thua are synonymous for purposes of the
                          Subtitle C regulations. In addition, we are using the
                          terms (as well as the term "waste" or "Subtitle C
                          waste") synonymously in this preamble.
Part I: Introduction and Background

/. Lega] Authority  , '-  _,      • '

  The Agency in the April 4 preamble
described fully its position that
Congress gave EPA authority to regulate
recycled secondary materials as solid
and hazardous wastes under the Subtitle
C regulations. See 48 FR 14473,14502-
505. Subsequent legislative
pronouncements again confirm pur
interpretation. See H.R. Rep. No. 98-198,
98th Cong. 1st Sess. at 46. Some
commenters repeated old'arguments
challenging the Agency's authority, but
raised no points not already  answered.
We consequently see no heed to discuss
these points again. In any case, the
recent Hazardous and Solid Waste Act
Amendments of 1984 (HSWA) appear to
have settled this question .V» explicitly
requiring EPA to adopt "standards
applicable to the legitimate use, reuse,
recycling, and reclamation of
(hazardous) wastes" (RCRA  amended
section 3001(d)(2)). We add that the
Agency's construction is made in the
context of a "legislative directive .  . .
(that) is implicit rather than explicit",
and that the construction is a
"reasonable interpretation" of the
ambiguous statutory term "solid waste".
Chevroa U.S.A. y. NRDC,— U.S.	,
    : (1984). The Agency's construction
thus is surely a "permissible" one. Id. at
  Certain other commenters indicated
that RCRA provides EPA with
unrestricted authority to regulate all
recycling as waste management. The
Agency does, not fully accept this
argument. We agree that RCRA
embodies a general principle that most
hazardous secondary materials 4 are
considered to be hazardous wastes
when recycled. Congress enacted a
regulatory approach to deal with the
problem of ensuring safe hazardous
waste management. (H.R. Rep. No. 94^
1491, 88th Cong. 2d Sess. at 4.) We
indeed believe that the statute expresses
a presumption that accumulated
hazardous secondary materials are solid
and hazardous wastes in order that this
regulatory approach be applied to "the
last remaining loophole in
environmental law" (id). We believe.
however, that the grant of authority in
RCRA over recycling activities is not
  ' Throughout this preamble, EPA refers for
convenience Jo "secondary materials.1' We mean a
material ihat potentially can be a solid and
hazardous waste when recycled. The rule itself
refers to the following types of secondary materials:
Spent materials, sludges, by-products, icrap metal.
and commercial chemical products recycled in ways
that differ from their normal use. The rule do«e not
use the term secondary materials."

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             Federal Register  /  Vol. 50,  No. 3  /  Friday, January 4, 1985 / Rules and Regulations
unlimited. Specifically, we do not
believe our authority extends to certain
types of recycling activities that are
shown to be very simitar to normal
production operations or to normal uses
of commercial products. We also do not
accept the argument that a potentially
harmful recycling practice is invariably
subject to, regulation under Subtitle C,
since potential environmental harm is-
not always a determinative indicator of
how closely a recycling activity
resembles waste management We again-
believe that this construction is a'
permissible one. 'Chevron supra,	
U.S. at	. [This discussion b
developed further in Seei:-en H. of Part
II. of the preamble.)
//. Alternatives
A. Alternative-Approaches for
Determining When Seeohdan Materials
Which Are To Be Recycled ;'-..  .CRA
Solid Wastes
  Aa stated in- the preamble to the
proposed- rule, determining which
secondary materials ase- wastes when
recycled presents conceptual and
practical difficulties. The  Agency
considered several approaches! other
than the one ultimately adopted* but
ended by retaining the overall approach
proposed initially.
  It is evident that the Agency is
adopting a complicated regulatory
scheme. These are two simpler
alternatives; to say that all secondary
materials being recycled are wastes* or
that all are not wastes. Neither of these
alternatives isi satisfactory. The
Agency's May 19, I960 definition took
essentially the former approach and' it
proved unacceptable- to both the Agency
and the regulated community [see 48 FK
14475). Comments were virtually    .
unanimous- w urging the Agency to
refect this approach.
  Not classifying recycled materials as
wastes is- equally unacceptable. We
read the statute to state that hazardous
secondary materials being recycled are
wastes and that we ordinarily feave
jurisdiction to regulate most recycling
activities involving these  materials. We
also believe that regulation of most of
these activities is necessary to protect
human health and the environment.
Furthermore, we doubt whether
completely avoiding Eegtilation would'
necessarily promote recycling, as some
commenters maintain. The Agency is
impressed by comments of both
generators, states and' members- of the
recycling community who state that
some regulation is needed to assure- both
the public ar*d generators that their
wastes- will not be mishandled! when
sent to recyelers. See- comments of
National Association of Solvent
Reclaimers, Washington, B.C. Public
Hearing, June IS,1983; .Comments of
American Electronics Association, San
Francisco Public Hearing, June 23,1983,
Comments of States of Iowa and
Michigan [August, 1983). These persons
maintain that regulation of these
activities will encourage wastes both to
be recycled, and recycled' in a
responsible manner.
  Another approach, discussed in the
April 4 preamble, would be to use' a
standard based on value, whereby a
recycled material would count as a solid
waste when a person other than the
generator is- paid to recycle it. Although
this factor is relevant for enforcement
purposes in determining whether a
recycling activity is a sham, the Agency
continues to believe that it is not a
successful regulatory approach for the
seasons given in the April 4 preamble.
See 4E FR14478-481. Most eoiranentera
agreed with the Agency that this
approach should not be adopted..
  The Agency also attempted to-fashion
a narrative definition stating
categorically whethe* secondary
materials are or are not wastes. The
narrative  standard would be based on
whether materials are typically dealt
with aa commodities, and whether they
contain significant concentrations of
non-recyclable toxic constituents not
customarily found ia analogous raw
materials. [See 48 FR 14478 at n.7j
  The Agency continaes to believe that
this type of definition is too subjective
to serve a& a self-implementing
standard. Commenters agreed The
Agency also continues to think, and
comiaenters generally, agreed, that in,
most cases one must know both what
the material is and how it is being
recycled before determining whether it
is a waste. A narrative definition based
On the nature of the material itself thua
cannot serve successfully as a
regulatory standard.5

B. Alternatives for Regulating
Hazardous Wastes That Are To Be
Recycled      •                  ; "
   In considering how to regulate
hazardous wastes- thaf are to= be
recycled, the Agency differentiated at
proposal between facilities presenting a
significant risk of waste
overaccamntation before recycling and
those that did not. We; viewed
overaccumulation as the chief danger to
  "The Agency does believe that some secondary
 material's are inherently waste-like, and will specify
 in the-rule that these materials are solid wastes. See
 i 281.2(dJ. For the most part, however,, we think ffiat
 a secondary material's identity as a waste turns
 both on what it is. and how it is recycled.
guard against, and so proposed to
conditionally exempt from regulation
those types of recycling operations that
do not present a significant risk of
overaccumulation before recycling. See
48 FR 14477,14486. The chief types of
recycling operations that would have
been conditionally exempt were those in
which a generator reclaimed its own
wastes, those in which a reclaimer
reclaimed for its own subsequent use, or
when wastes were reclaimed pursuant
to batch tolling agreements. Id At the
same time, we indicated that we were
continuing to evaluate whether
hazardous waste leaks and spills could
occur at these operations (before        \
prolonged accumulation) and whether   "
regulation was necessary tp protect
human health and the environment. Id
at 14477. In essence, we investigated
further the hypothesis that if these
wastes were handled as if they were
products, and were not-
overaccumul'ated, they would be
managed safely without RCKA controls.
   We have come to the. conclusion that
most of the conditional exemptions that
we proposed were unjustified, because
the- risk of damage from spills and leaks
at'th^se facilities indicates that
regulation is necessary to protect human
health and the environment.' Simply
because a waste is likely to be recycled
will not ensure that it will not be spilled
or leaked before recycling occurs. In the
first place, the analogy we drew at
proposal—between wastes, stored
before certain types of recycling and!
products, stored before use—is
frequently incorrect. Wastes in many
cases have little independent economic
value, but are recycled to avoid disposal
costs. Persons storing this type of
hazardous waste before recycling are
very much like persons  storing
hazardous waste before disposal: there
is nothing about the waste that makes it
so valuable that safe handling is. assured
absent regulation.,
   Furthermore, safe handling ia not
always assured even for hazardous
wastes that are more like commodities
in terms of value. A company's decision
on how carefully wastes, are handled
. before recycling turns chiefly on a range,
of factors—principally the value of the
wastes .being, recycled and the value of
the end products of recycling, versus the
cost of purchasing additional raw
materials, the profit mazgin of the
facility.'and the cost of improving the
integrity ofthe facility. Unless the
wastes are extremely valuable [as in
legitimate precious metal reclamation)
 there is no imperative incentive to avoitl
leaks and spill's. In confirmation, there
have been massive leaks of'high purity

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618
Federal Register /Vol. 50,. No.. 3 / Friday, January 4,  1985; / Rules  and Regulations
'solvents and gasoline (to name only
some of the more valuable commodities)
from product storage tanks, showing the
risk of spillage of stored commodities.
The recent addition of Subtitle I to
RCRA to control leaks from
underground product storage tanks
confirms that the risk of harm from
spillage is significant. Indeed, there have
been a number of instances of
graundwater contamination caused by
improper storage of hazardous wastes
awaiting reclamation by their generator,
hazardous wastes being reclaimed
pursuant to batch tolling agreements, ,
and hazardous wastes being reclaimed
before use by the reclaimer—the .
situations that would have been
conditionally exempt under the
proposal. (See Appendix A.)
  Equally important, the Agency already
has determined that it is necessary to
regulate hazardous waste storage in
order to protect human health and the
environment, and has also determined
that regulations are needed to prevent
the "uncontrolled release of hazardous
waste constituents Into the
environment." See 46 FR 2802,2807
(January 12,1981). These prior findings
are relevant to the question of regulating
hazardous waete storage before
recycling. There is a risk, as stated
above, that spills and leaks of
hazardous waste'will occur, even if the
wastes eventually will be recycled.
Spills and leaks are the principal
example of uncontrolled hazardous
waste releases from storage and thus
ordinarily require regulatory control
The Agency is persuaded that its
existing findings are valid for hazardous
wastes stored before recycling except in
those situations in which wastes are so
economically valuable that there is an
economic imperative to avoid release.
  The Agency thus finds that the factual
basis for most of the conditional
exemptions in the proposal was not
justified, and that the Agency's general
findings as to the need to control
hazardous waste storage are valid for
these recycling situations. Hazardous
wastes stored before reclamation—even
where there is minimal risk of
overaccumulation—still can present
significant potential for hand to human
health and the environment if
mismanaged, and market mechanisms
are insufficient to prevent
mismanagement from occurring.
Regulation thus is called, for.
  In determining the level of regulation
to adopt for those facilities which would
have been conditionally exempt, the
Agency is guided by the principle that
the paramount and overriding statutory
objective of RCRA Is protection of
                          human health and the environment. The
                          statutory policy of encouraging recycling
                          is secondary and must give way if it is
                          in conflict with the principal objective.
                          See 48 FR 14474/1,14492/2; see also
                          H.R. Rep. No. 98-198, supra, at 46.6 We
                          accordingly have determined that, for
                          the most part, the conditional
                          exemptions we proposed were
                          unwarranted and facilities recycling in
                          these ways should be subject to
                          regulation under the Subtitle C rules.
                          ///. An Overview of the Final Definition
                          of Solid Waste
                          A. Materials That Are Solid Wastes

                           The revised definition of solid waste
                          states that any material that is
                          abandoned by being disposed of,
                          burned, or incinerated—or stored,
                          treated, or accumulated before or in lieu
                          of these activities—is a solid waste. The
                          remainder of the definition states which
                          materials are wastes when recycled.
                           The amended definition adopts the
                          approach that for. secondary materials
                          being recycled,' one must know both
                          what the material is  and how it is being
                          recycled before determining whether or
                          not it is a Subtitle C waste. This
                          approach differs sharply from the
                          existing definition (40 CFR 261.2). which
                          states that all sludges, and virtually all
                          other secondary materials (i.e. all those
                          that are sometimes discarded by anyone
                          managing them (see fn. 2 above)), are
                          wastes no matter how they are recycled.
                          In understanding the revised definition,
                          therefore, one must consider the types of
                          secondary materials in conjunction with
                          types of recycling practices.
                           1. Types of Recycling Activities That
                          Are Within The Agency's Subtitle C
                          Jurisdiction. The definition states that
                          four types of recycling activities are
                          within EPA's jurisdiction:
                            • Use constituting disposal. This
                          activity involves directly placing wastes
                          or waste-derived products (a product
                          that contains a hazardous waste as an
                          ingredient) onto the land. Extending
                          jurisdiction to waste-derived products
                          placed on the land represents a change
                          from the proposal;
                            • Burning waste or waste fuels for
                          energy recovery, or using'wastes to
                          produce a fuel;
                            • Reclamation. This activity involves
                          the regeneration of wastes or the
                         . recovery of material from wastes;
                           "The Agency also does not believe that
                          hazardous waste recycling will be discouraged in
                          those situations that we now intend to regulate. Not
                          only do the incremental costs of regulation appear
                          to be minimal (see Part IV of this preamble), but
                          regulation can actually encourage recycling. See 45
                          FR 33092 (May 19.1980) and Section II.A. above.
  • Speculative accumulation. This
activity involves either accumulating,
wastes that are potentially recyclable,
but for which no recycling market (or no
feasible recycling market) exists, or
accumulating wastes before recycling
unless 75% of the accumulated material
is recycled during a one-year period.
(This provision now includes the
activity referred to in the proposal as
overaccumulation.)
  2. Types of Secondary Materials That
Are Within The Agency's Subtitle C
Jurisdiction. These categories of
recycling activities then are divided
further according to the type of
secondary material involved—spent
materials, sludgss,  by-products, or -
commercial chemical products (a
division present in  the existing
regulations—see 40 CFR 261.2(b)(l)(3)).
We also have clarified the proposal by
adding a new category of secondary
material—scrap metal.
  "Spent materials" are materials that
have been used and are no longer fit for
use without being regenerated,
reclaimed, or otherwise re-processed.
Examples are spent solvents, spent
activated carbon, spent catalysts, and
spent acids.
  "Sludges" are defined in RCRA and
the implementing regulations as residues
from treating air or wastewater, or other
residues from pollution control
operations. (See RCRA section
1004(26){A) and 40 CFR 260.10.)
  "By-products" are defined essentially
the same way as in the existing
definition to encompass those residual
materials resulting from industrial,  .
commercial, mining, and agricultural
operations that are not primary
products, are not produced separately,
and are not fit for a desired end use
without substantial further processing.
The term includes most secondary
materials that are not spent materials or
sludges. Examples  are process residues
from manufacturing or mining processes,
such as distillation column residues or
mining slags.
  "Commercial chemical products " are
the commercial chemical products and
intermediates, off-specification variants.
spill residues, and  container residues
listed in 40 CFR 261.33. Although these
materials ordinarily are not wastes
when recycled  (see 45 FR 78540-541,
November 25,1980), we are including
them as wastes when they are recycled
in ways that differ from their normal
use, namely, when they are used in a
manner constituting disposal, or when
they are burned for energy recovery,
(assuming these materials are neither a
pesticide nor a commercial fuel).

-------
       "Scrap metaf is defined as bits or
     pieces of metal that are discarded after
     consumer use or that result from metal-
     processing operations. Examples are
     scrap automobiles and scrap radiators
     (commonly referred to as post-consumer
*    scrap) and scrap turnings and scrap
     fines' (commonly referred to as obsolete
     scrap).
       3. Secondary Materials That Are
     Subtitle C Wastes When Recycled in
     Particular Ways. As we indicated in the
     proposal, sludges and by-products
     sometimes are difficult to characterize
     as wastes or non-wastes when they are
     reclaimed. 48 FR 14478. Many by-
     products and sludges in the mining
     industry, for example, are routinely
     processed further to recover usable
     metals in a manner much like continued
     processing of the virgin ore. As stated
     above, neither the Agency nor any
     commcnter-could devise a self-
     implementing narrative standard that
     convincingly distinguishes between
     product-like and waste-like sludges and
     by-products being reclaimed.
       The Agency thus has structured the
     final regulation so that the Agency must
     evaluate these materials individually
     before determining whether they are
     subject to RCRA jurisdiction when they
     are to be reclaimed. Thus, in the final
     regulation, only sludges and by-products
     listed in 40 CFR 261.31 and 261.32 are- -
     solid wastes when reclaimed.'
       The Agency does not perceive this
     difficulty for the remaining types of
   ,  recycling over which we have
     jurisdiction. Thus, all secondary
     materials (i.e. all spent materials,
     sludges, by-products, and scrap metal)
     are considered to be wastes when they
     are used hi a manner constituting
     disposal, are burned for energy recovery
     or used to produce a fuel, or are
     accumulated speculatively. The Agency
     proposed that only listed by-products
     would be wastes when burned for
     energy recovery or used to produce a
     fuel, but is changing the proposal for the
     reasons stated in Section II.V.D. of Part
     2 of the preamble.
  The following table, which appears in
the regulation itself, summarizes when
secondary materials are solid wastes
when recycled:
TABLE 1, Matrix of .Which Types of Secondary Materials Wiii-bB Defined,as Soiid and Hazardous
Wastes When RecycJafl! and Which Types of Recycling Activities Constitute Waste Management.
       'The Agency intends that residues derived from '
     reclaiming listed by-products and sludges also be.
     considered to be listed for purposes of tills
     regulation. This is in accord with 40 CFR 281.3{c)(2j
     and (d)(2) and 40 CFR 260.22(b). These provisions
     state that residues derived from treating, storing, or
     •disposing of listed hazardous wastes are also
     considered to be listed hazardous wastes, and; for
     delieting purposes, to have the same constituents of
     concern as the hazardous wastes from which they
     are derived. Under the amended definition of solid
     waste, therefore, if a reclaimer distills a listed by-
     product,'and then reclaims the resulting distillation
     bottom, the distillation bottom also is considered to
     be a listed by-product and therefore a waste when
     reclaimed.                            <
- • •

4Clortstic).
Stodges (Hs!*d}.v,..-~...v 	 -,.« 	 «.,...,.»..._....,«....*.
SkxJge8(norttstetJ/charact«jistJc).^ 	 „., 	
By*pfotfucUt ffetgd) ..^............t—.........................*......
By-jyodutrts (nonteted/charftctef&tic).. — .—• - —
•J £61.33 that are no< ortfnarity tppftaci to th*
Utod or tournsd a« ft«t&.

Uss eonitituting '
"Ssposai
Yes.,,....! 	 '. 	 - 	
Yea.._. ,..~...,,.— 	 -....
Yes.,. 	 ..„„ 	 „.
Yos.... __.„.....„.......-»......
¥e»..,..,~i_._., 	 	 	
Y*s r .
Y««

Burning lor
energy recovery,
or use to
produce 0 fuel
Yes
Yes 	
Yes 	 	 .......
¥«»..„„ 	 	
Yes.— 	 	 	
Yss . ....- 	
Y«s .. .. ~. 	

Reclamation
Yas 	 . . .„ ,.
Yea 	 	
No 	 „ 	
Yas 	 „ 	
No 	 	
No 	
Yes— 	 - 	

Speculating
accumulation
Yes.
Yes.
Ye*.
Yes.
Yes.
Mo.
Y«s.

  Yes—Defined es a aottd vmsla
  No—Not defined «a a solid waste.
  In addition, there are certain materials
that are inherently waste-like,
regardless of how they are recycled. The
Agency has reserved the right to
designate these materials as solid
wastes, and has Designated the
chlorinated and dioxin dibenzofuran
containing FQ20, F022-F023, FQ28, and
F028 wastes as solid wastes no matter
how they are recycled.
  The Agency again emphasizes that to
determine if a secondary material is a
RCRA solid waste when recycled, one
must examine both the material and the
recycling activity involved. A
consequence is that the same material
can be a waste if it is recycled in certahV
ways, but would not be a waste if it is
recycled in other ways. For example, an
unlisted by-product that is reclaimed is
not.defined as a solid waste. However,
the same by-product is defined as a
waste if it is recycled by being (a)
placed on the land for beneficial use, (b)
incorporated into a product that is
placed on the land for beneficial use, (c)
burned as a fuel, (d) incorporated into a.
fuel, or (e) accumulated speculatively.
Obviously, the by-product also is a
waste whenever it IB disposed of or
incinerated rather than recycled.

B. Secondary Material? That Arq Not
Solid Wastes •

  Not all recycling activities involve
waste management. Based on'pur   •  •
reading of the statute and legislative
history, the definition excludes two
activities involving direct use or reuse of
secondary materials, and one activity
where these materials are recycled
without first being reclaimed by being
returned as a raw material substitute to
the original primary production process.
These activities ordinarily will not be
considered to involve waste
management because they are like
ordinary production operations or
ordinary usage of commercial products.

  (1) Using or reusing secondary
materials as ingredients or feedstocks in
production processes. When secondary
materials are directly used as an
ingredient or a feedstock, we are
convinced that the recycled materials
are usually functioning as raw materials
'and therefore should not ordinarily be
regulated under Subtitle C. Examples
are using fly ash as a constitutent in
cement, or using distillation bottoms
from the manufacture of carbon
tetrachloride as feedstock in producing
tetrachloroethylene. However, when
distinct components of the material are
recovered as separate end products (i.e.,
recovering lead from scrap metal in
smelting operations), the secondary
material is not being used, but rather
reclaimed and thus, would not be
excluded under this provision. The other
major exception to this provision is
When spent materials, by-products,
sludges or scrap metal are used as
ingredients in waste-derived fuels or in
waste-derived products that will be
placed on the land; In these situations,
not only is the spent material, sludge,
scrap metal, or by-product a solid waste,
but the waste-derived product remains
subject to RCRA jurisdiction as well.
   (2) Using qr reusing secondary
materials as effective substitutes for
commercial products. When secondary
materials are directly used as
substitutes for commercial products, we
, also believe these materials are
functioning as raw materials and
therefore are outside of RCRA's
jurisdiction and, thus, are not wastes.
Examples are certain sludges that are
used as water conditioners and by-
products hydrochloric acid from
chemical manufacture used in steel

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620          Federal  Register / Vol. 50, No.  3  / Friday, January 4,  1985 / Rules and Regulations
pickling. In these examples, the recycled
materials are substituting for other
commercial products, and material
values are not being recovered from
them.

  (3) Return of secondary materials to
the original primary production process
in which they are generated without
first reclaiming them. When secondary
materials are returned to the original
primary production process (from which
they are generated) without first being
reclaimed, we likewise believe this
recycling activity does not constitute
waste management. This provision has
been modified from the proposal to
cover more precisely those closed-loop
production processes that use secondary
materials as return feed  to the original
primary process.
C. Variances From Classification as
Solid Wastes
  We also have promulgated variance
provisions allowing the Regional
Administrator or authorized States to
determine that certain materials that are
to be recycled are not solid wastes.
There are three such variances:.
  • Materials accumulated without
sufficient amounts being recycled. The
Agency proposed that persons failing to
recycle 75% of their accumulated waste
material could petition the Regional
Administrator to declare that  the
material is not a waste. We are retaining
this provision and are formally terming
it a variance;
  • Materials that are reclaimed and
then reused within the original primary
production process in which -they were
generated. The Agency proposed a
complete exclusion for this type-of
situation, referred to in the proposal as
closed-loop recycling. We are now
convinced that the proposal was too
broad but that individual exclusions
may be warranted; and
  • Materials that are reclaimed bat
must be reclaimed further before       ,
material recovery i$ completed. This
variance would allow individual
consideration of whether an initial
reclamation process is only minimal     ,
processing or whether it  substantially
completes the recycling process.
  The following tables summarize the
differences between the  final and
proposed rules with respect to the
secondary materials that are and are not
solid and hazardous wastes when
recycled:
BILLING CODE 6560-SO-M

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          r        •                       '        -  -        'i"       ' '        *
Federal Register /Vol. jOrNo. 3 I'.Friday. January 4,1985 /Rules and Regulations
                                                                                                621
                                                  - 33 -

                           Table 2:  Secondary Materials That Are Solid and Hazardous
                                     Wastes
                              :ary M
                               men
Recycled;  Proposalv. Final Role






Spent Materials
(both listed and
non-listed exhibit-
ting a characteris-
tic)


Use Consti-
tuting
Disposal
Final
Yes...




i
Sludges (listed) ' Yes...
Sludges (non-
listed "exhibiting a
characteristic)
By-products (listed)
By-Products
(non-listed exhibit-
ing a character-
istic)
Commercial chemi-
cal products
listed in 40 CFR
§261.33 that are
not ordinarily
applied to the
land or burned
as fuels
Scrap Metal


Yes...
Yes...
Yes...



Yes...







Yes...
Proposal
Yes...





Yes.,.


Yes...
Yes...
Yes...



Yes. . .







Yes...
Burning for Energy
Recovery , Use to
Produce a. Fuel,
or Fuels Containing
These Materials
Final
Yes...





Yes...


Yes...
Yes...
Yes...



Yes...







Yes...
Proposal
Yes...





Yes...


Yes...
Yes...
No...



Yes...







**/




Reclamation
Final
Yes...





Yes..


No...
Yc.?,.
No....



NO.,*







Yes...
Proposal
Yes...





Yes...


No...
Yes...
No...



No..!.







**/



Speculative
Accumulation
Final
Yes...





Yes...


Yes...
Yes..
Yes ...



NO..O







Yes...
Proposal
Yes. . .





Yes...


Yes...
Yes...
Yes...



No...







Yes...
Yes = Defined as a solid waste
No = Not defined as a solid waste
jV   Final rule includes hazardous waste-derived products  (products containing a hazardous waste)
     that are placed on the land.  The proposal did not cover these waste-derived products.
**/  Some scrap metal was classified as a by-product under the proposed rule, and this type of
     scrap metal would not have been a waste when reclaimed or burned for energy recovery.

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 622
Federal Register  / Vol.  SO, No.  3 /Friday,  January 4,  1985 /Rules and  Regulations
 TABLE 3. MATERIALS THAT ARE  NOT SOLID
   AND HAZARDOUS WASTES WHEN RECYCLED:
   PROPOSAL v. FINAL ROLE
        Proposal
 (*) Secondly m*t«ltit uud
  or noted *• IngreoTentt,
 (b) Secondary rneteritb wed
   or rtused  tt  ntnVtuMi
   for nw m*l*rU> In prfcnuy
   proceuet.
  or ratiMd In  • pertfcUar
  function *§ » wteStuUi tor
  * eommtreW praduct
 (o> Secondly mtMcUit r»-
' d*)m«d «t th« pdnt  dt«
  (nd rcdirmd «o th» orlglnd
                 prooM
 (•) UnArM tludg** tod by-
  cWmtd
 (0   UnCtt*d   fcy^rodudi
  Ixjrrxd M fu«U or kxxxpo-
  rtwd Wo fut*.
 to}  {No»  »p«eae«Sy  pro-
  POMO).
 (h)  (Not  t(»cfficafty  pro-
                               Fkulnil*
       S*nw,*«io*pl m«l*rial*UMd
        In • product ttitl I* «ppH*J
        to tend (or btneficial ta*
        «>• daftud M oM'ot.
       MoolfM and »ub«um«d to d)
       Moo%«d to apply to weond-
        wy mttoriilt  t«tun«d  M
        mw matarial* to *>• origl-
        not  poiDwy   pfocwdioo
        pronw uithouttnl bting
                         ond«y mtMrtdt thtt tra
                         «n( ncWnwd and ihM »•
                         turned to In6 oofltnw pvoo*
                         •M «r» tfsfOt for • v«ri-
                         «nc« from being • MM
                        Sun*.
       Chwiged; tr»M byfrodueti
        m defined w wutee In
        ftelmlrule.
       Stock Iquor neyded ee pert
        of the Krtfl peper proeen.
       Spent tuHurle acid uted to
        rruWng virgin wWuric acid.
 MUWQ CODS WW-40-H

-------
Federal Register / Vol. 50, No. 3 / Friday, January 4, 1985 / Rules and Regulations
623




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-------
 624	Federal Register /  Vol. 50,  No. 3 / Friday,  January  4. 1985 / Rules  and Regulations
 Part II: Secondary Materials That Are
 Subtitle C Solid and Hazardous Wastes
 When Recycled
 I. Definitions of Particular Terms Used
 i'n the Amended Definition of Solid
 Waste
 A. Spent Materials/Sludges/By-
 Producls/Scrap Metal
   The final definition classifies the
 universe of secondary materials that are
 wastes when recycled as either sludges,
 spent materials, by-products, or scrap
 metal.'With the exception of scrap
 metal, this is the same classification
 scheme as in the proposed rule. See 48
 FR14478/2. We have not changed the
 proposed definition of "sludge," but are
 clarifying what we mean by spent
 materials and by-products. We also are
 explaining the new definition of scrap
 metal.
  1. Spent Materials. We are continuing
 to define spent materials as those which
 have been used and are no longer fit for"
 use without being regenerated,
 reclaimed, or otherwise re-processed. In
 response to comments, however, we
 have altered the wording of the
 definition of spent material to express
 this  concept more clearly. As the
 proposal was worded, a spent material
 was one that had been used and no
 longer could serve its original purpose.
 The  Agency's reference to original
 purpose was ambiguous when applied to
 situations where a material can be  used
 further without being reclaimed, but the
 further use is not identical to the initial
 use.  An example of this is where
 solvents used to clean circuit boards are
 not longer pure enough for that
 continued Use, but are still pure enough
 for use as metal degreasers. These
 solvents are not spent materials when
 used for metal degreasing. The practice
 is simply continued use of a solvent.
 (This is analogous  to using/reusing a
 secondary material as an effective
 substitute for commercial products.) The
 reworded regulation clarifies this by
 stating that spent materials are those  •
 that  have been used, and as a result of
 that  use become contaminated by
 physical or chemcial impurities, and can
 no longer serve the purpose for which
 they wore produced. (This reworded
 definition appropriately parallels the
 definition of "used oil"—a type of spent
 material—in RCRA section 1004(36).)
  In  response to comment, we also  note
 that  leftover, unreacted raw materials
from a process are not spent materials,
since they never have been used.
 Unreacted raw materials thus are not
 subject to RCRA jurisdiction unless they
 are discarded by being abandoned.
   2. Scrap Metal—a. Classification. We
 have added a new definition of scrap
 metal to the final regulations. At
 proposal,  scrap metal that was
 generated as  a result of use by
 consumers (copper wire scrap, for
 example)  was defined as a spent
 material. (This type of scrap is usually
 referred to as "obsolete scrap".) Scrap
 from metal processing,  on the other
 hand (such as turnings  from machining
 operations) was defined as  a by-
 product. (It is usually called "prompt
 scrap".) Yet the scrap metal in both
 cases is physically identical (i.e., the
 composition and hazard of both by-
 product and spent scrap is essentially
 the same) and, when recycled, is
 recycled in the same way—by being
 utilized for metal recovery (generally in
 a secondary smelting operation).
   In light of the physical similarity and
 identical means of recycling of prompt
• scrap and obsolete scrap, the Agency
 has determined that all scrap metal
 should be classified .the same way for
 regulatory purposes. Rather than
 squeeze scrap metal into either the
, spent material or by-product category,
 we have placed it in its own category.
   b. Recycled Hazardous Scrap Metal is
 a Solid Waste. We have further
 determined that for purposes of the
 regulations implementing Subtitle C of
 RCRA, all scrap metal that would be
 hazardous9 is a solid waste  when
 disposed of or when recycled (although,
 as explained  in more detail  below, it is
 exempt from Subtitle C regulation at this
 time when recycled). Scrap metal is
 waste-like in  that it is a used material
 that is no longer fit for use and must be
 reclaimed before it can be used again, or
 is a process residue that must be
 recovered in a different operation from
 the one in which it was generated.
   We also believe that  scrap metal
 comes within the series of statutory
 definitions which state  generally that •
 materials from which resources are
 recovered are solid wastes.  See RCRA
 sections 1004  (19), (30),  (22), (7), (18),
 (23), and (24); see also 48 FR at 14502/1-
 2. Based on these provisions, the Agency
 has stated that most reclamation
 operations involve waste management,
 and all reclamation operations utilizing
 materials that have been used and that
 must be re-processed before they can be
 reused constitute waste management.
 We believe that scrap metal that is   '
  •Commercial chemical products listed in S 281.33
«!lo ura wnitei when recycled to the land or burned
*J fuel(. when this Ii not their normal manner of
USB,
   •For clarification of this point, see the discussion
 of I 281.1(b). Section I1.A. of this part of the.
 preamble.
being reclaimed fits within these
provisions.
  c. Definition of Scrap Metal and
Regulatory Distinctions Between Scrap
Metal and Other Metal-Containing
Wastes That Are Recycled. Although
we are defining hazardous scrap metal
as a Subtitle C waste when recycled, we
are exempting such metal from
regulation for the time being. We need
to study types of scrap metal and types
of management practices further before
deciding on an appropriate regulatory
regime (if any). It thus is important to
distinguish scrap metal from other
metal-containing wastes that are subject
to Subtitle C regulations when recycled.
See Section II.H.4. of Part III of the
Preamble.
  Scrap metal, as defined in this rule,
means bits and pieces of metal parts
(e.g., bars, turnings, rods, sheets, wire),
or metal pieces that are combined
together with bolts or soldering (e.g.,
radiators, scrap automobiles, railroad
box cars), which when worn or
superfluous can be recycled. Put another
way, scrap metal is defined as products
made of metal that become worn out (or
are off-specification) and are recycled to
recover their metal content, or metal
pieces that are generated from
machining operations (i.e., turnings,
stampings, etc.) which are recycled to
recover metal. Materials not covered by
this term include residues generated
from smelting and refining operations
(i.e., drosses, slags, and sludges), liquid
wastes containing metals (i.e., spent
acids, spent caustics, or other liquid
wastes with metals in solution), liquid
metal wastes (i.e., liquid mercury), or
metal-containing wastes with a
significant liquid component, such as
spent batteries.
  We have defined scrap metal in this
way based on our general understanding
of the way industry uses this term. As
noted, this definition does not include
liquid spent materials that contain
metals. Liquids are different from metal
pieces in content, physical form, and.
manageability. Members of both the
National Association of Recycling
Industries (NARI) and the Institute for
Scrap Iron and Steel (ISIS) also
generally agree that liquid wastes are
not commonly referred to as scrap
metal. Although these metal-bearing
liquids and scrap metal are both
classified as solid wastes under this rule
(if hazardous), the regulatory
significance of not including these
liquids as scrap metal is that the liquids
are subject to immediate regulation
when they are reclaimed (assuming they'
are hazardous spent materials, listed
sludges, or listed by-products) whereas

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              Federal Register  /  -Vol. 50, No.  3 / Friday,  January 4, 1985  /., Rule's $ad Regulations  •        625
             T^'T''Tf'™"""*B"™"''«^*™H^hl«tJIW1t1E«1ltf19W?Pc'afl^'^""^'«"'a'''^^                                         -':t~t ".TMg^ersTOg*""""uiu^pyMMHmjamtacMrwaM
scrap metal is not.10 It is iha Agericy's
judgment the* immediate regulation of
metal-bearing liquids,is appropriate
because: (1) (As liquids) They need
special precautions when managed, [2]
the current regulatory regime in Parts
264-265 is appropriate, and (3) wastes of
this type have been linked to a series of
damage incidents when stored before
reclamation.11 The reasons for deferring
regulation of scrap metal thus do not
apply here.        • : '
  Similar reasoning underlies the
Agency's classification of spent lead-
acid batteries as a spent material,
subject to immediate regulation when
reclaimed. Spent batteries,are different
in physical form from scrap metal
because  they contain substantial
amounts of liquid acid. As-discussed in
Section II.G. of Part III of this premable,
it is appropriate to immediately regulate
the storage of spent lead-acid batteries
at reclamation-facilities. We
consequently, are classifying and
regulating spent batteries differently
from scrap metal.
  Scrap metal is also classified
differently from me.tal-eontaining
process residues such as slags, drosses,
and sludges partly because it is different
in physical form and content. More
importantly, these residues can be
involved in recovery operations that
amount to on-going processing of the
virgin material and so are not invariably
wastes when utilized for metal recovery.
As noted above, this is hot the case
when scrap metal is recovered. For this
reason, ail hazardous scrap metal is
classified as a waste (although exempt
from regulation at this time), while
sludges and by-products being
reclaimed must be identified more
particularly.by listing before they are
wastes.    .;.''.
  3. By-products Versus Co-products.
We are also modifying the definition of
by-product. In the  proposed rules we
said by-products were not primary
products and were not solely or
separately produced. This language did
not directly address situations where
there are a number of co-products being
produced. By "co-product" we mean a
material produced for use by the general
public and suitable for end use
essentially as-is. Examples are sulfuric
acid from smelters' metallurgical acid,
plants, various metals produced, in
tandem by smejting operations (such as
lead recovered from primary copper
smelting operations), or co-products
such as kerosene, asphalt, or pitch from
petroleum refining. These co-products
are not (and were never intended to be)
covered by the regulations.
  We therefore are clarifying the
definition to indicate that by-products
are materials, generally of a residual
character, that are not produced
intentionally or separately, and that are
unfit for end use without substantial
processing. Examples are still  bottoms,
reactor cleanout materials, slags, and
drosses.
  On the other hand, materials
produced intentionally,  and which in
their exisiting state are  ordinarily used
as commodities in trade by the general
public, are considered to be co-products
end not by-products.12 In response to
coirment, we also note  that these
materials can be produced from a
combination of processes at a facility,
and need not result from one single
process.  (It is also possible to  put a by-
product to use—for example a still
bottom can be used as an intermediate  ,
to make a new product. The still bottom
would not be considered a waste under
the amended definition  due to its
manner of recycling™-use as an
ingredient. It would, however, atill be ?
by-product).
B. Definitions of Incinerator, Boiler, and
Industrial Famace
  1. General Classes of Combustion
Units. Many enclosed devices are used
to treat hazardous waste through
controlled flame combustion.13 The'
proposed regulations divided that
universe into three groups: incinerators,
boilers, and industrial furnaces. We are
adopting this same tripartite division in
the final rule. The Agency already
regulates the emissions from hazardous
waste  incinerators and  intends to
regulate the emissions from combustion
units that burn hazardous wastes for
energy recovery. Regulation will be
established at a level that is necessary
  10 In particular, in reviewing a booklet published
by the National Association of Recycling Industries
(NAR1) which classifies non-ferrous scrap into 133
different categories, most of the categories
described—approximately 85 percent—refers to
metal pieces (i.e., wire, castings! clippings, sheet
metal, slabs, etc.). See NARi Circular NF-82,
Standard Classification^ focNon-Ferrous Scrap
Metal. The Institute of Scrap Iron and Steel (ISIS)
likewise classifies scrap metal as metal pieces.
  1' See Appendix A.      •   i -  "
  " We note, however, that products or co-products
that include hazardous wastes as ingredients are
classified as wastes whan they are to be burned for
energy recovery or placed directly on the land for
beneficial use. See Sections V.C. and V.D. of this
part of the preamble.
  13 There are also a few hazardous waste
management devices which rely on thermal
treatment, but do not directly combust the treated
waste. EPA will allow permitting of those devices
under the criteria of 40 CFR Part 264, Subpart P:
Other Thermal Treatment, or under the criteria of 40
CFR Part 264, Subpart X: Miscellaneous Waste  ,
Management, following promulgation of those
Subparts.
  lo protect human health and the
,  navironment. It is necessary to ^
  distinguish arh'orig the types of
  combustion units, however, because
  incinerators are being regulated sooner
  than boilers and industrial furnaces, and
  because the ultimate standards for
  boilers and industrial furnaces may vary
  from each other, as well as  from the
  standards for incinerators.  ,
    2. Definition of Incinerator.  .
  Incinerators burning hazardous.waste
  are subject to the permitting standards
  of 40 CFR Part 264, Subpart O. An
  incinerator is defined as any enclosed
  device that is neither a boiler nor an    ;
  industrial furnace that uses controlled
  flame  combustion to treat waste. This
  definition differs from the text of the   .
  proposal-in order- to makeit clear that
  the three defined units—incinerators,
  boilers, and industrial furnaces—cover
  the entire universe of enclosed devices
  using controlled flame combustion to •
  treat hazardous, waste. The regulation
  also amends the former definition of  •  '
  incinerator, promulgated on May 19,
  1980, which defines the device in terms
  of the primary purpose for which wastes
  :are burned. However, this change is
 . essentially a clarification of the existing
  rules which should have little effect-on
  the number or identity of units already
,  subject to Subpart O. As -We stated at
  proposal, incinerators are built to
  destroy hazardous waste, so wastes
  burned in them are obviously being    ' •:
  burned for the primary purpose of  '    •
  destruction. 48 FR14484/2.
    The May 19,1880 definition focused
  on whether each waste fuel was burned
  for the primary purpose of destruction.
  Today's regulatory, scheme more
  appropriately describes how one can
  examine the nature of the combustion,
  unit to recognize combustion for
  purposes other than destruction. It then
  classifies units used for those activities
  as either boilers or industrial furnaces. If
  combustion o'f,a-waste does not meet
  the criteria for those classes.'then the
  primary purpose of its combustion is
  necessarily destruction. Thus, it should
  properly remain subject to  the
  permitting standards of Part 264,
  Subpart O.
    Comforming changes are being made
  in § §  264.340 and 265.340 defining the .'
  applicability of Subpart Q's standards
  for incinerators. Similarly,  § 265.370,
  defining the applicability of the interim
  .status standards for other thermal
,  treatment, is being amended. These •  ,
  changes clarify the coverage of flame
  combustion devices, but  do not alter
  existing obligations.
    3. Definition of Boiler. Boilers burning
  hazardous waste for energy recovery

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                 Federal Register / Vol. 50, No
                 ^	   - -- -
                                   1985 / Rules  and Regulations
   now fall within the exemption from
   regulation of actual recycling processes
   found in 40 CFR 261.8, pending
   promulgation of substantive regulations
   controlling emissions from burning
   hazardous wastes in them as may be
   necessary to protect human health and
   the environment. Thus, boilers do not
   now require RCRA permits to continue
   their combustion activities. (Storage of
   certain hazardous, wastes before burning
   requires a storage permit and the
   transport of these wastes is regulated,
   however. See 40 CFR 281.6(b).J
     a. Adoption of a Standard Based on
   Integral Design of the Device. The
   definition of boilers focuses on physical
   indicia of their legitimate use for energy
   recovery. The final definition, like the
   proposal, relies upon the concepts of
   integral design, combustion efficiency,
   and energy recovery. This reflects the'
   fact that boilers, unlike incinerators, are
   designed and operated to convert fuel
   into more usuable energy (generally
   steam). This is most efficiently done
   when energy recovery devices, such as
  water vessels, are physically In contact
  with (integrally connected to) the
  combustion chamber in which the fuel is
  burned."EPA consequently proposed
  that the combustion chamber and heat
  recovery sections of a boiler must be of
  Integral design-physically formed into
  a single unit—and that significant heat
  recovery must take place in the
  combustion chamber by means of
  radiant heat transfer.
   Many parties commented on the
  proponed definition, Some had
  generalized objections to the basic
  concept of a test based on physical
  criteria, arguing that it would stifle
  Innovation and that it was unrelated tq
  environmental.protection. Othe'rs had
  specific criticisms related to the
  proposal's exclusive reliance on radiant
 heat transfer as the measure of
  "significant heat recovery." Commenters
 also described a few specific types of
 legitimate boilers which might not meet  .
 the proposed "integral design" test.
   EPA has considered, but is
 unpefsuaded by, the general criticism of
 the rule's reliance on physical criteria to
 differentiate between these units.
 Significant regulatory consequences
 spring from the distinctions between
 classes of combustion devices, Thus, it
 is important that the tests for thosi?
 distinctions be unambiguous and easy to
 apply. The physical test of integral
  "van Nculrand's Scientific Encyclopedia (5th
Ed,) at 32+-331 define* "boiler t^rlace" as those
p*rti "which ara in contact with the hot gates on
one ilda and water or a mixture of water and steam
on Iht other ildc." Sea olio, McGraw Hill
Encyclopedia of Science and Technology (1962) at
    design meets those needs. The test also
    has environmental significance since it
    will pinpoint those cases in which the
    unit is hot designed to achieve efficient
    energy recovery and, thus, cannot be
    relied upon to attain complete
    combustion.
     Adverse impacts on innovation are
   unlikely to occur since the test focuses
   on efficient transfer of energy from fuel
   to fluids—the most common and
   widespread element of boiler
   technology. Furthermore, extensive
   comments actually identified only two
   limited classes of boilers for which the
   test could be inappropriate; the final
   regulation specifically deals with those
   classes, as discussed below. Finally,
   EPA has provided for a case-by-case
   determination that a unit is a legitimate
   boiler, based on an assessment of
   specified relevant factors.
     Under the final rule, therefore, the
   great majority of boilers can be
   unambiguously identified by a simple
   examination of. physical design while a
   case-by-case assessment can be made
   of the few units, for which it is possible
   that the physical test is inappropriate.
    b. Supplementation of Integral Design
  Standard With Additional Physical
  Standards. The integral design test is
  supplemented by quantified criteria for
  continuous and long-term energy
/ recovery. These supplementary testa are
  designed to ensure that units that are
  physically designed as boilers are not
  actually being used to destroy
  hazardous waste. In the final regulation
  these criteria are quantified and placed
  in the regulation to avoid the ambiguity
  about regulatory coverage which might
  have arisen if they had been left in the
  preamble, as at proposal. (A specific
  background document explains these
  criteria-in detail.)
    The final definition does include
  several changes based on specific
  technical comments. These are
  discussed in the background document;
 however, the major points are
 mentioned here.
   First, the definition of boiler now
 identifies specific units—process
 heaters and fluidized bed combustion
 units—which are generally recognized
 as boilers but for which the integral
 design test is not determinative of
 Whether the unit is a boiler. Historically,
 these units have generally been
 regarded as legitimate boilers despite
 the fact that they might not meet a strict
 integral design test. As such, they would
 often qualify for the case-by-case
 classification procedure, assuming they
 meet the energy recovery criteria. The
 explicit reference to them in the
   definition avoids the need for case-by-
   case assessments.
     Second, the definition now gives
   credit for all forms of heat recovery
   which are exported from the unit and
   actually are utilized. This significant
   technical change is in response to
   criticisms of the proposal's, reliance on
   radiant heat transfer alone As such, it
   avoids many problems of measurement
   and classification. In fact, measurement
   can now often be based on a simple
   comparison of annual feed to the unit,
   and annual pounds of steam recovered
   from the unit, with both measured in
   British Thermal Units fBTUj.
    Finally, the specific required .-.tnergy
  recovery ratios have been revised since
  proposal. The changes reflect the shift
  from reliance on radiant heat .recovery
  alone to reliance on  the total heat
  recovery. We are indicating that boilers
  must maintain a thermal energy
  recovery efficiency of 60 percent when
  in operation. (This is to be based on the
  higher heating value of the fuel, the
  common means of evaluating boilers
  efficiency in  this country.) This value is
  within the range recommended by
  commenters, and also is within the
  range of recoveries reported in relevant
  technical literature. We also are
  indicating that boilers must export and
  utilize 75 percent of the recovered
  energy on an annual  basis. This value
  allows for unit downtime but guards
  against situations where heat recovery
  elements have been added as incidental
  parts of a combustion unit, or have been
  added in an attempt to avoid
  classification as an incinerator. The vast
 majority of legitimate, well-maintained
 and well-operated boilers (and all those
 of which EPA is now  aware) should
 meet the criteria now in the regulation.
 Specific outlying units may be eligible
 for a case-by-case assessment,
   4. Definition of Industrial Furnace.
 Industrial furnaces burning hazardous
 waste for energy recovery are currently
 exempt from regulation by the
 provisions of 40 CFR 281.6, Thus, they  "
 do not now require permits to continue
 their combustion activities. (As with
 boilers, storage of certain hazardous
 wastes before burning in industrial
 frunaces requires a storage permit, and
 the transportation of these wastes is
 regulated. See § 281.6(b).)
   We indicated at proposal that
 industrial furnaces were those
 combustion devices designed as
 incinerators or as boilers that are used
 as integral components of manufacturing
processes to recover materials or
energy, not to destroy  wastes. 49 FR
14463. To be an "industrial furnace", a
unit had to fall within the classes that

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              Federal Register  / Vol. 50, No.  3 /
            '-• .-' -'-'v-v>:^''&&?;^^
            Friday, January % 1>?85/ Rules  ahti,Regulatigns           627
EPA had specifically designated in the
rule, based on a series of criteria
relating to how ths device was an
integral component of a manufacturing
process.
  We have adopted this same scheme in
the final rule. Thus, only those devices
specifically named in the regulation [i.e.,
in the definition of industrial furnace
contained in § 200.10] are considered  to
be industrial furnaces for purposes of
the regulation. The criteria for adding
new industrial furnaces are the same  as
at proposal. We have added certain new
devices to the list of industrial furnaces.
Our reasons are provided in the
background document supporting, this
portion of the regulations.

//. Discussion of Specific Provisions of
the Revised Definition of Solid Waste

A. Section 261.1(b): Purpose and Scope
  1. Use of The Regulatory Definition of
Solid Waste Only For Purposes of The
Subtitle C Regulations. The applicability
provision in the final rule is virtually
identical to the one proposed. Section
261.i(b)(l) reiterates that the regulatory
definition of solid waste applies only  to
materials that also are Subtitle C
hazardous wastes. This point is implicit
since  the regulatory definition of solid
waste appears in regulations
implementing Subtitle C of RCRA, which
subtitle only applies to hazardous
wastes. In response to comment, we are
adopting a clarifying provision in
§ 261.1(b) to ensure that the regulatory
definition is not used in unintended
contexts, for example to justify
regulation of non-hazardous wastes. The
language of the final rule is modelled  on
Section 8 of H.R. 2867 and is consistent
with the Committee's intent. See H.R.
Rep. 98-198 at 47.
  This provision also makes clear that
waste-derived products placed on the
land for beneficial use or burned as
fuels must themselves be hazardous [by
exhibiting a characteristic or containing
a listed hazardous waste] to be covered
by the rule.
  2. Use of The Statutory Definition for
Purposes of Sections 3007, 3013, and
7003. EPA also is promulgating
§ 261.1(b](2], which provision states that
the regulatory definition does not limit
the Agency's jurisdiction under Sections
3007, 3013, and 7003 of RCRA. Rather,
the statutory definitions of solid and
hazardous waste will apply when these
provisions are involved. A substantially
identical provision has been hi the
regulations since May of 1980. (Those
provisions recopied from the May 19,
1980 rules are not being repromulgated
and are not subject to judicial review.)
Several commenters objected to its
continued inclusion, arguing >thal the
statutory definitions of solid and
hazardous waste dp not provide  •./•'.
adequate notice to the regvitqled    •„
community. These comments are
unfounded. Congress clearly intended &•
broader definition of waste to apply ••.'..
whan these three provisions are
involved. See 48 FR at 14484 (Apw* 4, ,  ''
1983) and 45 FR 33C90 (May 19, J980);
see also H.R. Rep. SS-133 at 47 (EpA's
authority under Sections 3007 and 7003
includes all wastes that meet the
statutory definition of hazardous waste,).
Courts also have repeatedly applied the
statutory definition in Section 7003:
actions. See 48 FR 4502 n.87 (Section,
7003 actions against recycling facilities),
Therefore, the statutory definitions of
solid waste and hazardous waste will
apply in all actions involving Section?
3007, 3013, and 7003 of RCRA. This
means that the Agency's authority under
these provisions extends to all materials/
that could be solid wastes under R^RA,
not just to those defined as solid wastes
in the regulations. Thus, SPA has,
authority to sample a potentially
hazardous unUsted by-prpptyct being
reclaimed even though this material
would not be defined as a solid waste in -
§ 261.2. It could be a solid waste,
however;  the regulatory definition states /
that this is a question requiring material-
by-material consideration by EPA- IpPA
thus retains the statutory "authority to .'•
obtain the information necessary to
determine whether the materials are     ;
solid wastes (or, in the case of Sections
3013 and 7003, to talce appropriate
action under those provisions). The
same reasoning applies to materials/
potentially designable as solid wastes
under | 261.2(d).  .  " . .  ,            ;
  This portion of  the rule is effective
immediately. The HSWA amended
Section 3010 of RCRA to allpw rujes t
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   628
Federal Register /. Vol.- 50,
              Friday,
                                                                        4  1885  / Rules and Regulations
   applied to the land. They argued that the
   simple mixing standard in the proposal
   was imprecise, had no relation to
   environmental consequences, and
   deviated from Congressional intent to
   control placing hazardous wastes on the
   land. The House Committee on Energy
   and Commerce also indicated that it
   expects EPA to control "hazardous
   wastes-derived products used or reused
   by being applied directly to the land."
   H.R. Rep. 98-198 at 46. Indeed, the
   Agency itself noted in the preamble to
   the proposal that we might reconsider
   the question of asserting authority over
   hazardous waste-derived products that
   are used on the land. (See 4fl FR14485/

    After reconsideration, we are revising
   the final rule to apply not only to
   hazardous secondary materials used on
   the land without significant change but
   also to all products containing these
   wastes that are applied to the land and
   that are themselves hazardous. We read
 'our jurisdiction as applying to waste-
  derived products whose recycling is
  similar to a normal form of waste
  management—in this case, land
  disposal (The jurisdictional basis fo.r
  the following provision on hazardous
  waste-derived fuels is similar, except,
.  that incineration is the waste
  management practice corresponding to
  recycling by burning.) We thus agree
  with those commenters who maintained
  that the Agency's jurisdiction extends to
  all hazardous wastes placed on the land,
 whether or not the waste was mixed
 wi)h other materials or chemically  •
 altered before being placed on the land.
 The type of processing involved is
 relevant in determining what regulatory
 scheme to adopt or in deciding if the
 waste-derived product is still hazardous.
 We have determined, however, that
 processing does not deprive the Agency
 of RCRA Subtitle C Jurisdiction when
 the waste-containing product is still
 placed on the land.
   The Agency is thus asserting
 jurisdiction over all hazardous
 secondary materials, and over products
 that contain these wastes, when they
 are applied to the land. Thus, fertilizers,
 asphalt, and building foundation
 materials that use hazardous wastes as
 ingredients and are then applied to the
 land are subject to RCRA jurisdiction.
 Secondary materials applied directly to
 the land likewise are within the
 Agency's Subtitle C regulations, as are
 secondary materials dumped into water
 to serve as fill or structural support.1*
    We note that we are not asserting
  RCRA jurisdiction over pesticides or
  pesticide applications. Use of a pesticide
  involves use of a product, not recycling
  of a waste. Thus, if a pesticide
  (including off-specification pesticide,
  pesticide rinse waters or unused dip
  solution applied in accord with label
  instructions) is applied to the land for
  beneficial use, the practice is not viewed
  as use constituting disposal.
    At the present time, the principles of
  § 261.3 (c) and (d) continue to apply in
  determining whether a hazardous
  waste-derived product remains a
  hazardous waste. Thus, if a waste that
  exhibits  a characteristic of hazardous
  waste is incorporated into a product to
  be placed on the land, the waste-derived
  product is a hazardous waste only if the
  product itself exhibits one or more of the
  characteristics of hazardous waste. For
  example, if a product contains an EP
  toxic sludge, but the product itself does
  not exhibit EP toxicity or any other
  characteristic of hazardous waste, it
  would not be subject to regulation under
  Subtitle C. If the waste-derived product
  contains  a listed waste, it is subject to
 regulation under Subtitle C unless and
 until it is delisted under the standards
 and procedures contained in §§ 260.20
 and 260.22. See § 261.3 (c)(2) and (d)(2).
 (We may eventually revisit this part of
 the rule because there are no hazardous
 waste characteristics that measure
 exposure pathways posed by certain  .
 waste-derived products, such as crop
 up-take for waste-derived fertilizers.)
   By asserting jurisdiction over
 hazardous waste-derived products
 placed on the land, EPA necessarily is
 asserting  authority over the hazardous
 wastes—the hazardous spent materials,
 sludges, by-products and § 281.33
 commercial chemical products—that go
 into these products. Thus, if a generator
 sends a hazardous sludge to a fertilizer
 producer, for example, the sludge is a
 hazardous waste in the generator's
 hands. This result represents a change
 from the proposal, where these
 materials  would not have been wastes
 because they were to  be used as
 ingredients (proposed § 261.2(c)(l)(i)).
 (All of these secondary materials are
 wastes under the existing (May 19,1980)
 definition of solid waste, however, and
 are presently subject to regulation if
 they are listed wastes or sludges. See
 § 261.6.) Thus, there is not a significant
 change in  overall regulatory coverage
 between the existing and final rules for
 wastes to  be incorporated into waste-
  " Wo note, however, that we do not consider
 secondary materials that are used ai wastewater
 conditioner* to ba within the scope of this provision.
 Tba activity Is not similar to land disposal because
the secondary material is chemically combined as
part of a conditioning process and ia subsumed as
an ingredient in the conditioned water. See 48 FR
14485 n,18.
                                                                 derived products that are used on the
                                                                 land. (See also Section III.C. of Part HI of
                                                                 the preamble on this point.)
                                                                   3. Regulatory Strategy for Commercial
                                                                 Products Containing Hazardous Wastes
                                                                 that are Placed on the Land. Although
                                                                 SPA is asserting authority over waste-
                                                                 derived products that are placed on the
                                                                 land for beneficial use, we are not yet
                                                                 ready to undertake regulation of these
                                                                 waste-derived commercial products, and
                                                                 therefore are temporarily exempting
                                                                 them from regulation. Ultimate users of
                                                                 these materials—farmers and highway
                                                                 construction crews, for example—are in
                                                                 many cases individuals not ordinarily
                                                                 within the ambit of the Subtitle C
                                                                 regulatory system. EPA needs more time
                                                                 to determine whether it is possible to
                                                                 develop a more sophisticated means of
                                                                 including these types of users within a
                                                                 regulatory framework. The Agency also
                                                                 needs moje time to develop a regulatory
                                                                 system for determining when end uses
                                                                 of these products could present a
                                                                 substantial hazard to human health and
                                                                 the environment, and when such
                                                                 practices as waste-product application
                                                                 rate protect against potential harm.
                                                                  In developing a short and long-term
                                                                 scheme for controlling hazardous waste-
                                                                 derived products placed on the land for
                                                                 beneficial use, the Agency hopes
                                                                 eventually to develop specification
                                                                 levels for toxic constitutents or other
                                                                 specific standards—for those waste-
                                                                 derived products whose use on the land
                                                                may cause substantial harm. We are not
                                                                sure if it is technically feasible to
                                                                develop such specifications, however.
                                                                and it would take years to work out this
                                                                type of approach. EPA therefore
                                                               . believes that short-term controls of
                                                                these practices are needed since
                                                                uncontrolled land placement of
                                                                meterials containing hazardous wastes
                                                                is potentially very dangerous. We also
                                                                believe that persons generating or using
                                                                hazardous waste-derived products on
                                                                the land should demonstrate that the
                                                                product is safe to use for land
                                                                placement, or else comply with
                                                                regulations that apply to hazardous
                                                                wastes placed on the land.
                                                                  The Agency intends, therefore, to
                                                                develop regulations whereby generators
                                                                or users of hazardous waste-derived
                                                                products could demonstrate that these
                                                                products can be placed safely on the
                                                                land. To this end, EPA expects to
                                                                conduct studies of these waste-derived
                                                                products to determine: (1) the types of
                                                                hazardous wastes contained in waste-
                                                                derived products that are applied to the
                                                                land, and (2) the potential hazards
                                                                presented by these waste-derived
                                                                products. Once these studies are
                                                                completed, the Agency will take

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              Federal  Register / Vol.  50,  No. 3  /  Friday, January 4^1985  / Rules  and  Regulations
                                                                          629
appropriate regulatory action. One
alternative the Agency is examining is
for the user or producer of the waste-
derived product to demonstrate via a
risk assessment assuming possible
exposures via groundwater, crop uptake,
runoff to surface water, wind dispersion,
or direct human contact that such
waste-derived products do not present a
substantial hazard to human health or
the environment when the waste-
derived products are applied to the land.
la some cases, users or producers could
also evaluate toxicant mobility by
existing methods, as in delistings. This
system would remain in place until the
Agency developed different regulations.
  The Agency therefore is limiting its
regulatory coverage at this time to
hazardous wastes placed directly on the
land,  or placed on the land after
processing, unless the waste a)
undergoes a chemical reaction so as to
become inseparable by physical means,
and b) the resulting combined material
is marketed as a commercial product.
(See Section II.G. of Part 3 of the
preamble for an explanation of these
terms.) The practices'we are regulating,
as we stated at proposal, are
tantamount to land disposal and should
be regulated as such. We also are
regulating hazardous wastes that are
transported and stored before being
incorporated into hazardous waste-
derived products. These wastes stand
on the same conceptual and regulatory
footing as other hazardous wastes
transported and stored before being
recycled.

D. Section 261.2(c) (2): Wastes That Are
Burned to Recover Energy, Are Used to
Produce Fuels, or Are Contained in
Fuels
  These provisions are among the most
important in the regulation, and are
integrally related to other regulations
proposed or being developed by the
Agency. We noted in Section IIJ3. above
that much of the Agency's on-going
activity addresses burning of hazardous
wastes for energy recovery in boilers or
industrial furnaces, and explained our
definitions of these terms, as well as our
definition of incinerator. We discuss
here which secondary materials are
wastes when burned as fuels, and how
to distinguish among burning for energy
recovery, burning for material recovery*
and burning for destruction, as well as
the regulatory implications of falling into
each of these three categories. We also
discuss our future regulatory plans, and
finally address how we are regulating
storage that occurs before burning.
hazardous waste for energy recovery.
  .1. .Materials ThatArs Wastes When
Burned As Fuels, The Agency proposed
that all spent materials, all sludges, and,
listed (but not unlisted) by-products be
considered solid wastes when they are '
burned as fuels, as well as (of course)
when they are burned for destruction,1'
Fuels derived from these wastes
likewise were defined as solid wastes.
As a'point of clarification, if a waste
exhibiting a characteristic of hazardous
waste is used as an ingredient in a fuel,
and the waste-derived fuel does not
exhibit a characteristic, the waste-
derived fuel would not be considered to
be a hazardous waste. See f 261.3(d)(l).
  Our reason for limiting our jurisdiction
in the proposed rule to listed by-       •
products was that we were unsure
whether certain commercial fuels might
technically be by-products (as defined),
See 48 FR 14485. We have reconsidered
the issue and have determined that all
by-products (again as defined) are solid
wastes when burned as fuels or used to
produce a fuel. We have three principal
reasons for this change in approach;
  (1) Both the comment? and pur own,  [
investigations failed to disclose
instances where by-products were!
normal commercial fuels;
  (2) Data indicates that many process
residues, which are by-products,   '
containing high concentrations  of
Appendix VIII constituents are  burned
as fuels in industrial boilers; and   •
  (3) Congressional intent is for the   ',-'..
Agency to read its jurisdiction over   ,
waste-fuels expansively.          ,
  States, environmental groups, anot
waste treatment industry members •
urged the Agency to expand its claim of
jurisdiction. The Agency likewise
believes that its  authority over  recycling
is broadest when the recycling  practice
is like a classic waste management   , •
activity, iri this case, incineration,   •. .
  . Those commenters who supported the
proposal did  not maintain that the
Agency would regulate normal         •
commercial fuels if all by-products were
wastes when burned as feels. Rather,
  I6The Agency also proposed that commercial
chemical products listed in 5 281.33 that are not
themselves fuels, are solid wastes when they are
burned as fuels, or used to produce fijels, and that
fuels containing these materials f/,e, the commercial
chemicals themsevles, incorporated into the fuel in
lieu of normal use) are solid wastes. We are
finalizing this provision today. One qommenter,
however, misread this language to state that if a fuel
contains a chemical that also is on the § 261.33
list—for example, acetaldehyde—fuels containing
acetaldehyde were solid wastes regardless of the
source of the acetaldehyde. This is incorrect. These
materials must first be commercial chemical
products (or related materials such, as off-
specification variants or spill residues} listed ,
pursuant to § 281.33, and must be burned or
processed as fuel in lieu of their original intended
purpose. We also note that the RCRA
Reauthoiization legislation takes precisely this
position. See H.R. Rep. No. 96-198 at 40: & Rep. No.
93-284 at 37.                '
  they argued that many residual
  materials have high Btu values, and
 ''. emissions from burning these materials
  are not substantially different from
  burning fossil fuels. Others argued that
  if these by-products were ignitable and
  did not contain Appendix VIII
  hazardous constituents, they should not
  be considered to be wastes when
  burned,
   These comments, in the Agency's
  view, go to the issue of whether burning.
  and storage of these materials needs to
  be regulated. The Agency will address
  these questions in a different
  rulemaking. These comments do not,
  however, address the conceptual '
  question of whether the materials are
  wastes, Jt is ow opinion that by-
 . products that are unlike commercial
  fuelsmbeqcuse they are residual
  materials not intentionally produced,
  and are  significantly different in
  composition from fossil fuels—are
, wastes when burned as fuels.
  <  Pur opinion is reinforced by data
  submitted to the Agency regarding by-
  product waste streams presently being
  burned in boilers and industrial
  furnaces. Pata from the Agency's
  industry Studies program of the organic
  ehemiqaj and pesticides industry
  indicate that boilers and industrial
  .furnaces within these industries burn
  • residual by-products containing high
  : concentrations of such Appendix VIII
,  hazardous constituents as aniline,
  cyanides, dimethyl phthalates, isobutyl
  alcohol, and tetraqhloroethene. By-
  products identified in comments to this
  rujemaking as being burned in boilers  or
  industrial furnaces include chlorinated
  solvents, chlorinated aliphatic
  hydrocarbon production wastes,
  nitrochlorobenzene production wastes,
 • and solvent recovery still bottoms. By-
• products identified in responses to the
 . Agency's survey on waste and used oil
  fuels .(Questionnaire: IJsed Oil antf
  ffazftrdous Waste  as Fuel, OMB No.
  20500019) include distillation bottoms
  from production of carbon tetrachlaride,
  distillation bottoms from production of
  phenol/acetone from cumene,
  distillation bottoms from production of
  aniline and excess cyanide from
  acrylonitrile production.
.:  These by-products are physically and
  conceptually very different from fossil
  fuels. They are waste-like because they
  are residual materials containing toxic
  constituents not ordinarily found in
  fossil fuels. Many are typically
  discarded. We therefore believe that we

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63d
Fetjer^l Regip.ter /..Vol. 50*; No. 3  /  Friday, January 4.-.1985-/ Rules and Regulations
have jurisdiction over the burning of
these materials."
  Furthermore, recent statements of
Congressional intent strongly support ,
and expansivo reading of authority over
waste-fuels. The HSWA commands the
Agency to regulate burning hazardous
wastes for energy recovery, and voice
special concern over recycling practices
involving "direct introduction of
hazardous wastes to the air...." H.R.
Rep. No. 98-198,98th Cong., 1st Sess. 46.
Our action today is in full accord with
these declarations.
  As a point of clarification, the Agency
reemohasizes that it has modified the
difinition of by-product to indicate more
clearly that co-products—materials
intentionally produced for a commercial
market and suitable for use as-is—are
not considered to be by-products. Thus,
co-products from petroleum refining
such as kerosene, pitch, or various
grades of fuel oil, are not by-products
for purposes of this regulation.u On the
other hand, residual materials such as
tank bottoms (EPA Hazardous Waste
No. KO52) are by-products a'ndare
considered to be wastes when used as
fuels or when incorporated into fuels.
We note that the HSWA takes precisely
this position. See RCRA amended
Section 3004fg)(2){A) and 3005(r)[2}.
Fuels containing these wastes likewise
remain solid wastes. Id, Again, it may
turn out that regulation of-these
materials is unnecessary to protect
human health and the environment. EPA
also may be able to establish    , .
specifications that  distinguish waste-
derived fuels from products. Today's
rule makes clear that the Agency has
•jurisdiction to make these
determinations.
   As a result of this change, all spent,
materials, sludges, by-products, and
 5 261.33 commercial chemical products
and all fuels to which these materials
are added," are potentially subject to
   "We note as well that Congress already has
 required the Agency to develop Jjerfbrmance   '   •
 standards for used oil burned as a fuel. See RCRA
 Sections 3014 and 1004(37). The Agency believes
 that If we have authority to regulate bumingpf use'd
 oil whleh 1* composed primarily of petroleum
 fractons and therefore is physically similar to fossa
 fuel or fuel oil. a fortiori, we also have authority tp
 regulate burning of secondary materials that are
 physically quite distinct from fossil fuels.
   '•Orf-npedflcatlon fuels burned for energy  •   •
 recovery also  are not by-proaucts. and »o would not
 be considered to be wastes under this provision. An
 oxnmple provided In the comments was of natural
 ga» pipeline condensate. The condensate contains
 many of the same hydorcarbons found in liquefied .
 natural gas. and certain higher hydrocarbons that
 also have energy value. It is generated in ths
 pipeline transmission of natural gas. This
 condensate is not considered to be a waste when
 burned for energy recovery.
   "As noted  above, for a waste-derived fuel to be
 ' hazardous waste, it would have to contain a listed
                          regulation when transported, stored, and
                          burned for energy recovery. We discuss
                          below in sections 3 and 4, the Agency's
                          on-going efforts to control burning and .
                          storage of these materials.
                             2. Determining When a Waste is
                          Burned for Energy Recovery and
                          Applicability of the Rules to Burning for
                          Materials Recovery. Today's regulations
                          apply to hazardous wastes burned for
                          "energy recovery." This limitation raises
                          two issues: Distinguishing burning for
                          energy recovery from burning for
                          destruction, and determining how to
                          regulate wastes if they are burned to
                          recover materials.
                             (a} Burning for Energy Recovery. The
                          Agency has already.addressed in part,
                          what it means to burn wastes for
                          legitimate energy recovery. In a
                          Statement of Enforcement Policy issued
                          on January 18,1983 (printed at 43 FR
                          11157 (Nferch 16,1983)), EPA stated that
                           as a general matter—subject to
                         .  individualized consideration of
                           particular circumstances—burning  of
                           low energy Hazardous, wastes, as alleged
                           fuels is not considered ta be burning for
                           legitimate energy recovery. This is  the
                           case even if the low energy hazardous
                           .waste is blended with high energy
                           materials and then burned. Thus, under
                           these principles, boilers and industrial
                           furnaces burning low energy wastes
                           could be considered to be incinerating N
                           them, and so be subject to regulation as
                           hazardous waste incinerators. (See 48
                           FR 11158,11159. and fn.3.)
                             Today's regulation leaves the
                           principles of the Statement in force.
                           However, EPA, in the Statement,'
                           indicated that sham burning was easiest
                           to determine when burning occurs  in
                           pon-industrial boilers. We also said that
                           larger industrial boilers are more
                           efficient at recovering energy rand so
                           could be deemed, more" often, to be
                         •  burning lower energy wastes
                           legitimately. (Id. at 11159.) In applying
                           the Enforcement Policy Statement to
                           industrial boilers and industrial
                           furnaces, we would seek to enforce only
                           in situations where large amounts of low
                          • energy wastes with high concentrations
                           of toxicants are burned. These are
                           clearly situations where low energy
                           hazardous ^vaste adulteration was
                           deliberate and massive. We also note
                           that the Policy Statement does not
                            address burning for material recovery,
                            or situations where a single waste is
                           burned for material and energy
                            recovery. In this situation, the fact that
                            Itcr; energy wastes are involved would
                            not necessarily indicate that there is no
                            waste or exhibit a hazardous waste characteristic.
                            Sea 8 261.3 (c) and fd).
recycling, because material recovery
also is involved.
  (b) Burning for Material Recovery. A
second question is the scope of these
regulations when burning involves
material recovery. The Agency views
these regulations as applying whenever
hazardous wastes are burned in boilers.
Boilers, by definition, recover energy. If
materials are also recovered, this
recovery is ancillary to the purpose of
the boiler, and so does not alter the
regulatory status of the activity.
  Burning for material recovery in
industrial furnaces, however, raises
different kinds of issues. As discussed
above, industrial furnaces are used as
integral components of manufacturing
processes to recover materials. Thus,
regulation under RCRA of actual
burning in industrial furnaces  could, hi
some circumstances, represent an
intrusion into a normal production
process, particularly if the material
being recovered is the same material the
furnace ordinarily produces. On the
other hand, when an industrial furnace
is used for material recovery and the
secondary material being burned is: (a)
Not ordinarily associated with the
furnace (for example, organic still
bottoms), (b) different in composition
from materials ordinarily burned to the
unit (as when the secondary material
 contains Appendix VIII hazardous  •
 constituents different from, or in
 concentrations in excess  of those in
 materials ordinarily burned in the
 furnace), or (c) burned for a purpose
 ancillary to the chief function of the
 furnace, we think that RCRA jurisdiction
 over the burning exists, (jurisdiction
 obviously exists, for example, if that
 purpose is destruction.)
   When industrial furnaces burn for
 energy recovery, regulation of the
 burning would not constitute an
 impermissible intrusion into the
 production process because burning for
 energy recovery is an activity that is not
 central to the usual function of an
 industrial furnace. See H.R. Rep. 98-198
 at 40 (industrial furnaces burning for
 energy recovery are to be regulated
 under the waste-as-fuel provisions of
 H.R. 2867). We therefore are  asserting
 RCRA jurisdiction when an industrial
 furnace burns hazardous secondary
 materials—i.e, hazardous wastes—for
 energy recovery.
    The regulations would also apply
 when an industrial furnace burns the
 same secondary material for both
 energy and material recovery. Examples
 are blast furnaces that burn  organic
 wastes to recover both energy  and
 carbon values, or  cement kilns that burn
  chlorinated wastes as a  s jurce of energy

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       ' 3  ^ Friday, January 4,  1985 / Rules  and Regulations
                                                                                                                 631'
  and chlorine. (Indeed, energy recovery
  from burning in kilns is automatic, so
  that all burning of hazardous wastes in
  kilns is within the Agency's RCRA
  jurisdiction.) These activities are not so
  integrally tied to the production nature
  of the furnace as to raise questions
  about the Agency's jurisdiction. In
  addition, EPA believes that both the
  existing statute and the new legislation
  express a strong mandate to take a
  broad view of what constitutes;
  hazardous waste when hazardous
  secondary materials are burned for
  energy recovery, and to regulate as
  necessary to protect human health and
  the environment. See e.g., 48 FR14502
  (statutory definitions stating that
  secondary materials burned for energy
  recovery are solid wastes); H.R. Rep. 94-
  1491, supra at 4 (Congress* concern in
  promulgating Subtitle C was, to
  "eliminat(e) the last remaining loophole
  in environmental law", not to create
  new loopholes); H.R. Rep. 98-198* supra
  at 41-42; S. Rep. No. 98-284 at 36. In
  taking this view, we thus reconsider and
  withdraw footnote 19 of thepreamble to
  the proposed rule where we said we
  would count materials burned in
  industrial furnaces for both energy and
  material recovery as being burned for
  material recovery. For the reasons given
  above, we think that was a mistaken
  idea.
   We note as well that if an industrial:
  furnace burning secondary materials for
  ostensible material recovery is used to
  destroy the materials* it is not recycling
  but rather is Incinerating them.
  Examples of such sham recovery are
  when there is no material recovery, or
  where material recovery is economically
  insignificant. Another example is when
  wastes are burned in excess of what can
  feasibly be recovered and used. (The
  following subsection discusses a
  regulatory change clarifying this
 principle.)
   (c) Amendment to Applicability
 Section of Subpart O of Parts 264 and
 265. In the final rule, we are codifying
 the general principle that boilers and
 industrial furnaces used to destroy
 wastes rather than to recover energy
 and material from them axe considered
 to be incinerating the wastes, and thus
 are subject to the permit requirements of
 Subpart O of Part 264 or the interim
 status requirements of Part 265. (This.
 amendment is found in the applicability
 sections of Subpart O of Parts 264 and1
 265.) We intend for this amendment to
 remain in effect until we develop permit
• standards for burning in boilers and
 industrial furnaces. Not only is an
 interim control on those- practices
 needed, but without this provision
 boilers and industrial furnaces burning
 for destruction would have no means of
 receiving a permit.
   It also should be noted that with the
 exception of certain conditions in the
 definition of "boiler," we are not
 defining objectively what constitutes
 burning for destruction, such as
 specifying precise Btu limits for waste
 fuels or volume limits on waste feed. We
 have decided that there are too many
 exceptional circumstances where
 unvarying rules of this type would yield
 unintended results.  It is better policy, we
 think, to apply the concepts explained
 here and in the Statement of
 Enforcement Policy, and so enforce this
 provision in a more individualized
 manner.
   (d) Examples of How These
 Provisions Operate*
   The following examples indicate
 which secondary materials are wastes
 when burned for energy recovery.
   •  Facility A burns an unlisted
 ignitable by-product in its boilers.
   A is considered to be burning a
 hazardous waste since all secondary
 materials burned for energy recovery
 are defined as solid wastes; (Ignitable
 wastes  will have  high Btu value, and ac-
 me waste will be burned for legitimate
 energy recovery.)
   •  Facility B burns the same by-
 product in an industrial furnace to
 recover energy.
   B is considered to be burning a
 hazardous waste  for the same reason as
 A was in the first example.
   •  Facility C burns an unlisted EP toxic
 by-product in its boiler to recover both
 materials and energy.
   C  is considered to be burning a
 hazardous waste  for energy recovery,
 since secondary materials burned for a
 dual recycling purpose in boilers are
 considered for jurisdictional purposes to
 be burning for energy recovery. This
 answer assumes that sufficient energy
 and material values are recovered so
 that the waste is not being burned for
 destruction.
   • Facility D burns the same by-
 product in an industrial furnace to
 recover both energy and materials.
  D is considered to be burning a
 hazardous waste, even though the waste
 is an unlisted by-produet, and even
 though there is some material recovery.
Unlisted by-products burned for energy
 recovery in any type of combustion unit
 are defined as solid  wastes. If D were
burning exclusively  for material
recovery—for example if D operated a
smelting furnace burning' to recover
metal—the material  would not be a solid
waste since it would be an unlisted by-
product being reclaimed.
   • Facility E burns an unlisted EP toxic
 sludge in its industrial furnace but
 recovers no energy and minimal
 material values. The material recovered
 is also unrelated to the material the
 furnace normally produces.
   E would be considered to be burning a
 hazardous waste for destruction, and so
 would have to comply with the
 standards for incineration in Subpart O
 of Parts 264 and 265.
   3. The Agency's Future Plans for
 Regulating Burning of Hazardous Waste
 for Energy Recovery. As noted above,
 the actual burning  of hazardous waste
 for energy recovery in boilers and
 industrial furnaces is exempt from
 regulation. There was strong consensus
 in the public comments—confirmed by
 recent legislative action—that there is a
 need for regulatory action to control this
 type of burning. The Agency agrees, and
 is adopting a phased approach to
 address the problem. We will soon be
 proposing the first  set of regulations
 which would ban burning of hazardous
 wastes and contaminated used oil in
 non-industrial boilers, and would
 impose administrative controls on these
 materials whenever burned in industrial
 boilers or industrial furnaces.
   The next phase of regulations will
 develop permit standards for burning in.
 industrial boilers and in some industrial
 furnaces. In developing these standards, :
 we will use many of the factors
 recommended by commenters in this
 proceeding. Thus, we intend that these
 units achieve the same ultimate level of
 protection as incinerators, and (in some
 cases) will specify  design and operating
 conditions based on the type of waste
 and the operating efficiency of the
 combustion unit to ensure that this level
 of performance is achieved.
  We also are considering adopting
 general narrative standards, roughly
 analogous to those contained in the Part
 267 regulations (see 46 FR 12429,
February 13,1981), for remaining
 industrial furnaces burning hazardous
wastes for energy recovery. This will
 allow these units to be permitted
 immediately until such time as the
Agency is able to develop unit specific
 permit standards for them.
  At the time these standards are m
place, the Agency intends to withdraw
the Statement of Enforcement Policy and
the rules stating that the Subpart O
regulatory standards for incinerators
apply to boilers and industrial fexaaces
burning hazardous  wastes for
destruction. This is because we will then
have promulgated the permit standards
necessary to protect human health and
the environment for boilers and
industrial furnaces  burning hazardous

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 632
FederalJRefflster /Vol. 50. No.  3'/ Friday, January 4,  1985 /Rules and Regulations
 waste, and so the purpose for which a
 material is burned will no longer be
 relevant in determining what the
 regulatory regime for the burning device
 should be,
   4, Regulation of Generators,
 Transporters andStorers of Hazardous
 Wastes Before the Wastes are Burned
 for Energy Recovery. Up to this point.
 we have been discussing the Agency's
 jurisdiction over wastes burned as fuels
 and over fuels containing these wastes,
 and our planned regulatory regimes for
 the actual burning of these wastes and
 waste fuels. We now discuss regulation
 of these materials before they are
 burned.
   EPA proposed the following
 regulatory scheme for generators.
 transporters, waste fuel processors, and
 ultimate burners:
 TABLE 5. APRIL 4 PROPOSED  RULES FOR GEN-
   ERATORS, TRANSPORTERS,  FUEL  PROCES-
   SORS AND BURNERS

Generator unoVg watt* to
tvsA procetjor.


Cenentor Mndng wwle *
r*c
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             Federal Register  /  Vol. 5O, No. 3 /  Friday. January '4. 1985
                                                                                                                    633
exempt from regulation at the present
time (see § 266.30(a})
  • Generator G generates a hazardous
spent solvent listed under § 261.31,
blends it with virgin fuel oil, and sends
the blend to Burner D who burns it in a
boiler.
  The answer is the same as, for the last
example, for the same reasons.
  « Generator E generates a hazardous
•spent solvent listed under § 261.31,
blends it with virgin fuel oil, and sends
the blend to processor F who processes
the blend and does farther blending. F
then markets the hazardous waste fuel
to Burner G who burns it in his boiler.
  Generator E is subject to Part 262, as
in the previous examples. Processor F is
a storage facility (see § 266.34(c)(2)),
However, the hazardous waste fuels-
thai F markets are exempt front
regulation, so Burner G may store and
burn them without regulation (at the
present time).
   • Generator H generates an unlisted
Jgnitable by-product that he sends t&
Burner I to be burned in a boiler.
   The hazardous waste is exempt from
regulation because it is neither a listed
waste nor a sludge (see 1266.36). This
result would be the same if the ignitable
 by-product weie blended at any point,.
 or sent to an intermediate processor
 instead of the ultimate burner.
   The following chart summarizes the
 generation, transportation, and storage
 standards in the final rule for hazardous
 wastes to be burned as fuels..

 TABLE 6: FiNAt RULES REGARDING TRANSPORT
   AND STORAGE BEFORE BURNING FOR GEN-
   ERATORS, TRANSPORTERS, Foa. BLENDERS,
   AND BURNERS
                                        TABLE 6: FINAL RULES REGARDING TRANSPORT
                                          AND STORAGE BEFORE BURNING FOR GEN-
                                          ERATORS, TRANSPORTERS, FUEL BLENDERS,
                                          AND BURNERS—Continued
Generator sending waste to
 fuel procssser.
Generator sending waste di-
 rectly tp bunw,
Transporters  t&tas.  waste
  from  goWTBtort to fuel
Transporter*  taWnj waste
  from generajoffi to burners.
Fuel processors who do not
  general $9 wests or fawn
  the waste-dafived fuel  ,
                     Hazardous wastes that ere
                       subject to regulation
Spent materials and by-pro*
 uctB listed in f$ 281.31; and
 .32, all skidgssi snd any,
 blend containing- ona of
 thsaa wastes.
Spent materials and' by-prod-
 ucts listed in §8 261,31 and
 .32, aH stodges, and any
 Kend containing, ona «f-
 those wastes..
Spent materteJs and by-pro*
 ucts listed In f$2S1.31 and
 .32, aU sludges, and any
 blend containing, one of
 thas» wastes.
Spent materials and by-prod-
 ucts listed in §§261.31 and
 .32, aH stodges, and- any
      containjng. ono. of
                                        Transportars taking interme-
                                          diate waste-derived fuels
                                          from fuel processors  to
                                          burners.
                                        Burners—	
                                                             Hazardous wastes that are
                                                               subject to regulation
                                                            Exempt from regulation.
                                        Spent materials and by-pro*
                                          uct* feted in 5§ 261.31 and
                                          .32, til sludge*,  ami any
                                          blend containing one of
                                          these wastes;  waste-d*-
                                          rived fuels from fuel proc-
                                          essors who did not. gener-
                                          ate tin waste are exempt
                                          from regulation.
  E. Section 261.2(c){3): Reclamation
  1. Definition of Reclamation. EPA
proposed that all spent materials, listed
sludges, and listed by-products that are
reclaimed are solid wastes.20 See 48 FR
at 14486. We limited the definition to
listed sludges and listed by-products to,
avoid including sludges and by-products
that are routinely processed to recover
usable products as part of on-going
production operations. We defined.
"reclamation" to constitute either
regenerating waste materials or
processing waste materials to recover
usable products. In essence, reclamation
involves regeneration or material
recovery. Wastes are regenerated when,
they are processed to remove
contaminants in a way that restores
them to their usable original condition.
Examples are reclamation of spent
solvents or reclamation of other spent
organic chemicals. Secondary metal
reclamation processes, such as
secondary smelting, .are examples of
material recovery. Our regulatory
definition of reclamation relies heavily
on a number of statutory definitions,,
including those of "resource recovery'*
(RCRA Section 1004(31}). and "recovered;
material" (RCRA Section 1004(19)). Id at
14487/2.
   We also drew a distinction in- the
proposal between situations where
material values in a spent material, by-
product, or sludge are recovered as at*
end-product of a process (as in metal
recovery from secondary materials) as
opposed to situations where these
secondary materials are used as
ingredients to make new products
without distinct components of the -
 materials being recovered as end-
 products. The former situation is-
 reclamation; the latter is a type of direet
Spent materials! and by-prod-
  ucts lists* in $| 2S1.31 and
  ,32, en- sludges,, and' any
  Mend  containing one of
  these-  wastes;, wsste-de-
  ifeed fuata producs* by ths
  processor art exempt from
  regulation.
   "The proposal contained an exception tat
 materials that were-reclaimed at the plant site and
 returned to the original process- in which they were
                                          in the finat rate, for the reasons explained' in section
                                          H of this part of the preamble.
use that usually is not considered to
constitute waste management. 48 FR
14487. In addition, we proposed that
secondary materials put to direct use as
substitutes for commercial products
were not  considered to be reclaimed, so
that this type of use also is usually not
considered to be waste management.
Our reason for this distinction is that
secondary materials put to direct use in
this way  are being used essentially as
products.
   We are adopting these provisions, as
proposed. (Additional discussion of
recycling involving direet use of
secondary materials is found in Section
H. below.) Also, as discussed in Section
I.A.2. of this part of the preamble, we
 have added provisions to the final
 definition indicating explicitly that scrap
1 metal that is hazardous is considered to
 be a waste for the regulatory purposes
 of RCRA Subtitle C when it is reclaimed
 As we noted, recovery from scrap metal
 is not normally analogous to on-going
 processing of virgin materials, and much
 of the scrap metal that is reclaimed- is
 waste-like because it is no longer fit for
 use and must be reclaimed before it can
 be used again. (As discussed in Part HI
 of the preamble, however, the Agency is
 at this time exempting from SuMtle C
 regulation hazardous scrap metal that is
 to be reclaimed.)
   As a matter of drafting, we have;
 reorganized this provision so that the
 definition of reclamation is found: in
 § 261.1. The exceptions for direct use
 recycling are contained in a separate
 provision (i 2&1.2fe),} indicating when
 secondary materials that are to be
 recycled are not solid wastes.
    Most of the comments agreed with the
 proposed definition of reclamation
  (although many questions were raised
  about how to regulate reclamation
  activities and about exclusions for direct
  use recycling^ One commenter
  requested clarification as to the
  intended result when a secondary
  material is first reclaimed and then put
  to direct use. Under the final1 rule, spent
  materials, listed sludges, and listed by-
  products that are processed1 to recover
  usable products, or that are
  regenerated^—/.e., that are reclaimed—
  are solid wastes. If the material is to be
  put ta use after it has been reclaimed,, it
  still is a solid waste until reclamation
  has been completed Thus,, the fact that
  wastes may be used after being
  reclaimed does not affect their status as
  wastes before and while being
  reclaimed.
     Other commenters raised a related
  question about the status of spent
  materials, listed sludges, and listed by-
  products that are reclaimed and   :

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Federal Register / Vol.  50, No. 3 / Friday, January 4,  1985 /Rules and Regulations
subsequently used as feedstock. This
situation is a subset of the one just
described, so that these materials are
wastes until reclaimed. Their later use
as feedstock does not alter this result.
The Agency acknowledges, however,
that its discussion of the recycling of
spent sulfuric acid in the proposal
preamble (footnote 30) created some
confusion. The Agency still does not
think this process involves reclamation.
To eliminate any uncertainty, however,
we are amending § 261,4(a) of the
regulations to state that spent sulfuric
acid that is recycled to produce virgin
sulfuxic acid is not considered to be a
solid waste. (See Section I. below.)
   2,The Status of Reclaimed Products.
The Agency proposed a clarifying
amendment to § 261.3(c)(2) (the "derived
from" rule) to indicate that commercial
products reclaimed from hazardous
wastes are products, not wastes, and so
are not subject to the RCRA Subtitle C
regulations. See 48 FR11489. Thus,
regenerated solvents are not wastes.
Similarly, reclaimed metals that are
suitable for direct use, or that only have
to be refined to be usable are products,
not wastes. This amendment states a
fairly evident principle, and was not
challenged by any commenter.
   We caution, though, as we did in the
proposal, that this principle does not
apply to reclaimed materials that are not
ordinarily considered to be commercial
products, such as waste-waters or
stabilized wastes. The provision also
does not apply when the output of the
reclamation process is burned for energy
recovery or placed on the land. These
activities are controlled by the
provisions of the definition dealing with
using hazardous wastes as ingredients
in fuels or land-applied products. For
instance, if a  spent solvent is treated
and blended with oil to sell as a fuel,
that waste-derived fuel is still subject to
RCRA jurisdiction.
  The principle also does not apply  to
wastes that have been processed
minimally, or to materials that have
been partially reclaimed but must be
reclaimed further before recovery is
completed. (See 48 FR at 14499 n. 57.)
For this last situation—where materials.
are partially reclaimed but must be
reclaimed further until recovery is
completed—we are providing a variance
procedure for situations in which the
initially reclaimed material is
commodity-like in spite of the need for
additional processing before it is finally
reclaimed. This variance is explained
                          fully in Section J.2. of Part 3 of the
                          preamble below.21
                          F. Section 261.2(c)(4): Wastes That Are
                          Accumulated Speculatively
                             1. Grouping of Speculative
                          Accumulation and Overaccumulation
                          Provisions. EPA proposed that any
                          secondary material (Le., spent materials,
                          sludges, or by-products) being
                          accumulated speculatively were solid
                          wastes. We said these materials are
                          "accumulated speculatively" when they
                          are being stored with a legitimate
                          expectation of eventual recycling but
                          have never been recycled, or cannot
                          feasibly be recycled. See 48 FR 14489.
                             The Agency further proposed that
                          secondary materials that accumulate at
                          a site for over a year without 75 percent
                          being recycled are solid wastes. 48 FR
                          14490. The sense of this provision was
                          that all secondary materials that
                          overaccumulate before being recycled
                          are solid wastes, even if they are going
                          to be recycled in ways that ordinarily do
                          not constitute waste management.
                             We have combined these concepts in
                          a single provision in the final definition.
                         'We have drafted the provision so that
                          secondary materials are considered to
                          be solid wastes if they are accumulating
                          before being recycled. However, the
                          materials will not be considered solid
                          wastes (under this provision of the   '
                          definition) if the person accumulating
                          can show, on request, that: a) the
                          materials have known recycling
                          potential and can feasibly be recycled,
                          and b) during a one-year calendar
                          period that the amount of material
                          recycled, or transferred to a different
                          site for recycling, is at least 75 percent
                          of the amount accumulated at the
                          beginning of the year.22
                             We think that drafting the provision in
                          this way most accurately reflects
                          Congressional intent that accumulated
                          hazardous secondary materials are
                          ordinarily to be regarded as solid and
                          hazardous wastes. Congress believed
                          that hazardous wastes are rarely, if
                          ever, recycled or amenable for recycling.
                          H.R. Rep. No. 94-1491, at 4. It mandated
                            11 One commenter questioned whether
                          recirculated industrial cooling water was
                          considered to be reclaimed. Ordinarily, we consider
                          cooling water (contact or non-contact) to be reused
                          directly when it is recirculated. Cooling water is not
                          ordinarily processed or treated to remove impurities
                          before recirculation, but is routed away from the
                          process (often through a cooling tower) to lose
                          enough heat to be reusable. The Agency does not
                          consider cooling water routed in this way to be
                          reclaimed.
                            ** Of course, the materials could still be solid and
                          hazardous wastes depending on how they are
                          recycled. For example, they would be wastes if they
                          are to be recycled by being burned to recover
                          energy.
a "regulatory framework" to ensure that
"hazardous wastes (are not) disposed of
in ponds or lagoons or on the ground in
a manner that results in substantial and
sometimes irreversible pollution of the
environment." (Id.) This mandated
"regulatory approach" would
"eliminat(e) the last remaining loophole
in environmental law. .  .".(Id.)
  Although accumulating hazardous
secondary materials are ordinarily
regarded as solid and hazardous wastes,
this is not invariably the  case. As noted
earlier in the preamble (see Section Il.B.
of Part 1 and Section H of Part 2), these
materials would not be wastes if they  .
can be recycled in certain designated
ways, and if they are not accumulated
'speculatively before being recycled.
These situations represent exceptions to
the general statutory prohibition against
unregulated waste management
  The final rule thus states the general
principle that hazardous  secondary
materials accumulating before recycling
are wastes unless the person
accumulating is able to show on request
that he is indeed recycling sufficient
volumes of the materials on an annual
basis. The provision is not substantively
different from the proposed rule on
overaccumulation; the drafting indicates
explicitly, however, that  this is an
exception to the general statutory
principle. Thus, the burden of showing
that sufficient amounts ate being
recycled is on the person accumulating
the material. (See Section J. of this .part
of the preamble.)
  2. § 281.2(c)(4)(A): Wastes That Are
Accumulating With Expectation of
Recycling But- Which Have Not Been
Recycled. We are adopting in the final
rule the proposed provision that all
materials stored with a legitimate
expectation of eventually being recycled
but for which there is no known
recycling market or disposition, or no
feasible means of recycling, are wastes.
These wastes are subject immediately to
all applicable RCRA Subtitle C
standards. Ordinarily, these are storage
standards  for the applicable type of   "'
storage facility. (See 48 FR 14499/2.)
Materials that are known to be
recyclable, such as solvents, scrap
metal, used oil, or  most smelting
drosses, slags, and sludges ordinarily
would not be subject to this provision.
  A person accumulating hazardous
secondary materials would have the
burden of proving that there is a feasible
means of recycling the material. (See
Section J. below.) This ordinarily will
require identification of actual recyclers
and recycling technology, location of the
recycler, and relative costs associated
with recycling. For example, if the

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              Federal Register / Vol. 50,  No. 3  /Friday, January4, 1985 / Rules  arid Regulations'
                                                                         BBS
 nearest recycler is 800 miles away, the
 person accumulating the hazardous
 secondary material would have to show
 that it is economically reasonable to
 send his material that far to be recycled.
 The most convincing demonstration
 clearly would be that the hazardous
 secondary material actually has been
 recycled.
  Most comments supported the
 proposal. Two commenters, however,
 suggested that material for which
 generators could demonstrate that on-
 going developmental work will lead to
 recycling at a future date should not be
 considered to be accumulated
 speculatively. We disagree. We think
 that materials that are not known to be
 recyclable (or not feasibly recyclable in
 the hands of e particular generator} are
 wastes immediately. The example in the
 preamble to the proposed rule of a
 waste accumulating over eight years
 while the generator endeavored to find a
 means to recycle it indicates that
 conducting research into recycling
 possibilities is much different than being
 able to recycle a waste. In addition, the
 Agency is not equipped to evaluate
 whether an unproven developmental
 plan will ultimately prove feasible,
  3. Section 2613(cJ(4){BJ: Wastes
 Accumulating Before Recycling That
 Are Not Recycled In Sufficient
 Amounts, a. The Proposed Provision.
 EPA proposed that secondary materials
 not already defined as wastes that
 accumulated  at a site for over a year
 without 75 percent being recycled, or
 transferred to a different site for
 recycling, ere solid wastes. (The
 materials must, of coarse, have a know
 potential fen-recycling, or they will be
 considered to be wastes immediately.)
 EPA also proposed that certain wastes
 which were exempt when recycled
 would no longer be exempt if
 insufficient amounts were recycled in a
 year.
  We coupled this provision with an
 exception allowing persons who failed
 to recycle 7$ percent in a given year to
 petition the Regional Administrator (or
 authorized State having this provision}
 to demonstrate that they could recycle
 sufficient amounts in the subsequent
 year. If the petition was granted the
 accumulated  material was not a waste,
 or remained exempt from regulation.
 Once the rnateriaj accumulated for over
 a year without sufficient turnover,
 however, it became a weste or lost its
 exemption fjrpm regulation unless the
Regional Administrator" (or authorized
 State) wer§ to decide otherwise.
  -b. The Final. Regulation. Wears
promulgating this provision essentially
as proposed. We continue to believe
 that the length of time secondary
materials are accumulated before being
recycled is an important indicator of
whether or not they are wastes (or, in
the case of precious metal wastes,'
whether they should be subject to
regulation). This is borne out by the
large number of recycling damage cases
where secondary materials that were
overaccumulated over time caused
extensive harm. Commenters likewise
stated that raw materials usually are
processed through production processes
in a continual manner and therefore that
the length of time a secondary material
accumulates before recycling is relevant
in determining whether the material is a
waste. The Agency also believes, and.
many commenters agreed, that the one-
year period and 75 percent turnover
figure were within the reasonable range
of values the Agency could select. We  ,
are promulgating this provision
essentially as proposed.
  As just discussed, the major change in
the provision involves the structuring of
the regulation to indicate that secondary
materials stored before recycling are
wastes unless the person accumulating
the waste is able to show that they are
being recycled at an annual rate of 75
percent or more. By requiring persons
accumulating the materials to be able to
show that they are recycling sufficient
amounts, we mean that they have the
burden of proof on this issue. We are
not requiring specific reports to be
submitted to the Agency, nor that
particular records be maintained. (See
Section d. below discussing the type of
records that would satisfy the burden of
proof.)                           • ••'
  As at proposal this provision applies
to all spent materials, sludges, and by-.
products not already defined as solid
and hazardous wastes and that are
accumulated before any type of
recycling. The provision thus applies to
secondary materials not otherwise
considered to be wastes when
recycled—namely, to materials that are
to be used as ingredients or as
commerical product substitutes, to
.materials that are recycled in a closed-
loop production process, to unlisted
sludges and by-products that are to be
reclaimed,  and to black liquor and spent
sulfuric acid being reclaimed. Thus, if
one of these materials are
overaccumulated, they would be
considered to be hazardous wastes and
would become subject to regulation
under applicable provisions of § 261.6,
normally § 261.6 (fa) and (c) (see Section
H.I. of Parts of the preamble).
  The provision also continues to apply
to one set of wastes which are
ordinarily exempt from most regulation '
when recycled, precious metal wastes
being reclaimed. Thus, if these wastes
are overaccumulated, they no longer are
conditionally exempt from regulation
(see § 266.70(d)).
  The provision does not apply to
secondary materials that already are
wastes when they are recycled, for
example scrap metal, secondary
materials burned as fuels, or spent lead-
acid batteries being reclaimed. The
regulations in § 261,6 and Part 266 must
be consulted to determine if these
wastes are regulated. Rate of turnover
thus is not a factor in determining the
extent of regulation for these wastes.
  In response to comment we are
adding that the provision also does not
apply to materials generated in a
manufacturing process unit or
associated non-waste-treatment
manufacturing unit covered by
§ 261.4(c). Including materials that are
generated in these units in the
calculation would be inconsistent with
the reasons EPA initially exempted
wastes accumulated in these types of
units. See 45 FR 72025 (October 30,
1980).»
  EPA proposed that the 75% turnover
rate be calculated based on volume. In
response to comment, we are writing the
final rule so that rate of turnover can be
calculated biased on either weight or
volume. Either measure appears to be a
reasonble way to calculate turnover.
  We are making one other change to
the proposed rule by requiring that 75%
of the accumulated materials be
recycled during the calendar year,
starting on January 1.1985. The proposal
would have allowed the person
accumulating to choose among the
calendar, fiscal, and inventory years as
the period during which 75% turnover
must be achieved. On reflection, we
think that a single time period is needed
to facilitate enforcement and to achieve
uniformity. EPA believes that if
enforcement officials are confronted
with a differing starting date at each
facility, this provision would become too
difficult to implement.
  q. The Requirement That Materials of
The Same Class Being Recycled The
Same Way Be Counted Together. In the
proposal, we left open the question of
whether the overaccumulation provision
applies on a material-by-material basis
or on a basis that takes into account
both the material being recycled and the
  " Although the final rale refers to } 281.4(e}—a
provision that exempts waste* from regulation—
EPA ii not stating that the materials in these units
are wastes. EPA is stating that the secondary •
materials not otherwise defined as solid wastes tha*
are accmmdatfog in the product storage tanks or
other vessel* described in 1281.4(c) ire not subject
to the turnover provision contained in the
speculative accumulation rule. .        ,   . .•

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Register / Vol. 50.JNo.  3 / Fiday, January 4, 1985 /Rules andRegulations
  manner of recycling. We indicated that
  our preference was for the 75 percent
  recycling renuirement to be applied to  '
  all materials of the same class which
  were to be recycled in the same way.
  Most commenters agreed, as this kind of
  accounting best assures that similarly
  situated materials will be grouped in the
  same way.
    We are adopting this standard in the
  final rule. We wish to clarify precisely
  wha« this standard means, however. By
  "materials of the same class" we mean  .
  materials of the same type generated
  from the same process. Examples of
  materials that would be grouped are
  distillation bottoms from integrated
  production of chlorinated aliphatic  •
,  hydrocarbons, slags from a smelting
  process, drosses from a smelting
  process, dry sludges from the same
  process, or wastewater treatment
  sludges from the same process.
   The requirement that the materials be
  "recycled in the same way" means that
  materials are either td be used to make
  the same thing (for materials to be us'ed
  as ingredients}, used in the same way
  (for materials used as effective
 substitutes for commercial products), or,
 for unlisted by-products and sludges,
 that the same material be recovered
 from them. Thus, still bottoms used as
 intermediates to make the same
 products would be counted together—
 for example, all still bottoms from
 chlorinated aliphatic hydrocarbon
 production that are used to make carbon
 tetrachloride. On the other hand, still
 bottoms used as intermediates in the
 production of ethylene dichloride would
 be counted separately. All of a
 generator's spent pickle liquor used as a
 wastewater sludge conditioner would be
 aggregated; the same generator's pickle
 liquor used to produce iron oxide would
 be counted separately. Smelting drosses
 from which lead is recovered would be
 counted  separately from smelting
 drosses from which zinc is recovered.
  The Asency is adopting this approach
 to ensure that materials most alike in
terms of physical characteristics and
mode of recycling are counted together.
EPA also believes thia approach
safeguards against situations where
recyclable materials are counted  along
with unrecyclable ones, shielding the
unrecyclable materials from being
wastns. For instance, if a generator has
100 units of a secondary material all of
which are recycled as ingredients in a
process, and 20 units of die same
material  only one unit of which is
recycled  in a different process, the
remaining 19 units should be classified
as wastes because  they arei t being
recycled.
                   d. Means of Satisfying the Burden of
                 Proof. As noted, persons accumulating
                 secondary materials not otherwise
                 defined as wastes have the burden of
                 proving that they are recycling sufficient
                 amounts of the secondary materials. At
                 a minimum, we would expect that
                 accumulators have on hand (1) the
                 amount of secondary material of each
                 class recycled in the same way on-hand
                 at the beginning of the one-year period,
                 (2)-the amount of such material added
                 during the one-year period, and (3) the
                 amount remaining at the end of the one^
                 year period. Records customarily
                 maintained, such as records of
                 throughput through an industrial
                 process, should be satisfactory. For
                 materials used as intermediates in
                 closed-loop processes, records of
                 consistent historical use should be
                 sufficient. In addition, names and
                 addresses of recyclers receiving the
                 secondary materials should be
                 maintained, as well as any other
                 information that substantiates the
                 minimum turnover rate [e.g. contracts or
               •  correspondence with a recycler).
                  e. Response to Comments. Although
                 commenters expressed concern about
                 the provision's complexity, most
                 supported it in principle. One
                 commenter, while supporting most of the
                 overaccumulation provision, urged that
                it not apply to unlisted by-products
                 accumulated in tanks and containers for
                a generator's own use or reuse. We have
                considered this comment but are
                rejecting it for the reasons given in the
                proposal (48 FR14491/1). As a general
                matter, we believe the key measure of
                whether a material is overaccumulated
                is the length of time before use occurs,
                not how the material is stored or who
                will recycle it. In addition, the
                commenter was most concerned about
                accounting for unlisted by-products
                burned as fuels; since these materials
                are'defined a§ wastes in the final rale
                (although they are not at this time
                subject to storage,iequirements), this
                question is of less importance.
                  There were a series of comments
                regarding the status of commercial
                chemical products that accumulate over
                time without being used. EPA indicated
                in the proposed rule that commercial
                chemical products that are hazardous
                wastes when discarded (I.e., those listed
                in § 261.33 of the regulations) were not
                subject to either the speculative
                accumulation or overaccumulation
               provisions of the proposed rule. 48 FR
               14489. We also asked for comments as
               to whether some type of maximum
               accumulation period should be imposed
               by rule. Virtually all comroenters
               opposed this idea, due to the large
  recordkeeping requirements involved,'
  and the difficult practical problems
  involved in observing and enforcing
•  such a standard. The Agency shares
  these concerns. Id. at 14490. We
  therefore are not adopting any time limit
  on when a commercial chemical product
  held for recycling becomes a waste. The
  May 19,1980 standard remains in place;
  these materials are wastes when
  discarded or intended for discard (by
  means of abandonment), and are not
  wastes when stored for recycling.
    f. Variances for Secondary Materials
  Not Recycled in Sufficient Volumes. We
  also believe that there may be valid
  reasons that persons are unable to
  recycle sufficient amounts of non-waste
  secondary materials in one year (or the
  precious metal wastes that are
  conditionally exempt form regulation)
  and have retained the petition process
  to accommodate these situations. The
  petition is now termed a variance from
  being a solid waste, and is found in
  § 260.30 Substantive standards for the
  Regional Administrator's (or authorized
  state official's) decision are in § 260.31
  (a) and procedures for applying for and
 processing variances are in § 260.33.
   The standards for granting a variance
 are basically those we proposed. The
 Regional Administrator must decide if
 sufficient amounts of material  are likely
 to be recycled or transferred for
 recycling in the following year. Factors
 to be considered are: (a) The kind of
 material being accumulated and its
 expected manner of recycling,  (b) how
 much is being stored, (c) how it is being
 stored, (d) whether it is being stored in a
 way that minimizes loss, (e) how and
 when it is expected to be recycled, and
 (f) why this is a reasonable expectation.
 The Regional Administrator should
 consider the applicant's past history of
 recycling the material, whether there are
 contractual arrangements or market
 conditions bearing on the likelihood of
 future recycling, the reason that the
 material was accumulated without 75
 percent being recycled Sa the past year,
 and other relevant factors. If, for
 example, a company has a multi-year
 history of selling a secondary material
 as a commercial product substitute, but
 was ui able to sell 75 percent during a
 given year due to a temporary downturn
 in market conditions, and is handling
 the secondary material in a manner
 commensurate with its value as a
 substitute commercial product, the
 company may be eligible for a variance.
 On the other hand, a company  that
 overaccumulates a secondary material
 not ordinarily reused, but that has been
 able to pay other companies to use the
 material in the past, and now has tons of

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                                       "                   ,        ',-_ •!,•• «• •-• •'.' ..'"
                                /  Vol. 50,  No. 3  /  Friday, January 4,  J985'j
                                                    jRegwiafioriis1 v       637
 material on hand in open piles, is much
 less likely to be eligible for a variance.
   A variance, if granted, would be valid
 for only one year. If the accumulator
 failed to recycle 75 percent of the
 material on hand in the following year,
 it would have to petition for a new
 variance. Under the proposal, the
 company would have had to recycle 50
 percent of the total accumulated
 materials to be eligible to apply for a
 second variance. In addition, a variance
 could only be renewed two times. In
 response to comments, we are not
 adopting either of these requirements in
 the final rule. There do appear to be
 situations, although infrequent, where
 secondary materials can accumulate for
 over two years without being recycled
 and still not necessarily be deemed a
 waste. Possible examples are certain
 traditionally reclaimed mining by-
 products that are being accumulated
 because of cyclically depressed metal
 prices. However, in determining whether
 to grant a variance, the longer a material
 has accumulated without recycling, the
 more likely it is that the variance
 application will be  denied.

 G. Section 261.2(d): Secondary Materials
 That are Designated as Solid Wastes
  1. The General Standard. EPA
 prpposed that particular inherently.
 waste-like materials could be
 designated as solid wastes without
 regard for the mode of recycling. Some
 comments criticized this provision as
 being a vague catch-all, while others
 supported it or (in the case of certain
 industry commenters) conceded the
 need for this type of provision.
  EPA ia retaining this listing authority
 in the final regulation. A provision of
 this type is needed because it is
 impossible ia practice to devise a single
 definition which completely
 distinguishes wastes from non-wastes.
 We continue to think that certain
 residual materials are inherently waste-
 like, either because: (a) They are
 typically disposed of or incinerated on
 an industry-wide basis, or (b] they
 contain toxic constituents 2* in
 concentrations not ordinarily found in
 the raw materials or products for which
 they substitute, which toxic constituents
 are not used, reused, or reclaimed
 during the recycling process. In addition,
recycling of the materials must have the
potential to pose a substantial hazard to
human health and the environment The
Agency believes these criteria are
relatively straightforward and
 understandable. Certainly they are not
 "vague" in any legal sense. The Agency
 will be required to designate in the rule
 that particular materials are wastes so
 that there is no risk that those subject to
 regulation are uncertain or their
 obligations.            •       :-
   The criticism that this provision is a
 "catch-all" also does not appear to have
 merit. We believe the criteria limits
 those materials the Agency could
 designate. The Agency must determine
 that the materials ordinarily are not
 recycled on a nation-wide basis, and
 that the material contains Appendix Vin
 constituents at levels not found in
 analogous raw materials or products.
 The criteria that the recycling activity
 potentially pose a substantial hazard
 also limits the Agency, by suggesting
 that a purpose of the activity is to
 dispose of the non-recycled toxic
 .constituents, and by suggesting that the
 secondary materials have so little value
 that they are stored insecurely, and are
 thus waste-like.25
   One commenter suggested that the
 Agency designate secondary materials
 as solid wastes if management of the
 materials presents an "unreasonable
 risk of injury to health or the
 environment." This determination would
 be based on an assessment taking into .
 account such factors as effects of the
 material on human health and the
 environment, benefits of using the
 material, and economic consequences of
 listing.
   This standard, aa the  commenter
 admits, is drawn essentially from the
 Toxic Substances Control Act. This is
 not the standard Congress enacted for
 RCRA decisionmaking, RCRA
 determinations are to be based on
 health and environmental based factors, •
 (See 45 FR 33089 (May 19,1980).}
   The consequences of being designated
, as a solid waste is that the material will
 be within the Agency's jurisdiction no
 matter how it is being recycled. Thus,
 the particular dioxin-containing wastes
 designated in today's regulation (see the
 following subsection) are considered to
 be wastes (for example) even if used
 directly as substitutes for commercial
 products or as ingredients in producing  .
 a product. On the other hand, § 261.6
 must be consulted to determine the type
 of regulation that applies to the waste.
   2. Application of the Standard to
 Specific Wastes. EPA proposed to
 designate a group of dioxin-containing
 materials as solid wastes. See 48 FR
 14491-492. We are modifying the
  M These are toxic constituents listed in Appendix
VIII of Part 261, The proposal erroneously referred
to "Appendix YH" (48 FR at 14491), due to a
misprint by the Federal Register.
  35 We thus disagree with the commenter who
argued that a hazard posed by recycling a material
is not relevant in determining Whether the material
is a waste.                        •
proposal, in response to comments, to
exclude the listed commercial chemical
formulation? (Hazardous Waste FO27).
These formulations do not meet the
designation criteria because they are not
.chemically dissimilar from analogous
commercial products (i.e. they are
virtually the same as pesticides that are
used), and they are not typically
discarded. In determining if these
formulations are wastes when disposed
or recycled, the regulated community
should refer to the rules applicable to
commercial chemical products. The
formulations thus would be wastes
when they are discarded by being
abandoned, or when they sire burned for
energy recovery (the manner of
recycling not analogous to normal use).
See § 261.33 as amended by today's rule.
  We also 8W indicating that Hazardous.
Waste F021 is not designated as a solid
waste if it is used as an ingredient to
make a product at the site of generation.
It is a solid waste if recycled in any
Other wa£ (or if disposed.) The Agency
is taking this step in response to
comments indicating that
pentachlprophenpl production plants
typically reuse these materials in their
own production process.
H. Section 261.2(e): Secondary Materials
That Are Not Solid Wastes When
Recycled
  It, Secondary Materials Used as
Ingredients to Make New Products, or
Used as Substitutes /or Commercial
Products, a,,The Agency's Subtitle C
forisdiction, EPA proposed that
secondary materials that are used as
ingredients to make new products were
hot solid wastes provided that distinct
components were not recovered (i.e.
reclaimed) as end products., We also
proposed that secondary materials used
as substitutes for commercial products
in particular functions or applications
are not solid wastes. See 48 FR 14477,
14487-88. An example of the former
practice-r-/.e., use as an ingredient—is
the use of chemical industry still
bottoms as feedstock. Use of
hydrofluprosilicic acid (an air emission
control dust) as a drinking water
fluoridating agent, or use of spent pickle
liquor as a wastewater conditioner, are
examples of use of a secondary material
as a commercial product substitute.
  When secondary materials are
directly used (or* in the case of
previously used materials, reused) in
these ways, we stated, they function as
raw materials in normal manufacturing
operations or as products in normal.
commercial applications. We reiterate
these positions in the final regulation.
These direct use recycling situations

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 688          Federal .Register / Vol.  50, No. 3 / Friday, January 4, 1985  /  Rules and Regulations
 represent exceptions to the general
 principle that accumulated hazardous
 secondary materials are hazardous
 wastes.
   The final rule consequently states that.
 secondary materials used as ingredients
 or used directly as commercial products
 are not wastes and so are outside the
 Agency's RCRA jurisdiction. They thus
 are not subject to RCRA Subtitle C
 regulations when generated,
 transported, or used (unless they are
 accumulated speculatively, as described
 earlier).
   Most commenters. agreed with the
 Agency on this point Those who didn't
 felt that the Agency's jurisidiction over
 recycled, secondary materials is
 unlimited. The Agency disagrees. Our
 RCRA authority over recycling of
 hazardous secondary materials is broad,
 but has some limits. The legislative
 history indicates that Congress rejected
 an approach that would have required
 modifying production processes in order
 to reduc* the volume of hazardous
 waste generated. This is because such
 restrictions "i(n] many instances would
 amount to interference with the
 productive (sic) process itself...." H.R.
 Rep. No. 94-1491,94th Cong. 2d Sess. at
 2& The Agency accordingly has
 interpreted its jurisdiction so as to avoid
 regulating secondary materials recycled
 in ways that most closely resemble
 normal production- processes. These
 typcer of recycling are, use of secondary
 materials as ingredients or as direct
 commercial product substitutes, or (as
 explained below) use in a closed-loop
 type of production process.3*
  It, Redrafting of the Exclusion in the
Final Rule, la the proposal, exclusions
for using and reusing materials directly
 took the form, of exceptions to the
definition of reclamation (proposed
 i 2812[cKlMO-pii)J- We have redrafted
the final regulation so that ?261.2{e)(l)
indicates explicitly which secondary
materials used/reused in particular
ways are not solid wastes. A definition
of "use"/"reuse" appears in 5 261.1(c).
Exceptions to. this principal are found in
 1261.2{e)(2), and restate the situations.
where recycling might be considered to
involve a use (or a closed-loop recycling
situation, explained in the next section),
but nevertheless constitutes waste
management.
  As noted* above, there are several
such use/reuse circumstances where the
nature of the material or the nature of
  "We Bate, la response to comment*, that the
material* excluded from the-RCRA definition still
on bo hizardoui material* Tor purpose! of
Department «rf TMrwporiation regulation* governing
tbo tnn*portation of hazardous material*.
the recycling activity indicates that
RCRA jurisdiction exists:
   • where the material being used is
inherently waste-like;
   • where insufficient amounts of the
material are recycled;
   • where the material Fs incorporated
into a product that is used in a manner
constituting disposal or where  the
material is used directly in a manner
constituting disposal; and
   • where the material is used by being
incorporated into a fuel, or being burned
directly aa a fuel.
   In addition, when a component of the
material is recovered as an end product,
the material is being reclaimed, not
used.
   c. Distinguishing Sham Situations.
Other commenters voiced concern that
these exclusions open opportunities for
sham recyclers to claim that they are
using secondary materials* and so not
engaging in waste management. The
Agency shares these concerns, and
wishes to take this opportunity to
indicate some of those situations (which
also were pointed out in comments) we
regard as shams.
  First; where a secondary material is
ineffective or only marginally effective
for the claimed use,  the activity is not
recycling but surrogate disposal. An
example (provided in comments) is use
of certain heavy metal sludges in
concrete. The sludges did not contribute
any significant element to the concrete's
properties, and so we would not regard
this activity as legitimate recycling.
  A second example of sham use occurs
when secondary materials are used in
excess of the amount necessary for
operating a process. Examples  are when
secondary materials which contain
chlorine are used as ingredients in a
process requiring chlorine but are used •
in excess of the chlorine levels required.
An indication that secondary materials
are not being used in excess- ia if the
recycler requires product specifications
on incoming secondary materials, and
these specifications  are hi accord with
those generally in use in the industry.
  Another indication that a claimed
recycling use is a sham is if the
secondary material is not as effective aa
what it is replacing.  Conversely, where
the secondary material is as effective as
the alternative virgin material,  the
activity is much more likely to be
considered legitimate recycling. Spent
pickle liquor, for example, is known to
be as effective as. virgin materials when
used as a phosphorous precipitant in
wastewater treatment. See 46 FR 4497Q
(September 8,1981). This reuse is
legitimate. A secondary material
considerably less effective, however,
 could well be viewed as not being used
 legitimately.
   Absence of records regarding the
 recycling transaction is another
 ihdication.of a sham situation. Records
 ordinarily are kept documenting use of
 raw materials and products. Records
 likewise are usually retained to
 document secondary material use and
 reuse. The Agency consequently views
 with skepticism situations where
 secondary materials are ostensibly used
 and reused but the generator or recycler
 is unable to document how, where, and
 in what volumes the materials-are being
 used and reused. The absence of such
 records in these situations consequently
 is evidence of sham recycling.
   A final indication of sham use is if the
 secondary materials are not handled in
 a manner consistent with their use as
 raw materials or commercial product'
 substitutes. Thus, if secondary materials
 are stored or handled in a manner that
 does not guard against significant
 economic loss (i.e., the secondary
 materials are stored in leaking surface
 impoundments, or are lost through fires
 or explosions), there is a strong
 suggestion that the activity is not
 legitimate recycling.
   A recurring type of situation posing
' the potential for sham use involves
 using corrosive wastes as neutralizing
 agents. The potential for disposal in
 these situations ia high since a waste
 acid can be dumped into (or onto) other
 materials, and any resulting change in
 pH would be incidental to the disposal
 purpose of the transaction. Accordingly,
 EPA will  not accept a claim that a
 corrosive secondary material is being
 used as a substitute for virgin acid or
 caustic unless indicia of legitimate
 recycling are present These include lhat
 the secondary acid or caustic meet
 relevant commercial specifications, that
 they be aa effective as the virgin
 material for which they substitute, that
 they be used under controlled
 conditions, and that in a two-party
 transaction there be consideration
 (usually monetary) for use of the .
 material.  In addition, the more
 contaminated the acid or caustic is in
 relation to virgin material, the less likely
 the Agency ia to view its application as
 legitimate recycling.
   We note also that persons claiming
 that they are recycling hazardous
 wastes in a manner excluded by the
 regulation have the burden of proof that
 are within the terms of the exclusion.
 See Section J. below.
   Finally, persons intending to use
 secondary materials that are not listed
 in the Chemical Substance Inventory
 compiled by EPA pursuant to Section

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Federal Register  /  Vol. SO, No.  3 / Friday.
                                                                                        and
8(b) of the Toxic Substances Control Act
(TSCA) must notify the Agency of the
intended use at least 90 days before the
use begins. See TSCA Section 5(a) and
48 FR 21722 (May 13,1983). EPA can
regulate these substances under TSCA if
it determines that the manufacture,
processing, distribution in commerce,
use, or disposal of the substance will
present an unreasonable risk or injury to
human health or the environment.
(TSCA, Section 5(f).) EPA can also
extend the review period an additional
90 days for good cause. (TSCA, Section
5(c).)
  2. Closed-Loop Recycling, a. The
Agency's'Proposal. The Agen,cy also
proposed to exclude from the defintion
of solid waste materials that are
reclaimed at the plant site where
generated and that ere then returned to
the original production process in which
the material was generated.27 See 48 FR
14488/89. We referred to this type of
operation as "closed-loop recycling,"
and stated that this type of operation
could be viewed as an on-going
production process and therefore
outside the Agency's Subtitle C
jurisdiction.
   There were many comments on this
provision. Virtually all commenters
agreed that some type of closed-loop
provision was justified, but disagreed
about its scope. Some commenters  felt
that the proposal was too broad, while
others stated that it should be extended
to any situation where a generator
reclaimed its wastes and reused the
reclaimed material in a process under its
control. In addition, many commenters
criticized elements of the proposal  as
unclear, particularly what the Agency
meant by "original process from which
generated".
   b. Modification of the Proposal. We
 have determined that the proposal was
 both inexact and overbroad (see below).
 However* we believe that there are
 certain "closed-loop" situtations that are
 so closely tied to on-going production
 that they, should be considered not to
 involve solid wastes. In our opinion,
 there are three key requirements to a
 closed-loop process—that is, a
 production process that at some point
 utilizes secondary materials but
 nevertheless is both essentially on-going
 and closely interrelated throughout all
 steps. The first requirement is the return
 of secondary materials to the original
 process without undergoing significant
 alteration or reprocessing, namely
 without first being reclaimed. Second,
                           the production process to which these
                           unreclaimed materials are returned itself
                           must be primary material based—/.o.,
                           the materials must be returned to a
                           primary production process.*8 This is
                           because if the material originally
                           introduced to a process already is a
                           waste, the process residue returned to
                           the" process should not be  any less of a
                           waste than the material originally
                           introduced. For example, a still bottom
                           from reclamation of hazardous spent
                           solvents would never be considered to
                           be involved hi a closed-loop operation if
                           it were redistilled because solvent
                           reclamation is a secondary process and
                           spent solvents introduced to it are
                           wastes.29
                              Third, the secondary material must be
                           returned as feedstock to the original
                           production process and must be
                           recycled as part of that process. Thus, a
                           spent degreasing solvent returned to
                           degreasing operation would not be
                           covered by this provision because it is
                           not involved in actual production. It
                           merely cleans equipment.
                              We consequently are stating in the
                           final rule that secondary materials are
                           not solid wastes when they are returned
                           for recycling as feedstock to the original
                           primary production process in which
                           they are generated, and they are not
                           reclaimed before they are returned to
                           that process. The broader provision we
                           proposed,  which allowed reclamation
                           before return to the original process,
                           would exclude from the solid waste
                           definition  too many operations where
                           the reclamation step is less and less
                           directly related to the principal
                           production process. Examples are
                            situations where hydrochloric acid is  .
                           recovered from chemical industry still
                           bottoms, and the acid is returned tq the
                            chemical reactor. Another potential
                            situation is when fluoride is recovered
   " The. proposal actually excluded these materials
 from thtrdefintion of reclamation, but the effect of
 the provision was to exclude these materials from
 the definition of solid waste.
                              58 For purposes of this provision, a "primary
                            process" is one that uses raw materials as the •
                            majority of its feedstock. Secondary processes,
                            conversely, use spent materials or scrap metal a»
                            the majority of their feedstock. The Agency note*
                            that the Office of Management and Budget Standard
                            Industrial Classification Manual uses very similar
                            definitions in establishing primary and secondary
                            process classifications.             ''••..
                              29 The requirement in the final rule that materials
                           . be returned to the original primary process to be
                            eligible for the closed-loop exclusion thus subsumes
                            part of another exclusion that the Agency proposed
                            for secondary materials returned to primary
                            processes. (See proposed § 2B1.2(c)(l)(U) and 48 FR
                            14488.) As explained in the following section, we
                            are limiting the scope of that proposed exclusion to
                            situations where secondary materials are returned
                            without first being reclaimed to the primary process
                            in which they were generated. The language of the
                            final rule (I 261.2(e)(l)(fli)) thus indicates that
                            secondary materials must be generated by, and
                            returned as feedstock to processes using raw
                            materials as their principal feedstocks in order to be
                            considered eligible tor this provision.
(as cryolite) from primary aluminum
spent potliners and the fluoride is
reused. In these examples, neither the
still bottoms nor the spent potliners
should be considered to be involved in a
closed-loop operation because the
reclamation step is ancillary to normal
production activities. The proposed
approach might also have excluded
operations where the secondary
material itself is substantially
unrecoverable and contains
comparatively small percentages of
utiljzable material. The proposal thus
might have invited abuse, as companies
might spek to avoid regulation by
reclaiming some small increment, and
returning that increment to the original
production process.
   We consequently are not adopting the
proposed approach in the final rule. The
final rule makes clear that the situations
discussed in the paragraph above are
not closed-loop recycling and so are not
excluded from the definition.
.  c. Explanation of the Requirements
That Secondary Materials Not Be
Declaimed, and That They Be Returned
 To The Original Process. The final rule
raises two principal issues of
interpretation: distinguishing between
reclamation and incidental processing, .
 and clarifying what the Agency means
 by return to the original production
 process. The Agency has defined
 "reclamation" in these regulations to'
'mean recovery or regeneration. We
 further clarified, in the April 4 preamble,
 that processing steps that do not
 themselves regenerate or recover
 material values and are not necessary to
 material recovery are not reclamation.
 See 48 FR 14489/1. Examples are the
 wetting of dry wastes to avoid wind
' dispersal [id.] or the briquetting of dry
 wastes to facilitate resmelting. Another
 example, provided in comments, is
 Sintering operations at iron and steel
 plants where taconite ores, flue dusts,
 and other iron-bearing materials are
 agglomerated thermally before charging
 to a blast furnace. Conversely,
 processing operations that do recover or
 regenerate materials so as to make them !
 available for further use are considered
 to involve reclamation. Examples are
 dewatering of wastewater treatment
 sludges before the dewatered sludges
 are recycled, and the treatment of
 wastewater before recycling.  (See 48 FR
 14487/1, explaining that both  of these
 operations involve reclamation.)30
    "We are aware that under this reading there are
  probably no secondary materials generated or
  stored in impoundments that would be eligible for
  the closed-loop exclusion. The Agency intends this
  result Secondary materials stored in impoundments
                                 Continued

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 640
Federal Register / Vol.  50, No. 3 /-Friday. .January 4. 1985/ Rules  and Regulation^
   By "return to the original process", the
 Agency means that the (unreclaimed)
 secondary material must be returned to
 the same port of the process from which
 it was generated. The material need not
 be relumed to the same unit operation
 from which it was generated. It is
 sufficient if it is returned to  any of the
 unit operations associated with
 production of a particular product, if it
 originally was generated from one of
 those unit operations. For example, an
 emission control dust from a primary
 zinc smelting furnace could  be returned
 to any part of the process associated
 with zinc production, such as the
 smelting furnace in the pyrolytic plant,
.or the dross furnace. A spent electrolyte
"from the primary copper production
 process could be relumed to any part of
 the process involved in copper
 production—including the roaster^
 converter, or tank house. An emission
 control dust from steel production could
 be returned to the sintering  plant for
 processing before charging to the blast
 furnace.
   However, in the first example, if the   -
 emission control dust from the zinc
 smelting furnace was sent to by-product
 cadmium recovery operations, it would
 not be considered to be returned to the
 same of the process from which it was
 generated. This is because the cadmium
 production processes produce a
 different product from zinc production
 operations. For the same reason, if the
 spent electrolytes in the second example
 were sent to by-product recovery   ,
 operations for recovery of nickel sulfate,
 they would not be considered to be .
 returned to the original process. Note
 that this principle holds even if the by-
 product recovery operation is located at
 the same plant site.
    d. Variance For Hazardous Wastes
 That Are Reclaimed and Then Returned
 To The Original Process. We do believe,
 however, that EPA's proposal—that
 materials reclaimed before  being reused
 in the original primary production
 process are not wastes—can have some
 applicability. We are allowing for these
 situations by means of a variance. The
 standards and procedures for granting
 or denying a variance for this type of
 recycling are described in Section II.J.
 2.(b) of Part III of this preamble.
 arc ordinarily waste-like. They usually are not
 stored In a mnnnor that minimizes loas (see, e.g., 48
 FR14-100, as well as substantial portions of
 legislative history of the RCRA Reauthorization
 legislation), and virgin materials are rarely if ever
 stored is this way. We thus see this result—that
 wnalowalcr treatment sludges and other wet
 sludges arc not eligible for the closed-loop recycling
 exclusion—as justified both conceptually and
 environmentally.
                            e. Examples. The following examples
                          illustrate the operation of this provision:
                            • Primary smelting facility A
                          generates a dry emission control dust
                          that it collects, stores, and resmelt.s in
                          the original smelting furnace.
                            The emission control dust is not a
                          solid waste because it is returned to the
                          original primary process without first
                          being reclaimed. (This answer assumes
                          that the dust is not overaccumulated
                          before it is resmelted.)
                            • Primary smelting facility B
                          generates a listed wastewater treatment
                          sludge that it dewaters and returns to
                          the original process.
                            The wastewater treatment sludge is a
                          solid waste bscause it  is listed and must
                          be reclaimed (in this case, recovered by
                          dewatering) before it is resmelted.
                            • Generator C generates a spent
                          solvent which it distills and returns to
                          the same degreasing operation hi which
                          it was generated.
                            The spent solvent is a solid waste.
                          Not only is it reclaimed before reuse, but
                          it is not reused as a feedstock hi a
                          production process. (After the solvent is
                          reclaimed, of course, it is a product a'nd
                          no longer a waste.)
                            • Generator D generates a still bottom
                          that it burns without reprocessing for
                          energy recovery in a boiler in the same
                          umt operation.
                            The still bottom is a solid waste
                          because it is burned for energy recovery.
                          The closed-loop exclusion thus does not
                          appJy. Nor would it apply if recycling
                          the still bottom constitutes disposal or if
                          the still bottoms were  overaccumulated
                          before return to the original process.
                             • Generator E, a petroleum refinery,
                          generates a hazardous by-product from
                          refining operations that is returned to
                           the refining process and incorporated
                           into fuels, Isphalt, and other products.
                             This process involves return of
                           unreclaimed material to a primary
                           production process but the by-product
                           remains a waste because it is used as an
                           ingredient in fuels and in products that
                           are placed directly on the land. See
                          ' § 261.2(e.)(2) (i) and (ii).
                             3. Recycling of Secondary Materials
                           by Primary Facilities, a. The Agency's
                          • Proposal. The remaining exclusion that
                           EPA proposed was for secondary
                           materials that are reclaimed in primary
                           production processes. These were not
                           considered to»be solid wastes. Proposed
                           § 261.2(c)(l)(ii): 48 FR at 14477,14488.
                           The usual example is  secondary
                           materials sent to  a primary smelter for
                           material recovery. The reason for the
                           proposal was that these materials were
                           substituting for the  normal raw material
                           feedstock. One result of this proposed
                           exclusion would be differential
regulation of secondary- and primary
facilities reclaiming the same materials,
since the material could be a s.olid waste
when reclaimed by a secondary smelter,
but would not be when reclaimed by a
primary smelter.
  The proposal was imprecise regarding
the scope of the exclusion. For example,
we did not discuss whether it made any
difference if the primary reclaimer
recovered the same materials (or even
the same type of material) originally
produced, whether recovery occurred at
the same or a different site, or whether
the primary reclaimer recovered its own
or another person's secondary materials.
  There were many comments on this
part of the proposal.  Operators of
primary processes supported it, while
operators of secondary processes
objected. Some states and
environmental groups also objected.
  b. Modification of the Proposal. We
have,decided not to promulgate this
exclusion as  proposed, but rather to
limit its scope to the closed-loop
production situations discussed in the
previous section. We think the .proposal
was in error in failing to differentiate
among the different types of fact
situations where a primary process
would be used for reclamation:—such as
the part of the process involved, location
of the recovery operation, and type of
material recovered. The proposal, for
exairple, could have applied to
situations where: (a) Residues are sent
off-site to be recovered, (b) residues go
to a by-product recovery operation, or
 (c) where residues are recovered in
 ancillary operations and the material
 recovered is not marketable but can be
 used in a primary process.31 The
 Agency does not believe that an
 unvarying rule like the one we proposed
 can properly cover all these situations:
 Rather, when a secondary material is to
 be recovered in an operation different
 from the one in which it was generated,
 we believe there is a continuum with
 secondary materials becoming more
 waste-like the more the recovery
 operation differs from the original'
 process, and the more physically
 removed the recovery operation is from
 the original process. The nature of the
 secondary material—whether it is a
 sludge, by-product,  or a spent material,
 or scrap metal, how frequently it is
 recovered, and how it is handled before
 recovery—also is highly relevant. The
 proposed rule was deficient in failing to
 account for  all of these factors.
   ** Cryolite recovery from spent primary
  aluminum potliners is a possible example of thia
  last situation.

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              Federal Register  /  Vol. 50, No. 3  /  Friday, January 4,  1985 / Rules and Regulations         641
  We believe thai the exclusion should
apply only when residues from primary
processes are returned in unreclaimed
form to the original process where they
are then reclaimed. This is the only
situation where the Agency nan say a
priori that secondary materials
reclaimed in primary processes are not
wastes.         .
  The by-products and sludges that are
the residue from primary production
processes thus can potentially be solid
wastes when they are reclaimed in other
primary (or secondary) processes. They
are wastes if they overaccumulate
before being reclaimed, and they are
wastes if they are listed in § § 261.31 and
261.32. In determining whether to list
certain sludges and by-products as
hazardous wastes.'we intend to take
into account whether they should be
considered to be wastes when
reclaimed. If materials are reclaimed in
primary processes (such as primary
smelting operations), we will evaluate
how frequently the material is recycled
on an industry-wide basis, whether the
material is replacing a raw material and
the degree to which it is similar in
composition to the raw material, the
relation of the recovery practice to the
principal activity of the facility, and
whether the secondary material is
managed in a way designed to minimize
loss—all of which show that the
material is handled as a commodity.
  As stated in the previous section,
hazardous secondary materials returned
for reclamation to the secondary process
in which they were generated are not
excluded from being wastes. The
materials are not substituting for raw
materials normally used, and the
operations themselves—using as they
often do spent materials as a principal
feed~-rare reclamation processes, not
ordinary production operations. Thus,
return of a residue to this type of
process is not the same as a continuous
production operation.
  The final regulations thus provide that
the following secondary materials are
wastes when reclaimed by either
primary or secondary reclamation
operations, unless the materials are
returned to the primary smelting process
from which they were generated without
firat being reclaimed:
  (1) Sludges and by-products that are
listed in § § 261.31 and 261.32
  (2) All hazardous spent materials;
  (3) All hazardous scrap metal.
In Addition,
  (4) Any secondary material is a waste
if overaccumulated.
  q, Examples. The following examples
illustrate these principles:
  « Primary smelter A generates a listed
emission control dust that it sends to
primary smelter B for metals recovery.
  The dust is a solid and hazardous
waste because it is a listed sludge being
reclaimed.
  *• Primary smelter B generates a listed
emission control dust that it reclaims
itself in an as-is condition in its own.
smelting furnace.
  The dust is not a solid waste because
it is being reclaimed as part of a closed-
loop recycling process, and has not been
reclaimed before reintroduction to that
process.     •       '  .
  « Primary aluminum smelter A
generates spent potliners from which it
recovers fluoride for use in its own
process.
  The,potliners, a spent material, are a
solid waste.32 They are not returned to
the smelting process for recovery, but to
a different unit operation. In addition,
fluoride recovery is an ancillary activity,
far removed from the production of
aluminum, the principal activity of the
primary aluminum facility. (In fact, this
operation is probably best viewed as
-hazardous waste treatment because the'
main purpose of the operation is to treat
the cyanide in the potliners, not to
recover fluoride. See 49 FR 8746 (March
8,1984).)
  • Solvent reclaimer S generates
hazardous still bottoms from its .
distillation operation and mixes these
still bottoms on-site with virgin oil. S
then .sends the mixture to a fuel
processor.
  The still bottoms are solid wastes
because they are used to produce a fuel.
The fact that this operation occurs at a
single site is irrelevant The mixture of
still bottoms and oil remains subject to
regulation as "a hazardous waste as well.
I. Secondary Materials Specifically
Excluded From the Definition of Solid
Waste
  1.  § 261.4(a)(6): Black Liquor
Reclaimed and Reused in The Kraft
Paper Process. Pulpmaking processes in
the paper industry use chemicals to
digest wood chips, and the spent
chemicals are recovered from the
digester, reclaimed by burning in a
recovery furnace, and then reused in the
digester in approximately their original
form. "Black liquor" is the name given to
the spent chemicals, which are caustic
and sometime corrosive. Recovery and
reuse of black liquor can occur at a
single paper mill, and also can involve a
second paper mill which reclaims black
liquor for its own use or for reuse by the
  3-Thia waste is currently exempt from regulation
as a result of EPA's interpretation of Section
300t(bK3)ofRCRA.
 generating mill. All Kraft paper mills*
 reclaim their black liquor (or have the
 black liquor reclaimed), and little is ever
 discarded. The Kraft process itself is not
' economically viable without recovering
 the black liquor. Black liquor, is
 customarily stored in tanks before being
 reclaimed, but also is stored in surface
 impoundments. (The paper industry
 estimates that one-third of the
 approximately 125 domestic Kraft mills
 have black liquor impoundments.)
   • The Agency has tentatively
 determined that black liquor, on a
 generic basis, meets the standards for a
 closed-loop variance (see section H.J.2.
 b. of Part 3 of the preamble below) and
 so is not a solid  waste when recycled in
 this way. (We also indicated hi the
 proposed regulation that black liquor
 recovery was a closed-loop type of
 operation. 48 FR 14489.) At least where
 black liquor is stored in tanks rather
 than in surface impoundments, black
 liquor reclamation is integrally tied to
 the Kraft paper production process,
 whether it occurs at a single or different
 plant All Kraft mills practice black
 liquor recovery, and the recovery is
 economically essential to the process.
 An end use for black liquor is readily
 available. The whole operation is
 essentially an on-going process, with  .
 chemicals being used, recovered, and
 returned in their original form to the
 same process in which they were
 generated, or to an analogous,process at
 a different facility. Because this
 operation appears to occur for all black
 liquor generated, we have determined
 that black liquor is not a solid waste
 when recycled in this way.
    The Agency, however, is continuing to
 investigate the degree of recycling that
 occurs when black liquor is stored in
 surface impoundments. Although some
 (and perhaps most] of the black liquor
 stored in impoundments is recycled in a
 closed-loop manner, there are some
 reasons to question whether this is
 invariably the case. These reasons are:
    • Black liquor may remain in
 impoundments without being recycled
 for long periods of time because of: (a)
 Inadequate capacity of the black liquor
 recovery furnace; (b) the lack of a
 nearby facility to sell or trade the black
 liquor; and (c) difficulties in pumping the
 black liquor from an impoundment due
 to contamination, dilution, or
 coagulation of the black liquor with
 impoundment bottom solids, wood
 chips, or rain.
    • Many black liquor impoundments
 are unlined, and so may leak.
    • Black liquor impoundments are
 often built to accommodate excess black
 ' liquor caused by process upset

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 642
Federal Register /Vol. 50, No.  3 /Friday, January 4,  1985 /Rulesand Regulations
 conditions such as loss of a set of black
 liquor evaporators or loss of a recovery
 furnace. When this occurs, the black
 liquor In the impoundment is
 accumulated in excess of what can be
 accommodated at the facility and so
 may not be recycled, or not be recycled
 for a long time.
   In light of these uncertainties, the
 Agency is investigating further whether
 black liquor stored in an impoundment
 before recycling in the Kraft process is a
 waste. In addition, we note that black
 liquor that is disposed of and not
 recycled is a waste, and if hazardous, a
 hazardous waste. This includes black
 liquor that leaks, leaches, or overflows
 from an impoundment and is not
 recycled. Furthermore, the final rule
 states that black liquor stored before
 recycling remains subject to the rules on
 speculative accumulation. Thus, paper
 mills accumulating black liquor must
 show that they are recycling 75% of the
 amount on hand at the beg -ining of a
 one-year period.
   In summary, today's final rule states
 that:
   • Black liquor accumulating before
 recycle to the Kraft paper process is not
 a Subtitle C solid waste. At least for the
 present time, this exclusion includes
 black liquor that is stored in a surface
 Impoundment before recycling. The
 person accumulating must show that the
 blark liquor is not being accumulated
 spetmlatively, or the black liquor will be
 considered to be a waste;
  Black liquor that is recycled in some
 other manner could be a waste and
 black liquor that is disposed of is a
 waste.
  2. §28L4(a)(7}; Spent Sulfuric Acid
 Used to Produce Virgin Sulfuric Acid.
 Spent sulfuric acid is frequently used as
 a feedstock in the production of virgin
 sulfuric acid. It is normally reintraduced.
 Into the originalsulfuric acid production
 process where sulfur values are
 recovered and absorbed into existing
 sulfuric acid. 45 FR14487 n.30. Under the
 proposal, spent sulfuric acid recycled in
 this way was not considered to be a
 solid waste because it was used as an
 ingredient, used in a primary process,
 and was burned in an industrial furnace.
 See 48" FR14483,14487 n.30,14488 n.31.
  As discussed earlier (see Section E.
 above), some commenters questioned
 the regulatory status of spent materials
 that are reclaimed and then used as
 feedstocks. We indicated that normally
 the spent material would be considered
 to be a solid waste until it was
reclaimed. However, we agree that our
discussion of spent sulfuric acid at
proposal (in footnote 30] created some
confusion.
                            To eliminate any confusion, we are
                          promulgating a specific exclusion stating
                          that spent sulfuric acid recycled in this
                          way is not a solid waste. As we
                          explained at proposal, the spent sulfuric
                          acid recycling process more closely
                          resembles a manufacturing operation
                          than a reclamation process. In addition,
                          the operation is well established, and
                          accounts for approximately 9%  (in 1982)
                          of the roughly 33 million tons of sulfuric
                          acid produced annually. At least one
                          state (California) has indicated  by
                          statute,that spent sulfuric acid returned
                          to the sulfuric acid production process is
                          not a solid waste. EPA is therefore
                          declaring explicitly that spent sulfuric
                         • acid returned to a sulfuric acid
                          production process is hot a solid waste.
                          The acid is a hazardous waste if
                          disposed (assuming it is corrosive or
                         ' exhibits other hazardous waste
                          characteristics), and could be a
                          hazardous waste if recycled in some
                          other manner (such as burning for
                          energy recovery).
                          J. § 261.2(f): Burden of Proof in
                          Enforcement Actions
                            EPA proposed that if respondents in
                          enforcement actions raised a claim that
                          a particular secondary material was not
                          a solid waste (or was conditionally
                          exempt from regulation) because it was
                          recycled in a particular manner then
                          they had the burden of proof to  show
                          that they were indeed recycling hi that
                          way. (Proposed § 281.2(d) and 48 FR
                          14492.) We are adopting this provision in
                          the final regulation.
                            As discussed e.arlier in Section F,
                          RCRA creates a broad remedial scheme
                          to ensure that hazardous wastes are
                          managed safely from cradle-to-grave.
                          The regulatory framework envisaged for
                          this problem extends to hazardous
                          wastes being recycled, and normally
                          includes any hazardous secondary
                          material that is being recycled or that is
                          accumulated with expectation of  •
                          recycling.
                            Certain exceptions to this remedial
                          scheme to exist. We think it appropriate,
                          and the rule states explicitly, that the
                          burden of proof (in the sense of  both the
                          burden of producing evidence and the
                          burden of persuasion) is on the persons
                          claiming that their hazardous secondary
                          material is not a waste because  it is
                          within the terms of any of these
                          exceptions. This provision,  thus, restates
                          the legal principle that parties claiming
                          the benefits of an exception to a broad
                          remedial statutory or regulatory scheme
                          have the burden of proof to show that
                          they fit the terms of the exception. See,
                          e.g. SEC v. Ralston Purina Co., 346 U.S.
                          119,126 (1953) (exception to Securities
                         Act registration requirements); U.S, v.
First City National Bank of Houston, 386
U.S. 361, 366 (1967) (exception to merger
provisions of Clayton Act): Arnald'v.
Ben Knowsky, Inc., 361 U.S. 388, 393
(1960) (exception to Fair Labor
Standards Act for retail sales);
Weyerhauser, Inc. v. Costle, 590 F.2d
1011,1040 (D.C. Cir. 1978) (burden of
proof is on applicant for Agency-created
fundamentally different factors
variance).
  Viewed another way, the regulations
presume that hazardous secondary
materials stored before recycling are
hazardous wastes. The person
accumulating can prove, howsver, that
the materials are not wastes due to  the
manner of recycling (including t.ha
aiflbunt of material being recycled).
These facts are'within the special
knowledge of the person accumulating
the material. Presumptions of this type
have been upheld consistently when
they further interpret a remedial
statutory purpose, guard against harm to
public health and safety, and where the
facts to rebut the inference are
particularly within the knowledge of the
other party. See Beth Israel Hospital v.
f/LRB, 437 U.S. 482, 493, 502 (1978); U.S.
v. General Motors Corp., 561 F.2d 923,
924 (D.C. Cir. 1977) (Leventhal J.
dissenting in part).
  Furthermore, this type of claim is an
affirmative defense, for which it is
appropriate that the person asserting the
defense have the burden of proof. In
addition, the facts underlying the
recycling defense would be peculiarly
within the knowledge of the party
asserting the defense, a situation as
noted above »where it is appropriate for
that party to have the burden of proving
the issue. We thus disagree with those
commenters claiming that the Agency
lacked authority, or was ill-advised, to
allocate a burden of proof in this
regulation. Indeed, the Agency has
allocated burdens of proof to
respondents in other regulations that
create an affirmative defense or an
exception to a generally applicable  '
principle. See § 122.42(n)(4) (permittee
has burden of proof to establish the
affirmative defense of upset); § 124.5
(National Pollutant Discharge
Elimination System permit applicant has
burden of persuasion that a permit
authorizing a discharge of pollutants
should be issued). This allocation of the
burden of proof was affirmed in
American Petroleum Institute v. EPA,
661 F.2d 340, 352, 354 (5th Cir. 1981).
  There is no formal recordkeeping
requirement in the regulation. However,
persons must keep whatever records or
other means of substantiating their
claims that they are not managing a

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 Federal  Esgister I Vol.  50, No. 3 / Friday, January 4.  l'd«5 / Kuies ana Regulations
.'   :   ,•,-,'	„.— .^..^L^,,,,,  .jlg^r_m-»«^m^!^TO.n^mgs-^3re^^
                                                                                                                   643
 solid waste because of the way the
 material is to be recycled.33They also
 must show that they are not           '
 overaccumulating their secondary
 materials. See Section F.3. above. In
 addition, owners or operators of
 facilities claiming that they are engaged
 in recycling must show that they  have
 the necessary equipment to do so.

 Part !H: Standards for Managing
 Hazardous Wastes That are Recycled
 /. An Overview of the Final Regulations

   Section 261.6 of the final regulation
 contains the regulatory requirements for
 hazardous wastes that are recycled. The
 final rule, contains many of the
 provisions  that were proposed, but also
 eliminates all but one of the proposed
 conditional exemptions. The other major
 change from the proposal is that  we are
 adopting standards and procedures for
 certain variances.'
 A. Outline  of the Final Regulations

   As in the proposal (and as under
 current regulations), hazardous wastes
 to be .recycled—called "recyclable
 materials" in the regulation-—are   ..'.'.
 ordinarily subject to regulation under
 Parts 262 and 263 of the regulations
 (when generated and transported) and
 to the storage facility requirements in
 Parts 264 and 265 (when stored before
 recycling). We usually do not regulate'
 the recycling process itself, except when
 the recycling is analogous to  land
 disposal or incineration. (See 45 FR
 33092-093 (May 19,1980); see also H.R.
 Rep. 98-198, supra, at 46 indicating that
' uses constituting disposal and burning
 for energy recovery are to be regulated.)
 In addition, certain recyclable materials
  and certain types of recycling are
  subject to regulatory standards that.are
 not completely identical to those
  contained in Parts 262 through 265 and
  Parts 270 and 124. The regulatory
  standards for these types of recycling
  activities are contained in various
  subpartrof Part 266. Section 261.6(a)(2)
  serves as a cross reference, listing those
  recyclable materials and recycling
  activities subject to special standards.
  We are adopting Part 266 standards for
  the following recycling activities-or
  recyclable materials:
    •  uses constituting disposal;
    •  burning for energy recovery in
  boilers and industrial furnaces and
    "Absence of documentation not.only would
  make it difficult or impossible for a respondent to
  carry its burden of proof, but also would itself be
  evidence that the claimed recycling is a sham. See
  Section II.H.1.C. above
                            using recyclable materials to produce a
                            fuel;
                             •  recyclable nuUeriai from which
                            precious metal are to bs recovered;
                             •  spent lead-acid batteries being
                            reclaimed.
                            Used oil that is to be recycled will
                            eventually be regulated under- Part 268 •
                            but presently is exempt from regulation
                            during the time it takes to dovelop
                            standards consistent with the
                            requirements of the Used Oil Recycling
                            Act and the HSWA (see 48 FR 14496).
                             We also are exempting permanently
                            two types of recyclable materials—
                            industrial ethyl alcohol to be reclaimed,
                            and used batteries or cells returned to a
                            battery manufacturer for regenerallon—
                            from all Subtitle C regulation. The ;9
                            exemptions are found in {j 261.8(a)(3).
                              Scrap metal (that  is hazardous) and
                            that is to be recycled is also exempt for
                            the present time while the Agency
                            investigates further  whether there is a
                            need for regulation and what an
                            appropriate regulatory regime might be
                            if regulation is necessary.
                              Finally, we have added variances
                            from § 261.8 or Part 266 (as well as
                            | 261.2) for certain types of recyclable
                            materials and recycling activities. These
                            variances—to be implemented at the
                            Regional or State level—can result in
                            increased regulation, or (for materials
                            determined not to be solid wastes) no
                            regulation. Standards for granting or
                            denying variances are found in §§260.31
                            and 260.32  (variance from being a solid
                            waste), and 260.40 (additional regulation
                            of generators or storage facilities).
                            Procedures for implementing these
                            variances are found in new § § 260.33
                            and 260.41.
                            B. Elimination of Conditional
                            Exemptions
                              EPA proposed that four types of
                            reclamation activities be conditionally
                            exempt from regulation: (1) A single
                            person reclaiming his own hazardous
                            wastes; (2) a single person reclaming
                            another's hazardous wastes for his own
                            use; (3) batch tolling reclamation
                            arrangements;  and (4] precious metal
                            reclamation. With the exception of
                            precious metal reclamation, we are not
                            adopting these exemptions in the final
                            rule. (We are also soliciting comment as
                             to whether batch tolling reclamation
                             procedures should  be eligible for a
                            variance.) As stated in Part I of the
                             preamble, we have concluded that there
                             is danger of substantial harm from leaks
                             and spills  if these activities are not
                             regulated. We are supported in this
                             conclusion by comments of states,
hazardous waste management
organizations, environmental groups,
and the Congressional Office cf
Technology Assessment.
  We have also concluded that all of tha
Part 264/265 standards sho'iiid apply to
those recycling situations that are not
( onclilionaiiy exempt. Wo r.onsidered
whether it was possible-  to .develop
tailored standards for these facilities,
leaving out those regulatory standards
which guard solely against the risk of .
overaccumulation (a risk unlikely to be.
present; seo 48 FR 14477) and retaining
those standards which guard against
risk of spills or leaks.
  This type of tailoring proved
impossible. Design and containment
standards for containers, tanks, and
piles  are necessary to protect against
leaks and spills, and were indeed
devised largely to prevent these risks.
Closure and financial responsibility
requirements, which do guard against ••
overaccumulation, also  provide
protection should leaks o. "pills occur.   •
Thus, facility owners and operators
must ensure that contamination that has
occurred during operation of the facility,
such as by spills or leaks, will be
controlled, minimized, or eliminated so
that post-closure escape of
contaminants will not occur. See
§ 264.111, 264.112(a)(3), and 264.114. The
financial responsibility provisions
ensure that funds will be available to
carry out closure responsibilities,
including those just mentioned.
Contingency and emergency procedures
are also needed to respond  to short-term
spills or fires, as  are requirements for
preparedness and prevention. The
 tracking requirements of the manifest
 system are needed if the whole
 regulatory system is to'be enforceable
 and implementable (most state
 commenters were emphatic on this
 point: many industry commenters
. likewise favored use of a manifest).
 Transportation standards are chiefly
 designed to protect against risks from
 spills, and to ensure proper tracking, as
 are the Part 262 generator standards.
 We consequently cannot justify tailored
 regulations for these types of operations.

  C. Summary

   Tables 9 and 10 compare the various
  provisions of the current, proposed, and
  final regulations. Table 11 provides a
'  flow chart which identifies the various
  requirements for the different recycling
  activities and materials.

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644
Federal Register / Vol. 50, No. 3  / Friday, January 4, 1985 / Rules and Regulations
TABLE 9. COMPARISON OF THE VARIOUS PROVI-
  SIONS BETWEEN THE EXISTING, PROPOSED,
  AND FINAL RULES
Subject
Execution tor
recycled
htiardous wait*!
exNbiiing a
chuacfctUfc.
Central regulatory
siandwdafor
recycled
hazardous wastes.
nodot^natSon o)
ncydod
hazardous WMiet.
Compile
exemption lor
ctrtiin rocyciaKo
rnMtWs.
CondWomi
•xemptions for
cwtain rocydabS*
malaria!*.






Rftfertneato
tOond
. managwMnt
ttwxtafctor
recyclable
matsriate
Standards tor UM»
conttHu&tg
(StposjJ.
Exlri.-ig
provision
526V6(a).




32C16!b)..



H«nt» »««


.......... ..L.!,.



........H. .J....»...









M,,n,.m- K:,4M,,





•* »*» >M«tt>


Proposal
E'niralod...




} 261 8 (c),
(d)«nd
(e).

5261.6(a)._


}2«l.6(b)
tvS).


12616(6)
n>-(iv).








52616(1),,





1261.8 (a)..


Final nils
Elu-rtnalod.




§ 261.6 (b)
and(c).


5 261 .6 (a).


5 261. 6 (a)
(3).


Bmtoalotf
sxcspt
te
prockxa
metal
recycling
(Part
266
Subpart
F).
§261.6 (a)
(21,




Part 268
Subpart
a
                          TABLE 9. COMPARISON OF THE VARIOUS PROVI-
                            SIONS BETWEEN THE EXISTING. PROPOSED,
                            AND FINAL RuLES-^Continued        '. . •
Subject
Standards for
recyclable < •
materials to be
burned for energy
recovery.
Standards for spent
lead-acid
batteries being
reclaimed.
Variances..,,.. 	




Existing
provision





».».».«, 	 «•:»*»



_..,„.„• 	 „.




Proposal
5 281 6 (b)
M-



Part 266
Subcart
P- ',

.j.,..,,,^ 	 tl,,.t
'



Final rule.
Part 268
• • Subpart
0-


Part ?66 •
Subpart
• &. , .. ,

Part 260
(stand-
ards and
, proce-
dures).
                                       TABLE 10. COMPARISON OF THE REGULATORY
                                         REQUIREMENTS BETWEEN  THE PROPOSED
                                         AND THE FINAL RULE FOR THE  VARIOU?
                                         RECYCLING ACTIVITIES
Acthrtly
Use constituting
dioposa!.
Proposal
Regulate. as land
disposal (Waste-
derived products
placed on the
land ware not
defined aasoHd
wastes).
Final
Regulate as land
disposal;
exempt waste-
derived products
(or the time
being.
TABLE 10, COMPARISON OF THE REGULATORY
  REQUIREMENTS BETWEEN  THE PROPOSED
  AND THE FINAL RULE FOR THE  VARIOUS
Activity
Burning In boilers
or industrial
furnace for
energy recovery.













Generator
reclaiming own
wastes.
Person reclaiming
someone else's
wastes (or own
'.Wastes reclaimed
pursuant to
batch tolling
agreements.
Wastes roclalrned,
toreeever
precious rnetato.
Spent lead-add
batteries being
, reclaimed.


Prpppsat •
Regulate
transportation
and storage of
listed wastes
and hazardous
• sludge* before
burning; burning
is exempt;
' blenders would
also be
regulated when
they store spent
materials
exhibiting a
hazardous
waste
, characteristic.
portditlonaHy
sxempt

.;.,!.!*>..,,..,....„,„...,.;.


'• Mo



	 do...,...., 	 , 	


Regulate when
battery reaches
tha reciilmors'
stte. •'

. . Final
Regulate
transportation
and storage of
listed wastes
and sludges
" before burning;
burning is
exempt









Regulate under
Parts 262-285,

Regulate under
Parts 262-265,

Regulate under
Parts 262-265.


Conditionally
exempt (Part
266, Subpart F).
Regulate when
battery reaches
the reclaimers'
site (Part 266,
Subpart G).
                                                                              BtLUNQ cone tseo-so-M

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            Federal fegfste f Vol. 50, No. 3 / Friday, January 4,1885 / Rules and Regulations
               Table  ftt   Decision Tree Which Identifies  the
               Various  Regulatory Requirements for  the  Different
               Recycling  Activities and Materials
Hazardous Secondary
Materials/Recyclable
Materials
%
Is recyci
exempt ur
261. 4'b*
>
Is recycle
used in a
stituting
V
Is recycle
used as a
to produce

.able material ye
or 261.6{a)(4)
/ No
ible material yes
.disposal .
f NO
ible material Yes
5 a fuel

s Material is not
waste control
Regulated under
Part 266
Regulated under
Part 266
          I
No
  Is recyclable material
  accumulated speculatively
                   Yes
             No
  Is recyclable material
  reclaimed
             Yes
                   Regulated under
                -> §§261.6(b> and 
Are precious
metals
reclaimed
Yes   Regulated under
	> Subpart F of
      Part 266
                                          Ho
                                   Are spent-lead
                                   acid batteries
                                   reclaimed
                                      Yes   Regulated under
                                      -i	> Subpart  G of
                                            Part  266
BILLING CODE G5SO-SO-C
                                         (All other
                                         reclamation).
                                          •> Regulate under
                                            §§261.6(b)  and (c)

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648
Federal Register /, Vol. 50, No. 3
//. Discussion of Specific Provisions of
ths Regulation
A. Section 281.6(a){l): Recyclable
Materials
  To avoid conceivable stigmatization,
EPA proposed that ha?ardous wastes
that are to he recycled ba calind
"regulated recyclable materials." Most
comments favorfd this approach, and
we are adopting it in the final rule,
choosing the less cumbersome name
"recyclable material." As stated in the
proposal, however, all Section 7004{b)
announcements and notices regarding
permits for facilities managing these
materials must still refer to hazardous
waste. See 48 FR at 14493/3.
B. Section 2ei.6fa}(2}{i} and Part 268
Subpart C: Recyclable Materials Used hi
a Manner Constituting Disposal.
  1. The Proposal Rule, EPA proposed
that hazardous wastes used in a manner
that constitutes disposal be regulated
under the Part 284 and 285 regulations
applicable to land treatment or landfill
disposal. Storage and transportation
occurring before the actual recycling
 Iso wera to be fully regulated. See 43
  \ 14496-497. Only materials placed
urectly on the land in an "as-is"
condition or plated on the land aftei
simple mix'??; were defined as wastes,
however, ana so were subject to the.se
requirements. Most commenters
indicated that the land treatment and
landfill regulations were inappropriate
for this type of recycling because those
regulations contemplate existence of a
facility whereas use constituting
disposal recycling activities occur hi a
variety of situation-specific contexts
which may be dissimilar. Certain of the
land disposal regulations, they argued—
such as Closure or post-closure care or
liner installation requirements—would
b« very impractical to apply to a
recycling situation where a hazardous
sludge was used as road-base material
on a stretch of highway. Other facility
'standards, they claimed, such as plant
security, or preparedness and '
prevention, normally don't apply to this
kind of recycling.
   2. Ths Final Rule. The Agency has
decided to promulgate the regulatory
schema essentially as proposed. The
changes from the proposal, explained In
3. below, have to do with a clearer
explanation of what type of chemical
 changes to a waste-derived product
result in deferral of regulation. Under
 the final rule, hazardous wastes placed
 on the land hi  the form generated, or
 after simple mixing that doesn't
 significantly alter the waste's chemical
 character, are subject to regulation
 under the Part 264 and 265 permit
                           requirements for landfill or land
                           treatment facilities. The Agency indeed
                           has indicated as long ago as the
                           preamble to the May, 1980 interim status
                           standards that these regulations would
                           apply to hazardous wastes placed on the
                           land, whether or not recycling is a
                           purpose of the activity. See 45 FR 33205-
                           208 (any benefit, such as providing crop
                           nutrients, from placing hazardous
                           wastes on the land is incidental, and
                           the practice is to be regulated as land
                           treatment); see  also 43 FR 14484/3 (April,
                           4,1884} [direct application of hazardous
                           waste to land as fertilizer is land
                           treatment, citing the Background
                           Document for the July 28,1982 laud
                           disposal permitting standards}.
                             It may be, as commenters state, that
                           the Agency ultimately can develop a
                           more tailored regulatory system for
                           wastes recycled to the land. We are not
                           able to do so at the present time. See
                           Sections H.C.l. and 2. of Part II of the
                           preamble. Since the Agency :a
                           implementing a statute designed to
                           control hazardous wastes placed on the
                           land, it is inappropriate to defer
                           regulating this practice any longer. The
                           Agency therefore does not intend to
                            *  ' " regulating this practice while a
                               .ient regulatory scheme is developed
                           and debated. If wastes are safe to put on
                           the ground, the delisting mechanism
                           provides some means of'demonstrating
                           that the practice can occur without
                           regulation. (See § 260.22 which applies
                           to listed wastes; wastes exhibiting a
                           characteristic of hazardous waste could
                           not be placed on the land without
                           complying with applicable Part 284 or
                           265 standards.}3*
                              We note that the HSWA includes a
                           prohibition banning use of hazardous
                           waste (except wastes exhibiting the
                           characteristic of ignitability) mixed with
                           waste oil, used oil, or other materials for
                           dust suppression or for road treatment.
                           See RCRA amended Section 3004(1}. We
                           areTadding this prohibition to the
                           hazardous waste regulations in another
                           rulemaking codifying provisions of the
                           ' HSWA.
                              3. Exemption For Hazardous Waste-
                           Derived Products. As we indicated in
                           Part II of the preamble, we are deferring
                           regulation of hazardous waste-derived
                            products that are placed on the land. Wa
                            are deferring action because waste-
                            derived products may present less
                            potential risk than wastes placed
                            directly on the land without significant
                            chemical change, due to the chemical
alteration and.dilution of toxic
constituents that can occur in the course
of Ihe process. Use of hazardous waste-
derived commercial products on the
land also is more clearly a recycling
activity than direct waste applicationS5,
and this use thus is a better candidate
for  separate regulatory standards. In^
any case, the Agency wishes to obtain
public comments en this issue in Ihe
context of a specific proposal.36
  The final rule thus states that
products that contain hazardous wastes,
which wastes have undergone a
chemical reaction so as to become
inseparable by physirtl means, are net
presently subject to I   RA Subtitle C
regulation when th^y ure used in a
manner constituting disposal. We think
the phrase "have undergone  a chemical
reaction so as tr become inseparable by
physical meat  ' expresses our intention
better than the language used at
proposal, nemeJy 'without essential
change to tli ir identity Or after simple
mixing'. The «;_ste-derived products for
which we are ' jferring regulation are
those where the hazardous wastes have
undergone chemical bonding, so that
they are chemically transformed.  The
waste-derived products for which we
are not deferring regulation are those
where the waste is mixed but not
chemically reacted. (An exception is for
commercial hazardous waste-derived
fertilizers which would not have to
undergo chemical bonding to be
exempt.} The language used in the final
. regulation is drawn from 40 CFR  § 116.3
(definition of "mixture"} but expresses a
familiar physical concept. See
 Condensed Chemical Dictionary, 10th
 ed., Van Nostrand Reinhdld Co. (1981}.,
   Examples of hazardous waste-derived
 products in which contained wastes
 have undergone chemical bonding, and
 so are  deferred from regulation, are
 waste-derived cement and asphalt, In
 these processes, the constituents
 polymerize and so are essentially
 inseparable by physical means.3? They
                              « Delistings do not apply on a site-spBCifiu basis,
                            howevc.. The petitioner must demor,;-'rate that the
                            waste will not cause substantial harm io human
                            health and the environment if iefi unregulated in
                            any reasonably:occurring management setting.
   55 The Agency wes not considering waste-derived
 products in its 1980 preamble statement 'juoted
 earlier.                           ;,,
   18 We note, however, that the wastes must
 contribute to the effectiveness of the waste-darivsd
 product for the Agency to regard the waste as being
 recycled. FOJ example, a waste used in a fertilizer
 would have to contain nutrients or micronutrients; a
 waste used in cement would have to have
 pozzolanic properties. If a waste does not contribute
 to the product,  we consider the waste to be
 disposed of.
   "Technically, not every constituent introduced to
 cement or asphalt becomes chemically bonded to
- the polymer. Some constituents become trapped In
 the polymer rather than chemically bound. Because
 cement and asphalt are not viewed as chemical
 mixtures and are commercial products, the Agency
 intends to defer regulation of hazardous wastes-
 derivt d cement and asphalt at this time.

-------
   are not in solution or otherwise mixed.
   On the other hand, wastes applied to the
   land after drying or dewatering remain
   subject to regulation. Hazardous wastes
   that are mixed with used oil are another
   example of wastes that are mixed, not
   chemically reacted. See 48 FR14496/1.
   They therefore are subject to regulation
   under the landfill or land treatment
   facility standards if applied t
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  648          Fedwral Register / Vpl,  50,- No. 3 / Friday, January 4, 1985 / Rules and Regulations
   We also note that the HSWA contains
 two provisions relevant to this
 discussion. The first prohibits cement
 kilns located in cities with populations
 greater than 500,000 from burning
 hazardous waste fuel unless the kiln
 complies with requirements applicable
 to hazardous waste incinerators. See
 RCRA amended Section 3004(q)(C)(2)(i).
 Since the prohibition is imposed by
 statute, it applies to all hazardous waste
 fuels, not just hazardous waste fuels
 containing listed wastes and sludges.
   The second statutory requirement
 involves labelling of hazardous waste
 fuels. The new amendments provide that
 any person who produces, distributes, or
 markets a hazardous waste fuel must
 include a warning label in the invoice or
 bill of sale stating that the fuel contains
 a hazardous waste  and listing all
 hazardous wastes contained therein.
 See RCRA amended Section 3004(r)(l).
 This requirement again applies to all
 hazardous waste fuels, and so applies to
 fuels containing characteristic spent
 materials and by-products, as well as
 listed wastes and sludges. Certain
 hazardous waste fuels are exempt from
 this warning label requirement,
 however. These are petroleum coke
 containing hazardous waste ingredients
 (unless the coke exhibits a hazardous
 waste characteristic), and fuels from
 petroleum refining containing oil-bearing
 hazardous wastes indigenous to refining
 (amended Sections  3004(q)(2)(A) and
 3004(r) (2) and (3)), respectively.
   These requirements are being added
 to the hazardous waste regulations by
 another rulemaking proceeding which
 codifies portions of the HSWA.
 D. Section 261.6(a)(2)(iii) and Part 268
 Subpart E: Recycled Used Oil
   This provision is reserved for the
 regulations implementing the Used Oil
 Recycling Act (UORA) (Section 3014 of
 RCRA). This provision requires EPA to
 conduct an analysis and evaluate the
 effect of regulation on used oil recycling.
 EPA presently is conducting studies and
 developing regulations that satisfy the
 requirements of the  UORA. We will
 soon propose the first of these
 regulations dealing with contaminated
 used oil burned for energy recovery, and
 will be proposing additional regulations
 in the future.
 E. Section 2Q1.6(a)(2)(iv) and Parf266
 Subpart F: Precious  Metal Reclamation
  1. Retention of The Partial Exemption.
Although EPA has concluded that most
of the proposed conditional exemptions
are unwarranted, we continue to believe
 that the exemption for precious metal'
containing wastes being reclaimed for
their precious metal content remains
 justified because of the high value of the
 metals being reclaimed. We noted in the
 first part of this preamble that a
 decision on how carefully wastes are
 stored before reclamation turns largely
 on a weighing of how valuable the
 wastes are and the cost of buying virgin
 products to replace reclaimed materials.
 The precious metals being reclaimed
 from these wastes are at the high end of
 the value continuum, ranging from
 values of approximately $9.00 per troy
 ounce (silver) to $600.00 per troy ounce
 (indium and rhodium).
   An examination of how these wastes
 are managed confirms that they are
 accorded special care due to their value.
 Management of these materials
 ordinarily is. characterized by very
 careful handling from point of '
 generation to point of recovery. Wastes
 containing these metals  are at least
 placed in containers, and are sometimes
 neutralized, dried and shipped—with
 armed guards—in pouches to the
 reclaimer. Reclaimers and generators
 often enter into batch tolling
 agreements, requiring reclaimers to
 return the theoretically reclaimable
 amount of metal to the generator. For
 this purpose, wastes are typically
 assayed by both the generator and the
 reclaimer for precious metal content,
 and precautions are taken by the
 reclaimer to avoid loss. Wastes are
 containerized before reclamation; the
 Agency is not aware that open piles  or
 impoundments are used for  storage.
 Accumulation time by reclaimers also
 tends to be short (less than one month),
 because reclaimers often are required to
 return the reclaimed metal (or cash) to
 the generator within that time.39
  The Agency thus believes that the
 value of the contained metals,
 corroborated by the usual management
 practices for these wastes, supports the
 partial exemption. At the same time,  the
 Agency does not believe a complete
 exemption is warranted. As pointed out
 in the proposal, individual precious
 metal operations have caused
 environmental harm, and some of the
 wastes being reclaimed—such as spent
 cyanide solutions—are very hazardous.
 In this regard, we note that some
 precious metal reclaimers themselves
 supported a partial, rather than total
 exemption. (See, e.g., Comments of
 Englehard Industries Division, July 30,
 1983.)
  The rule consequently states that
 wastes to be recycled are exempt from
 all but the following requirements:
  ** A memorandum to the record from the Agency's
Effluent Guidelines Division documents these
statements.
   (a) Notification requirements under
 Section 3010
   (b) Manifest requirements '
   (c) Requirements precluding
 overaccumulation; and
   (d) Recordkeeping requirements to
 document that wastes are not being
 overaccumulated.
   Manifest requirements are necessary
 to create a paper trail to track wastes
 from the generator to the reclaimer. To
 enforce the requirement against
 overaccumulation, we are requiring
 generators, reclaimers, and intermediary
 facilities accumulating the wastes to
 keep records showing the volume of
 wastes on-hayid at the beginning of the
 calendar yesr, the amount of waste
 generated or received during the one-
 year period, and the amount of waste
 remaining at the end of the period.
   We are making this portion of the rule
 effective immediately because the
 regulated community does not need time
 to come into compliance. RCRA
 amended Section 3010.
   2. Definition of Precious Metal. As
 used in the final regulation, precious
 metal reclamation includes reclamation
 operations recovering gold, silver,
 platinum, palladium, the platinum group
 metals (iridium, osmium, rhodium,
 ruthenium) or any combination of these.
 This is essentially the definition used in
 the proposal (the proposal omitted the
 metal osmium), and is the same
 definition used by the Agency in
 developing effluent limitation guidelines
 for the precious metal reclamation
 subcategory (40 CFR Part 421). The only
 comments disagreeing with this
 definition suggested (without
 explanation) that beryllium, germanium,
gallium, and indium also be included.
These metals are not ordinarily
 classified as precious, and commodity
prices for these metals ordinarily  are
much lower than for the precious  metals
 (in some cases, several hundred times
less). The Agency also has little
 information on the handling practices
for wastes containing these materials or
whether these wastes would be
hazardous. We therefore are not
expanding the list of precious metals at
this time.
  3. Distinguishing Sham Operations.
We also note that sham recovery
operations merely claiming to be
engaged in precious metal reclamation
are not exempt under this provision.
Sham operations not only include those
where no precious metals are present,
but those where precious metals are
present only in trace amounts, or in
amounts too low to be economically
recoverable. The. regulations
consequently state that the reclamation

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             Federal Register / Vol. 50, No. 3 / Friday, January  4, 1985
                                                                           649
facility must be recovering economically
significant amounts of precious metals
from each waste for the waste to be
conditionally exempt. For example,
wastes from which small amounts of
silver are recovered by a facility not
ordinarily engaged in precious metal
reclamation would not be exempt from
regulation. Other factors indicating
sham precious metal recycling are lack
of strict accounting by either the
generator or reclaimer of wastes to be
reclaimed, storage (such as in open piles
or impoundments) by either the
generator or reclaimer not designed to
protect wastes from release, payment to
a reclaimer to accept wastes, or absence
of efficient recovery equipment at the
reclaimer's site. Generators or
reclaimers engaged in this type of sham
recycling without complying with RCRA
regulations are of course managing
hazardous wastes without complying  •
with applicable regulatory standards.
   4. Status of Wastes From Precious
Metal Reclamation When Hazardous
 Wastes Are Reclaimed. Several
 commenters questioned the statement in
 the preamble that wastes from precious
 metal reclamation are presumptively
 hazardous if the material being
 reclaimed is a hazardous waste. This
 statement does no more than recite
 existing regulations (see § 261.3(c)(23).
 and is justified factually here because
 the hazardous portions of the wastes are
 not recovered but remain in the process
 residue. (Effluent sampling data shows
 high toxic metal and cyanide
 concentrations in wastewater from
 precious metal reclamation operations
 reclaiming electroplating sludges and
 related wastes.) Commenters presented  ;
 no data disputing these conclusions. In
 addition, individual precious metal
 waste generators and reclaimers have
 the option of delisting the wastes from
 the reclamation process if they believe
 they are not hazardous.
 F. Section 261.6(a)(2)(v) and Part 266
 Subpart G: Spent Lead-Acid Batteries
 Being Reclaimed
   EPA proposed that spent lead-acid
 batteries be regulated when stored by
 the persons reclaiming them, either a
 battery cracker or a secondary lead
 smelter. These spent batteries would not
 be regulated, however, when handled by
 persons other than reclaimers, such as
 retailers, wholesalers or local  service
 stations, or during transportation. Spent
 batteries stored at intermediate
 collection centers also would not be
 regulated. See 48 FR 14498-499.
   Many commenters supported these
 regulations, including significant
 segments of the lead recycling industry.
 Other commenters disagreed that the
 risks presented by storage of spent lead-
 acid batteries warrant regulation. Still
 other cbmmenters, including most of the
 commenters from the lead recycling
 industry, stated that battery storage by
 independent collection centers
 presented greater risks than storage by
 reclaimers. They stated that collection
 centers tended to store batteries for a
 longer time than reclaimers, and
 sometimes in larger amounts, and
 provided examples of improper handling
 by collection centers. There was
 consensus, however, that initial
 collectors and transporters did not
 require regulation.
    We have decided to adopt the  '•
 proposed regulation without significant
 change. Acid spillage from uncracked
 batteries can cause significant harm,
 and storers have no (or minimal)
 incentive to store spent batteries
 without acid spillage. We are impressed
 that even some lead recycling industry
 ^members accept the need for regulation,
 of spent battery storage. We also note
 .that many states regulate various
 aspects of spent battery  recycling
  (including, in many cases, storage by
 battery reclaimers),40 confirming a need
  for regulation. Damage cases cited in the
  April 4 preamble provide further
  corroboration.
    The Agency is continuing to
  investigate whether regulation of
  intermediate collection sites is
  appropriate. These battery collection
  sites are managed, for the most part, by
  the same persons who operate scrap
  metal pollection sites, and scrap metal
  and spent batteries are usually
  accumulated by these persons at the
•  same sites. We therefore will address
  this issue as part of our  study of
  hazardous scrap metal storage.
  G. Recyclable Materials Exempt from
  Regulation
    1. Section 261.6(aj(3)(i): Reclaimed
  Industrial Ethyl Alcohol. Industrial  ethyl
  alcohol can become contaminated
  during use, and may then.be returned to
  a distillery for redistillation. Spent
  industrial alchol exhibits the
  characteristic of ignitability.
    EPA has decided to exempt industrial
  ethyl alchol that is reclaimed from any
  RCRA regulation because the entire
  reclamation operation already is
  regulated by the Bureau of Alcohol,
  Tobacco and Firearms from point of
   spent ethyl alcohol generation to point
     "The States of Pennsylvania, South Carolina,
   Texas, Missouri, New Yprk, California, Oklahoma,
   Oregon and Indiana regulate various aspects of
   spent battery recycling. See Comments of General
   Battery Corporation to Proposed Effluent
   Limitations and Standards for Nonferrous Metals
   Manufacturing, August IS, 1983.
of redistillation. These regulations
require operating permits for individual
industrial ethyl alcohol distilleries and
users. These permits must address
(among other things) ethyl alcohol
storage (including storage of spent ethyl
alcohol), plant security, and
recordkeeping. See 27 CFR 19.156,
19.159,19.166, and 19.271-19.281
(requirements for distillers) and
§§ 211.41-211.50, and 211.91-211.96
(requirements for users). Tracking from
the generator to the distiller likewise is
controlled. Id. |§ 211.217.-211.219. There
is also incentive to avoid loss of alcohol
because there is tax liability of $10.50
per gallon of spent ethyl alcohol, and
this tax is imposed, and ordinarily not
remitted, hi the event of loss. Id.,
§§ 19,561-19.563. In light of this
.comprehensive cradle-to-grave existing
regulatory system, further RCRA
regulation would be redundant.
   2. Section 261.6(a)(3)(ii): Used
Batteries Returned, to a Battery
Manufacturer for Regeneration. This
 exemption is identical to the one
 proposed. See 48 FR 14496/2. (In
 response to comment, we also note that
 returning an unused battery for
 regeneration would not involve  waste
 management, because the battery would
 be a commercial product being recycled.
 Se'e § 261.33.) In essence, the practice
 involves returning a commercial product
 for regeneration, an activity not
 ordinarily regulated. All comments on
 this issue supported the proposal. (We
 note, in response to a comment, that
 used battery cells returned to a
 manufacturer for regeneration also are
 covered by this exemption.)
   3. § 261.6(a)(3)(iii): Used Oil
 Exhibiting a Characteristic of
 Hazardous Waste. This temporary
 exemption was discussed in Section II.E.
 above.
   4. § 2616.(a)(3)(iv): Scrap Metal. The
 Agency has determined not to regulate
  (for the time being) hazardous scrap
 metal that is being reclaimed. This is an
  interim measure. We are continuing to
  study which types of scrap metal may
  be hazardous.41 We also are continuing
  to study the modes of scrap
  management by collection centers and
  by end reclaimers, and are also studying
  marketing arrangements in the industry.
  Other on-going work deals with the
  impacts (both environmental and
  economic) of possible regulation, the  .
  feasibility of enforcement if regulation
  should be necessary, and whether
    41 Preliminary results of Agency studies indicate
  that most scrap metal is not hazardous, although
  some types exhibit EP toxicity.

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650
Federal Register / Vol.  SO.  No. 3  / Friday. January 4,  1985 / Rules  and  Regulationa^
tailored regulations can or should be
developed for hazardous scrap metal.
  The Agency expects to determine
from this investigation which types of
scrap metal are hazardous, whether the
regulation of transportation and storage
is necessary, and what an appropriate
regulatory regime might be for those
types of scrap metal that are hazardous.
Since we do not yet have answers to
these questions, we are deferring
regulation.

  We are not deferring regulation of
non-scrap metal-bearing hazardous
wastes  that are reclaimed. The Agency
already has made a determination that
these wastes are hazardous, that
regulation is necessary to protect human
health and the environment, and what
appropriate regulatory standards should
be. Thus, such metal-bearing wastes as
spent batteries, spent mercury, and
spent acids and caustics are subject 1o
§ 201.6  (or Part 268) regulatory
standards under today's rule.

H. Section 261.6(b) and (c):
Requirements for Generators,
Transporters, and Storage Facilities

  1. The Generally Applicable
                            Standards. These provisions state that
                            persons generating, transporting, or
                            storing recyclable materials, who are
                            not explicitly addressed in § 261.6(a),
                            are subject to all of the applicable
                            requirements of Parts 262, 263, 284 and
                            265 of the regulations, as well as to
                            applicable permit requirements. Thus,
                            hazardous wastes that are to be
                            reclaimed are covered by these
                            provisions. Hazardous wastes that are
                            accumulated speculatively also are
                            covered.** As noted, these provisions
                             44 As we noted in the April 4 preamble, persons
                           who overaccumulate wastes are subject to
                           regulation as storage facilities when a year elapses
                           without sufficient turnover of material. (However,
                           as noted in the rule, and in Section ILF.S.b. of Part 2
                           of the preamble, materials that are stored in a unit
                           covered by S 261.4(c) are not covered by the
                           overaccumulation provisions.) These persons have a
                           six-month period to come into compliance with
                           applicable storage requirements or to ship all
                           accumulated hazardous wastes to a Subtitle C
                           facility. 48 PR 14499/Zr3. Persons accumulating
                           hazardous wastes speculatively are subject to
                           immediate regulation as generators (if they generate
                           the wastes) or as storage facilities (if they store
                           anoter person's wastes, if they store their own
                           wastes In piles or in impoundments, or if they store
                           their own wastes in tanks and containers for longer
                           than 90 days or for less than 90 days without
                           complying with the provisions of 5 282.34).
will apply to most of the activities that
would have been conditionally exempt
under the proposal, as well as to
situations (such as reclamation by an
independent reclaimer selling reclaimed
products to the general public) that we
already proposed to regulate fully.
  The following chart compares the
extent of coverage under the May 19,
1980 regulations (40 CFR 261.6(b)> with
today's final regulation for those
recyclable materials not regulated under
the special standards in Part 266—
namely recyclable materials being
reclaimed or accumulated speculatively.
For wastes being reclaimed, the
principal extension of regulation is to
spent materials oxhibiting a
characteristic o* hazardous waste.
Sludges that are not listed as hazardous
wastes, however, are no longer
regulated when reclaimed. In addition,
unlisted by-products  and spent
materials are now subject to regulation
when accumulated speculatively (he.
without sufficient amounts being shown
to be recycled). Commercial chemical
products listed in 40 CFR § 261.33 are
not subject to regulation when recycled
in any of these ways.
BIU1KG CODE 6560-SO-M

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            Federal Register / Vol. 50, No, 3 / Friday, January 4,1985 / Rules and Regulations
                                     - 160 •• -
TABLE  12:   Comparison of  Regulation Under May 19, 1980 Regulations
            and Under Amended $261.6 for Recyclable Materials  Not
            Subject to Regulation Under Part  266 Standards
Reclamation
May 19 Final Rule

Spent Materials
Listed in
§§261.31 or 261.32
Spent Materials
Exhibiting a
Characteristic of
Hazardous Waste
Sludges Listed in
§§261.31 or 261.32
Sludges Exhibiting
a. Characteristic
of Hazardous Waste
By-products Listed
in IS261 .31 or
261.32
By-products Exhibi-
ting a Character-
istic o'f Hazardous
Waste
Scrap metal
Commercial Chemi-
cal Products
Listed in S26U33
yes


no



yes

yes


yes


no



no
no

.



'














•




yes


yes



yes

no


yes


no



no
no



















;





Acumulation Without
Sufficicent Amounts
" Being Recycled
May 19 Final Rule
:























yes


no



yes

yes


yes

.
no



no
no














, •










yes


yes



yes

yes


yes


yes



no
no

























Accumulation
Without A Known
Recycling Market
May 19 Final Rul
























yes


yes



yes

yes


yes


yes



yes
no

























yes


yes



yes

yes


yes


yes



yes
no


Yes -  Subject to regulation under Parts  262-265
No -   Not subject to  regulation
wuirta CODE «sso-so-c

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  652          Federal Register  / Vol. 50, No. 3  / Friday, January 4,  1985 / Rules and Regulations
    2, Conforming Amendments to
  §§201.5,264,1, and 285.1. EPA proposed
  that hazardous wastes that are exempt
  from regulation when they are to be
  recycled are not included in the small
  quantity generator calculation. 48 FR at
  14493 n. 38. This proposal was a
  conforming amendment to existing
  5 265.1(c), which already embodies this
  principle. We are promulgating this
  amendment in final form today. Since
  there are fewer conditional exemptions
  than at proposal, however, fewer
  recycled hazardous wastes will be
  excluded from the small quantity
  generator calculation. As at proposal,
  spent lead-acid batteries that are to be
  reclaimed are excluded from the small
  quantity generator calculation because
  they are not subject to regulation in the
  hands of the generator."
   The amendments to §§ 264.1 and 265.1
  nlao are conforming. They indicate that
  these sections do not apply to activities
  that are conditionally exempt or
  excluded from regulation, or that are
 regulated under a Part 266 standard.
 {The Part 2B8 standard may, of course,
 meke reference to a Part 264 or 265
 standard.)
   3 .levision of §260,10: Definition of
 "DesignatedFacility". In response to
 comment, the Agency also is adopting a
 rule relating to manifesting of hazardous
 wastes to recycling faculties that
 introduce the wastes directly into the
 recycling process without prior storage.
 These recycling facilities are not
 required to obtain storage permits under
 the May 19,1980 rules (§ 261.6(b); see
 also 48 FR at 14498/2 to the same effect},
 nor under the rules adopted today. This
 is because the Agency does not regulate
 the actual process of recycling, but only
 generation, transportation, and storage
 occurring before actual recycling. 45 FR
 33093/1 [May 19,1900). However,
 generators sending hazardous wastes  to
 those facilities, and transporters
 carrying these wastes, are required to
 deliver the wastes to "designated
 facilities" and to include the name,
 address, and EPA identification number
 of these facilities on the accompanying
 manifest. A "designated facility" is
 defined as a facility with a Part 264
 permit or operating pursuant to interim
 status {§ 260.10).
  These rules consequently are in
 conflict because recycling facilities that
 do not store are not "designated
 facilities" (they do not have permits or
 interim status), and, under a literal
 reading of the present rules, are unable.
 to receive wastes for recycling. This
 obviously was not the Agency's
 intention. Accordingly, the Agency is
 amending the definition of designated
 facility so that recycling facilities that
 do not store before recycling can receive
 hazardous wastes.
   The amendment states that facilities
 regulated under § 261.6(c)(2) of the
 regulations are also to be considered
 designated faculties. Section 261.6(c)(2),
 in turn, states that recycling facilities
 that do not store are required to notify
 the Agency under Section 3010
 (obtaining an identification number in
 the process), and to comply with
 manifest requirements under §§ 265.71,
 265.72, and 265.76.
   The Agency stresses that this
 amendment is an interim one and is
 designed to solve the immediate conflict
 between different regulations. We are
 not making a final decision that these
 facilities require only minimal
 regulation. In fact, we are considering
 whether these faculties should be
 subject to additional requirements to be
 implemented through individual permits.
   We also stress that very few facilities
 recycle wastes without first storing
 them. In this regard, we note that tanks
 or containers in which some incidental
 settling occurs but which are used
 primarily for storage are subject to
 regulation under the storage facility
 permit »tandard8,4*rhis is in keeping
 with the policy of the current regulation
 that only the actual process  of recycling
 is to be left unregulated. Examples of
 recycling processes that occur without
 prior storage are where spent batteries
 are introduced directly to a battery
 shredding machine without prior
 storage, or when spent solvents are
 placed in a distillation unit without prior
 storage.

 L Variances
  EPA is adopting several variance
 provisions in the final rule. One of these
 provisions results in increased
 regulation (and so is a variance from
 otherwise applicable standards or
 exemptions), while the others result in a
 determination that materials recycled in
 certain ways are not solid wastes. These
 provisions are described below.
 ,1. Case-by-Case Regulation, a. The
 Substantive Standard. EPA proposed
 that various recycling activities
 conditionally exempt from regulation be
  "Precious metal wastes are to be included when
making Ilia small quantity generator calculation
bteauia thoso wutet are subject to regulation In
(Jis band* of the generator.
  44 For purposes of this point, pilee and
impoundments are rarely considered to be an
integral part of the hazardous waste recycling
process because wastes are not secure from loss,
and because recovery from them [if any) is
inefficient. Piles and impoundments at non-exempt
hazardous waste recycling facilities consequently
are subject to regulation.
 subject to case-by-case regulation if
 they accumulated, stored, or burned
 hazardous wastes in a manner
 insufficient to protect human health and
 the environment, to be determined
 based on criteria enumerated in the rule.
 Proposed | 261.6(g), 48 FR 14510. We
 believed this provision necessary in
 order to regulate individual unsafe
 operations, while  maintaining an
 otherwise appropriate exemption.
   Many comments supported this
 provision, but other commenters
 objected. They complained that the
 Agency was giving with one hand but
 taking back with the other, that, the
 provision vested too n.iuch discretion in
 the Regional (or authorized State)
 Administrator becaase decision-making
 standards were toe. broad, and that this
 type of provision  teprived facilities of
 needed certainty.  (Many of these same
 commenters argued that the Agency
 should vest Regional Administrators
 with authority to grant individual
 variances, based upon standards far
 broader than in the case-by-case
 regulatory provision.)
   The Agency has determined to adopt
 most of the provision as proposed,
 except that we are not promulgating a
 case-by-case provision for boilers and
 industrial furnaces burning hazardous
 waste for energy recovery. We note that
 the provision has less significance than
 at proposal, because it applies only  to
 wastes utilized for precious metal
 reclamation. Applicability at proposal
 was to other types of conditionally
 exempt operations, which now will be
 fully regulated. We believe this type of
 provision remains  needed in spite of its
 reduced applicability, to guard against
 mishandling of precious metal- ,
 containing waste. Indeed, we know  that
 damage incidents have occurred at these
 facilities. The caso-by-case regulatory
 provision also alknvs the Agency to
 control individual facilities without fully
 regulating the entire class.
   The Agency also does not accept the
 argument that the regulatory standard is
 too broad. Regional officials must find
 that the wastes are not being contained,
 or that incompatible wastes are being
 stored together. Relevant factors are the
 type and quantity of waste accumulated,
 the mode and length of accumulation,
 and the type of hazard posed by the site.
 The Agency not only believes that these
 standards are sufficiently clear, but'
 notes they are modelled on long-
 standing provisions in the Agency's'
National Pollutant  Discharge
Elimination System permit regulations
providing authority for regional officials
to require case-by-case regulation of

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                                                                                                                   653
 facilities holding general permits. (See
 48 FR 14494 n.40.J
   We have e number of reasons for not
 promulgating the case-by-case provision
 for boilers and industrial furnaces. Most
 important, the Agency already is well on
 the way to establishing standards for
 these facilities. We will propose to ban .
 burning of hazardous wastes in non-
 industrial boilers, and shortly will
 propose permitting standards for
 remaining boilers and industrial
 furnaces. These standards should either
 be effective, or be close to being
 effective, by the time an enforcement
 action could be brought, decided, and a
 permit issued under the case-by-case
 provision. Furthermore, the Statement of
 Enforcement Policy (see Section II.D.2.a.
 of Part 2 of the preamble) remains in
 force and serves as a partial safeguard
 against abusive situations until the
 permit standards become effective. In
 light of these considerations,  it does not
 seem worth the resources necessary to
 implement the case-by-case provision
 for boilers and industrial furnaces.
   One commenter argued that the
 Regional Administrator must show an
 "imminent threat to human health and
 the environment" before case-by-case
 regulation could be invoked. We
 disagree. This standard, similar to that
 in Section 7003 of RCRA, may be more
 stringent than required for issuing a
 RCRA permit (see Section 3004); Since
 the case-by-case provision amounts to a
 determination that an individual facility
 requires a RCRA permit (or must comply
 with Part 262 accumulation standards),
 the suggested standard is inappropriate.
  As a matter of organization, we are
 codifying the substantive standards for
 case-by-case regulation in § 260.40.
 These standards are thus grouped with
 other provisions that are individual in
 application and effect, such as delistings
 and  variances. Procedures for case-by-
 case proceedings are found in new
 §260.41.
  b. Procedures for Case-by-Case
Determinations, We are adopting the
procedures that we proposed. Upon
deciding that precious metal-containing
waste at a particular location should be
regulated, the Regional Admimnstrator
(or authorized state) will issue a notice
to the person storing the waste stating
why the waste is considered to be
improperly contained (for instance,
because contaminated runoff from a pile
of tha waste is seeping into soil, surface
water or ground water). If the person is.
accumulating the material on-site for
less than 90 days and the material is
being held in tanks or containers, the
notice will require compliance with the
provisions of Subparts A, C, B. and E of
Part  262. (These generators already are
required to comply with subpart B (the
manifest requirements) of Part 262. See
§ 266.70(b)(2).) The notice becomes final
within 30 days, unless^ the person
accumulating requests a" hearing, in
which case a public (non-evidentiary
legislative) hearing will be held. EPA
will provide notice of the hearing to the
public, and allow public participation at
the hearing. The Regional Administrator
will issue a final order after the hearing
stating whether or not compliance with
Part 262, Subpart A, C, D, and E is
required. The order becomes effective 30
days after service of notice of the •
decision unless a later date is specified
or unless review the Administrator is
requested. The order may be appealed
to the Administrator by any person who
participated in the public hearing. The ,
Administrator may then choose to grant
or deny the appeal. Final Agency action
occurs when a final order is issued and.
Agency review procedures are
exhausted. (Cf. § 124.19 where
analogous procedures are used for
appeals from RCRA permits.) Judicial
review, in our view, should be in a Court
of Appeals since the Agency's decision
and implementing procedures are,
analogous to those used in issuing a
permit. (See RCRA Section 7006(b),
indicating that review of RCRA permit
issuance decisions are in a Court of
Appeals.)                 ;
  If the person is storing the material for
longer than 90 days, storing in a pile or
impoundment, or storing off-site, the
notice will require him to apply fora
storage permit within 60 days to six
months of being notified, the precise
date for applying to be specified by the
Region or authorized state.** Permit
applicants normally have six months to
submit a Part B permit application. (See
40 CFR 270.10(e)(4).) We are providing
the authority to request a shorter time
period because facilities subject to this
provision ordinarily will be causing
actual harm or have the potential to
cause immediate harm. The person can
challenge the determination that he is
storing a hazardous waste through the
permitting process, either in the public
hearing, or in comments filed on the
draft permit, or on the notice of intent to
deny the permit. The fact sheet
accompanying the permit would specify
the reasons for the Agency's
determination. (As noted in the
proposal, these procedures are identical
to those in 40 CFR 124.52 (case-by-case
permitting of facilities otherwise subject
to general permit standards under the
Clean Water Act).)
   Several commenters urged that a
separate hearing be afforded before
requiring the facility to submit a storage
permit application. We think the
procedures we have chosen strike a
proper balance between public and
private interests. The Agency's interest
in having a single proceeding is strong.
EPA will invoke this provision when a
facility is storing wastes in a manner
that is insufficient to protect human
health and the environment. There may
be actual (and certainly threatened)
release of hazardous wastes. It will be
important, in such situations, that the
facility manage the wastes in
compliance with Part 264 standards as
soon as possible. Substantial delay
could result in increased harm or
increased risk of harm. A separate
initial proceeding (potentially followed
by judicial review) to determine whether
the facility should be required to obtain
a permit could well result in lengthy
delay, substantially prejudicing the
public interest.
   Furthermore, the facility will be
engaging in conduct—storage of
hazardous waste—that by statute
normally requires a permit. They
probably will be engaging in conduct
which is an abuse of the regulatory
exemption for precious metal-containing
wastes. The government's interest again
is strong that the abuse cease, and that
the normally-mandated statutory
scheme—issuance of a permit—be
implemented without delay.
   Finally, the government has  an
administrative interest in avoiding
successive proceedings. As we noted in
adopting § 124.52. "(t)o allow (a x%
separate hearing before requiring afc^  ;'
permit application) would produce long- :t
delays and a potential for two
consecutive hearings on closely related
issues." 48 FR 32879 (June 7,1979).
   A facility's interest in having a
separate hearing is its ability to
challenge the determination that a
storage permit is required before being
required to submit a permit application.
We think the facility's interest in
avoiding this cost4S is outweighed by the
public interests outlined above.
Moreover, EPA would allow the
applicant to comment on the
determination throughout the permitting
process. We note also that EPA's
procedures allow the facility to remain
  "EPA proposed that persons submit permit
applications within 60 days of being notified. We
are giving the Region or state the option of
specifying up to six month); to submit applications
to a!!ow room for procedural flexibility.
 . "The estimated cost of completing a tank and
container permit application is approximately
$10,000 (assuming 75 drum capacity or 5,000 gallon
capacity). Pope-Reid Associates Inc., Unit Cost
Analysis of Part 264 and Part B Tank and
Containers Storage Analysis (April 1983).

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               Federal Register / Vol 5fe Mp> 3 / Friday,, fimuagy  4, 1985  /Rules and1 Regulations
  operating while It applies for a permit If
  the procedure in the rule were
  unavailable, the Agency might seek
  more draconian relief against a facility
  under Section 7003- of RORA. which.
  could entail cessation of. facility waste
  handling operations.
    2. Variances from Classification af.ai
  Solid Waste. EPA did not propose any
  variance provisions, but did solicit
  comment* as to whether general or*
  specific types of variances were-
  justlfUd. See 4aFR14-J99-500. Industry
  commenterr generally supported th*
  idea o£ variances* but were* not specific.
  about substantive standards' far granting;
  or denying them.
    EPA continues- ta think that variance*
  for broad classes of recycled wastes-ace
  unwarranted} because the variances
  wpuld too easily become surrogate
  permits* Thus, we reject toe notion of
  granting variance* because recycled.
  wastes are being stored solely.
   We do believe^EoweveivtSatcertaftj.
  discrete variances are warranted, and
  we ara adbpttcg. thesa &i the roles.
  promulgated1 today. There ate three such.
  provisions covering situations where
  there can be a question of whether the
 material fs a waste. A. variance,, if
 granted, would, state that the material ia
 not a. waste. We describe Befow what
 theao activities are, and the substantive;
 and procedural" standards for granting, or
 denyiiig a variance.
   B. Ma teriahAcciwiafatEcf Without
 SuffMontAmanats of Materials Being,
 Recycled As- explained" earlier fsee
 Section H.F.S.Fof Part IT of me
 preamble}, thia provision was proposed"
 on April 4» aWrough- it was not formally
 called & Varianca'. It states- that persons
 whofiriJto tonr over 75 percent of their
 accumulated1 waste? in & year cam
 petition thrKegfonal- AJ«aihistrator|or
 th» state far air authorized! stattej to
 declare that me material is not s waste,
 in spite of ftp failure to recycle 75
 percent The-provisibn-now. appears- m.
 1 260.30 pnatetrd of f26I-.0aar proposed.
 Standards' roc granting a variance are
 contained fat f 260.». TheyawvfrtuHlry-
 ihdsame as-tfiose-we- proposed", except
 thrt varfencescouMcorrtinne-tcrbe-
 granted beyond- »tvro»-year
conditions' precedent on- the amount to
be recycled before applying for a
variance.
  Ptoctdurw ftp granting or denying
this variance- are contained' m< S 26&3K
Thes* procedures- (Identical to those- for
the other variances) are discussed in,
Section S below.
  b. Mtttsriofoi That Ate Reclaimed1 And*
Then-naaaecfWjthfa Tfie Origfnot
Primary Process foWfticIiTIwy Were
Generated EPA propascd' that- materiala
  that are reclaimed and then reused
  within, the original production process in-
  which- they were generated are not solid:
  wastes. Aa explained m Section H.H.2.
  of Part II of the preamble, we have
  decided that the proposal was-too broad
  and we have narrowed the- provision to
  apply only to materials- returned to the
  original primary production process
  without first being reclaimed.
    We nevertheless-, bettere that there
  may bet some- situations- where a
  material can b* wclaimd before being
  reused within: tte original primary
  production proeesa* and not be a solid
  waafc. Although the principle-10 not
  invariably true,, there can be occasions
  wheatiHB type of recycling la an. adjunct
  tfftfae original primary process*
  constituting & closed ibopi See & FR--
.  14443^ We ftuff ace allowing for these-
  sitaations bymeans «f'» varianee.
   The standaEds for granting-a variance
  are contained in 5 aeasifjb}* The
 Regional Admihistratar (fir- a-ithocized!
 state) isstbidecidfl wfesthei'tha-
 pjext of the primary prodactkmiprQcesai.,
 The fioHewicg: criteria; bear OB- ffiet
 decisions
   • How economically viable the,
 pfoductioitffroeess would' bs if it were:
 to use; virgin matefjala alone,. The more
 significant the coat saviagy, the mare- fee
 situation is like one single production;
 pcpcBSBLFor example,, tfee Kiafi paper
 process eanHD* be operated)
 economically withaut aemfi.reeovery
 and rscjreling of black liquor,
 section L in Pact 2 above!)
practice an cat industrg-wid&haais. The;
more wide-spread the, practice,, the mo^e;
likely it ia to be a praductien proeesff;
   •  The.extentto which kanfttmgoftM'
material before it is reclaimed is
designed to minimize loss of material.
Materials utilized, in production-
processes should be. stored in a way- that
minimizes loss.,47 Thus, the/ more.
precautions, that are taken to> afore a
material! before, reclaiming itr the more
the situation is like a production
process. Situationa where, materials; are,
storedbefcre reeTaraationJn o-pen  .
unlined pifes^ nnlinBJ impoundments,, or>
leaking tanks and drums, conaequently
are less likely to be granted thia
variance.
   • The time periods between^
generation of the material and £3,
reclamation,, and between, iteclanaatibn,
 and reuse in the original process; The
 longer the elapsed time between each of
 these steps, the: teas likely the operation
 is1 to be viewed as a single process.
 (Operations that are cyclical, or require
 long- accumulation time to be viable,
 could still be eligible, however.)"
   • Ttie location of the reclamation.
 operation in relation to the production.
 process. We are expanding this criterion
 beyond the proposal, where we limited
 the provision to reclamation operations.
 conducted' at the same plant site.. We
 are not including this as a condition
 precedent to, granting of this variance,, in
 response to, comments diatelbsed-IojQp
 recycling situations saa extend beyond
 a plant boundary. However.; the more
 physically close, fte reclamation
 operation- fa ta tib'i production process,,
 the more likely 'he situation is to, be
 viewed as, closed-Iaon pe&ycBhg,.
   • Whether the- reclaimed material is,
 used fan its. original purpose when- it. is.
 returned to: the original primary
 production praeess* and whether it is:
 returned ia substantially its. original
 fornL. Operations/ are, most like a 'cloaed-
 loop operation when the reclaimed
 material is returned to, the original
 production: process in substantially, ita-
 original form, fos its- erigkial pHrpoae>
  47 See, for example, the many comments to thi*
effect from industry commenters in the record-to-
this rulemaking. See aluo.oommentfrrromivanbua.
Industry comraentsra. supportingthe* Agency's-rute^—
found taJ28ll3(a)(
   The.> Regional Ad&iiniatoa tor caa rely
 on any or et& of these1 erMeria, and care
 weigh tivem as he d&sms appropriate;
 We: alsa note thai there ace a mimte-r of
 conditions; an applicant mu&t meet-
 before he is eligible- for this- variance.,
 Fisst, the material must be returned as
 feedstock tote "original primary?
production; proeeHs?'^ "€haginall pidmaiy/
 productifira pfffflcess?' has: fee same
 meaaiag: aa in, § 28&3$e){m}, anrii fes
 disaiBsscf.feSfa!tianIf.H.2. of FactHeS'
 the preamble. (Xn. response to: coroisenSi
 we note feat il a plant were1 to- generate
 the same secondasy material from'
 different processes, commingle the
 secondary- materiel: and reclaim il; and
return tbs se-GlaJmed' materials- for reuse
in the original processes1,, the operatibn-
coul'df be.- eligible' for this variance even-
though tlis reclaimed materiials Rav«>
become commingles!-. The commingling!
doewnoe so alter tftenatore af ffie    '
transaction: as- to vitiate^ the und'erlyihg-
policy of this ctesed-lbop variariEeiJiTfie
material' tliat1 is- returned1 alscr must' be-
"reusedf * when- returned1 to the> original
pre-sess, We mean- by this- that' the-
material: mus* eonteibute1 directly t& ffie
produe§oiT' process' as! an' ihgFed5enth
reactant, or an aSemative-feedktoefe
Secondfery mBteriafa: Fetumed to a
smelling furnace are an example:
Sofyente reclaimed andi utilfeed1 for'
wastewater from, tin mixture nils premimptiait.

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Federal Register / VoL 50, No. 3 / Friday, January 4. 1985 i
                                                   Relations
                                                                                                                  655
 reclaimed solvents are not contributing
 to the production process."Finally, the
 reclamation and reuse must both be
 conducted by the same "person",
 although not necessarily at a single
 plant site. ("Person" is defined in
 § 260.10 and in RCRA as including
 among others, single corporations and
 other legal entities.)
   c. Materials That Have Been
 Reclaimed But Must Be Reclaimed
 Further Before Recovery Is Completed.
 The final variance from being a solid
 waste is for materials that have been
 reclaimed but must be reclaimed further
 before recovery is completed. We
 indicated in the proposal that
 reclamation processes are  not
 completed until the end-product of the
 process is recovered, giving as an
 example, recovery of lead  from spent
 batteries, which can require two
 operations—cracking and smelting—to
 be complete. 48 FR14499 n.57. The
_material being reclaimed thus remains &
 waste until reclamation is  finished.
   We think this principle is generally
 sound, but that there may be some
 exceptions where the initial reclamation
 step is so substantial that the resulting"
 material is more commodity-like than
 waste-like even though no end-product
 has been recovered. Possible examples
 are processes producing fluxes similar in
 composition to virgin ore concentrates.
 We consequently are allowing the
 Regional Administrator to  grant a
 variance for materials that have been
 reclaimed, not completely  recovered, but
 after initial reclamation are commodity-
 like in spite of having to be reclaimed
 further.
   The criteria for making this decision
 are:
   •  The degree of processing that the
 material has undergone and the degree
 of further processing required. The more
 substantial the initial processing, the
 more likely the resulting material is to
 be commodity-like. Conversely, the
 more substantial the processing that is
 yet to occur, the less likely the initially-
 reclaimed material is to be commodity-
 like. For example, a spent  solvent sent
 to an initial reclaimer who settles out
 debris and then sends the  solvent to be
 distilled would not be eligible for this
 variance.
   •  The value of the material after it
 has been reclaimed. Obviously, the
 more valuable a material is after initial
 processing, the more likely it is to be
 commodity-like.
   •  The degree to which the initially-
 reclaimed material is like an analogous.
   "The second example on p. 14488/2 of the
 proposal contained an erroneous implication in this
 regard.
raw material. If the initially-reclaimed •
material can substitute for a virgin
material, for instance as feedstock to a
primary process, it is more likely to be
commodity.ilike.        %* ..,.•
  • The extent to which an end market ,
for the reclaimed material is
guaranteed. If the applicant can show
that'there is an existing and guaranteed
end market for the initially-reclaimed
material (for instance, value, traditional
usage or contractual arrangements], the
material is more likely to be commodity-
like.
  • The extent to which the reclaimed
material is handled to minimize loss.
The more carefully a material is
handled, the more it is commodity-like,
  » Other, relevant factors.
  The Regional Administrator (or an
authorized state) may weigh these
factors as she sees fit, and may rely on
any or all of them to reach a decision. In
addition, the variance applies only to
wastes after they have been initially
reclaimed. Applicable regulatory
requirements for the waste before initial •
reclamation are unaffected. The initial  ,
reclaimer will thus be a RCRA storage
facility, and have to obtain a permit to
store the wastes before reclaiming them.
If a variance should be,granted, ..
however, the recovered material is not a
waste and the subsequent reclaimer is
not a RCRA facility.
  3. Variance to be Classified as a
Boiler. As discussed in I.B. of Part 2 of
the preamble above, EPA a'so is
adopting a variance provision to allow
the Regional Administrator to classify
certain enclosed flame combustion
devices as boilers even though they do
not otherwise meet the definition of
boiler contained in § 260.10. See
§ 266.32. The Regional Administrator is
to consider how nearly the unit meets
the definition of boiler, considering:
   • The extent to which the uniMias
provisions for recovering and exporting
energy in the form of steam, heated
fluids, or heated gases;
   • The extent to which the combustion
chamber and energy recovery equipment
are of integral design;
   « The efficiency of energy recovery,
calculated in terms of the recovered
energy compared with the thermal value
of the fuel;
   • The extent to which exported
energy is utilized;
   • The extent to which the device is in
common and customary use as a
"boiler" functioning primarily to
produce steam, heated fluids, or, heated
gases; and
   • Other factors, as appropriate.
   4. Procedures for Variances.  We are
promulgating a new § 260.33 which
contains procedures for granting or
                                                                  denying the four types of variances just
                                                                  described. In" essence, an applicant mvst
                                                                  submit a written application to the
                                                                  appropriate EPA Regional Office (or
                                                                  authorized state). If a recycling
                                                                  transaction is conducted in more than
                                                                  one Region or state (i.e. the generator is
                                                                  in one region and the recycler is in
                                                                  another), the application should be
                                                                  submitted to the region or state in which
                                                                  the recycling activity occurs.'The
                                                                  application should address the.standard
                                                                  and criteria  applicable to the particular
                                                                  variance, and state generally why grant
                                                                  of a variance is justified. The Regional
                                                                  Administrator will consider the
                                                                  application and will issue a written draft
                                                                  notice tentatively granting or denying
                                                                  the variance, and giving reasons for this
                                                                  action. (In many cases, an inspection
                                                                  probably is necessary to rule on an
                                                                  application.) Notification of this      .
                                                                  tentative decision will be provided by
                                                                  newspaper advertisement and radio
                                                                  broadcast in the area where the
                                                                  recycling facility is located. The
                                                                  Regional Administrator will accept
                                                                  comment on the tentative decision for 30
                                                                  days, and may also hold a public
                                                                  hearing upon request or at his
                                                                  discretion. Any hearings will be
                                                                  nonadjudicato'ry. The Regional
                                                                  Administrator will issue a final decision
                                                                  after receipt of comments and after the
                                                                  hearing (if any), and this decision may .
                                                                  hot be appealed to the Administrator.
                                                                    5. Should EPA Adopt a Variance for
                                                                  Batch Tolling Agreements. EPA
                                                                  proposed that hazardous wastes
                                                                  reclaimed pursuant to batch tolling
                                                                  agreements would be conditionally
                                                                  exempt from regulation. A batch tolling
                                                                  agreement is a contract between
                                                                  generator and reclaimer whereby a
                                                                  generator retains ownership of the
                                                                  waste, sends the waste to a reclaimer,
                                                                  and receives back ttie reclaimed portion.
                                                                  The proposal further specified that: (1)
                                                                  The generator had to send the wastes to
                                                                  a reclaimer within 180-days of
                                                                  generation, (2) the Wastes had to be
                                                                  reclaimed and returned within 90 days
                                                                  of receipt by the reclaimer; and (3) the
                                                                  reclaimer could not commingle wastes
                                                                  being reclaimed under a batch tolling
                                                                  agreement with wastes of another
                                                                  generator. In addition, the reclaimer had
                                                                  to be paid according to the amount of
                                                                  reclaimed material returned to the
                                                                  generator, and paid more as the amount
                                                                  of material returned increased [i.e. the
                                                                  reclaimer would not be paid a flat fee
                                                                  regardless of the amount of reclaimed
                                                                  material returned).
                                                                     As discussed above, EPA is not
                                                                  finalizing most of the proposed
                                                                  conditional exemptions because, the risk
                                                                  of damage from spills and leaks

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 656
Federal Register / Vol. 50, No. 3 /Friday,  January 4.
                                                                                     and
 iadicates that regulation is necessary to
 protect human health and the
 environment. We are soliciting further
 comment, however, as to whether
 reclaimers who reclaim pursuant to
 batch tolling agreements should be
 eligible for a conditional variance. (The
 conditions would be that records be
 kept to document existence of the type
 of batch tolling contracts described
 above.)
   The aspect of the batch tolling
 contract that might create sufficient
 incentive to avoid loss is that the
 reclaimer be paid more as the amount of
 material returned to the generator
 increases. EPA-can see that under
 certain circumstances a reclaimer would
 no longer be able to make a profit (or
 even •recover fully allocated costs) if too
 much waste is lost before reclamation.
1 However, the point at which this occurs
 will vary for each reclaimer, and
 potentially for each transaction. EPA is
 seeking comment as to the type of
 showing necessary to demonstrate that
 the batch toUhig contract would become
 unprofitable unless spills and leaks are
 avoided. Commenters should address
 the type of economic data that would be
 presented, trad also should address how
 thlBlrifonnation could Tie presented in a
 form amenable'to administrative
 resolution. Tlie administrative
 proceeding the Agency has in mind is an
 individual variance proceeding where
 the reclaimer has the burden of showing
 that the.con tract creates sufficient
 incentives against loss to obviate the
 need for a storage permit.
   The Agency also would like
 comraenters to address whether any
 reclaimers would apply for this type of
 variance. The Agency's information is
 that few reclaimers operate exclusively
 in the ebatch tolling mode (see 48 FR
 14495, and n.47), so these reclaimers are
 likely to require a permit in-any event. It
 is not worth the resources to create an
 elaborate administrative mechanism if it
 lacks practical significance.
   We note finally that any variance for
 batch tolling would apply only to the
 reclaimer, not to the waste generator.
 The tolling contract's provision that
 payment increase as the amount of
 material returned increases does not
 create any additional incentives against
 loss for the generator. Commenters
 therefore should also address whether a
 variance mechanism applying only to
 reclaimers would have practical
 significance.
                          Part IV: Economic, Environmental, and
                          Regulatory Impacts
                          L State Authority

                          A. Applicability in Authorized States
                            Under Section 3006 of RCRA. EPA
                          may authorize qualified States to
                          administer and enforce their State
                          hazardous waste management programs
                          in lieu of EPA operating the Federal
                          program in those States. (See 40 CFR
                          Part 271 for the standards and
                          requirements for authorization.)
                          Authorization, either interim or final,
                          may be granted to State programs that
                          regulate the identification, generation,
                          and transportation of hazardous wastes
                          and the operation of facilities that
                          manage hazardous waste.
                            Today's announcement promulgates
                          standards for certain hazardous wastes
                          under the Federal hazardous waste
                          management program. With some
                          exceptions not .relevant here, upon
                          authorization of the State program, EPA
                          suspends operation .within the State of -
                          those parts of the Federal program for
                          which the .State is authorized. Therefore,
                          today's promulgation would be
                          applicable only in those States which
                          have not been granted authorization.
                            It should be noted that 40 CFR 271.9
                         . requires States to control all hazardous
                          wastes controlled under 40 CFR Part 281
                          in order for their program to be
                          considered-equivalent to the Federal
                          program for purposes of Section 3006.
                          EPA is indicating in this regulation that
                          certain types of recycled hazardous
                          secondary materials are not RCRA solid
                          or hazardous wastes for, in the case of
                          materials subject to variance provisions,
                          need not be wastes). States may choose
                          to regulate these materials as wastes
                          pursuant to State law; Section 3009 of
                          RCRA allows states to impose stricter
                          requirements than those in the Federal
                          program. Such states are considered
                          equivalent for purposes of State
                          authorization. See § 271.1(i).
                          B. Effect on State Authorization
                            The rules promulgated under this
                          rulemaking will not apply in authorized
                          states until the state either (1) receives
                          final authorization on the basis of
                          providing controls for hazardous wastes
                          that are equivalent to or more stringent
                          than EPA's or (2) after final
                          authorization, revises its program to
                          include controls for hazardous wastes
                          that are equivalent to, or more stringent
                          than EPA's. The procedures and
                          schedule for state adoption of these
                          regulations is described in 40 CFR
                          271.21. See 49 FR 21678 (May 22,1S84).
                            Applying § 27i:21(e)(2), states that
                          have final authorization must revise
their programs within a year of
promulgation of EPA's regulations if
only regulatory changes are necessary,
and within two years of promulgation if
statutory changes are necessary. These
deadlines can be extended in
exceptional cases. See 40 CFR
271.21(e)(3).
  States that submit official applications
for final authorization less than 12
months after promulgation of these
regulations may be approved without
including standards equivalent to those
promulgated. However, once authorized,
a state must revise its program to
include standards equivalent to or more
stringent than EPA's within the time
period discussed above.
  Interim authovization for these
requirements s-jtider the Hazardous and
Solid'Waste amendments of 1984 is not
allowed. Today's rale is not a
requirement deriving from the 1984
amendments; thus, .under section
3006(g), interim authorization is not
available as a substitute for adopting
equivalent regulations.

//. RegulatoryImpact

  Under Executive Order 12291, EPA
must judge whether a regulation is
"major" and thus requires a Regulatory
Impact Analysis. Based on our analysis,
we have determined that this rule is not
a major mle because it will not: (1) Have
an affect on the economy of $100 million
or more, (2) significantly tecrease costs
or prices to industry, or (3) diminish the
ability of U.S.-ba8ed enterprises to
compete in domestic or export markets.
  This assessment is based on a study
prepared for EPA which evaluated the
cost impact on  the regulated community
fortiie change to the definition of solid
waste and accompanying management
standards.This study48 describes the
changes in regulatory requirements, the
populations affected by the change, and
then summarizes the resulting changes
in costs.
   The report first identifies those
secondary materials and recycling-
activities which would be subject to
different regulatory requirements,...,
comparing the  existing regulations with
those  promulgated today. This analysis
indicated the following:
   • Use constituting disposal.—Non-
 listed spent materials and non-listed by-
 products would be subject to increased
 requirements for generators,
 transporters, and storers; all secondary
   «• See report entitled, "Cost and Impact Analysis
 for Final Rule: Change in the .Definition of Solid
 Waste and Accompanying Management Standards
 for Wastes Which Are Recycled," Industrial
 Economics Inc., December, 1984.

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                                                     7 Fridav- January 4, 1985  /  Rules and Regulations
                                                     &yii'impairiM •MJ,vnwrht-i*u*»*w*<	 ..i'^'^^^^
                                                                             657
   materials (including § 261.33 commercial
   chemical products) would also be
   subject to increased requirements for
   the actual recycling activity.50
     •  Use/reuse 51.—All listed wastes and
   non-listed sludges would be subject to
   decreased requirements for generators,
   transporters, and storers.
     • Reclamation.—Non-listed spent
   materials would be subject to increased
   requirements for generators,
   transporters, and storers; non-listed
   sludges would be subject to decreased
   requirements for generators,
   transporters, and storers; all listed
   wastes and non-listed sludges that are
   sent for precious metal reclamation
   would also be subject to decreased
  requirements for generators,
   transporters, and storers.
    The report then identified those
  industrial categories which are involved
  in recycling that will be affected by this
  rulemaking. The primary source for this
  information was the National Survey of
.  Hazardous Waste Generators and
  Treatment, Storage, and Disposal
  Facilities. This survey included
  questions on the various recycling
  activities. Results were reviewed to
  determine where affected activities
  were occuring. In some cases, the actual
  survey responses were reviewed to
  determine the accuracy of these results.
  Two other sources were also used to
  collect this information. One was the
  JRB report on affected populations that
  accompanied the proposal to the
  definition of solid waste S2 while the
  other source was provided by an
  industry trade group who reported on
  the recycling activities of their members.
   Based-on this information, we
 determined that:
   • Approximately 128 establishments
 would have their requirements under the
 hazardous waste management
 regulations reduced;
   • Approximately 87 establishments
 that use or reuse secondary materials or
 reclaim certain secondary materials
 otherwise considered hazardous wastes
 would be completely excluded from
 regulation;
  50 The Agency is deffering regulation on use
 constituting disposal activities for commercial'
 products that contain hazardous wastes. Therefore,
 requirements for the use constituting disposal
 activity applies only for wastes applied directly to .
 the land {/.e..use "as-is") or applied after mixing
 that allows its components to be separated by
 physical means.
  81 Secondary materials that are used to produce
 waste-derived products that are applied to the land
 or that are used to produce a fuel are not included
 under this provision.
  MSee report entitled "Impact on the Regulated
 Community of Possible Changes in the Definition of
 Solid Waste: Use, Reuse. Recycling. Reclamation,"
 JRB Associates, February. 1983.
    • Approximately 2,171 establishments
  would have their requirements under the
  hazardous vyaste management
  regulations increased;
    • Approximately 380 establishments
  that recycle hazardous wastes would be
  newly subject to regulation.
    These findings show that a significant
  number of persons will have increased
  regulatory requirements under the final
  rule. However, most of these persons
  already are subject to regulation under
  the hazardous waste management
 - regulations; in addition, most of these
  persons will be regulated as generators
  rather than as storers of hazardous
  waste. Therefore, the increased impact
  is relatively modest. The regulatory
  impact on persons using or reusing listed
  hazardous wastes and sludges or who
  reclaim certain secondary materials—
  namely, non-listed sludges and listed
  hazardous wastes and hazardous
  sludges that are sent for precious metal
  reclamation—would be reduced. These
  presently regulated activities would not
  be regulated at all or regulated
  minimally under the final rule.
   The  report then analyzes what these
 changes will actually cost the regulated
 community. The study applies the
 appropriate unit cost populations to
 arrive at a net cost. (These costs were
 adjusted to reflect only the volume-
 dependent variable costs and not the
 incremental fixed costs already incurred
 by the  affected establishments.]   .
   The results of the study demonstrate
 that the final rule  will decrease
 compliance costs by an estimated $1,8
 million (costs shown are annualized
 after-tax costs).53  This figure represents
 the sum of increases and decreases in
 annualized costs for all affected
 establishments, including:
   • An estimated decrease in costs of
 $8.5 million for establishments with
 reduced regulatory requirements  or for
 establishments that are released from
 the hazardous waste management
 regulations entirely; and
   • An estimated  increase in costs of
 $6.7 million for newly regulated
 establishments or for those facing
 increased regulatory requirements.
  Our analysis further suggests that for
 industries facing increased regulatory
 requirements under the final rule, there
 would be no significant cost increases or
 other adverse affects on competition,
 employment, or investment.
  53 The proposal to the definition of solid waste  -
reported a reduced compliance cost of
approximately $24 million. This estimate, however,
was based on different population estimates as well
as different unit cost estimates. Therefore, this cost
is not directly comparable with the compliance cost
derived for th^ rule promulgated today.
    Finally, it should be noted that many
  of the assumptions made in the report
  were conservative. Thus, we believe
  that our estimates understate the
  decreased regulatory impact for the final
  rule. Moreover, a number of provisions
 , that would have reduced requirements
  could not be completely quanitified (i.e.,
  reclamation of non-listed sludges), even
  though we know the costs will be
  reduced. Therefore, because this final
  rule is not a major regulation, no
  Regulatory Impact Analysis is being
  conducted.
    This final rule was submitted to the
  Office of Management and Budget
  (OMB) for review, as required by
 Executive Order 12291.

 ///. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5
 U.S.C. 601 et seq., whenever an agency
 is required to publish a general notice of
 rulemaking for any proposed or final
 rule, it must prepare and make available
 for public comment a regulatory
 flexibility analysis that describes the
 rules impact on small (i.e., small
 businesses, small organizations, and
 small governmental jurisdications). This
 analysis is unnecessary, however, if the
 Agency's Administrator certifies that the
 rule  will not have a significant economic
 impact on a substantial number of small
• entities.
   EPA and its contractor performed an
 analysis to determine whether the final
 rule  to the definition of solid waste and
 the accompanying management
 standards will impose significant costs
 on small entities. The resulting report
 (see  footnote 50) indicates that in none
 of the industry categories would this
 rule have a significant economic impact
 on small entities (as this is defined
 under the criteria that this final rule will
 not have a significant economic impact
 on a  substantial number of small entities
 and therefore, does not require a
 regulatory flexibility analysis.

 IV. Paperwork Reduction Act

   There are no information collection
 requirements directly associated with
 this rule. However, this rule indirectly
 affects other information collection
 requirements that have  been approved
 by the Office of Management and
 Budget (OMB) under the provisions of
 the Paperwork Reduction Act of 1980,44
 U.S.C. 3501 et seq. These affected
requirements have been assigned the
following OMB control numbers 2050-
0028,  2000-0061, 2000-0404, 2050-0012,
20-5C-0008, 2050-0011, 2050-0013, 2050-
0009,  2000-0445, and 2050-0024. The
appropriate changes to these

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  658
Federal  Register  / Vol. 50,  No.  3  /Friday,  January 4,  1985 / Rules and  Regulations
  requirements are now being submitted
  to OMB for approval.

  Lists of Subjects

  40 CFR Part 26O

     Administrative practice and
  procedure, Hazardous materials. Waste
  treatment and disposal.
                                   4O Cm Part 261

                                      Hazardous materials, Waste
                                   treatment and disposal, Recycling.

                                   40 CFR Part 264

                                      Hazardous materials! Packaging and
                                   containers. Reporting requirements,
                                   Security measures, Surety bonds; Waste
                                   treatment and disposal/
40 CFR Part 265

   Hazardous materials, Packaging and
containers, Reporting requirements,
Security measures, Surety bonds, Waste
treatment and disposal, Water supply.

40 CFR Part 266

   Hazardous materials.

   Dated: December 20,1984.
Alvin L. Aim,
Acting Administrator.
                          APPENDIX A.—SUMMARY OF DAJWGE INCIDENTS RESuttfrse Fftdw RECYCLING OF HAZARDOUS WASTES
                        Type* of recycling operation. wastes present, damage* caused, or hazards posed
                                                                                                                                 Source of 'intemation
  1. R«*otve. Inc. (looatod In N. Dartmouth, Mass) stored spant sorvent Srfflation bottoms In uMned lagoons prior to reclamation.
   Substantial oroondwater contamination has resulted.
  2. The Gold Coax Oi FactHy (located in Miami) fs a aofverrt andpetat thinner redamatfon  operatton. It also Obtained drums of other
   mbceiweouj wastes containing phenols, metals and other organic compounds. Neatly  3,000 of those drums have accumulated
   wttioot Hi* corrtonts being recycled, hi edaWon. sSl bottoms fromJbe solvant reclamation operation were oTspossd of improperly
   Substantial contimlMtfen o( a drinking water aentccumu!ated invsntory
   and evtn)uo»y csuod operation, leaving over 60,000 drums of one-half mfflfen gaXoM of bulk waste. Wastes are toxic igritabte, and
   conosrr*. Ground and surface water contamination resulted, and them ado to danger of fire or explosion.
  S. A Wesi* processing company (located in New Jersey) operated «n d recycling plant which purchased waste oil for reclamation.
   Watte oJ, some of X PCD contaminated, was stored to unSnod setffing lagoons. Fitter day from the setting operation was also used
   10 buSd a road e BridSJfOrt BerM and t» Servlcea aHe Oocatod In Bridgeport, Mew Jersey) stored waste oil in an unBrffid togeon prior to
   ncyetng H. The waste oil is known to be contaminate) with benzene, vinyl chloride, methylene chloride, trichldttthy&ne and toluene.
   OverHcw and leaching from the  lagoon has  been documented; groundwater heed et« human drinking water source from nearby
   wets-IscenlsreinEted
 8. CfttOTitti MeUis lodusates (localadin Marylaad) engaged In the reddmatlon«f precious metals primarily from various afcjciroptaSng
   weatej.-so we« a* ottwr spent chemical reprocessing. Most materiela were tefcon pursuant to  tolling egreanwnls. Waste materiels
   wars aceurnciilsd »topp«y. retuUmo In soils of  acid-and nwtaMiearing waste*. The tacittty later was abandoned; .teauing over 1,500
   drum* of unrecUlraed xnutoe, maoycorroded or leaking. Over $350,000 in *edoraJ, ^ta arid  municipal fljnds has tesn aapandsd to
   daM on dearHip.
 C. Tea) Onmicti* and Uintrils 'RedamBHon Company (located In Cleveland) acted ex * waste broker, roa&.-ing fiamnabla ocganlcs,
   t&jKU, and Mtina.prior to racycSng or oieposal. A nweaVe fire resulted fronvunsate accumuMon of these metetiEJa. The facility
   deeed sftor the Bra, leaving waste lovenkxy (over 1,600 drums) for clean-up. '
 10, Tn* Ucrwest SoKwit Recovery Company, • solvent reclaimer located in Gary, Indiana,-stored spent solvents improperly In drums,
   t*okv*od open-pits.  These materials were often flammable, ki many casee incompatible (acids and cyanass, for exErnpia), and
   VMra Udry ovenccumulaled. A fff of "tremendous size" {«84 F. Supp. at 140) broke out «t the reclamation site,  and burned for a
   ww*bof«» RcouW be exfiogubhod. The company continued to operate fofa.wmber^ years aftortt>e fire without «ny Change ki
   ptac;f«,'SoJI«od groondwder contsroinalion haue occurred. A'preKnanaiy Injundian ordering ctean-up was eventually entered in the
   jsWovnenVa Imminent hazard action.
 11.ik)fMrnrUcxA-sry'Sorvic»'(locitodTn Connecticut) obtained • variety of chlorinated solvonts for reclamation. These solvents were
   stantf Improperly In leaking drums. Wattes were also Disposed in «lagoon on the (Me. Aquifer corusmination lias resadtad end the
  local drtnkino walw suppV .has been aUected.
 1J, Andover SIM* (located In Andover, Mkxi.) are a group of five sKea which operated as waste brokers. They accepted metal-bearing
   wiltsi, tofnnis, wade ob, pairHe, -ink*, end  glue*. A recycling market we* found for  some of this material but a great deal
   OrWaceumulaled. Somn ofJhte motoriai was uftimaMy dumped or burned improperly.  Many drums still remaki Ground snd surface
  wafer have been contaminatad by metais and organic contaminants.
 13. Frftt Industries (in Walnut Ridge, Arkansas) obtained' surfate and other wastes from  generators and used them ss an Ingrodtent In
  fenKzer production. The** materials, along with other process Ingredients, are stored In large, exposed Bttea. An enormous fire
  occurred vrheo the piiea ot wattee IgnHed: runoff from water  used to fight the fire contaminated soil and surface waters.
 14. The fiMKh Carofna. Recycing and Disposal Company was a waste broker accepting  volatile wganic  wastes and waste oils. These
  fnaMtk w«:» aceunulo!»d imorooenV prior to redareation or disposal Among the compounds .preeem ere eotventj, waste oils,
  •ce'jiijriyia, methyl acetale, cyanuric add.-ethrlene cMorohydrin, acetone eyanohydrin. trichloroethyfene, mixed acids, sulfurfc acid,
  nvwajrtc c*J« yoBow, and other -caustics *nd  acids. Massive overaocumultrfon, fire hazard  and actual fires,  and groundwatsr
  eonun*t*fen new drinking walar nls wsutted.
16. (* * *J accepts sleel mM flua dust. piciJ* Bqoors, sorvents, and add* for regeneration and material recovery. Some cf these
  mtteriti* sfso*«ra used as Ingredients In fertSzen. The  faa'Sty used surface impoundments and piles for storage. These storage
  fceWkti wore unsacun and leaked heavy metals and chlorinated sofvents. The facility also bams waste oil, spant solvents, and
  solvent otstSKaUon bottom* M fuel*, cresting air  pollution problems. A local Air PoUutkm Control Agency has initiated action against
  KM company to require monitoring of Incoming wastes and of boiler flue gas emissions.
t fll PCS «r,Uminitedw»s^ .oil was Btored prior to recycling  or road application. No market developed and the facfflty operator was
  unable to  dispose of -the eontaminared oit Over 24,000 galena are accumulated, and the State probably will have to pay disposal
  COftf.
17, TheitttUn-QflMnhouu and Waste Oil Co. (located in Jefferson, Ohio) accepted waste ol •and spent sotvsr^s for fliorage prior to
  utttf Ante or lor road oiling. MKons of gallons accumulated without being/ recycled, resulting in a substantial hozird. The boilers In
  which the watte ol wu,burnt were Incapable of destroying the contained contaminants (including PCB's) resulting in sir pollution.
  AppionimsWy SI.7 m3Bon has already been expended; additional funds are to be allocated.
19, TN«J*ci«ty (located In ffinols) engaged In pefrdeum reclamation from waste oil, and £lso reclaimed metal hydrexide sfudges, spent
  adds and'Ctuittcs, end reisceeaneoue sludg**.  These materials overaceumuiated  In  pits, lagoons,  and tanks. PCB's, phenol, ami
  PAH** are found In the watte 08. Chromium, cadmium, end toad are also present, as are  benzene, totuone, and tricfilofoettiylero.
  Lstctting and drainage to surface wfflers has caused extensive damage. Over $300,000 has been spent on desi-up to data.
                                                                                              Superfund Interim Priority Site.

                                                                                              Superfund Interim Prt-sfty Site.



                                                                                              Sups-fund .Interim Priority Site.
                                                                                              Seymour RecycSrtB Corp. (N.O. feul.) (RCHA J7f»3
                                                                                                action); Sapeiturd Interim P-riorily Site.

                                                                                              Superfund Inienm PiioriJy Site (Known as Sumt Fly
                                                                                                Bog).
                                                                                              U.S.  v.  Cham-Dyne, Inc.  (§7003 end Supsrfund
                                                                                               action); Superfund Interim  Priority Sits; Hazardous
                                                                                               Waste Report, Deoemfaar 44,1981, p. is.
                                                                                              Supsrfund Interim Priority Site; U.S. v.
                                                                                               fientst and Off Ssn/cea (§7003 actions).
                                                                                             Suparfund Interior  Priority  Site:  Hazardous Waste
                                                                                               Report, January 25, 1962, p. 4.
                                                                                             U.S. v. Chamicals and Mnsta/s RsdamaNon 17003
                                                                                               «cac>n); SuparfuiKl InSefim Priority-Site.      '    '-

                                                                                             U.S. Midwest Solvent Raeoveiy Inc. (17003 action).
                                                                                             U.S.  v. Solvent Raeovwy Setvfca of V&e England
                                                                                               (17003 action).

                                                                                              iuparfund Interior Priority Site.
                                                                                             Suparrund Interim Priority Site.
                                                                                              /£. f. South Carolina Recycling and Disposal Compa-
                                                                                               ny (Bluff Roads); (§ 7003 action); Superfund Interim
                                                                                               Priority Sits.           .                " •-•'-
                                                                                             Damages and Threats From Hazardous Malarial Sites,
                                                                                               EPA/4SO/9-60/004, p. 251; foNowtip phone conver-
                                                                                               sations with representatives of Ecology and Environ-
                                                                                               ment {EPA Superfund contractors); Superfund Inter-
                                                                                               im Priority Site.
                                                                                             Damages and Threats From Hazardous Material Sites,
                                                                                               (1.103.

                                                                                             US. laskln Gresnhousa .and Waste (XI Co.  15 7003
                                                                                               action); Hazardous Waste Report, January 25,1982,
                                                                                               pp. 5-6, Superfund Interim Priority Site.

                                                                                             U.S. v. AAF MeteriUi Co. ($-7003 Action) Supsifund
                                                                                               Interim Priority Sfte.

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 660
                    Federal Segister  /  VoL 50. No.  3  /  Friday,  January 4,  1985  /  Rules  and  Regulations
                   APPENDIX A.—SUMMARY OF DAMAGE INCIDENTS RESULTING FROM RECYCUWG OF HAZARDOUS WASTES—Continued
                        Typa* of recycling operation, wastos pmsant, damages caused, or hazeris posed
                                                                                                                                    Source of Information
 64. (•••)« N*w Jtruy tacSiy ncyclnq organo-tin compounds, presently stores apprairriatelj 500 drums in poor c :. oitton.  A
   _po!s*rW*e iKurd aho «dit* 4nd sl!a security is inadequate.
 54, (* * ') « N*w JerMy facility, operated in ofl/sorvant reclamation facility. Tho sits was abandoned, leaving hazardous  .'asiss for
       * ') t New j«My drum racondkbnar, wont out of business leaving approximately 3000 drums en iha sita. Thar* is extensive
   sol eooUreirnaon .and runoff Wojjnjtdjacant drainage ditch.
 57. Qu*nt«, Inc. (tocatod in New Jenay) received tainted waste oils and spent solvents which R bfcreted Mo fuels. The firai IBES sold
   to apartment buiWoos for bming. PCS*. matafa, bromoform, and halogeruttsci solvonis are peasant at toe arts and In the fuels. The
   •ft* now ha* been abandoned.
 SS, The Ferguson stM (located In Rock WH, South CaroSrta) stored spent solvents prisf to rademaSon. Tho sctertts we.-s stored to
   conodad and leaking drum*. «nd laakage from the drums contamd wiltwut cleanup,
 SS, York Oi Co, (Jocaled In Moira, New York) is an abandoned waste oil recycling facility. Lagoons used '*< the recovery of waste on
   «fK&srg*d Into «d(«cool wattandc. Th« laooons and wetlands rameln contaminated vflh PCB-containing o».
 69, EnvKc-Chtfli, a hazardous west* wcycSng faoBty In Indians, was invest^atad by Stats officials after an emptoyse dfad in a tank of
   (yowtfcut w»ta. Ilw oifc^s fcxwd 21.000 berrais of tuzzrdaus toeta £t tte site. Tiig fei-Sy lisa bson ordered to closa down due
   10 (*8ur» to rcmova skidgs and osaUkminatad sol from a  pit. eaSure to proas ,ada^ra» concrste pads for 14,000 bs^sfs of
   hazardous *«-:» bt,>g stored on A* ground at tha siia, snd faiilure to store hezstdous mctsfisfo in comptisnc? mth State Sra '
   tntnhal rum and rsgiiitliona.
 97. Amtriein RaccvtHy, acbomicat we^a repracsodng facility (Joomtad Jn the BsJSrr.cra area) hes suffered a mmibar of fires caused by
   «>$telbn* d »ccwnult'.*J wntta*. Tha faciSty also was fined  for violation of various state reguiatory requirements.
                                                                                                                     EPA, Region II officials.

                                                                                                                     EPA, Region II officiate.

                                                                                                                     EPA, Region II officials.  .

                                                                                                                     EPA, Region I! officials. (This site was also the subject
                                                                                                                       of ABC's "20/20" broadcast on waste oil).

                                                                                                                     U.S. EPA,  fJemsdiel Actions at  Hazardous Waste
                                                                                                                       Sites, Sun&y end Cost Studies, EPA 430/9-81-05.
                                                                                                                     Report of the Housa Committee on Energy and Com-
                                                                                                                       merce (May 1982).
                                                                                                                     EPA, Rsfjion VII officials.

                                                                                                                     New Jorsay Hcmardouf  Waste News, April 1982. Con-
                                                                                                                       varsations wH?i Ne»' Jersay atste officials.

                                                                                                                     Transcript of staid eritofcsment proceedings.

                                                                                                                     Documants   fron   Illinois  Environmental  Protection
                                                                                                                       Agancy.
                                                                                                                     Supsrfund Interim Prtority Site.

                                                                                                                     Supsriund Interim Priority Site.

                                                                                                                     EPA, Region V officials.
                                                                                                                     EPA, Rsglon III officials.
         — Sorrcwte il 57C03 ac$oc« an basad on f"
 boso provsa In cMna 4r>ci>> aSoostona. vm ans not sa^.
 oJ (MM trte*. and HM Aae
                                                                  	,.	j vwfffEd eempteinte. The courts hearing these must dscWs uftimatBly whether these allegations have
                    	. _~	,	         	w outcome of thesa actions. At !he same time, thsse statements reflect the results of the Government's investigation
	               t(%>ncy EeSavos «i* statements to *a accurate. In many esses,  we are cilirHj ihess ailegatlons to demonstrate that there is a need for regulation in this area, not to


    Tr» A«Y'fusk"fa'c» tourc* data report rj a confidentlil compBation of Inspecfcns of damags SHes by Federal and Stats Officials. It also contains reports of some § 3007 inspections
   "  r or not ihe *is» wcr» eausiog dsrt;«.


                                    APPENDIX B.—DEFINITION OF A SOLID WASTE DAMAGE INCIDENTS—ADDITIONS LIST
                                                               Damaja Incident
                                                                                                                                                      Source
 1. New CnUt Sttel (N«w Caitl* County, Doltwaro) racydra electric furrocs dust Run-off fro™ the site a) contaminated and there is potential for contaminaticn of
  ground water.
 t. Th« Arrcom Corp. (Rnthdrura, Idaho) recydod waste o2i corrtainfng aolvsnta, prior to abandoning tha alia in January 1982. 'Remaining on-eiia ara 17 partially
  Hod Moraga tanlo, th« conttnts of which ramain larger/ undetermined. Chloroform has baen found in a son sample. Wastes processed at the site may hava
  lodudid PCS*. EPA has ooSsdad soH umpfes 4o documantteakafje on sisa.
 3. Th* Creta Brolhan PftJ RacycSng (Pembrok* Township, Bfcofe) recydad,palls and drums at the sits beiiwen  1061  and 1930. Tha .operation involved burning
 * C« p34 md drum racidu* ming htzardoua wsste servants as fuel, and than sand-biajSrg tBd^Kiatiog. During thasa opstitioro. soil and ground water tjacssws
  contanAvlod. InveatlstioM by tha State dbcoverad over 10,000 S-galbn pails (mostly avpty), 10 acrsa of ccntcmimied soil, at least 10 covered trenches d
  unfcncwrl utsles, and a pJurn* of oontminatad ground watar loa-yft-.g the sKs.
 4. Tb* USiSs El»«ricil Lr!2Cct SKa (LaSals. USnort) manulscUjTod  captcitc.-s using PCBs from tha late 1S40s to lats 1973. The company reportedly used waste
  ob from tfia proota to control dust in tha parlOng lot unH 1663. Moos than 1,000 ports par million PCBs remin in tire soil throughout the sita.
 S. Tf>» Old Ingar « Rufi.-io.-y Srf* (Darrow, LoUslKia) radalmad oil from refinery wastes In 1976. A spill In 1978 contaminated a lares surface area. In 1S81,
  laUbBfMl offldaJSy dadoed tt» *• "abandoned." It has rtn» 08 stcraga tanks, which have overflowed into nearby holding ponds and a swamp. Ground water
  aod ton an contirraotlad by organic eh«mlcala. This la the top priority sKa In Louisiana.
A !»• P®3 R**surC!W SUt  (Pabiuc. Massachusetts) formerly avned by Phililps Resouroas, lac., hoWe 34,000 gallons of waste.  Tha inactive facility reclaimed
  ttW.* o» from Msnachutett* coCccSon pokua. These producte wen than boat treated and sold as a bass  for lubricating oil, road spray 08, and fuel. Aftor &
  K* In An* 1662, EPA dbcovarad several los&ing tanks end contalnrcent dikes, fa wall a* saturated sot's. Surface waters, wetlands, and ground water are
  OtWf tmMoAd by Ih* wast*. Trlchiorctteno and PCBs hava boon Identified in an adjacent swamp.
 7. York OI Co. (MoVt. New York) hxmBflV«cycl«d waste oKs. Befara th» «i!e was abandoned, ft consul cl  eight steal sutrnga tanks, two buildings, snd ihrea
  ttgoon. Th* bwma of th* kgoona b»v» fsited In the  pest, disctia/ging PCS-contaminated oil Into  tne  adjacent wat&nciis ihtS'.iiain into Lawronos Brook.
  AmVtei Incicai* £0 p*«i  par rrffisn (pom] df PCS in lagoon walore, over 500 pom in legoon sMge, up to 26 pacts per billion (ppb) in-graund v/star; and up io
  "3SO ppm In co&la.
 •. Tha Arcsnum Iron 1 Ma'-il SHa (Osrfie County. Ofito) has been in tha scrap rro!al/racyciir.a fcu.iT.aM tirtco tte-sarfy  1890s. It now recycles lead batteries.
  l*rg* p»n ol batiary casings, lead, and toad codde» ara  on ma property, as wad  ss standhio pools of acid wastes. VteW o»st1lo« from this operation has kiltod
  tom bit and wgetuion In P*intarCc*sk. downstream of the sita.
 «. Th* Ma'-sl BirAs Sit* (Phtete'^^a, Panraylv&nie) proceaead tmratomBrs and oil corttsmineted with PCBs them fsf a ftumtor of yaara until closing the
  op*f»*w h 1972. In 1977. EPA daiarmlnad that periodte 08 sCoka found In the Delaware Rhrar gdjzcsnt io tha sita wen conterninatoti v,«h PCBs. The site was
  KititsquMdy UenWed  a*  th» aoum of Ih* stcka. A U.S. Coast Guard study revealed that up to 20,000 gallons of PCB-ccnternlnsted OH were In the ground
  tttkr undtr In* til* and W«M leiuung Into in* Dolawara River.
 10. m 1970,  S* road through Qu«« Run MobSa Manor (Z mi!ss -east of Gray Summit, Missouri) was sprayed with £5 bsrrefs of diorin coniarrdnsted Wfista oil. In
  1674. *oi WM txsxxttd to * depth of 2 loot from or» toad in tha part. This was deposited in thai area befcman ate road satd a Isgoon. On February 2,1883,
  EPA IdwCSsd dkxdn tt th* site. Analyst of aoB samples detected 1.4 parts per billion (ppb), 14 ppb, and 23  ppb of dioxin. Additional sampling  on March a,
  1M3, nMO«a * rang* c/1**!* ffom 6 ppb Io 1.100 ppb.
 11. Tha Sand Spring* Petrochemical CompteK (n»«r Sand Springs, Oklahoma) consteSs of threa  adjacent areas on  tha abandoned OM Sinclair Refinary, including a
  waitt CD ncycSns <*dity. * aatttnt* recycling facility,  and th*  Skids* Rstlnety add pits—an original pert  of the Old Sinclair Refiner. The two recycling
  txnp*ni*i h*v* bssn In butirxtt* sicf* th* mid-1970*. Ovar th» yean, hazardous nAstancas were storsd or disposed of in drums, isnlra, and unBned pits, or
  wtr* simply burtad on-«ft». That* rjbdanew indud* volatBa and nonvoiaHe organics, acids, caustics, chicfinatsd sotvsnts, and sludges containing heavy
  mMad, Poor ooaaBcn* Iwn ccr--i.ri-j^d Iocs)  gound water, end there is the potential for contaminants to laava ths sita in run-off.
 12. Wut* Reuareh & Raclamatlon Co. (Eau Oake, Wlteonctn) has ncycted  oH and scivsnts from imtestrisl sources sincd 197S. Tru techniques used to tiandla
  met Mort drum* «Jbw*d w«W» to sp* on the sHo. flurMiff from -vmsta procaaeing has been coltocifld in unanod impoundnxsms. Organic servants from tha site
  con*jmi%a'.« ground water.
                                                                                                                                            National Priorities list Aug.
                                                                                                                                              1883.
                                                                                                                                                Do.
                                                                                                                                                Do.



                                                                                                                                                Do.

                                                                                                                                                Do.


                                                                                                                                                Do.



                                                                                                                                                Do.



                                                                                                                                                Do.


                                                                                                                                                Do.
                                                                                                                                            National   Priorities   ! ist
                                                                                                                                              Update, Juiy 1384.
                                                                                                                                                Do.
                                                                                                                                                Do,

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                Federal  Register  /  Vol. 50,  No. 3  / Friday,  January -4, 19S5;/ Rides and Regulations
              ^a%!mi"i^B^sg3aaBg3BBaaEaaaa^^                                                       : jj^-^a-^fc^ffirfir^^
                       APPENDIX B.—DEFINITION OF A SOLID WASTE DAMAGE INCIDENTS— ADDITIONS LIST— Continued
                                                Damage Incidant
 13. The ML Industries site (Salem County, New Jersey) recovers lead from spent automotive batteres ana ssparates the plastic from the rubber casings As a
   result ot improper storage of batteries on the site and other factors relating to their processing, grour,d water. Surface water, and soils are extensively
                                                                                                                 Source
   ;                               1 Naw Jo'88*' '^covered v,d rec,«l«) v*rtou» rt». >:_•=.; ,/aatet. As a rssull of a State Order, the company
   ceased operations in 1960. About 375,000 gallons of hazardous substances are stored on the .*;•„ «. :siks. drums, and tank trailers. Soils are extensively
   contaminated, run-off from tha site is contaminated, and ground water contamination is likely.                             '.•.''
 15. In 1983, the State of Indiana filed suit against Norman Peer, an individual who contracted with Inmont Corporation to purchase what he was told was paint and
   solvent in an attempt to recycle them to produce tow grade paint. Whon Mr. Poer was unabla 10 Mil or owe' away the paint, he abandoned it on a 5-acre field
   ns owned «i Jackson Township. Indiana. Ground water samples indicate mat me wall on site co.itacns hazardous levels of arsenic aiid'lead In addition further <
   tests nave indicated that the paint waste nas elevated levels of lead and chromium and that the ijnttBtaNty ol the waste classifies it as hazardous  The'barrels i
   remain on site, leaking contents onto the ground.                                                              '        |
                                                                National Priorities List Aug.
                                                                  1983.
                                                                National   Priorities   List
                                                                  Update, July 1984.
   For the reasons set out in the
 preamble, T'flr 40 of the Code of Federal
 Regulation* .„ tended as follows:

 PART 26G~-HAZAi ?DOUS WASTE
 MANAGEMENT 3Y,'TE-';   3NERAL

   1. The authority citf'    or Part 260
 reads as follows:
   Authority: Sees. 1006       3001 through
 3007, and 3010 of the Sc     _ite Disposal
 Act, as amended by the •,'source
 Conservation and Recovery Act of 1976, as
 amended [42 U.S.C. 6905, 6912fa), 6921
 through 6927, and 6930],

   2. Section 261.10 is amended by
 adding new definitions  for "Boiler" and
 "Industrial Furnace" to appear
 alphabetically and by revising the
 definitions of "Designated facility" and
 "Incinerator."

 § 260.10  Definitions
 *     *    *    *    *
   "Boiler" means an enclosed device
 using controlled flame combustion and
 having the following characteristics:
   [1] (i) The unit must have physical
 provisions for recovering and exporting
 thermal energy in the form of steam,
 heated fluids, or heated gases; and
   (ii) The unit's combustion chamber
 and primary energy recovery sections(s)
 must be of integral design. To be of
 integral design, the combustion chamber
 and the primary energy recovery
 section(s) (such as waterwalls and
 superheaters) must be physically formed
 into one manufactured or assembled
 unit. A unit in which the combustion
 chamber and the primary energy
 recovery section(s) are joined only by
 ducts or connections carrying flue gas is
 not integrally designed;  however,
 secondary energy recovery equipment
 (such as economizers or air preheaters)
need not be physically formed into the
 same unit as the combustion chamber
 and the primary energy recovery
section. The following units are not
precluded from being boilers solely
because they are not of integral design:
process heaters (units that transfer
energy directly to a process stream), and
fluidized bed combustion units; and
   (iii) While in operation, the unit must
 maintain a thermal energy recovery
 efficiency of at least 60 percent,
 calculated in terms of the recovered
 energy compared with the thermal value
 of the fuel; and
   (iv) The unit must export and utilize at
 least 75 percent of the recovered energy,
 calculated on an annual basis. In this
 calculation, no credit shall be given for
 recovered heat used internally in the
 same unit. {Examples of internal  use are
 the preheating of fuel or combustion air,
 and the driving of induced or forced
 draft fans or feedwater pumps); or
   •{2) The unit is one which the Regional .
 Administrator has determined,
 case-by-case basis, to be a boiler, aite*
 considering the standards in § 260.32.
   "Designated facility" means a
 hazardous waste treatment, storage, or
 disposal facility which has received an
 EPA permit (or a facility with interim
 status] in accordance with the
 requirements of Parts 270 and 124 of this
•Chapter, a permit from a State
 authorized in accordance with Part 271
 of this Chapter, or that is regulated
 under § 261.6(c)(2) or Subpart F of Part
 266 of this Chapter, and that has been
 designated on the manifest by the
 generator pursuant to | 262.20.
 *    *     *    *     *•''••
   "Incinerator" means any enclosed
 device using controlled flame
 combustion that neither meets the
 criteria for classification as a boiler nor
 is listed as an industrial furnace.
   "Industrial furnace" means any of the
 following enclosed devices that are
 integral components of manufacturing
 processes and that use controlled flame
 devices to accomplish recovery of
 materials or energy:
 (1) Cement kilns
 (2) Lime kilns
 (3) Aggregate kilns
 (4) Phosphate kilns
 (5) Coke ovens
 (6) Blast furnaces
 (7) Smelting, melting and refining
    furnaces (including
    pyrometallurgica! devices such as
    cupolas, reverberator furnaces,
     sintering machine, roasters, and
    • foundry furnaces)
.(8) Titanium dioxide chloride process
     oxidation reactors
 (9) Methane reforming furnaces
 (10) Pulping liquor recovery furnaces
 (11) Combustion devices used in the
     recovery of sulfur values from spent
     sulfuric acid
 (12) Such other devices as the
     Administrator may, after notice and
     comment, add to this list on the
  ;  basis of one or more of the
  !  following factors:
   (i) The design and use of the device
 primarily to accomplish recovery of
 material products;
   (ii) The use of the device to burn or
 reduce raw materials to make a material
 product;
   (iii) The use of the device to burn or
 reduce, secondary materials as .effective
 substitutes for raw materials, in
 processes using raw materials as
 principal feedstocks;
   (iv) The use of the device to burn or
reduce secondary materials as
ingredients in an industrial process to
make a material product;
   (v) The use of the device in common
industrial practice to produce a material
product; and
  (vi) Other factors, as appropriate.
 ft     *    it    , *     A

  3. In Subpart C of Part 260, add the
following § 260.30:

§ 260.30   Variances from classification as a
solid waste.
  In accordance with the standards and
criteria in § 260.31 and the procedures in
§ 260.33, the Regional Administrator
may determine on a case-by-case basis
that the following recycled materials are
not solid wastes:
  (a] Materials that are accumulated
speculatively without sufficient amounts
being recycled (as  defined in
§ 261.1(c)(8)(B) of this Chapter);
  (b) Materials that are reclaimed and
'then reused within the original primary
production process in which they were
generated;

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 662
Federal Register / Vol. 50,. No. ,3 /..Friday, January 4, 1985 /Rules arid Regulations
    (c) Materials that have been reclaimed
  but must be reclaimed further before the
  materials are completely recovered.
    4. In Subpart C of Part 260, add the
  following § 260.31:

  § 260.31  Standards and criteria for
  variance* from classification as a solid
  wait*.
    (a) The Regional Administrator may
  grant requests for a variance from
  classifying as a solid Waste those
  materials  that are accumulated
  speculatively without sufficient amounts
  being recycled if the applicant
  demonstrates that sufficient amounts of
  tho material will be recycled or
  transferred for recycling in the  following
  year. If a variance is granted, it is valid
  only for,the following year, but can be
  renewed, on an annual basis, by filing a
  new application. The Regional
  Administrator's decision will be based
  on the following standards and criteria:
   (1) Ther manner in which the material
  Is expected to be recycled, when the
  material is expected to be recycled, and
  whether this expected disposition is
 likely to occur (for example, because of
 past practice, market factors, the nature
 of the material, or contractual
 arrangements for recycling);
   (2) The reason that the applicant has
 accumulated the material for one or
 more years without recycling 75 percent
 of the volume accumulated at the
 beginning of the year;
   (3) The quantity of material already
 accumulated and the quantity expected
 to ba generated and accumulated before
 the material is recycled;
   (4) The extent to which the material is
 handled to minimize loss;
   (5) Other relevant factors.
   (b) The Regional Administrator may
 grant requests for a variance from
 classifying as a solid waste those
 materials that are reclaimed and then
 reused as feedstock within the original
 primary production process in which the
 materials were generated if the
 reclamation operation is an essential
 part of the  production process. This
 determination will be based on  the
 following criteria:
  • (1) How economically viable the
 production process would be if it were
 to use virgin materials, rather than
 reclaimed materials;
  (2) The prevalence of the practice on
 an industry-wide basis;
  (3) The extent to which the material is
 handled before reclamation to minimize
 loss;
  (4) The time periods between
 generating  the material and its  .
 reclamation, and between reclamation
 and return to the original primary
production process;
                            (5) The location of the reclamation
                          operation in relation to the production
                          process;
                            (6) Whether the reclaimed material is
                          used for the purpose for which it was
                          originally produced when it is returned
                          to the original process, and whether it is
                          returned to the process in substantially
                          its original form;
                            (7) Whether the person who generates
                          the material also reclaims it;
                            (8) Other relevant factors.
                            (c) The Regional Administrator may
                          grant requests for a variance from
                          classifying as a solid waste those
                          materials that have been reclaimed but
                          must be reclaimed further before
                          recovery is completed if, after initial
                          reclamation, the resulting material is
                          commodity-like (even though it is not
                          yet a commercial product, and has to be
                          reclaimed further]. This determination
                          will be based  on the following factors:
                            (1)  The degree of processing the
                          material has undergone and the degree
                          of further processing that is required;
                            (2)  The value of the material after it
                          has been reclaimed;
                            (3]  The degree to which the reclaimed
                          material is like an analogous raw
                          material;
                            (4)  The extent to which an end market-
                          for the reclaimed material is guaranteed;
                            (5) The extent to which the reclaimed
                          material is handled to minimize loss;
                            (6) Other relevant factors.
                            5. In Subpart C of Part 260, add the
                          following § 260.32:

                          § 260.32 Variance to be classified as a
                          bolter.
                           In accordance with the standards and
                          criteria in § 260.10 (definition of
                          "boiler"), and  the procedures in § 260.33,
                          the Regional Administrator may
                          determine on a case-by-case basis that
                          certain enclosed devices using
                          controlled flame combustion are boilers,
                          even though they do not otherwise meet
                          the definition of boiler contained in
                          § 260.10, after considering the following
                         criteria:
                           (a) The extent to which the unit has
                         provisions for recovering and exporting
                          thermal energy in the form of steam,-
                         heated fluids, or heated gases; and
                           (b) The extent to which the
                         combustion chamber and energy
                         recovery equipment are of integral
                         design; and
                           (c) The efficiency of energy recovery,
                         calculated in terms of the recovered
                         energy compared with the thermal value
                         of  the fuel; and
                           (d) The extent to which exported
                         energy is utilized; and
                           (e) The extent to which the device is
                         in common and customary use as a
                         "boiler" functioning primarily to
 produce steam, heated fluids, or heated
 gases; and
   (0 Other i'acfors, as appropriate.
   8. In Subpart G of Part 260, add the
 following § 280.33:

 § 260.33  Procedures for variances from
 Classification as a solid waste or to be
 classified as a boiler.
   The Regional Administrator will use
 the following procedures in evaluating
 applications for variances from
 classification as a solid waste or
 applications to classify particular
 enclosed flame combustion devices as
 boilers:
   (a) The applicant mnist apply to the
 Regional Administrator in the region
 where the recycler ir located. The
 application must address the relevant
 criteria contained : .1 § 260.31 or § 260.32
 of this Part.
   (b) The Regional Administrator will
 evaluate the application and issue a
 draft notice tentatively granting or
 denying the application. Notification of
 this tentative decision will be provided
 by newspaper advertisement and radio
 broadcast in the locality where the
 recycler is located. The Regional
 Administrator will accept  comment on
 the tentative decision for 30 days, and
 may also hold a public hearing upon
 request or at his discretion. .The
 Regional Administrator will issue a final
 decision after receipt of comments and
 after the hearing (if any}, and this
 decision may not be appealed to the
 Administrator.
   7. In Subpart C of Part 260, add the
 following § 260.40:

 § 260.40  Additional regulation of certain
 hazardous waste recycling activities on a
 case-by-case basis.
  (a) The Regional Administrator may
 decide on a case-by-case basis that ;;
 persons accumulating or storing the
 recyclable materials described in
 § 261.6(a)(2)(iv) of this Chapter should
 be regulated under § 261.6  (b) and (c) pf
 this Chapter. The basis for this decision
 is that  the materials are being
 accumulated or stored in a manner  that
 does not protect human health and  the
 environment because the materials or.  -
 their toxic constituents have not been
 adequately contained, or because the
 materials being accumulated or stored
 together are incompatible.  In making
 this decision, the Regional
 Administrator will consider the
 following factors:
  (1) The types of materials
accumulated or stored and the amounts
accumulated or stored;
  (2) The method, of accumulation or
storage;

-------
                                                    / Friday, January 4. 1995 / Rules and Regulations
                                                                           663
    (3) The length of time the materials
  have been accumulated or stored before
  being reclaimed;
    (4) Whether any contaminants are
  being released into the environment, or
  are likely to be so released; and
    (5) Other relevant factors.
    The procedures for this decision are
  set forth in §260.41 of this Chapter.
    8. In Subpart C of Part 260, add the
  following § 260.41:

  §260.41  Procedures for case-by-case
  regulation of hazardous waste recycling
  activities.
    The Regional Administrator will use
  the following procedures when
  detarmining whether to regulate
  hazardous waste recycling activities
  described in § 261.6(a)(2)(iv) under the
  provisions of § 261.6 (b) and (c), rather
  than under the provisions of Subpart F
  of Part 266 of this Chapter.
    (a) If a generator is accumulating the
  waste, the Regional Administrator will
  issue a notice setting forth the factual
  basis for the decision ana statm6 that
  the person must comply with the
  applicable requirements of Subparts A,
  C. D, and E of Part 262 of this Chapter.  •
  The notice will become final within 30
  days, unless the person served requests
  a public hearing  to challenge the
  decision. Upon receiving such a request,
  the Regional Administrator will hold a
 public hearing. The Regional
 Administrator will provide notice of the
 hearing to the public and allow public
 participation at the hearing. The
 Regional Administrator will issue a final
 order after the hearing stating whether
 or not compliance with Part 262 is
 required. The order becomes effective 30
 days after service of the decision unless
 the Regional Administrator specifies a
 later date or unless review by the
 Administrator is requested. The order
 may be appealed to the Administrator
 by any person who participated in the
 public hearing. The Administrator may
 choose  to grant or to deny the appeal.
 Final Agency action occurs when a final
 order is issued and Agency review
 procedures are exhausted.
  (b) If the person is accumulating the
 recyclable material as a storage facility,
 the notice will state that the person must
 obtain a permit in accordance with all
 applicable provisions of Parts 270 and    '
 124 of this Chapter. The owner or
 operator of the facility must apply for a
permit within no less, than  60 days and
no more than six months of notice, as
specified in the notice. If the owner or
operator of the facility wishes to
challenge the Regional Administrator's
decision, he may do so in his permit
application, in a public hearing held on
the draft permit, or in comments filed on
  the draft permit or on the notice of
  intent to deny the permit, The fact sheet
  accompanying the permit will specify
  the reasons for the Agency's
  determination. The question of whether
  the Regional Administrator's decisipn
  was proper will remain open for  :     :
  consideration during the public " / •
  comment period discussed under
  § 124.11 of this Chapter and in any
  subsequent hearing.             '-.-'•'••

  PART 261—IDENTIFICATION AND
  LISTING OF HAZARDOUS WASTE

    9. The authority citation for Part 261
  reads as follows:
    Authority: Sees. 1006, 2002(a). 3001, and
  3002 of the Solid Waste Disposal Act, as
  amended by the Resource Conservation and
  Recovery Act of 1976, as .amended [42 U.S.C.
  6905,6912(a), 6921, and 8922].
    10. In § 261.1, paragraph (c) is added
  and paragraph (b) is revised to read as -'
  follows:

  §261.1  Purpose and scope.
  *    *     *    *  •   *,   •   '••'•.••''•
    (bj(l) The definition of solid waste
  contained in this Part applies only to
  wastes that also are hazardous for
  purposes of the regulations         -'
  implementing Subtitle C of RCRA. For   '
  example, it does not apply to materials
  (such as non-hazardous scrap, paper,
  textiles, or rubber) that are not
  otherwise hazardous wastes and that.
  are recycled.        ,           ,
   (2) This Part identifies/only some of   .
  the materials which are solid wastes
 and hazardous wastes under Sections
 3007, 3013, and 7003 of RCRA. A
 material which is not defined as a solid
 waste in this Part, or is not a hazardous
 waste identified or listed in this Part, is
 still a solid waste and a hazardous
 waste for purposes of these sections if:
   (i) In the case of Sections 3007 and
 3013, EPA has reason to belieye that the
 material may be a solid waste within the
 meaning of Section 1004(27} of RCRA,
 and a hazardous waste within the
 meaning of Section 1004(5) of RCRA; or
   (ii) In the case of Section 7003, the
 statutory elements are established.
   (c] For the purposes of Sections 261.2
 and 261.6:
   (1) A "spent material" is any material
 that has been used and as a result of
 contamination can no longer serve the
 purpose for which it was produced
 without processing;
  (2) "Sludge" has the same meaning
 used in § 260.10 of this Chapter;
  (3) A "by-product" is a material that is
 not one of the primary products of a
 production process and is not solely or
 separately produced by the production
process. Examples are process residues
  such as slags or distillation column
.  bpttonns.; The term does not include a co-
 , product that is produced for the general
  public's us? and is ordinarily used in the
  form it is produced by the process.
    (4) A material is "reclaimed" if it is
  processed to recover a usable product,
  or if it is regenerated. Examples are
  recovery of lead values from spent
  batteries and regeneration of spent
  solvents.
    (5) A, material is "used or reused" if it
  is either:
    (i) Employed as an ingredient
  (including use as an intermediate) in an
  industrial process to make a product (for
  example, distillation bottoms from one
  process used as feedstock in another   •
  process), However, a material will not
  satisfy this condition if distinct
  components of the material are
  recovered as separate end products (as
 .when metals are recovered from metal-
  containing secondary materials); or
   (ii) Employed in a particular function
  or application as an effective substitute
  for a commercial product (for example,
  spent pickle liquor used as phosphorous
  preqipitant and sludge conditioner in
  wastewater treatment).
   (6) "§crap metal" is bits and pieces of
  metal parts (e.g.,) bars, turnings, rods,
  sheets, wjre) on metal pieces that may
  be combined together with bolts or
  soldering (e.g., radiators, scrap
  autoniobiles, railroad box cars), which
  when worn or superfluous can be
 recycled.
   (7) A material is "recycled" if it is
 used, reused, or reclaimed.
   (8) A material is "accumulated
 speeulatiyely" if it is accumulated
 before being recycled. A material is hot
 accumulated speculatively, however, if
 the person accumulating it can show
 that the  material is potentially
 recyclable and has a feasible means of
 being recycled; and that—during the
 calendar year (commencing on January
 l>~the amount of material that is
 recycled, or transferred to a different
 site for recycling, equals at least 75
percent by weight or volume Of the
amount of that material accumulated at
the beginning  of the period. In
calculating the percentage of turnover,
the 75 percent requirement is to be
applied to ea,ch material of the same
type [e.g., slags from a single smelting
process)  that is recycled in the same
way (/.«., from which the same material
is recovered or that is used in the same
lyay), Materials accumulating in units
that would be  exempt from regulation
under § 26t.4(c) are hot be included in
making the calculation. (Materials that
are already defined as solid wastes also
are not tp be included in making the

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  664
Federal Register / Vol. 50;' No; 3 / Friday.  January 4, 1985  / Rules  and Regulations
  calculation.) Materials are no longer in
  this category once they are removed
  from accumulation for recycling,
  however.
 .   11. Section 201.2 is revised to read as
  follows:

  § 261.2 Definition of solid waste.
    (a)(l) A solid waste is any discarded
  material that is not excluded by
  § 261.4(a) or that is not excluded by
  variance granted under §§ 260.30 and
  260.31.
    (2) A discarded material is any
  material which is:
    (i) Abandoned, as explained in
  paragraph (b) of this section; or
    (ii) Recycled, as explained in
  paragraph (c) of this section; or
    (iH) Considered inherently waste-like,
  as explained in paragraph (d) of this
  section.
    (b) Materials are solid waste if they
  are abandonedby being:
    (1) Disposed of; or
    (2) Burned or incinerated; or
   (3) Accumulated, stored, or treated
  (but not recycled} before or in lieu of
  being abandoned by being disposed of,
  burned, or incinerated.  ,
   (c) Materials are solid wastes if they
  are recycled—or accumulated, stored, or
  treated before recycling—as specified in
  paragraphs (c)(l) through (c)(4) of this
  section.
   (1) Used in a manner constituting
  disposal, (i) Materials noted with, a "*"
  in Column 1 of Table I are solid wastes
  when they are:
   (A) Applied to or placed on the land
  in a manner that constitutes disposal; or
   (B) Contained in products that are
  applied to the land (in which case the
  product itself remains a solid waste).
   (ii) However, commercial chemical
  products listed in § 261.33 are not solid
- wastes if they are applied to the land
  and that is their ordinary manner of use.
   (2) Burning for energy recovery, (i)  •
  Materials noted with a "*" in column 2
  of Table 1 are solid wastes when they
  are:
   (A) Burned to recover energy;
   (B) Used to produce a fuel;
   (C) Contained in fuels (in which case
  the fuel itself remains a solid waste).
   (ii) However, commercial chemical
 products listed in 5 261.33 are not solid
 wastes if they are themselves fuels.
   (3) Reclaimed. Materials noted with a
 "*" in column 3 of Table 1 are solid
 wastes when reclaimed.
   (4) Accumulatedspeculatively.
 Materials noted with a "*" in column 4
 of Table 1 are solid wastes when   '
 accumulated speculatively.
                                                             TABLE 1



Spent Materials 	 ; 	 , 	 , 	 , 	
Sludges (listed in 40 CFH Part 261.31 or .32) 	
Sludge^ exhibiting B characteristic of hazardous waste 	
By-products (listed In 40 CFH Part 261.31 or 261.32) 	 	
By-products exhibiting a characteristic of hazardous waste 	
Commercial chemical products listed In 40 CFR §£61 33 	


U»
constituting
disposal
(261.2(00))
W
("1
O
<•>
(*)
(")
{•>
*

Energy
recovery/
fuel
(26t.2(c)(2))
(2)

(*)
<*>
(*)
(*)
<•>
•

Reclaim*
(261.2(o)(3))
(3)
(*)
(*)

(*)


t'\

Speculative
accumula-
tion
(261,2(c)(4J)
14)
(*)
(*)
O
O
C)

<*)

                           Note.—The terms "spent materials", "sludges", "by-products," and "scrap metal" are defined in § 281.1.
                            (d) Inherently waste-like materials.
                          The following materials are solid wastes
                          when they are recycled in any manner:
                            (1) Hazardous Waste Nos. F020, F021
                          (unless used as  an ingredient to make a
                          product at the site of generation], F022,
                          F023, F026, and  F028.
                            (2) The Administrator will use the
                          following criteria to add wastes to that
                          list: ,
                            (i)(A) The materials are ordinarily
                          disposed of, burned, or incinerated; or
                            (B) The materials contain toxic
                          constituents listed in Appendix VIII of
                          Part 261 and these constituents are not
                          ordinarily found in raw materials or
                          products for which the materials
                          substitute (or are found in raw materials
                          or products in smaller concentrations)
                          and are not used or reused during the
                          recycling process; and
                            (ii) The material may pose a  ,"
                          substantial hazard to human health and
                          the environment when recycled.
                            (e) Materials that are not solid waste
                          when recycled, (i) Materials are not
                          solid wastes when they can be shown to
                          be recycled by being:
                            (i) Used or reused as ingredients in an
                          industrial process to make a product,
                          provided the materials are not being
                          reclaimed; or
                            (ii) Used or reused as effective
                          substitutes for commercial products; or
                            (iii) Returned  to the original process
                          from which they are generated,  without
                          first being reclaimed. The material must
                          be returned as a substitute for raw
                          material feedstock, and the process
                          must use raw materials as principal
                          feedstocks.
                            (2) The following materials are solid
                          wastes, even if the recycling involves
                          use, reuse, or return to the original
                          process (described in paragraphs (e)fl)
                          (i)-(iii) of this section:
                            (i) Materials used in a manner
                          constituting disposal, or used to produce
                          products that are applied to the land; or
                            (ii) Materials burned for energy
                          recovery, used to produce a fuel, or
                          contained in fuels; or
                            (iii) Materials  accumulated
                          speculatively; or
  (iv) Materials listed in paragraph
(d)(l) of this section.
  (f) Documentation of claims that
materials are not solid wastes or are
conditionally exemptjrom regulation.
Respondents in actions to enforce
regulations implementing Subtitle C of
RCRA who raise a claim that a certain
material is not a solid waste, or is
conditionally exempt from regulation,
must demonstrate that there is a known
market or disposition for the material,
and that they meet the terms of the
exclusion or exemption. In doing so,
they must provide appropriate
documentation (such as contracts
showing that a second person uses the
material as an ingredient in a production
process) to demonstrate that the
material is not a waste, or is exempt
from regulation. In addition, owners or
operators of facilities claiming that they
actually are recycling materials must
show that they have the necessary
equipment to do so.
  12. Section 261.3 is amended by
revising paragraph (c)(2) to read as
follows:

§ 261.3  Definition of Hazardous Waata.
*****
  (c)  *  * *
  (2) Any solid waste generated from
the treatment, storage, or disposal of a
hazardous waste, including any sludge,
spill residue, ash, emission control dust,
or leachate (but not including
precipitation run-off), is a hazardous
waste. (However, materials that are
reclaimed from solid wastes and that
are used beneficially are not solid
wastes and hence are not hazardous
wastes under this provision unless the
reclaimed material is burned for energy
recovery or used in a manner
constituting disposal.)
*    *    *    *    *

  13. Section 261.4 is revised by adding
paragraphs (a)(6) and (a)(7) to read as
follows:

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                       Register / Vol. 80, No. 3 / Friday, January 4.  196S /  Rules  and Regulations
                                                                                                           SOS
        Bseiu&tens.
   (a)
* *
   *
   (6) Black liquor that is reclaimed in a
 Kraft pulping liquor recovery furnace
 and then reused in the Kraft paper
 process, unless it is accumulated
 specula lively as defined in § 281.1(c) of
 this Chapter;,*
   (7) Spent sulfuric acid used to produce
 virgin sulfuric acid, unless it is
 accumulated speculatively as defined in
-1 26jl.i(c) of this Chapter.
 *   : A    *     *    A
   14. Section 261.5 is amended by
 revising paragraph (c) to read as
 follows:

 § 2i1.S  SpedrsJ nH|ulr*nMntft for
   (c) Hazardous %vaste that isreeycled
 and that is excluded from regulation
 under || 261.B (a){2)(iii) and (v), (a){3),
 or 268.36 is not included in the quantity
 determinations of this section and is not
 subject to any requirements of this
 flection. Hazardous waste that is subject
 to the requirements of §§251.8 {b) and
 (c) and Subparts C and D of Part 288 is
 included in the quantity determination
 of this section and is subject to the
 requirement* of this section.
 *    *    ft    A   " *
   15. Section 261.6 is revised to fead M
 follows
      .t  ftequtofiMnt* far rscycteiJls
   (a}(i) Hazardous wastes that are
 recycled are subject to the requirements
 for generators, transporters, and storage
 facilities of paragraphs {b) and [c) of this
 section, except for the materials listed in
 paragraphs (aj(2} and (a}(3) of this
 section. Hazardous wastes that are
 recycled willbe known as "recyclable
 materials."
   (2) The following recyclable materials
 are not subject td the requirements of
 this section bwl are regulated under
 Subparts C, through G of Part 266 of this
 Chapter and all applicable provisions in
 Part* 2*0 and  124 of this Chapter:
   (i) Recyclable material* used in a
 manner constituting disposal (Subpart
 C);
   lit) Hazardous wastes burned for
 energy recovery in boilers and industrial
 furnaces that  ara not rsgtilatad under
 Subpart O of Part 2M or 26S of this
 Chapter {Subpart D):
   (w) [Reserved for used  oil];
   (iv) Recyclable materials from which
 precious metals ars reclaimed (Subpart
 F);
   (v) Speiit bad-acid batteries that are
 being reclaimed (Subparf G),
  (3} The following recyclable materials
are not subject to regulation under Parts
262 through 266 or Parts 270 or 124 of
this Chapter, and are not subject to the
notification requirements of Section 3010
of RCRA:
  (i) Industrial ethyl alcohol that is
reclaimed;
  (ii) Used batteries (or used battery
cells) returned to a battery manufacturer
for regeneration;
  (Hi) Used oil that exhibits one or more
of the characteristics of hazardous
waste; or
  (iv) Scrap metal.  '
  (b) Generators and transporters of
recyclable materials are subject to the
applicable requirements of Parts 262 and
263 of this Chapter and the notification
requirements under Section 3010 of
RCRA, except as provided in paragraph
{a) of this section.
  (c)(l) Owners or operators of facilities
that store recyclable materials  are
regulated under all applicable
provisions of Subparts A through L of
Parts 264  and  285 and Parts 270 and 124
of this Chapter and the notification
requirement under Section 3010 of
RCRA, except as provided in paragraph
(a] of this section.
  (2} Owners  or operators of facilities
that recycle recyclable materials
without Storing them before they are
recycled are subject to the following
requirements, except as provided in
paragraph (a) of this section:
   (i) Notification requirements  under
section 3010 of RCRA;
   (ii) Sections 265.71 and 26S.72 (dealing
with the use of the manifest and
manifest  discrepancies) of this  Chapter.
   18. Section  261.31 is amended by
revising the hazardous Waste listings
F007, F008, F009, FOlO, F011, and F012 to
read as follows:

f 361.31   Hassrdeut! waste from  non-
speelfte sources.
                                  Industry end
                                    EPA
                                  hazardous
                                  v»3Kte No.
                                 (Sahata
                                   FOOT
                                   FOB*	
                                   roto	
                Haamteus tfi.An
                                           Spent eysnWs ptittng Bath solu-
                                            tions frsffl cteSfoplSiing  opw-
                                                 Sth residues  from  Bra
                                            bottom e! pttfng baths from
                                            slactropistlftj  Cj»ra8sna where
                                            eyeinkiss «ne  «#Nl in »« !>roc-
                                                     and clsarrir.g bath
                                                   (mm siaclropi.lting op
                                                    tiv r«$&k&ft from vft
                                             bsft.-i ttinn metcl heat trsaling
                                             oparatSon* *han» eysnWes SrS
                                             ussrel in >l»r pr«*«3,
                                  cede
Industry and
EPA
hazardous
waste No.
F011 	
F012 	
Hazardous waste
-Spent cyanlda solutions from salt
bath pot cleaning from metal
heal treating operations.
Qu&ncn!n$ waste water treatment
sludges from metal heat beating
operations where cyankJas fire
used in the process:
Hazard
code
(B.T)
cn
                                                                           17. Section 261.33 is amended by
                                                                         revising the introductory text to read as
                                                                         follows:

                                                                         § 2S1.33  Discarded commsreisl ehemieaS
                                                                         products, eff-spsclficKtion spsclss,
                                                                         conteinsr residues, and spili reaiiJuss
                                                                           The following materials or items are
                                                                         hasardous wastes when they are
                                                                         discarded or intended to be discarded
                                                                         as described in f 261.2(a}(2)(i), when
                                                                         they are burned for purposes of energy
                                                                         recovery in lieu of their original
                                                                         intended use, when they are used to
                                                                         produce fuels in lieu of their original
                                                                         intended use, when they are applied to
                                                                         the land in lieu of their original intended
                                                                         Use, or when they are contained in
                                                                         products that are applied to the land in
                                                                         lieu of their original intended use,
                                                                         -PAftt 2S4~StANDARDS FOR
                                                                         OWNERS AH0 OPERATORS OF
                                                                         HAZARDOUS WASTE f REAt^EfflV
                                                                         &T08AC»E, AMD DISPOSAL,
                                                                         FACILSTiES

                                                                            IB. The authority citation for Part 264
                                                                         reads as follows:
                                                                            Authority, Sees. 1006, 2002(a}, 3004, and
                                                                         3005 Of the Solid Waste Disposal Act, as
                                                                          amended by the Resource Conservation and
                                                                          Recovery Act of 1976, as amended (42 U.S C.
                                                                         8905, 6912(a), 6924, and 6925).

                                                                            19, In § 264.1, paragraph (g)(2) is
                                                                         revised to read as follows:
  (8) * * '
  (2) The oWner or operator of a facility
managing recyclablfe materials
described in | 261,6(a) (2) and (3) of this
Chapter (except to the extent that
requirements of this Part are referred to
in Subparts C, D, F, or G of Part 266 of
this Chapter).
is    *    A    *     *

  20, Section 264.340(a)  is revised to
read as follows:

§§34.340  Applicability.
  (a) The regulations in this Subpart
apply to owners or operators of facilities
that incinerate hazardous waste, except

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 666
Federal Register / Vol..50,,  No. 3 /  Friday,January 4,  1985 / Rules and Regulations
 at § 26-1.1 provides otherwise. The
 following facility owners or operators
 are considered to incinerate h.r/anious
 waste;
   (1) Owners or operators of hazardous
 waste Incinerators (as defined in
 § 200,10 of this Chapter); and
   (2) Owners or operators who bum
 hazardous waste in boilers or In
 industrial furnaces in order to destroy
 the wastes.
 PART 265-INTERIM STATUS
 STANDARDS FOR OWNERS AND
 OPERATORS OF HAZARDOUS WASTE
 TREATMENT, STORAGE AND
 DISPOSAL FACILITIES

   21. The authority citation for Part 265
 reads as follows:
   Authority: Sees. 1006,2002(a), 3004. and
 3005 of the Solid Waste Disposal Act, as
 amended by the Resource Conservation and
 Recovery Act of 1970. as amended (42 U.S.C.
 0905,6621(0), 6924, and 6925).

   22. In | 265.1, paragraph (c)(6) is
 revised to read as follows:
      f
 { 265.1  Purpose, Scope, and Applicability.
   (6) The owner and operator of a
 facility managing recyclable materials
 described in § 261.6 (a) (2) and (3) of this
 Chapter (except to the extent that
 requirements of this Part are referred to
 in Subparts C, D, F, or G of Part 266 of
 this Chapter).
 •    •     *    *     *
   23. Section 2G5.340(a) is revised to
 read as follows:

 8265.3X0  Applicability.
   (a) The regulations  in this Subpart
 apply to owners or operators of facilities
 that Incinerate hazardous waste, except
 as § 264.1 provides otherwise. The
 following facility owners or operators
 are considered to incinerate hazardous
 waste:
   (1) Owners or operators of hazardous
 waste incinerators (as defined in
 I260.10 of this Chapter); and
  (2) Owners or operators who burs;
 hazardous wastes in boilers or In
 Industrial furnaces in order to destroy
 the wastes.
 *    *     •    *     *
  24. Section 265.370 is revised to read
 as follows:

 § 265.370  Other thermal treatment
  The regulations in this Subpart apply
 to owners or operators of facilities that
 thermally treat hazardous waste in
 devices other than enclosed devices
 using controlled flame combustion,
except as § 265.1 provides otherwise.
                          Thermal treatment in unclosed devices
                          using controlled flame combustion is
                          subject to the requirements of Subpart 0
                          if the unit is an incinerator,
                            25, Part 268 is added to read as
                          follows:

                          PART 266-^STANDARDS FOR THi
                          MANAGEMENT OF SPECIFIC
                          HAZARDOUS WASTES AND SPECIFIC
                          TYPES OF HAZARDOUS WASTE
                          MANAGEMENT FACILITIES

                          Subparts A-B-^Ressrved]

                          Subpart C— Recyclable Materials Used in a
                          Manner Constituting Disposal

                          Sec.   *
                          268.20  Applicability.
                          266.21  Standards applicable to generators
                              and transporters of materials used in a
                              manner that constitute disposal.
                          208.22  Standards applicable to storers of
                              materials that are to be used in a manner
                              that constitutes disposal who are not the
                              ultimate users.
                          268.23  Standards applicable to users of
                              materials that are. used in a manner that
                              constitutes disposal.

                          Subpart D— Hazardous Want* Sumed for
                          Energy Recovery
                          266.30  Applicability.
                          266.31  Prohibitions. [Reserved]
                          266.32  Standards api.»ka5.dab!» Materials Utlii2*d
                          for Prfeiiaus Metal Race-vary
                          266.70  Applicability ahd requirements).

                          Subptrt G — Spent Lead-acid Batteries
                          Beteg Reclaimed
                          i'ko.30  Applicability and requirements.
                            Authority: Sec. 1006. 2002(a), and 3004 of
                          the Solid Waste Disposal Act, as amended by
                          the Resource Conservation and Recovery Act
                          of W76. 39 amended (42 U.S.C. 690S. 6912(3),
                          and 0924).

                          Subparts A-0— [Reserved]

                          Subpart C— Recyclable Materials Used
                          In * Manner Constituting Disposal

                          § 266.20 Applicability.
                            (a) The regulations of this Subpart
                          apply to recyclable materials that ate
                          applied to or placed on the land:
                            (1) without mixing with any other
                          substance(s); or
                            (2) after mixing with any other
                          substance(s), unless the recyclable
      .i! unrlorgooa a chemical reaction
 so us to become inseparable from the
 other substance(A) by physical means; or
  (3) aftur combination with any flirt*?
 substances) if the reauhisg combined
 material is not produced for ths g«ft«?*sl
 public's use. These materials will t«
 referred  to tkfoughout this Subpart as
 "materials used in a manner that
 constitutes disposal."
  (b) Products produced for the general
 public's usa that are used in a manner
 that constitutes disposal and that
 contain recyclable materials are not
 presently subject to regulation if the
 recyclable materials have undergone a
 chemical reaction in the course of
 producing the product so as to become
 inseparable by physical means.
 Commercial fertilizers that are produced
 for the general public's use that contain
 recyclable materials also are not
 presently subject to regulation.

 § 366.21  Standard* appiieab!* So
 generators and lrsnijso»1«rs of materials
 used In a manner that constitute ellsposfil.
  Generators and transporters of
 materials that are used, in a manner that
 constitutes disposal «re subject to the
 applicable requirements of Parts 262 and
 263 of this chapter, and. the notification
 requirement under Section 3010 of
 RCRA.

 S 265.22  Standard* apptasbJa to stows
 of materials that are to fe* use* hi * manner
 that constitutes disposal who are not the
 ultimate usera,
  Owners or operators of facilities that
 stor@ recyclable materials that are to be
 used in a manner that constitutes
 disposal, but who are not the ultimate
 users of the materials, are regulated
 under all applicable provisions of
 Subparts A through L of Parts 264 and
 265 and Parts 270 and 124 of this chapter
 and  the notification requirement Under
 Section 3010 of RGR A.

 § 266.23  Standards applteabla to users of
 materials that are used In a manner that
 constitutes disposal.
  Owners or operators of facilities that
 use recyclable materials In a manner
 that  constitutes disposal are regulated
 under all applicable provisions of
 Subparts A through N of Parts 264 arid
265 and Parts 270 and 124 of this chaptef
and the notification requirement under
 Section 3010 of RCRA. (These
requirements do not apply to products
xvhich contain these recyclable
materials under the provisions of
 § 266.20(b) of this chapter.)

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             Federal Register /  Vol. 50,  N>J. 3  /  Friday, January; 4,: 198£ / Rules' and
                                                                         667
Subpart D—Hazardous Waste Burned
for Energy Recovery

§266.30 Applicability.
  (a) The regulations of this Subpart
apply to hazardous wastes that are
burned for energy recovery in any boiler
or industrial furnace that is not
regulated under Subpart O of Part 264 or
265 of this chapter, except as provided
by paragraph (b) of this section. Such
hazardous wastes burned for energy
recovery are termed "hazardous waste
fuel". However, hazardous waste fuels
produced from hazardous waste by
blending or other treatment by a person
who neither generated the waste nor
burns the fuel are not subject to
regulation at the present time.
   (b) The following hazardous wastes
are not regulated under this subpart:
   (1) Used oil burned for energy
recovery that is also a hazardous waste
solely because it exhibits a
characteristic of hazardous waste
identified in Subpart C of Part 261 of this
chapter. Such used oil is subject to
regulation under Subpart E of Part 266
rather than this subpart; and
   (2) Hazardous wastes that are exempt
from regulation under the provisions of
§ 261.4 of this Chapter and hazardous
wastes that are subject to the special
requirements for small quantity
generators under the provisions of
§ 261.5 of this Chapter.

§ 266.31  Prohibitions. [Reserved]

§ 266.32  Standards applicable to
generators of hazardous wast® fuel.
   (a) Generators of hazardous waste
fuel are subject to the requirements of
Part 262 of this chapter except that
 § 266.36 exempts certain spent materials
and by-products from these provisions;
   (b) Generators who  are marketers also
must comply with § 266.34;
   (c) Generators who are burners also
 must comply with § 266.35.

 § 266.33  Standards applicable to
 transporters of hazardous waste fuel.
   (a) Transporters ofnazardous waste
 fuel from generator to marketer, or from
 a generator to a burner are subject to
 the requirements of Part 263 of this
 Chapter, except that § 266.36 exempts
 certain spent materials and by-products
 from these provisions.
   (b) Transporters of hazardous waste
 fuel from marketers to burners are not
 presently subject to regulation.

 § 266.34 , Standards-applicable to
 marketers of hazardous waste fuel.
   Persons who market hazardous waste
 fuel are called "marketers". Marketers
 include generators who market
 hazardous waste fuel directly to a
burner, and persons who receive
hazardous waste from generators and
produce, process, or blend hazardous
waste fuel from these hazardous wastes.
Persons who distribute but do not
process or blend hazardous waste fuel
are also marketers, but are not presently
subject to regulation. Marketers (other
than distributors) are subject to the
following requirements: Prohibitions:
  (a)-(b) [Reserved]            . , .  ...•
  (c) Storage. (1) Marketers, who are
generators are subject to the
requirements of § 262.34 of this chapter,
or to Subparts A through L of Parts 264
and 265 and. Parts 270 and 124 of this
chapter, except as provided by i 266.38
of this Subpart for certain spent
materials and by-products;
  (2) Marketers who receive hazardous'
wastes from generators, and produce,
process, or blend hazardous waste fuel
from these hazardous wastes, are
subject to regulation under all
applicable provisions of Subparts A
through L of Parts 264 and 265 and Parts
270 and 124 of this chapter, except as  ,
provided by § 266.36 of this subpart for
certain spent materials and by-products.'

§266.35  Standards applicable to burners
of hazardous waste fuel.           •
   (a) [Reserved]                    .
   (b) Notification. [Reserved]
   (c) Burners that store hazardous waste •
fuel prior to burning are subject to the
requirements of § 262,34 of this chapter,
or to all applicable requirements in.   •
 Subparts A through L of Part 264 or Part
 265 of this chapter with respect to such
 storage, except as provided by § 266.36
 of this subpart for certain spent
 materials and by-products.

 §266.36 Conditional exemption for spent
 materials and by-products exhibiting •
 characteristic of hazardous waste.
   (a) Except as provided in paragraph
 (b], hazardous waste fuels that are spent
 materials and by-products and that are
 hazardous  only because they exhibit a
 characteristic of hazardous waste are
 not subject to the notification
 requirements of Section 3010 of RCRA,
 the generator, transporter, or storage
 requirements of Parts 262 through 265,
 270 and 124 of this chapter. .
    (b) This exemption does not apply
 when the spent material or by-product is
 stored in a surface impoundment prior
 to burning.                  .         •

 Subpart i—[Reserved]

 Subpart F—Recyclable Materials
 Utilized far Precious Metal Recovery

 § 266.70  Applicability and requirements.
    (a] The regulations of this subpart
 apply to recyclable materials that are
 reclaimed to recover economically
 significant amounts of gold, silver,
 platinum, paladium, irridium, osmium,
 rhodium, ruthenium, or any combination
 of these,,
   (b) Persons who generate, transport,
 or store recyclable materials that are
 regulated under this Subpart are subject
 .to the following requirements:
   (1) Notification requirements under
 Section 3010 of RCRA;
   (2) Subpart B of Part 262 (for
 generators), §§ 263.20 and 263.21 (for
 transporters), and §§ 265.71 and 265.72
 (for persons who store) of this chapter;
 .  (c) Persons who store recycled
 materials that are regulated under this
 Subpart must keep the following records
 to document that they are not
 accumulating these materials
 speculatively (as defined in § 261.1(c) of
 this chapter);
   (i) Records showing the volume of
 these materials stored at the beginning
 of the calendar year;
   (U) The amount of these materials
 generated or received during the
 calendar year; and
   (iii) the amount of materials remaining
 at the end of the calendar year.
   (d) Recyclable materials that  are
 regulated under this Subpart that are
 accumulated speculatively (as defined
 in § 261.1(c) of this chapter) are subject
 to all applicable provisions of Parts 262
 through 285,270 and 124 of this  chapter.

 Subpart fit—Spent Lead-Acid Batteries
 Being Reclaimed

 §266.30 Applicability and requirements.
   (a) The regulations of this Subpart
•- apply to persons who reclaim spent
 lead-acid batteries that are recyclable
 materials ("spent batteries"). Persons
 who generate, transport, or collect spent
 batteries, or who store spent batteries
 but do not reclaim them are not subject
  to regulation under Parts 262 through 266
  or Parts 270 or 124 of this Chapter, and
 .also are not subject to the requirements
  qf Section 3010 of RCRA.
    (b) Owners or operators of facilities
  that store spent batteries before
  reclaiming them are subject to the
  following requirements.
    (1) Notification requirements under
  Section 3010 of RCRA;
    (2) All applicable provisions  in
  Subparts A, B (but not § 264.13 (waste
  analysis)), C, D, E (but not i 264.71 or
  S 264.72 (dealing with the use of the
 , manifest and manifest discrepancies)),
  and F through L of Part 264 of this
  chapter;        -
    (3) All applicable provisions in
  Subparts A. B  (but not § 265.13 (waste
  analysis)), C. P, E (but not §265.71 and

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668
Federal  Register / Vol. 50, No. 3  /  Friday, January 4, 1985  /  Rules and Regulations
§ 265.72 (dealing with use of the
manifest and manifest discrepancies}},
and F through L of Part 265 of this
chapter;
  (4) All applicable provisions in Parts
270 and 124 of this chapter.
[FR Doc. 85-3 Filed 1-0-85; 8:45 am]
Bit UNO COM «SW-«MI

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United State*
Envtonnwntai Protection
W*»*>flton DC 20460
P«»Hyf
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