x-sEPA
                 United States
                 Environmental Protection
                 Agency
Office of Solid Waste
and Emergency Response
Washington, DC 20460
EPA''530-SW-36-C33
October 1986
                  Solid Waste
            Report  to  Congress
          Minimization of Hazardous Waste

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          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                        WASHINGTON, D.C  20460


                            OCT 3 0 1986
                                               THE ADMINISTRATOR
Honorable George Bush
President of the Senate
Washington, D.C.  20510

Dear Mr. President:

     I am pleased to transmit the Report  to  Congress on  Waste
Minimization, in response  to section  8002(r) of  the Hazardous  and
Solid Waste Amendments  (HSWA) of 1984.

     As requested, this report evaluates  the desirability  and
feasibility of  (a) establishing standards of performance or of
taking additional action to require generators of  hazardous waste
to reduce the volume or quantity and  toxicity of  the hazardous
waste they generate; and (b) establishing, with  respect  to
hazardous waste, required  management  practices or  other  require-
ments to ensure such wastes are managed in ways  that minimize
present and future risks to human health  and the  environment.

     The Report, appendices and technical support document are
transmitted in five separate volumes.
                              Lee M. Thomas

Enclosures

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          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                         WASHINGTON. D C 20460


                             OCT 3 0 1336
                                                THE ADMINISTRATOR
Honorable Thomas  P.  O'Neill
Speaker of the  House of  Representatives
Washington,  D.C.   20515

Dear Mr. Speaker:

     I am pleased  to transmit  the  Report to  Congress  on Waste
Minimization, in response  to section 8002(r)  of  the Hazardous and
Solid Waste Amendments  (HSWA)  of  1984.

     As requested, this  report evaluates the  desirability  and
feasibility of  (a) establishing standards of  performance or  of
taking additional  action to require  generators of  hazardous  waste
to reduce the volume or  quantity and  toxicity of  the  hazardous
waste they generate; and (b) establishing, with  respect to
hazardous waste, required  management  practices or  other require-
ments to ensure such wastes are managed  in ways  that  minimize
present and future risks to human  health and  the environment.

     The Report, appendices and technical support  document are
transmitted  in five  separate volumes.
                               Sincerely yours,
                              Lee M. Thomas

Enclosures

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Report to Congress
Minimization of Hazardous Waste
           Prepared by
        Office of Solid Waste
 U.S. Environmental Protection Agency
         401 M Street, S.W.
      Washington, D.C. 20460
             nvironmental Protection /••.
            •  ''. ' ::-.-j:y
              .'*•• '.-. j.'v.rn Strett
                   60604
           October 1986


           Printed on 75% Recycled Paper

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                    TABLE OF CONTENTS
Executive Summary	i
      Definition of Terms	ii
      Why Minimize Waste?	v
      Incentives and Disincentives for
         Waste Minimization	vi
      Current Waste Minimization
         Requirements	Aiii
      Evaluation of Available
         Options for Waste Minimization	xiv
      Recommendations	.xxi
      Conclusion	xxv
INTRODUCTION	1
CHAPTER ONE: BACKGROUND	5
      The Purpose of Waste Minimization	7
      Methods of Waste Minimization	11
      Incentives and Disincentives for Waste Minimization	15
      The Outlook for Federal Waste Minimization Policy	29
CHAPTER TWO: EXISTING WASTE MINIMIZATION
      ACTIVITIES	31
      Profile of Current Waste Generation	31
      Current Industrial Waste Minimization
         Practices	43
      Activities of States in Support of
         Waste Minimization	59
      Review of Existing EPA Activities Relating To
         Waste Minimization	65
CHAPTER THREE: EVALUATION OF
      WASTE MINIMIZATION OPTIONS	81
      Criteria for Evaluating Waste
         Minimization Options	82
      Discussion of Options 	90
CHAPTER FOUR: RECOMMENDATIONS	121
      EPA's Recommended
         Waste Minimization Strategy	124
      Conclusion	133

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                         LIST OF  FIGURES
NUMBER                          TITLE                         PAGE
1     Waste Minimization Techniques	iii
2     Incentives and Disincentives for Various Waste
          Minimization Techniques	vii

1 -1   Schematic Diagram of the National
          Waste System	12

2-1   Industry Ranking by Hazardous Waste Generation	34
2-2   Hazardous Waste Stream Volume	37
2-3   Hazardous Waste Stream Toxicity Scores:
          Descending Order of Waste Stream Volume	37
2-4   Distribution of Small Quantity Generators by Industry Group	42
2-5   Distribution of Small Quantity Generator Waste
          by Waste Stream.	.42
2-6   Comparison of Total Volume Hazardous Waste
          Generated to Total Volume Recycled by SIC Category	54
2-7   Distribution of Total Volume of Hazardous
          Waste Recycled during 1981, by SIC Category	54
2-8   Major Recycling Practices for Selected Waste
          Streams from the RIA TSDF Survey	56

3-1   Options: Timeline of Estimated Implementation	.91

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                          LIST OF  TABLES
NUMBER                          TITLE                        PAGE
1 -1   Working Definitions of Waste Minimization
          Related Terms	8

2-1   Waste Stream Volumes for Highest Volume Generators	36
2-2   Comparison of Waste S treams for Three Industry Categories	40
2-3   Estimated Extent of Current and Future Source Reduction	46
2-4   Ten Highest Volume Waste Generating Industries	52
2-5   Summary of States' Waste Minimization Activities	62

3-1   Summary of Advantages and Disadvantages of Waste
          Minimization Options	92

4-1   Data Needs and Potential Sources for Future Waste
          Minimization Analysis	128

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                                   Report to Congress

                        MINIMIZATION OF HAZARDOUS WASTE

                              Summary of Recommendations

        The Environmental Protection  Agency  has concluded that mandatory  standards of
 performance and required management practices  are not feasible or desirable at this time.  The
 Agency recommends that the effect on waste minimization of the land disposal restrictions and other
 HSWA mandates, as well as amendments to CERCLA, be quantified and analyzed.  EPA will report
 back to Congress on this determination in December 1990, the earliest date at which it believes a
 recommendation on the need for a major waste minimization regulatory program could be made.
 Until that time, however, EPA recommends a three point waste minimization strategy:

 Information Gathering

        Continuing collection of information on waste stream volume and composition, generation
 rates by  various types and sizes of generators, adequacy of capacity for TSD facilities, and the
 cumulative effect of HSWA requirements on voluntary waste minimization practices.

 Core Waste Minimization Program

 — Development and publication of informal guidance on waste minimization for the purpose of the
    reporting and certification requirements of HSWA Sections 3002 and 3005.

 — Provision of a technical and information assistance program to generators and to States to aid in
    the development of waste minimization programs.

 — Assistance to specific States to develop programs for providing direct technical assistance to
    generators (e.g., using waste audits, dissemination of technical information, applied research on
    new applications of existing technology).

 — Highlight ongoing research and development and economic feasibility studies that might serve an
    entire region or have regional application.

 — Development of an information system on waste minimization, accessible by the States.

 — Implementation of mandatory controls, as needed, for controlling the generation of wastes for
    specific industries or processes using current authority under TSCA Section 6.

 — Incorporation of waste minimization into the review of TSCA Premanufacture Notices.

 Longer Term Options

       After evaluation of information gathered in the short term, EPA may better assess in its 1990
 report  to Congress that  additional authority to adopt mandatory standards  of performance or
 management practices as a means of reducing wastes would be warranted.

       In the interim, EPA will continue to examine the specific elements of the  "core" waste
 minimization program and consider the need for longer term options, if needed. As part of the next
 RCRA reauthorization, EPA will provide Congress  with its most current assessment of the need to
 modify the existing waste minimization requirements for generators and TSDFs   Among the
 possible options to consider would be:

— To prohibit, where appropriate, certification of certain types of waste management practices as
    waste minimization.

— To specify what may be certified as waste minimization.

— To define necessary documentation for certifications that state that waste minimixation is not
    economically practicable.

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               Report to Congress on Minimization of Hazardous Waste
                            EXECUTIVE SUMMARY
       This Report to Congress is submitted in response to the requirements of Section

8002(r) of the Solid Waste Disposal Act, as amended by the Resource Conservation and

Recovery Act (RCRA) of-1976, and the Hazardous and Solid Waste Amendments

(HSWA) of 1984.1 Under this section, the Administrator of the Environmental Protection

Agency  (EPA)  is required to submit  a Report to Congress  by October 1,  1986,

recommending any legislative changes that are feasible and desirable to implement

HSWA's policy with respect to the minimization of hazardous waste:

       The Congress hereby declares it to be the national  policy of the United
       States that, wherever feasible, the generation of hazardous waste is to be
       reduced  or eliminated as  expeditiously as  possible.   Waste that is
       nevertheless generated should be treated, stored or disposed of so as to
       minimize the present and future threat to human health and the environment.


       Section 8002(r) requires the Administrator to evaluate specifically the feasibility and

desirability of:

       1.     Establishing standards of performance or of taking other additional
              actions under RCRA to require generators of hazardous waste to
              reduce the volume or quantity and toxicity of the hazardous waste
              they generate; and
1      Reflecting common usage, the amended Solid Waste Disposal Act will hereafter be generally
       referred to as RCRA. Additions to RCRA made by the 1984 amendments will be referred to in the
       text as HSWA.

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Executive Summary
          2.     Establishing, with respect to hazardous waste, required management
                 practices or other requirements to ensure such wastes are managed
                 in ways that minimize present and future risks to human health and
                 the environment.
                                   Definition of Terms


          The following definitions, based in part on the interpretations presented below, are

    crucial to the recommendations made in this report (see also Figure 1):

          Source reduction refers to the reduction or elimination of waste generation at
          the source, usually  within a  process.  Source reduction measures can
          include some types of treatment processes, but they also include process
          modifications, feedstock substitutions or improvements in feedstock purity,
          various housekeeping and management practices, increases in the efficiency
          of machinery, and even recycling  within  a process.  Source reduction
          implies any action that reduces  the amount of waste exiting from a process.

          Recycling refers to the use or reuse of a waste as an effective substitute for a
          commercial  product, or as an ingredient  or feedstock  in an industrial
          process.  It also refers to the  reclamation of useful constituent fractions
          within a waste material or removal of contaminants from a waste to allow it
          to be reused.  As used in this  report,  recycling implies use,  reuse, or
          reclamation  of a waste either onsite or offsite after it is generated by a
          particular process.

          Waste minimization means the  reduction, to the  extent feasible, of
          hazardous waste that is generated or  subsequently treated, stored, or
          disposed of.  It includes any  source  reduction  or recycling activity
          undertaken by a generator  that results in either (1) the reduction of total
          volume or quantity of hazardous waste, or (2) the reduction of toxicity of
          hazardous waste, or both, so long as the reduction is consistent with the
          goal  of minimizing present and future threats to human health and the
          environment

          In the broadest sense, the HSWA defines waste minimization as any action taken to

    reduce the volume or toxicity of wastes. That definition includes the concept of waste

    treatment, which encompasses such technologies as incineration, chemical detoxification,

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                                  FIGURE 1
           WASTE MINIMIZATION TECHNIQUES
            RECYCLING
         ONSITE/OFFSITE
                  SOURCE REDUCTION
USE / REUSE

'Ingredient in a process
'Effective substitute
RECLAIM

'Processed to recover
usable product
'Regeneration
                                      SOURCE CONTROL
                                           J_
       GOOD HOUSEKEEPING
            PRACTICES

       'Waste stream segregation
       "Inventory control
       'Employee training
       'Spill/leak prevention
       'Scheduling improvement
                   INPUT MATERIAL
                    MODIFICATION
                   'Input purification
                   'Input substitution
     TREATMENT
                                             PRODUCT
                                           SUBSTITUTION

                                           QI-O
TECHNOLOGY
MODIFICATION

'Improved Controls
'Process Modifications
'Equipment Changes
•Energy Conservation
'Water Conservation
I
C/3

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Executive Summary
    biological treatments, and others.^ The Agency has already embarked on a broad program
    for waste treatment; thus, this report focuses on source reduction and recycling, the two
    aspects of waste minimization where basic options still remain open.

           Section 1003 of HSWA establishes the general national policy in favor of waste
    minimization and refers to the need to reduce the "volume or quantity and toxicity" of
    hazardous wastes. EPA does not interpret this language to indicate that Congress rejected
    volume reduction alone (with no change in the toxicity of hazardous constituents) as being
    a legitimate form of waste  minimization.  A generator that reduces  the volume of its
    hazardous waste, even if the composition of its waste does not change, is accomplishing
    beneficial waste minimization.  EPA believes that waste concentration may occasionally be
    a useful waste minimization technique (e.g., in preparing materials for recycling). The key
    concept, however, is that waste minimization must be protective of human health and the
    environment.

           Because both volume and toxicity of wastes present dangers to human health and
    the environment, measuring the effectiveness of waste minimization will be complex.
    First, waste minimization measures are likely to be process and industry specific, implying
    that different measurement techniques might be needed in different contexts; second, any
    mandatory requirements for reducing the  volume or toxicity of generated  waste should
    directly relate to expected reductions in risk to human health and the environment. EPA has
    already developed data and methodologies that can be used to evaluate the risks of many
    types of waste streams, as well as the risk reductions associated with waste management
    practices.3  These  evaluation techniques will continue to improve and become more
    effective as a tool in regulatory decision making.  EPA therefore intends to use such
    assessments as a means of measuring progress in waste minimization and to help establish
    2      Section 1003(a)(6) of HSWA states that the objectives of "promot[ing] the protection of health and
           the environment and conserving] valuable material and energy  resources" can be done by
           "minimizing the generation of hazardous waste and the land disposal of hazardous  waste by
           encouraging process substitutions, materials recovery, properly conducted recycling and reuse, and
           treatment" [italics added].
    3      These include, for example, the Liner Location Model and the RCRA Risk/Cost Analysis Model
           (usually referred to as the Waste-Environment-Technology or W-E-T model).
                                          — iv —

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                                                                     Executive Summary
priorities among or within possible waste minimization regulatory schemes. This approach
is consistent with the general principle that any waste minimization regulations should seek
to reduce significant remaining risks.

                              Why Minimize Waste?

       The RCRA program over the past ten years has focused primarily on correcting the
effects of years of poor management of hazardous wastes by bringing treatment, storage,
and disposal facilities into compliance with national standards that are protective of human
health and the environment.  HSWA has continued this policy, but has  also shifted the
emphasis of the program away from reforming land disposal practices to a reliance on
waste treatment. Because of its potential  for contamination of other environmental media
(e.g., ground water), land disposal—even under strict control—is recognized as the least
desirable method of managing hazardous wastes.

       The move toward treatment is a major step forward, but is not a complete answer.
Reforms in land disposal  practices and  installation of new hazardous waste treatment
capacity are effective responses to managing this country's hazardous waste, but they do
not address the generation of these wastes.  Both Congress  and EPA believe that
preventing the generation of a waste, when feasible, is inherently preferable to controlling it
after  it is generated.  Waste  minimization  can be viewed as a means of reducing the
introduction of hazardous constituents into all environmental media.

       Current environmental control programs are designed to protect human health and
the environment.   However, control  technologies are never 100 percent efficient, and
compliance with regulations under any environmental program can never be perfect, even
with the most stringent enforcement program.  Waste minimization can also address the
risks of breakdowns in waste management systems.

       In addition to achieving human health and environmental benefits by reducing the
volume and/or toxicity of hazardous wastes, waste minimization can also relieve shortages
of treatment, storage, and disposal capacity.  The capacity to accept wastes diverted from
land disposal will be especially limited over the next few years while new facilities are
                                     	 V

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Executive Summary
   under construction and treatment alternatives are being developed. This process may be
   slow, since public opposition makes new hazardous waste facilities extremely difficult to
   site. Furthermore, land disposal will continue to be required into the foreseeable future,
   even if wastes disposed of in or on the land are detoxified first; hence, capacity needs will
   always be a concern.  Finally, all forms of waste management—treatment or land
   disposal—must allow for industrial growth and thus the need for additional capacity. By
   reducing per unit product generation rates, waste minimization can provide at least a partial
   answer to these problems.

                     Incentives and Disincentives for Waste Minimization

          Strong incentives already exist to promote waste minimization in the private sector,
   including (1) dramatic increases in the price of all forms of hazardous waste management,
   partially caused by Federal and State standards, (2) difficulties in siting hazardous waste
   management  capacity, (3) permitting burdens and corrective action requirements,
   (4) financial  liability of hazardous  waste generators, (5) sharp increases in the cost of
   commercial liability insurance, coupled with a steep dropoff in its availability, and (6)
   public  pressure  on industry to reduce  the  production  of waste.  There are  also
   countervailing disincentives. Figure  2 covers the incentives and disincentives that surround
   the various waste minimization techniques.

   Incentives for Waste Minimization

          Increases in the costs of hazardous waste management: EPA and State regulations
   have  been the primary cause  of increased costs in treatment,  storage, and disposal of
   hazardous wastes, especially in relation to landfills, surface impoundments, and storage
   and accumulation tanks. The current series of land disposal restrictions under HSWA will
   limit the number of untreated wastes that can be disposed of on land and thus are likely to
   increase the cost of disposal.  HSWA also imposes more stringent standards on surface
   impoundments, which will mean that about half of those now in operation will close. In
   addition,  the  recently promulgated   hazardous  waste  tank   rules4   will
          51 FR 25421, July 14, 1986
                                         — vi —

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                                                  Executive Summary
INCENTIVES
Increased Cost of Waste Management
Difficulties in siting new HW management
facilities
Permitting Burdens and
Corrective Action Requirements
Financial Liability
of HW Generators
Shortages of Liability Insurance
Public Perception
•
•
•
•
•
•
•

•


•
•
•
•
•
•
•
DISINCENTIVES
Economic Barriers
-Lack of Capital
-Financial Liability
Technical Barriers
-Attitudes toward unfamilar methods
-Batch Processes
-Lack of information
-Technical Limits of Process
-Technical Quality Concerns
Regulatory Barriers
-Need to Obtain TSO Permit
-Perceived Stigma of Man'g Haz. Waste
-Revisions to Other Env. Permits
•

•

•
•
•
•

•

•
•

•


•
•
•
•

•
•
•


•
•
•
RGURE 2 INCENTIVES AND DISINCENTIVES FOR VARIOUS
         WASTE MINIMIZATION TECHNIQUES
                        Vll

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Executive Summary
   also increase waste management costs.  Because of these three factors, generators must
   find alternative means for treating, storing, or disposing of their wastes.

          Prices for such alternative waste treatment are expected to rise as generators
   compete for scarce treatment capacity (such as incineration or chemical detoxification).
   EPA has, in fact, already identified shortages of treatment and disposal capacity for solvent
   and dioxin wastes in its proposed regulations.5

          Overall, the increased costs of waste management provide a strong incentive for
   owners and operators to reduce the quantity of waste generated or disposed of through the
   use of source reduction and offsite and onsite recycling techniques.

          Difficulties in siting hazardous waste treatment, storage, and disposal capacity: The
   land disposal restrictions program, as mandated by HSWA, is creating a strong demand for
   substantial new  waste treatment, storage,  and disposal capacity.  Hazardous waste
   managers are therefore seeking new sites and planning to expand existing ones, but in the
   process they are encountering the familiar problem of "not in my community." While there
   are some instances where States have been successful in helping to site new hazardous
   waste management facilities, local resistance tends to be extremely hard to overcome.  This
   intense public opposition to the siting of many types  of hazardous waste facilities may
   cause  shortages  to persist even when market demand is strong.   Generators' only
   alternative  in many cases may therefore be a reliance on source reduction and onsite
   recycling to reduce the amount of waste they would otherwise send to offsite management
   facilities.

          Permitting burdens and corrective action requirements: Even though the demand
   for new  treatment and disposal capacity will be high, permitting procedures will tend to
   delay the availability of that new capacity, temporarily driving up the costs of all forms of
   treatment and disposal.  No new hazardous waste management facility may be constructed
   until it has acquired a RCRA permit—a costly process that usually takes several years to
   complete.  In addition, all permits issued after November 8, 1984,  include provisions
   requiring owners and operators to take corrective action for releases of hazardous waste,
           51 FR 1729, January 14, 1986
                                         — via —

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                                                                      Executive Summary
regardless of when it was placed in the unit, both within and beyond property boundaries
as necessary to protect human health and the environment This potentially very expensive
requirement applies to all facilities seeking a new RCRA permit, including both existing
and new facilities. Additionally, even though the demand for new treatment and disposal
capacity will be high, permitting procedures will tend to delay the availability of that new
capacity, temporarily driving up the costs of all forms of treatment and disposal.

       Thus, the increased costs of permitting burdens and corrective action provide still
another strong incentive for owners and operators to reduce the quantity of waste generated
or disposed of through the use of source reduction  and offsite and onsite recycling
techniques.

       Financial liability of  hazardous waste generators:  Generators using offsite
treatment, storage, or disposal face financial liability for two reasons: (1) there is a
potential for mismanagement of wastes by facility operators, and (2) there is the possibility
of improper design of the disposal facility itself.   Even careful  evaluation of facility
management cannot reduce these risks to zero.  A generator risks incurring liability when
the treatment, storage, or disposal facility (TSDF) owner or operator cannot or will not pay
for remedial or corrective actions made necessary by migration of wastes.   In these
situations, generators can be held  liable under common law for absolute, strict, joint and
several  liability.  In addition, the  imminent and substantial endangerment  provisions in
Sections 106 and 107 of the Comprehensive Environmental Response, Compensation, and
Liability Act (CERCLA), state a generator or generators can be held financially responsible
for the entire cleanup or restoration of a facility.  When less waste is generated, it reduces
potential liability for future disposal and thus is an incentive for both source reduction and
onsite recycling.

       Shortages of liability insurance:  The traditional means for obtaining coverage for
potential hazardous waste management liabilities is through  insurance, but, for many
generators and owners or operators of TSDFs, liability insurance is no longer available, or
is  available  only  at  extremely high  cost.  This is  particularly true of Environmental
Impairment  Liability (EIL)  insurance, which until 1985  was an often-used financial
instrument for generators and owners  and operators of TSDFs to protect themselves from
                                        IX

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Executive Summary
   third-party and government claims for damages resulting from environmental releases of
   hazardous substances.   In  recent years, premiums have increased 50 to 300 percent,
   policies have been cancelled even where loss ratios have been excellent, and many
   companies have difficulty obtaining coverage at any price. In order to insure themselves
   against liability, TSDFs who must comply with Sections 3004 and 3005 (e) of RCRA6
   have resorted to creative methods to obtain coverage.7 Until fundamental changes occur in
   the insurance marketplace,  many generators and TSDFs will continue to have  difficulty
   meeting liability requirements.

           Increases in insurance costs or an inability to obtain insurance will result in higher
   treatment and disposal costs or the loss of available treatment or disposal capacity. This
   will provide a strong incentive to reduce the quantity of waste to be disposed of through the
   application of source reduction and onsite recycling techniques.

           Public perception of company responsibilities:  While the strongest incentives for
   implementing waste minimization techniques are probably economic, many companies are
   establishing waste minimization programs out of sensitivity to public concern over toxic
   chemicals.   This  type  of corporate good citizenship is felt to produce good relations
   between industry and the public. Available information indicates that the larger companies
   are most likely to perceive public relations benefits in waste minimization; however, some
   medium and small size companies are acting under the same motives.

   Disincentives for Waste Minimization

           Economic barriers: Even though waste minimization practices often lead to cost
   savings, availability of capital for plant modernization is often a significant obstacle to their
   implementation.  Although major companies may have sufficient access to upgrade
   inefficient processes, small and medium sized companies often do not. Firms that have
   recently modernized their facilities have  reduced incentive to reinvest in alternative
           Generators do not have to obtain liability insurance under RCRA.
           New instruments they have developed include: (1) formation of associations—captive stock or
           mutual insurance companies, (2) licensed carrier fronting programs for trust funds in which banks
           hold funds to cover liability, (3) letters of credit, (4) self insurance, and (5) corporate guarantees.

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                                                                      Executive Summary
processes. Obstacles to plant modernization adversely affect the implementation of source
reduction and onsite recycling when these involve process modifications.

       Financial liability can, in at least one circumstance, also be a significant disincentive
for waste minimization because generators who send waste offsite may be liable under
CERCLA and common law for damages caused by their wastes, even if the wastes have
left the plant and are no longer under the  firm's  control. They may therefore not use
available offsite recycling.

       Technical barriers: Some firms may be reluctant to make any modifications to their
production processes for fear of risking the technical quality of their final product. While
these fears may not be well-founded, they can be a significant impediment to innovation.

       There may also be, however, significant practical limits to waste minimization,
especially with respect to source reduction,  even where firms are actively seeking to
minimize  waste.  Certain products simply cannot be manufactured without producing
hazardous wastes; excessive waste minimization requirements would, in such cases,
remove products from the market or put companies out of business entirely. A hazardous
waste  analog  to the zero discharge policy, calling for across-the-board  cuts of fixed
percentages of waste generated, is therefore not  realistic because, in some situations,
possible source reductions may turn out to be minor and achievable only at great expense.

       Another technical  consideration affecting waste minimization is that  industries
producing high volume or high toxicity wastes often operate largely through  batch
processes. This can present problems for certain onsite recycling techniques (e.g., while
light colored off-specification batches of paint can be blended into subsequent darker
colored batches, the opposite is not always true).

       Similarly, offsite recycling is  often technically limited by process realities and
administrative logistics. Off-specification chemicals (such as pesticides or pharmaceuticals)
are examples of products with little onsite or offsite  recycling potential. Even where wastes
are technically recyclable, it may be difficult to accumulate enough waste to make the
activity economically attractive. With respect to offsite recycling, it may be hard to
establish permanent and stable relationships, either onsite among various production lines
                                     — xi

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Executive Summary
   or offsite among firms; generator and user processes have to be synchronized, purity may

   vary over  time, volumes of wastes available may not meet minimum reuse needs,

   transportation costs have to be acceptable, and price variations in feedstocks and in product

   prices inevitably play a crucial role.


          Finally, the most significant technical barrier to waste minimization may often be a

   lack of suitable engineering information on source reduction and recycling techniques.

   Available information suggests that this is most often the case with small and medium sized

   companies.


          Regulatory barriers: Some of the provisions of current environmental statutes,

   including RCRA, tend to discourage waste minimization.  Some examples include the

   following:

          •      Source reduction  sometimes requires the installation of new
                 machinery that can, under RCRA, be considered "treatment." This
                 in turn may require a plant to obtain a permit as a treatment, storage,
                 and disposal facility (TSDF).

          •      Commercial recycling facilities that wish to increase their operations
                 might  be reluctant to do so if the expansion  were to  require a
                 revision  of their  NPDES  water pollution  permit  to authorize a
                 change in the composition of their discharges or allow  for larger
                 flows.

           •      The new definition of solid waste, promulgated by EPA to eliminate
                 loopholes in  RCRA  controls and  inhibit unsafe  (or  "sham")
                 recycling, brings some additional wastes into the hazardous waste
                 system. This seems to be inhibiting some plants from sending these
                 wastes offsite for recycling, since many companies  perceive that
                 manifested wastes present greater financial liability for offsite
                 activities out of their immediate control. In addition, out of anxiety
                 over potential financial liabilities, some companies not currently in
                 the hazardous waste system may be reluctant to undertake  any waste
                 minimization program that would require them to accept manifested
                 hazardous waste (e.g., certain offsite recycling practices) or take
                 other measures that would bring them officially into the hazardous
                  waste management system.
                                        — XII

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                                                                     Executive Summary
                      Current Waste Minimization Requirements


       At present, there  are  three  formal  statutory requirements relating to  waste

minimization, all of them enacted as part of the 1984 amendments.

       1.      Section 3002(b) of HSWA requires generators to certify on their
              waste manifests (mandated under Section 3002(a)) that they have in
              place a program "to reduce the volume or quantity and toxicity of
              such waste  to  the  degree  determined  by the generator to be
              economically practicable."

       2.      Section 3005(h) of HSWA requires the same certification in relation
              to any new  permit issued for treatment, storage, or  disposal of
              hazardous waste.

       3.      Section 3002(a)(6) of HSWA requires, as part of any generator's
              biennial report  to EPA, that  the generator describe "the efforts
              undertaken during the year to reduce the volume and toxicity of
              waste generated" as well as "changes in volume and toxicity of
              waste actually achieved during the year in question in comparison
              with previous years, to the extent such information is available for
              years prior to enactment of [HSWA]."


       These requirements should increase the awareness of generators and facility owners

and operators of the importance of minimizing hazardous wastes, and might serve as the

basis for  more  specific  and  farther reaching requirements.  However, the present

requirements are not restrictive; the generator determines whether any particular waste

minimization approach that might apply to his or her process is economically practicable.


       Although the biennial reports should provide useful insight into what generators are
actually doing  to reduce wastes, they are not likely to provide definitive information. The

reports due this year (1986) will be the first to include waste minimization requirements,

and the quality of information they contain is expected to vary  widely.  As yet, for

example, there is no formal definition of the  meaning of the term "toxicity," or any

guidance on the way to measure waste volume.  In addition, generators are not likely to
provide information that they consider confidential.


       EPA is therefore conducting  a study to determine how the waste minimization

statement on the biennial report can be modified to improve the quality of information being
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Executive Summary
   reported.  The Agency plans to provide uniform guidance directly to the States and to
   generators on the content of these reports in time for their 1988 submission.  Future
   information provided in the report will then allow EPA to better identify trends in waste
   minimization technologies applied by generating facilities.

                   Evaluation of Available Options for Waste Minimization

          Congress specifically required the Agency to report on the desirability and
   feasibility of establishing mandatory standards of performance for waste minimization or of
   taking additional actions under RCRA to reduce the volume or quantity and toxicity of
   hazardous  waste and  of establishing required management  practices to achieve
   minimization. It also requested any recommendations for legislative changes to implement
   the national policy of waste minimization. This report details EPA's evaluation of the
   following options to minimize hazardous wastes.

   Standards of Performance

          Mandatory standards  of performance for minimizing wastes could take various
   forms, but in all their variations they are markedly different in concept from the type of
   performance standards typical of the air and water pollution control programs. In these
   other programs, performance standards are end-of-pipe standards that allow flexibility to
   modify processes  or  add control  technologies.   Performance  standards  for waste
   minimization would depend substantially on internal modifications of industrial processes.
   Such standards would  mark a major departure  from past practice and  would  require
   statutory  amendments.  At present, mandatory  performance standards are not authorized
   under RCRA.

          EPA has evaluated three variations of performance standards in this report:
           1.     Specific standards limiting the volume or toxicity of wastes,
          2.     Prohibition or restriction of specific waste streams, and
          3.     A phasedown permit system, wherein total waste generation levels
                 for one or more industries or waste streams are specified and then
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                                                                    Executive Summary
             reduced ("phased down") over time.  Under this option, trades
             among firms for generation rights would be encouraged.

       EPA believes that all these options raise significant implementation concerns and
should be adopted only after careful evaluation of emerging trends and patterns of waste
generation.  It is important that the option selected be the most effective method to minimize
hazardous waste for a particular industry.  All performance standard options would be
costly and time consuming to design and would, therefore, be infeasible to implement in
the next four to six years.  If it becomes clear after implementation of the land disposal
restrictions program that there are specific residual hazardous waste problems that are not
being resolved through response to these requirements, then additional prescriptive action
may be appropriate. EPA might find that the Toxic Substances Control Act (TSCA),
especially Section (6)(a)(A), is a more appropriate method than RCRA regulations to
resolve residual hazardous waste problems.

     -  A comprehensive command-and-control performance standard program of the
traditional type would cost on the order to $5 to $7  million per standard to design and
implement, and would require staff commitments at least as high as the effluent guidelines
program for water or the new source performance standards program for air.  At the
present time, however, there are hundreds of discrete industrial processes to examine, and
it is  difficult to project without further information  how many may require standards.
Under the most realistic circumstances, it would take at least ten years after Congressional
authorization to design and fully implement such a program.

       Prohibition or restriction of specific wastes would presumably be  simpler in
regulatory structure  and more  selectively applied than performance standards, but would
still  require extensive research  into processes  and waste management techniques.
Furthermore, responsible use of prohibition authority often requires substantial analysis of
the feasibility of less severe measures and, therefore, can also be costly to evaluate.

       A phasedown permit system would be somewhat different in concept and operation
from a command-and-control performance standard approach.  Because it would not set
specific engineering standards for each industry, the  burden on EPA for developing the
program would be considerably less  than for a conventional  standard-setting process.
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Executive Summary
   Incentives for trading among firms would be inherent in the system, since the number of
   permits would be limited to less than the current level of waste generated.  The eventual
   value and distribution of permits would be set by the marketplace, with waste reductions
   coming from those firms that could reduce most cost-effectively.  These firms would be
   able to sell any unused permits on the open market as "waste reduction credits."  Moreover,
   since EPA would phase down the amount of waste generation allowed, the permits would
   increase in value over time, creating a continuous incentive to reduce waste further.

          Phasedown permits would cost society far less than other performance standard
   options for achieving a given level of waste reduction if there are sufficiently  wide
   variations in unit control costs among generators  and if trades are actually made among
   firms. They do, however, raise novel implementation problems.  Two concerns are the
   initial distribution of permits and the degree of trading to be allowed.  However,  these
   issues may  be resolvable, as demonstrated by EPA's recent program to phase down the
   lead content of gasoline. A third concern is how to determine the rate of the phasedown
   and the amount of hazardous waste allowed at the end of the phasedown period.

           Under any of these  options, EPA would consider exempting small quantity
   generators from the requirements or would consider subjecting them to simplified and less
   burdensome requirements. Because  small quantity generators collectively account for only
   a small fraction of the wastes  generated annually,** subjecting them to  stringent and
   expensive regulations may not be cost-effective or provide additional protection of human
   health and the environment.

   Management Practices

           Management practices, as defined in this report, are procedures or institutional
   policies within a service or manufacturing operation that result in a reduction in hazardous
    waste generation.  They are a  step beyond the directives established by performance
           Small quantity generators regulated under RCRA are those who generate between 100 and 1,000
           kilograms of hazardous waste per month.  According to the National Small Quantity Hazardous
           Generator Survey, conducted for the Office of Solid Waste in 1985, small quantity generators,
           including those who generate less than 100 kilograms per month, collectively account for less than
           one half of one percent of the total quantity of waste generated annually.
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                                                                      Executive Summary
standards and include requirements restricting particular disposal practices, requirements
for the handling of wastes as they are generated, and requirements for controlling the waste
generation system.

       Three management practices are discussed below.  The first would ban the
landfilling, treatment, or incineration of potentially recyclable wastes. The second would
require the segregation of wastes to enhance recycling potential. The third would  require
mandatory waste audits.

       Banning the landfilling, treatment, or incineration of potentially recyclable wastes
would likely be controversial and possibly inefficient.  In addition, while it would be
possible to make sure that no proscribed waste is landfilled,  treated, or incinerated, it
would be exceedingly difficult to ensure that all such waste is properly recycled instead,
thus making it difficult to enforce.   Noncompliance (e.g., illegal  dumping)  would
potentially be substantial.

       A second possibility would be a requirement for segregation of waste streams and
banning the mixing of waste streams that are  potentially recyclable.  This includes the
isolation of hazardous materials from nonhazardous materials or the isolation of liquid from
solid waste. The segregation of wastes does have the potential in selected instances to be
economically attractive, and could, in fact, save some firms significant sums of money by
reducing treatment and  disposal costs, lowering expenses for the  purchase of raw
materials, and/or generating a reclaimed product that can be marketed  or sent to a waste
exchange.  Waste stream segregation might, therefore, become economically attractive
without additional regulation.  It is conceivable  that new prohibitions on land disposal and
dramatically increased costs for all forms of disposal, coupled with substantial efforts to
increase industry awareness of recycling possibilities, could provide adequate information
and incentive for segregation without making such action a regulatory requirement.

      Waste audits can  be  an effective means to identify opportunities  for  waste
minimization, making audits mandatory, however, could undermine their effectiveness.
While the direct costs of waste audits for industry are not extremely  high (on average
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Executive Summary
   $10,000 to  $20,000 per audit for an uncomplicated facility)^, requiring every waste
   generator to conduct an audit could have some detrimental effects. If they were seen as a
   Federal requirement rather than as a corporate initiative, plant personnel might tend to be
   less than forthcoming and  the results of such audits  often might be discounted and
   disregarded. A mandatory  program might also require EPA to develop  implementing
   regulations to address who is qualified to conduct waste audits and how audits should be
   conducted, and to monitor possible reporting requirements. Since it  would be difficult to
   require compliance with the recommendations of a waste audit, such efforts do not seem
   justified.

           It appears more desirable for EPA to promote voluntary waste audits on their own
   merits as a useful waste management tool, such as through a technical assistance program
   implemented through the States (see below). EPA and the States could develop programs
   that would include State certification and listing of qualified waste minimization auditors,
   targeted assistance programs for onsite audits, and development of model checklists and
   protocols for conducting audits.  In the context of a voluntary audit approach, such
   programs should be less burdensome to develop and more flexible to implement than under
   a mandatory regime; thus, it is suggested as an EPA initiative.

   Legislative Amendments to HSWA

           EPA currently interprets the certification requirement under  HSWA Section 3002
   (generator standards) and Section 3005 (permit standards) as prohibiting the development
   of substantive requirements to  generators on what constitutes appropriate waste
   minimization.  As the Senate Report on the certification process emphasizes, the intent of
   the current requirement is merely to encourage generators to consider specifically the
   desirability and feasibility  of waste minimization; it  does not require specific waste
    minimization action.

           The Agency believes that generators should continue to determine what their waste
    minimization options are and, at this  time, that EPA  should not make process  related
           For smaller facilities, the costs could be substantially lower, perhaps under S5.000; however, for
           large, complex facilities, the costs could be substantially higher.
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                                                                     Executive Summary
decisions to force waste minimization. However, EPA is further considering an option to
amend the current legislation to allow EPA to define acceptable waste minimization
practices.  This authority could allow EPA to specify general practices that could or could
not be certified as waste minimization (e.g., those practices that result in adverse cross-
media pollution transfers).  EPA  is continuing to evaluate this change to the waste
minimization certification statement, and will provide Congress a further assessment of the
need to modify these requirements. Among possible options to consider include:
       •       Prohibit, where appropriate, certification of certain types of waste
              management practices as waste minimization.
       •       Specify what may be certified as waste minimization.
              Define necessary documentation for certifications that state  that
              waste minimization is not economically practicable.

As additional  information becomes available, the Agency could use this discretionary
authority to focus on specific industries that continue to create potential risks to human
health and the environment.

       While  small quantity generators might be subject  to such additional reporting
responsibilities under this option, EPA could consider subjecting them to less rigorous and
burdensome requirements than those affecting large quantity generators.

Other Options

       A number of other waste minimization options have been identified in the course of
preparing this report.  A full list of available options  is found in the technical support
document for this report, Waste Minimization Issues and Options. Several of the options
listed there are not discussed here for various reasons: either they have been considered
already  under other  authority (such  as the provisions for a waste-end tax  now under
consideration as part of the CERCLA reauthorization), or they have been found, on further
review, to be unworkable as  part of RCRA (e.g., enforcement bounties).  Appendix B to
this report lists options that have not been evaluated or presented here and explains the
reasons for their exclusion.
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Executive Summary
          Two  basic options  for waste minimization that the Agency believes should
   definitely be considered as part of a short- or long-term waste minimization strategy are
   (1) technical assistance for waste minimization, implemented in cooperation with the
   States, and (2) modifications to Federal procurement practices to avoid discriminating
   against recycled commodities and, where appropriate, to support development of markets
   in recycled commodities.

          An active, aggressive, and sustained program for technical assistance appears to be
   the strongest option available to promote waste minimization, especially in the near term.
   Carried out in cooperation with the States, such a program could be aimed primarily at
   small ^ and medium sized companies, which currently have the least access to information
   on how to minimize their wastes. The program's purpose would be to encourage firms to
   include waste minimization efforts in their hazardous waste management planning, to
   provide access to technical information, and to encourage the development of markets for
   recyclers and recycled materials. No new legislative authority would be required to launch
   such a technical assistance effort, but adequate and sustained support by Congress would
   be necessary over the next ten years if it were to achieve its potential.

          RCRA already provides authorization for EPA to encourage revision of Federal
   procurement practices to promote the use of recycled products.  Section 6002 of RCRA
   requires procuring agencies to amend Federal procurement practices to avoid unnecessary
   discrimination against recycled products, and requires EPA  to promulgate procurement
   guidelines that actively promote the procurement of recycled products. This strategy may
    help achieve substantial increases in the market share of recycled products, particularly
    where the Federal government is a major consumer of a product. In such instances, a
    Federal preference for a recycled product may make the product economically viable.  EPA
    should work with agencies that are in the best position to create such markets, including the
    Department of Defense and the Department of Energy.
    10     "Small" companies are not intended to include only Small Quantity Generators as defined under
           RCRA. A technical assistance program would also be useful for small quantity generators, but the
           degree of emphasis on this group would have to be carefully  reviewed. While small quantity
           generators do need (and often request) technical assistance, the available data suggest, as noted
           earlier, that they contribute only a very minor fraction (about one-half of one percent) of hazardous
           waste volume nationally.
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                                                                    Executive Summary
                                Recommendations


       At this time, the Agency believes that generators should continue to determine

which waste minimization techniques are economically practicable and that EPA should not

specify requirements for waste minimization.


       If, after implementation of the other pertinent provisions of the HSWA, the Agency

decides that standards of performance or required management practices are needed to

protect human health and the environment, it will then request the necessary additional

authority from Congress.  EPA proposes to report to Congress on this issue in December

1990, the earliest date at which it believes a recommendation on the need for a mandatory

waste minimization program could be made.


       EPA does plan to expand its waste minimization efforts as discussed below in the

context of EPA's proposed three-point waste minimization strategy.


       The elements of this strategy are:

       1.     Information Gathering: Detailed data on .industry's response to the
             land  disposal restrictions program  and other existing waste
             minimization incentives must be gathered in order to make a final
             determination on the desirability and feasibility of performance
             standards and required management practices.

       2.     A Core Waste Minimization Program: During the interval when the
             new provisions of HSWA are  taking effect, EPA will launch a
             strong technical assistance and information transfer program through
             the States to promote voluntary waste minimization in industry,
             government, and the non-profit sectors of the economy. It will also
             work with Federal agencies to encourage procurement practices that
             promote the use of recycled and reclaimed materials.

       3.     Longer Term Options:  Based on  an analysis of the new  data
             gathered  under  (1) above,  performance  standards and other
             mandatory requirements can  be imposed, if necessary, once the
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Executive Summary
                 HSWA amendments have taken full effect and their impacts on
                 waste generation have been assessed.

   Information Gathering

          Agency actions to encourage waste minimization, whether through voluntary means
   or through future regulatory action, must be based on a full understanding of the present
   state of hazardous waste generation and management and of how that system is evolving
   under the many pressures to which it is now being subjected.  The general patterns and
   trends of hazardous  waste management systems are becoming clearer, but past trends may
   not persist through the next four to six years as HSWA's new provisions take effect, and
   as industry seeks to control the potential financial liabilities associated with hazardous
   waste management

          Baseline and trends data: The best data available to the Agency on the amount and
   content of hazardous wastes were developed by surveys conducted in 1981 and 1983.
   These data are rapidly becoming out of date and are known to be of uneven quality because
   of reporting errors and the small and  variable sample sizes from which information was
   extrapolated.  They must be supplemented with new data documenting the changes that
   have already begun and will continue to progress over the next few years.

          In order to  make a final determination on the desirability and feasibility of
   mandatory waste minimization actions, the  Agency must be able to document unresolved
   environmental problems  for  which such a new  regulatory program would be the
   appropriate response. Examples might be waste streams for which treatment and disposal
   capacity remains inadequate even after the land disposal restrictions have been in place for a
   year or more, or a  future EPA determination that a particular type of hazardous waste
   treatment method  does not,  in practice, adequately  protect human health and the
   environment.

          The types of data needed include detailed baseline information on the volumes and
    toxicity of wastes generated, trends data on  source reduction and recycling, trends data on
    treatment and disposal  capacity, and analyses  of the human health and environmental
    impacts of treatment and disposal practices.  EPA expects that existing statutory authority is
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                                                                    Executive Summary
sufficient to gather this additional data.  One potential source will the biennial reports,
which will be upgraded to improve the consistency and coverage of the information
submitted.  Other sources may include a new generator survey or the 1986 TSD survey
currently being undertaken, information developed by EPA programs outside of the Office
of Solid Waste (such as under TSCA), and the reporting requirements that may be enacted
under amendments to CERCLA.

      Data to support technical assistance and information transfer: Much of the same
data can be used to set priorities for technical assistance programs to promote source
reduction and recycling programs, targeting them where they will be most successful in
reducing threats to human health and the environment. However, in-house research and
cooperation with States and industry trade associations will  provide  more detailed
information on the cost and effectiveness of specific waste minimization techniques for the
targeted industries.  This information gathering program will enable EPA to develop an
accurate profile of  waste  management  trends and practices and selectively develop
performance standards or other requirements as needed.

A Core Waste Minimization Program

      As this report has  already emphasized, it is neither desirable nor practical to
research, promulgate, and enforce a major regulatory program mandating specific waste
minimization standards over the next four to six years.  During this time, industry will be
making technical and financial commitments to respond to the changing requirements and
incentives of the hazardous waste management system.  Once made, these commitments
will be difficult to change.  It is therefore both practical and highly desirable to conduct
outreach programs to support and  enhance the use of waste minimization as part of an
overall waste  management strategy and to reduce threats  to  human  health and the
environment It should be noted that, in the event that mandatory controls are needed in the
near term to control volume or toxicity of wastes generated by particular industries, EPA
would use the authority that currently exists under Section 6 of the Toxic Substances
Control Act.

      Elements of this initial waste minimization program will include:
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Executive Summary
          •      Development and publication of an Agency policy statement on
                 waste minimization including non-binding guidance to generators
                 defining what constitutes waste minimization under the reporting
                 and certification requirements of HSWA.  To the extent possible,
                 this guidance will be specific to particular industrial sectors and
                 processes.

          •      Expansion of EPA's role in providing for technical and information
                 assistance to generators, including small generators.  Because the
                 States have more direct contact with the generators and hence have
                 more awareness of generators' needs and problems, EPA's primary
                 role should be  to  support and  encourage  the  States  in the
                 development of their programs.  An appropriate EPA-sponsored
                 technical assistance effort includes the following elements:

                 —   Assistance  for States to initiate and develop  programs for
                      providing direct assistance to generators, especially small and
                      medium sized generators.

                 —   Technical support of research and development and economic
                      feasibility  studies that might serve an entire region or have
                      regional application.

                 —   Development of a computerized information system on waste
                      minimization, accessible by the States.

          •      Encouraging voluntary waste minimization concepts within the
                 review of new chemicals mandated under TSCA Section 5.  EPA
                 anticipates the preparation of a New Chemicals Information Bulletin
                 advising  submitters that waste minimization will be considered
                 during the review  of the  relative risks of the new chemical
                 substances and their existing substitutes.

          The Agency should also establish a formal process of coordination with the States
    to ensure a continuing and responsive technical assistance and outreach effort over the
    longer term.


          In addition, EPA will continue to examine specific elements of the "core"  waste
    minimization program and make recommendations for legislative changes to the existing

    waste minimization  requirements, if needed, as part of the next RCRA reauthorization.

    Among the possible options to consider would be modifications to the existing certification

    for generators and TSDFs, including:
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                                                                     Executive Summary
       •      Prohibiting, where appropriate, certification of certain types of
             waste management practices as waste minimization.
       •      Providing, where appropriate, formal guidance as to what may be
             certified as waste minimization.   Such  guidance could apply
             generally or to specific industrial sectors.  (Flexibility for appeals
             and exceptions must also be provided.)
       •      Requiring generators who have not undertaken any of the approved
             waste minimization activities, but who certify that there is  no
             economically practicable alternative to their present waste reduction
             and management practices, to provide a written explanation of such
             certification.

Longer Term Options

       Only after the land disposal restrictions and other principal provisions of the HSWA
go into effect, and after EPA has developed the needed additional data on hazardous waste
generation and management, will it be  possible to determine whether standards  of
performance (including phasedown permits) or required management practices (such as
waste audits) are necessary to achieve additional reductions in the volume or toxicity of
wastes. The Agency therefore recommends that consideration of new mandatory programs
be deferred until after such data can be gathered and analyzed, and proposes to report back
to Congress on the desirability and feasibility of prescriptive approaches two years after the
first of the land disposal restrictions has been fully implemented. Excluding the possibility
of case-by-case  extensions, the first of the land disposal restrictions will be fully
implemented in November of 1988; EPA will, therefore, make its next formal report on this
subject in December of 1990.

                                   Conclusion

       EPA still has much to learn about waste minimization and recognizes  that the
cooperation of private and public waste generators will be invaluable as it moves toward the
development of sound long term policy.  It also believes, however, that the incentives and
trends within the hazardous waste management system are unmistakable, and  that the
program presented here comprises the most positive and constructive steps that can be
taken  at this time.  Aggressive action in favor of waste minimization is clearly needed, but a
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Executive Summary
   major new regulatory program—at least for the present—does not seem desirable or
   feasible.

          Incentives for waste minimization are already strong, so EPA must capitalize on
   them.  Most lacking is access by generators to the information that will demonstrate the
   economic benefits of waste minimization to industry, overcome logistical problems, and
   help develop creative new approaches.  This can be provided by a strong technical
   assistance and information transfer effort, which can achieve  through voluntary means
   what would be inefficient and possibly counterproductive to attempt through regulation.
   Unfortunately, non-regulatory programs have often failed at EPA for lack of statutory or
   regulatory deadlines and institutional advocacy.  For such a program to work, it must be
   given strong organizational support within the Agency.

          EPA is willing to make this commitment, and seeks support  from Congress to
   ensure its success.
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               Report to Congress on Minimization of Hazardous Waste
                                INTRODUCTION
       This Report to Congress is submitted in response to the requirements of Section
8002(r) of the Solid Waste Disposal Act, as amended by the Hazardous and Solid Waste
Amendments  (HSWA) of  1984.  Under this Section, the Administrator of  the

Environmental Protection Agency (EPA) is required to submit a Report to Congress by
October 1, 1986, to recommend any legislative changes or regulatory measures that he

considers feasible and desirable to implement HSWA's policy with respect to  the
minimization of hazardous waste, which states:

       The Congress hereby declares it to be the national policy of the United
       States that, wherever feasible, the generation of hazardous waste is to be
       reduced or eliminated  as expeditiously as possible.   Waste  that is
       nevertheless generated should be treated, stored, or disposed of so  as to
       minimize the present and future threat to human health and the environment.

       Under Section 1003, Congress specifically mentions process substitution, materials
recovery, properly conducted recycling and reuse, and treatment  as waste minimization
methods to be encouraged.


       Section 8002(r) requires the Administrator to evaluate specifically the feasibility and
desirability of:

       1.      Establishing standards of performance or of taking other additional
              actions under RCRA to require generators of hazardous waste to
              reduce the volume or quantity and toxicity of the hazardous waste
              they generate, and

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Introduction
          2.     Establishing, with respect to hazardous waste, required management
                 practices or other requirements to ensure such wastes are managed
                 in ways that minimize present and future risks to human health and
                 the environment

          Section  8002 requires the Administrator to evaluate waste minimization options in
    the context of the additional requirements applicable to persons who generate, transport, or
    manage  hazardous waste under the Resource Conservation and Recovery Act (RCRA).
    Principal areas of regulation under RCRA  include (1) transport manifests, (2) biennial
    reports, and (3) the requirements for onsite treatment, storage, and disposal of hazardous
    wastes.  The feasibility and desirability of making further changes to these requirements
    will also be addressed in this report.

          Chapter One of this  report  provides background on the  subject of waste
    minimization and on the various factors  that  are critical to its understanding and
    implementation.  It reflects the Agency's  thinking about  why waste minimization is
    important, where various types of new initiatives  might be undertaken, and what
    information remains to be collected and evaluated before the details of a long term strategy
    can be designed.

          Chapter Two presents the data and information pertinent to developing a national
    waste minimization strategy.   It begins  with a profile of hazardous waste generation,
    highlighting the aspects of the data that are most pertinent to waste  minimization.  It
    continues with a discussion of the current status of waste minimization in industry and the
    States—how it  is being done and what the incentives and barriers  appear to  be.  It
    discusses current EPA activities in relation to waste minimization and in relation to other
    policies  such as consideration  of cross-media interactions. The chapter concludes with a
    discussion of current activities at EPA to encourage or conduct research  into waste
    minimization.

          Chapter Three discusses the options  available  to  encourage  more  waste
    minimization through action at the Federal level. It begins with a presentation of the criteria
    by which the Agency has reviewed the desirability and feasibility of the identified options.
    The chapter then groups the available options into four categories, beginning with the three
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                                                                           Introduction
that Congress has directed EPA to address. The categories are: (1) performance standards,
(2) legislative actions other than use of performance standards, (3) management options,
and (4) options that do not fall into the first three categories.

       Chapter Four presents  the recommendations of the Agency.  It discusses how
various options from various categories of activities could fit together over the long term to
form a comprehensive waste minimization strategy.  It also describes the types of data that
must be gathered before the long-term elements of a waste minimization program can be
implemented.

       Various appendices are attached to this report, providing more detail on the specific
issues and options addressed in the main text.  Appendix A provides a fuller discussion of
the  principal waste minimization options.  Appendix B  discusses options that had
tentatively been  developed as pan of the technical support document for this Report to
Congress, but which have been dropped for various reasons  from further consideration.
Appendix C reviews the  history of OSW waste minimization activities.  Appendix D
discusses scoring methods used to estimate the toxicity of various hazardous waste streams
as pan of the background research for this document. Appendix E contains copies of all
official correspondence signed either by the EPA Administrator or by the Assistant
Administrator for Solid  Waste and Emergency  Response on the subject of waste
minimization.
                                     — 3 —

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                                  Chapter One
                                BACKGROUND
       In  1976, the  U.S.  Environmental Protection  Agency  (EPA)  issued a policy
statement outlining its preferred hazardous waste management strategy.1  That strategy,
which  favors source reduction and recycling over treatment and land disposal, has

remained intact over  the past decade despite comprehensive statutory amendments and
substantial expansion of the hazardous waste program. The following, in descending order

of preference, are the basic elements of this strategy.

       1.     Waste  Reduction:  Reduce the amount of waste at the source,
             through changes in industrial processes.

       2.     Waste Separation and Concentration: Isolate wastes from mixtures
             in which they occur.

       3.     Waste Exchange: Transfer wastes through clearinghouses so that
             they can be recycled in industrial processes.

       4.     Energy/Material  Recovery:  Reuse and recycle wastes  for the
             original or some other purpose, such as for materials recovery or
             energy production.

       5.     Incineration/Treatment: Destroy, detoxify, and neutralize wastes
             into less harmful substances.
       41 FR 35050, August 18, 1976

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Background
          6.     Secure Land Disposal:  Deposit wastes on land using volume
                 reduction, encapsulation, leachate containment, monitoring,  and
                 controlled air and surface/subsurface water releases.


          Waste minimization, as defined in this report, includes the first four categories of
    this hierarchy and can be seen as an essential element of Federal hazardous waste

    management policy.  Congress, through the HSWA, has directly instituted several waste

    minimization actions, such as requiring hazardous waste generators to certify  on their

    manifests that they have active waste minimization programs in place. Most important in

    the larger policy context, HSWA puts even further emphasis on waste  minimization by

    making it the national policy with respect to hazardous waste management, similar  in scope

    to the zero-discharge policy of the Clean Water Act or the non-degradation policy of the
    Clean Air Act.


          This  report responds to the HSWA directive to examine the  desirability  and
    feasibility of expanding the Federal role in waste minimization through the use  of statutory
    changes, regulatory requirements, or other program initiatives. It interprets the broad

    mandate established under HSWA and describes how that mandate can best be carried out

    as an affirmative national program within the overall waste management strategy.

          The following definitions are crucial to the discussions and recommendations made

    in this report:

          •      Waste minimization means the reduction, to the extent feasible, of
                 hazardous waste  that is generated or subsequently treated,  stored, or
                 disposed of. It includes any source reduction or recycling  activity
                 undertaken by a  generator that results in either (1) the reduction of
                 total volume or quantity of hazardous waste or (2) the reduction of
                 toxicity of hazardous waste, or both, so long as such reduction is
                 consistent with the goal of minimizing present and future threats to
                 human health and the environment.

           •      Source reduction refers to the reduction  or elimination of waste
                 generation at the source, usually within a process. This is the  type
                 of waste minimization that most closely corresponds to the  concept
                 of "waste avoidance."  Source reduction measures can include some
                 types of  treatment processes, but  they  also include  process
                 modifications, feedstock substitutions or improvements in feedstock
                 purity, various housekeeping and management practices, increases
                 in the efficiency of machinery, and even recycling within a process.
                                          — 6 —

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                                                                            Background
              As used here, source reduction implies any action that reduces the
              amount of waste exiting from a process.
       •       Recycling refers to the use or reuse of a waste as an effective
              substitute for a commercial product, or as an ingredient or feedstock
              in an industrial process.  It also refers to the reclamation of useful
              constituent fractions  within a waste material or removal  of
              contaminants from a waste to allow it to be reused.2  As used here,
              recycling implies use, reuse, or reclamation of a waste after it is
              generated by a particular process. It, too, can involve various types
              of treatment to facilitate the recycling process.

Table 1-1 lists these and other formal definitions of various terms used throughout this
report.
                         The Purpose of Waste Minimization

       The focus of the RCRA program over the past ten years has primarily been on
correcting the effects  of  years of mismanagement of hazardous  wastes by bringing
treatment, storage, and disposal facilities into compliance with national standards that are
protective of human health and the environment.  This policy has continued with the
passage of HSWA, but the program's  central emphasis  is now shifting away from
reforming land disposal practices and toward establishing a broad national reliance on
waste treatment. Because of its potential for contamination of other environmental media
(e.g., ground water), land disposal—even under strict control—is recognized as the least
desirable method of managing hazardous wastes.

The move toward treatment is a major step forward, but is not a complete answer.
Reforms in land disposal  practices and  installation of new hazardous waste treatment
capacity are effective responses to managing this country's hazardous waste, but they do
not attack the problem's underlying cause. Preventing the generation of a waste is the only
way to eliminate risk rather than reduce it.  In conjunction with a  program that drives
       The definitions of "recycling," "use or reuse," and "reclamation" appear in 40 CFR 261,
       as amended by 50 FR 663, January 4, 1985.
                                     — 7 —

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Background
                                        Table 1-1

                 Working Definitions of Waste Minimization and Related Terms
Waste minimization:
Reduction of total
volume or quantity:
Reduction in toxicity:




Source reduction:


Source control:


Product substitution:



Recycled:


Used or reused:
The reduction, to the extent feasible, of hazardous waste that is generated or
subsequently treated, stored, or disposed of. It includes any source
reduction or recycling activity undertaken by a generator that results in
either (1) the reduction of total volume or quantity of hazardous waste or
(2) the reduction of toxicity of hazardous waste, or both, so long as such
reduction is consistent with the goal of minimizing present and future
threats to human health and the environment

The  reduction in the total amount of hazardous waste generated, treated,
stored, or disposed of, as defined by volume, weight, mass or some other
appropriate measure.

The  reduction or elimination of the toxicity of a hazardous waste by (1)
altering the toxic constituent(s) of the waste to less toxic or nontoxic
form(s) or  (2) lowering the concentration of toxic constituent(s) in the
waste by means other than dilutioa

Any activity that reduces or eliminates the generation of a hazardous waste
within a process.

Any activity classifiable under source reduction with the notable exception
of product substitution.

The  replacement of any  product intended for an intermediate or final use
with another product intended and suitable for the same intermediate or final
use.

A material is "recycled" if it is  used,  reused, or reclaimed (40  CFR
 Reclaimed:
A material is "used or reused" if it is either (1) employed as an ingredient
(including its use as an intermediate) in an industrial process to make a
product; 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 (2)
employed in a particular function or application as an effective substitute
for a commercial product (40 CFR 261.1(c)(5)).

A material is "reclaimed" if it is processed to recover a usable product or if
it is regenerated. Examples are recovery of lead values for spent batteries
and regeneration of spent solvents (40 CFR 261.1(c)(4)).
                                             — 8 —

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                                                                           Background
mandatory hazardous waste treatment to the limits of available technology, there will be a

continuing need for waste minimization as a central element in hazardous waste policy.


       There are at least three general areas where waste minimization can play a key role:

       •      Protecting human health and the  environment:  Current
             environmental control programs are well designed to protect health
             and the environment, but they do so only to the limits of current
             knowledge. The existing programs set their priorities on only a
             subset of the substances of possible importance. Although there are
             some 60,000 chemicals in commerce, the Clean Air Act currently
             concentrates on fewer than 40 toxic pollutants, the Clean Water Act
             on  129, and RCRA on approximately 500. Chemicals of concern
             are recognized far more rapidly than the regulatory process can
             accommodate them.

             In  addition, none of EPA's environmental programs  can  fully
             eliminate all the risks that they attempt to control.

             —  Treatment technologies are never 100 percent efficient, and land
                 disposal, with all its known problems,  will continue to be
                 necessary for the foreseeable future.

             —  Unintentional transfers of pollution among environmental media
                 remain a complex and imperfectly understood phenomenon and
                 create difficult  problems for the environmental programs to
                 identify and resolve.

             —  Compliance with  regulations  under any  and all  of  the
                 environmental programs will never be perfect, even with  the
                 most stringent enforcement programs; so violations—deliberate
                 and accidental—will continue to be a significant and largely
                 undocumented source of health and environmental risk.

             Alleviating shortages of treatment and disposal capacity: Over the
             next several years, HSWA mandates a dramatic phasedown in  the
             disposal of all forms of hazardous waste in and on the land. Wastes
             that are still generated  will be treated with the best  available
             technology.  This will  severely strain existing national capacity  for
             incineration, waste stabilization, and  the wide range of other
             chemical, physical, biological, and thermal treatment technologies.
             Capacity may remain scarce even with high demand because of the
             difficulty of siting new hazardous waste management facilities. In
             addition, land disposal  will  still be  needed  to dispose of those
             wastes for the residues of treatment.
                                    	9	

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Background
          •      Overcoming market inefficiencies: Although existing incentives for
                 waste minimization are strong, both source reduction and recycling
                 ultimately depend on technical and management information. This
                 information is often  difficult and expensive to obtain. While all
                 industries seek to improve product yield from resource inputs, not
                 all industries have access to the kind of engineering information that
                 could allow them to minimize waste economically, and many
                 generators interested in recycling wastes do not know where or how
                 they can safely do so.

          Waste minimization helps protect human health and the environment because it
   reduces  the  total amount of waste that is generated  and managed, including those
   substances whose risks may not be currently recognized or adequately appreciated.
   Preventing the generation of wastes or reducing  the use of potentially harmful substances in
   manufacturing processes also helps to ensure worker safety. Finally, waste minimization
   is a constructive approach to avoiding the risks of breakdowns in the waste management
   system—wastes  not generated cannot be illegally disposed or emitted  by  faulty or
   inefficient equipment

          On the other hand, waste minimization does not automatically avoid  problems
   associated with cross-media pollution shifts. To achieve its purpose, waste minimization,
   like other pollution control measures, must look comprehensively across all environmental
   media; reductions in hazardous waste must not be made at the expense of increases in air or
   water pollution. This is an issue of paramount importance to the Agency and Congress.3
   Programs that merely shift pollution from one place to another can lead to net increases in
   health and environmental damage; they may also be economically counterproductive, since
   corrective action measures may have to be taken  in  the future.  Waste minimization
   programs must therefore be carefully designed to avoid cross-media transfers and to protect
   human health and the environment in the comprehensive sense. The need to design a waste
   minimization program that  addresses  both of these goals provides a framework  for
   integrating the objectives of all environmental programs.   Figure 1-1 provides some
           One of the Congressional objectives with respect to hazardous waste, as stated in Section
           1003(a)(5) of RCRA, is that "hazardous waste be properly managed in the first instance,
           thereby reducing the need for corrective action at a future date."
                                         — 10 —

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                                                                             Background
perspective on the complexity of the pollution management system under various Federal
statutes.

       In addition to its intrinsic health and environmental benefits, waste minimization can
be viewed as a long-term approach for relieving shortages of treatment, storage, and
disposal capacity.  The capacity to accept wastes diverted from  land disposal will be
especially limited over the next few years while new facilities are under construction.4
Furthermore, land disposal will continue to be required in the foreseeable future, even if
wastes disposed of on land are detoxified first. Since land disposal  needs are cumulative,
capacity will always be a problem. Finally, all forms of waste management—treatment or
land disposal—must make provisions for industrial growth.  By reducing per unit product
generation rates, waste minimization can provide at least a partial answer to  all these
problems.

       Finally, many of the waste minimization options under consideration in this report
are aimed primarily at helping generators gain access to the information they need and often
request. An expansion of Federal involvement in this aspect of waste minimization could
go far toward increasing the efficiency and pace of industry's natural inclination to reduce
waste generation.

                           Methods of Waste Minimization

       RCRA wastes include a wide array of pollutants and waste streams not otherwise
controlled by Federal environmental laws.  They include listed wastes,  which are
specifically identified in the regulations as generic types or in relation  to particular industrial
processes (examples include  spent solvents used in degreasing or still bottoms from
distillation processes), as well as characteristic wastes, which are defined in terms of their
inherent chemical and physical properties  (toxicity, ignitability,  reactivity, acute
hazardousness, or corrosivity).
       This process may be slow, since public opposition makes new hazardous waste facilities
       extremely difficult to site.
                                     — 11 —

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                                                                              MUNICIPAL  WASTEWATER
                                                                                   (12,000)
 OTHER INDUSTRIAL
   DISCHARGERS
 Dlracl Dladurg* of
 WuMiUr 1 So4l<
 W»»l*       It.511)
 lnok*cl DlKliHg*  Ou.nUly (2M)
                                                                                                                       •Sflul QuuiUry <0t>
        DISPOSAL
FIGURES INDICATE VOLUMES
IN MILLION METRIC WET TONS
                                    FIGURE  1-1   SCHEMATIC DIAGRAM OF THE NATIONAL WASTE SYSTEM

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                                                                            Background
       In the  broad  context,  HSWA recognizes  three options  for minimizing
wastes—treatment, source reduction, and recycling.  Whichever method is used, the end
result must be a reduction in the volume, quantity, or toxicity of wastes generated and sent
to land disposal.  Policies to establish treatment requirements for hazardous wastes are
already firmly established so, for the purposes of this report, we focus primarily on source
reduction and recycling,  which  together make up the first four elements of EPA's
hazardous waste management hierarchy. These are the areas where national policy is still
evolving and where findings of the desirability and feasibility of specific options still need
to be made.

       Section 1003, which establishes  the general national policy in favor of waste
minimization, refers to the  need to reduce the "volume  or quantity and toxicity" of
hazardous wastes, so as to minimize the "present and future threat to human health and the
environment."^ As used in this report, a reduction of total volume or quantity is taken to
mean a reduction in the total amount of hazardous waste  generated, treated, stored, or
disposed of, as defined by volume, weight, mass, or some other appropriate measure.
Reduction in toxicity implies  a reduction or elimination of the toxicity of a hazardous waste
by (1) altering the toxic constituents of a waste to less toxic or nontoxic forms or (2)
lowering the concentration of toxic constituent(s) in the waste by means other than dilution.

       Most waste streams are a  mixture of hazardous and nonhazardous constituents,
such as water, dirt, or nontoxic oils. This suggests that there  is often an inverse correlation
between toxicity  and volume:  all things being equal,  as the volume of  nonhazardous
materials in  a waste stream decreases (i.e., as a stream becomes less dilute), toxicity tends
to increase.  By calling for simultaneous reductions in both volume and toxicity, Congress
expressed a  clear  desire to avoid defining dewatering and other processes which merely
concentrate wastes as being primary methods of waste minimization.

       EPA supports this Congressional concern, but also believes that Congress did not
intend entirely to  disqualify volume reduction by itself (with no change in toxicity) as a
waste minimization technique.  For example, EPA considers it beneficial if a firm can
       HSWA Section 1003(b).
                                     — 13 —

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Background
   change its processes to produce less waste per unit product, even if the composition of the
   waste does not change. EPA also believes that waste concentration may occasionally be a
   useful approach to waste minimization, such as in relation to ameliorating shortages of land
   disposal or treatment capacity, or in preparing materials for recycling.  The key concept is
   that waste minimization must enhance protection of human health and the environment.

          Thus, because  both volume and toxicity of wastes are involved, measuring the
   effectiveness of waste minimization will be complex.  First, waste minimization measures
   are likely  to  be  process and industry-specific, implying that different measurement
   techniques might  be needed in different contexts. Second, any mandatory requirements for
   reducing the volume or toxicity of generated waste should, ideally, relate directly to
   expected reductions in risk to human health and the environment The measurement of risk
   reduction  can be  a  very difficult  task. EPA has, however, developed data  and
   methodologies that can evaluate the risks of many  types of waste streams, as well as the
   risk reductions associated with waste management practices.   These evaluations  will
   continue  to improve  and to provide  valuable information as a  tool in regulatory
   decision-making.  The Agency would therefore use such assessments to help establish
   priorities among or within potential regulatory requirements that might be necessary to
   reduce waste generation further, and to help measure progress in waste minimization itself.

           Waste minimization programs should ideally be designed with a view to ultimate
   protection of environmental quality and human health.  In some cases,  for example, it
   might make sense to concentrate wastes—even at the expense of increasing toxicity—if this
   volume reduction would make recycling more practical and economically attractive. In
   other cases, it might be desirable to increase waste volume if this would permit substantial
   reductions in toxicity or would aid in treatment.6
           This particular trade-off is an accepted reality within the waste treatment program.
           Virtually all the technologies for immobilizing wastes  increase waste  volume
           substantially because they mix wastes with large amounts of fixing materials like cement
           or lime.
                                         — 14 —

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                                                                            Background
                 Incentives and Disincentives for Waste Minimization

       Reduction of waste has long been a goal of EPA. This is, in fact, the third report to
Congress on the general subject, the other two having been submitted in 1973 and 1974
regarding the reduction of nonhazardous "post-consumer" wastes such as glass, paper,
tires, and obsolete automobiles.  The existing incentives and disincentives for reducing
hazardous and other industrial process wastes, however, are quite different from those
affecting post-consumer wastes.  Furthermore, the regulatory and economic environment
within which wastes are managed has changed dramatically since 1974. The  following
pages describe current incentives and disincentives to waste minimization.

Incentives for Waste Minimization

       Strong incentives already exist to promote waste minimization in the private sector,
including (1) dramatic increases in the price of all forms of hazardous waste management,
partially caused by Federal and State standards, (2)  difficulties in siting hazardous waste
management capacity, (3) permitting burdens and corrective action requirements,
(4) financial liability of hazardous waste generators, (5) sharp increases in the  cost of
commercial liability insurance, coupled with a steep dropoff in its availability,  and (6)
public perception of industry's responsibilities to reduce the generation of waste.  There are
also countervailing disincentives.

       Increases in the costs of hazardous waste management:  EPA and State regulations
have been  the primary cause of increased costs in treatment, storage  and disposal of
hazardous wastes, especially in relation to landfills and surface  impoundments.  The
HSWA has accelerated an already well-established trend toward higher costs for virtually
all forms of hazardous waste management. Regulations upgrading design and construction
standards for RCRA-approved landfills have already pushed the price of land disposal from
as little as $10 to $15 per metric ton (in the early  1970s) to $240 per metric ton (for
disposal in a RCRA-approved  double-lined landfill).  As opportunities for legal use of land
disposal disappear, companies will turn to such technologies as incineration, which costs
from  $500 to $1200 per metric ton for organic wastes.  Anticipated shortages in
incineration capacity can be expected to drive its costs higher over the short term, and other
                                     — 15 —

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Background
    treatment technologies are often considerably more expensive. These rising costs of land
    disposal and alternative technologies make waste minimization alternatives increasingly
    cost-effective.

          The centerpiece of this policy is the land disposal restriction program, enacted to
    minimize the nation's reliance on land disposal—currently the primary method of managing
    hazardous wastes. This program is on a short and strict schedule: HSWA sets a series of
    dates banning continued placement of hazardous wastes in or on the land. These bans will
    be enacted in stages,  beginning with solvents and dioxins on November 8,  1986, and
    continuing with liquid wastes containing high concentrations of hazardous metals (the
    "California List") on July 7, 1987. The remaining wastes will be banned by thirds, with
    successive "tiers" being banned in August 1988, June 1989, and May 1990.7

          Although the effects of these regulations cannot  be clearly predicted, the restrictions
    are expected to have a profound impact on waste management practices of generators as
    well as of treatment, storage, and disposal facilities.  Disposal restrictions will limit the
    number of wastes that can be disposed of on land and will likely cause short-run capacity
    problems for particular generators while increasing the cost of waste management for all
    generators.

          The extent to which generators will adopt waste minimization techniques to avoid
    the costs and difficulties of treatment and disposal will depend on the costs of alternatives
    that will satisfy the requirements of the land disposal  restriction program, their access to
    capital, and their ability to change  production processes to minimize the generation of
    regulated waste streams. A generator may not select a more efficient treatment technology,
    even though it exists, if the costs are too high. Facilities having adequate access to capital
    may be better able to cope with land disposal restriction impediments through research and
    development of innovative treatment technologies  or  further investment in  existing
    treatments. But it is doubtful that, in the short run, many generators will be able to alter the
           Waste streams within each tier were selected by ranking according to their volume and
           "inherent lexicological properties of hazardous constituents in the waste." For a ranking
           of the waste streams that will be prohibited see:  Documentation for the Development of
           Toxicity and Volume Scores for the Purpose of Scheduling Hazardous Wastes * USEPA,
           Office of Solid Waste, March 28,  1985.
                                          — 16 —

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                                                                              Background
character or volume of their waste streams significantly. While some generators might be
able to reduce the concentration levels of the hazardous waste constituents themselves, and
thereby avoid the earlier restriction deadline (e.g., the July 7,1987, ban on California listed
wastes), this strategy would only be effective on a temporary basis.  The three final land
disposal restrictions would eventually ban their  wastes altogether  unless adequate
pretreatment were to be applied.

       Of immediate concern to waste minimization policy is the severity of short-term
impacts on those generators whose wastes are to be restricted.  The earliest dates for land
disposal restrictions cover solvents and dioxins.  We  might expect to see the first wave of
innovative treatment in industries that generate the banned wastes.  These  include the
paints, varnishes,  lacquers, enamels, and allied products and pesticides  sectors,  where
solvents are a major product constituent and are used to clean machinery after batch process
manufacturing.  The laundry, cleaning, and garment services sector also uses solvents in
cleaning clothes.  Because the industry has managed to develop a recycling process in
which many firms participate, the restrictions are not expected to have a large impact.
Sectors which have relied on land disposal for much of their solvent wastes will have to
implement other means of waste treatment.  Treatment  technologies already exist for
solvents; they include incineration, biological degradation and activated carbon adsorption.8

       Though some of these treatments, such as incineration, are very efficient at solvent
waste reduction, the costs have been prohibitive.  Shifts in the demand for these treatments
may now make them more economical. However, even if they do, temporary capacity
shortfalls may make it difficult to handle the quantity of waste expected to be shipped to
these treatment facilities.9  In addition, facilities may use other treatments that are less
expensive (e.g., air stripping), and which may merely shift solvents to another medium.
Thus, such treatment may not ultimately reduce the hazards caused by the wastes.
       Analysis of Treatment and Recycling Technologies for Solvents and Determination of
       Best Demonstrated Technologies, (Revised), USEPA, Office of Solid Waste, February
       1986.                                                                y
       This is expected to continue as land restrictions increase the number of industries seeking
       other waste treatment  methods. See: Survey of Selected Firms in  the Commercial
       Hazardous Waste  Management Industry:  1984  Update,  USEPA,  Office  of Policy
       Analysis, September 30, 1985.
                                      — 17 —

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Background
          The July 7,  1987, deadline marks the second land disposal restriction date. The
   restrictions apply to the California List wastes, including those with high concentrations of
   metals, acids, corrosives, cyanides, and halogenated organic compounds.  It is difficult to
   identify all the industries that will be affected by the California List disposal restrictions,
   since criteria for inclusion are based on waste stream concentration.  Thus, some streams
   may not be restricted from land disposal at this time if the designated constituents do not
   exist in high enough concentrations.  There are many generators of halogenated organic
   compounds, but it is unclear which ones will have waste stream loadings exceeding the
   1,000 kg per month statutory ban level.  In  addition, other affected  generators will
   probably  include those having waste streams with particularly high concentrations of
   metals, such as the electroplating sector, the secondary smelting and refining industry, and
   the chemical manufacturing industry.  Metal finishing firms generating concentrated acid
   wastes will probably also be affected.

          Banning of the tiered waste streams, which include off-specification chemicals,
   residues from spills, and other relatively low-volume  but  often highly  toxic materials,
   begins in August 1988.  Waste stream restriction is based on descending order of toxicity
   and volume.  An estimated 142 waste streams fall under the first tier, for a total annual
   volume in excess of 8.7 million metric tons. The higher toxicity of these streams will also
   increase the difficulty of treatment.   Treatment capacity for managing these  wastes is
   expected to become more limited as each successive tier is banned.

          The limited market for treatment could have a long-term positive effect on waste
   minimization, because alternative treatment options may become increasingly costly.  First,
   cost of waste treatment per unit volume will increase dramatically.  RCRA regulations for
   land disposal facilities have more than doubled the cost of land disposal from under $100
   per metric ton to about $240 per metric ton. Costs of alternatives like incineration and
   chemical treatment range even higher. Although these higher costs  have already caused
   some generators to  seek other methods for treatment and disposal, the actual land disposal
   restrictions on waste streams will probably cause even more impact on alternative treatment
   methods.
                                         — 18 —

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                                                                             Background
       The HSWA amendments may also stimulate  growth markets in  most of the
available treatment and disposal services, including incineration; chemical, physical, and
biological treatment; and stabilization The question remains, however, as to how quickly
and how much these services will add to the total national treatment capacity. Generally,
assuming that market pressure will affect both generator and commercial treatment facilities
equally (the former because their wastes  are restricted and the latter because of the
incentives to capture a larger market share), there could be a significant reduction in waste.

       The expanded  definition of small quantity generators (SQGs) includes a group of
facilities that may be less able to comply with the restrictions than their larger counterparts.
Rather than face the high costs of compliance with the more stringent  disposal restrictions,
some small quantity generators may illegally dump their wastes. Although the cumulative
volume generated by this group  is  small, illegal dumping could be disproportionately
dangerous since certain wastes generated by SQGs may include such highly toxic materials
as pesticide residues and electroplating sludges.

       There are, therefore, many uncertainties over how industry and other hazardous
waste generators  will react to  the new system.  It is clear that capacity for the kinds of
treatment mandated under these rules is not currently sufficient to handle the volume of
wastes that will be forthcoming, but it is not clear how quickly the marketplace can install
more capacity to respond to the land disposal restrictions, and, when it does, what the cost
will be. EPA has already identified shortages of treatment capacity for solvent and dioxin
wastes in its proposed regulations.10  For solvents, it estimates a shortfall of more than 73
million gallons per year for wastewater treatment capacity, and of 6.7 million gallons per
year for incineration;  for dioxins, it estimates that there are approximately 1.35 million
metric tons of waste, with no approved treatment capacity available.  It is also difficult to
predict the possible increase in illegal disposal and nonreporting, although at least some
increase is expected.

       Most significant for the objectives of this report, the Agency does not know to what
extent, and in what industrial sectors, further source reduction and  recycling will occur
10
       51 FR 1729, January 14, 1986
                                      — 19 —

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Background
   voluntarily. Until further information becomes available, it will not be possible for the
   Agency to decide where there may be a need for further reductions in per-unit waste
   generation rates, reductions that could only be accomplished by some type of command-
   and-control regulation similar to the types of controls traditionally enacted by the other
   major EPA programs in air, water, drinking water, and toxic substances.

          Additional new management requirements are also increasing the cost of hazardous
   waste management.  Under Section 3005(j)(l), existing surface impoundments will not be
   allowed to receive,  store, or treat hazardous wastes after November 8, 1988, unless the
   impoundments are in compliance with the minimum technology standards applicable to new
   surface impoundments.  This means they must be retrofitted with two liners, with a
   leachate collection system between the liners. The statute provides four exemptions from
   the retrofitting requirement; exemption applications for existing impoundments must be
   submitted by November 8, 1986.

          Despite the availability  of exemptions, the impacts  of this program will be
   substantial. Not only is the retrofit process expensive and time consuming, the Agency
   expects that, in the process of renovation, many facilities will be found to have  leaked
   hazardous constituents, making them subject to the corrective action provisions of HSWA
   (see below).  Out of the 1,500 surface impoundments now operating, about one-half are
   expected to close permanently.  This reduction in capacity is expected to increase the costs
   of managing the affected group of wastes significantly, and thereby provide another strong
   incentive for waste minimization.

          Difficulties in siting hazardous waste treatment, storage, and disposal capacity: The
   land disposal restrictions program, as mandated by HSWA, is creating a strong demand for
   substantial new  waste treatment, storage, and disposal capacity.  Hazardous waste
   managers are therefore seeking new sites and planning to expand existing ones, but in the
   process they are encountering the familiar problem of "not in my community." While there
   are some instances where States have been successful in helping to site new hazardous
   waste management  facilities, local resistance is extremely hard to overcome.  This intense
   public opposition to the siting  of many types of hazardous waste facilities may cause
   shortages to persist even when market demand is strong. Generators' only alternative in
                                        — 20 —

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                                                                            Background
many cases may therefore be a reliance on source reduction and onsite recycling to reduce
the amount of waste they would otherwise send to offsite management facilities.

       Permitting burdens and corrective action requirements: Treatment, storage, and
disposal facilities (TSDFs)  must comply with extensive RCRA  permit requirements.
Although the demand for new capacity will be high, permit requirements will tend to delay
substantially the availability of such capacity.  The permit process usually  takes several
years to complete and is costly. Because these delays tend to drive up the costs of all forms
of hazardous waste management temporarily and to limit overall treatment capacity, they
will provide an additional short-term incentive for waste minimization.

       In the course of applying for a permit, facilities may also face the corrective action
provisions of HSWA Sections 3004(u) and (v).  These subsections require that all permits
issued after November 8,  1984, include provisions requiring corrective action for releases
of hazardous wastes or constituents from any solid waste management unit (SWMU),
regardless of the date the waste was placed in the unit They also require that owners and
operators take corrective action for releases both within and beyond property boundaries as
necessary to protect human health and the environment. These potentially very expensive
requirements apply to all facilities to which a RCRA permit  is issued after November 8,
1984, including both existing and new facia'ties.

       Even though the demand for new treatment and disposal will be high, permitting
procedures will tend to delay the availability of that new capacity, temporarily driving up
the costs of all forms of hazardous waste management.   Increased costs  of waste
management provide a strong incentive for owners and operators to reduce the quantity of
waste generated or disposed of through the use of all forms of treatment and disposal.

       Financial liability of hazardous waste generators: A generator's decision to invest
in either onsite recycling programs (which reduce the amount of wastes shipped offsite) or
source reduction (which reduces the amount of waste generated) will  depend in part on that
generator's sensitivity to potential financial liability.

       Waste management using offsite treatment, storage or disposal facilities  puts  a
generator at risk in two ways: (1) there is a potential for mismanagement of  the waste by
                                     — 21 —

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Background
    the facility operators, and (2) there is the possibility of improper design of the treatment,
    storage or disposal facility itself, which could lead to releases of contaminant even if the
    facility is managed diligently.  Even careful evaluation of both management and facility
    cannot reduce these risks to zero. Liability of the generator may arise when the TSDF
    owner or operator cannot or will not pay for remedial or corrective actions made necessary
    by migration of wastes.  In these situations, generators can be held liable under common
    law theories of absolute, strict, joint, and  several liability.11 Under the provisions of
    CERCLA Sections 106 and 107, a generator can be held financially responsible for the
    entire cleanup or restoration of a facility to which it has sent wastes.  This is an incentive
    for both source reduction and onsite recycling.

          Shortages of liability insurance:  The traditional means for reducing potential
    hazardous waste management liabilities is through the purchase of insurance. Generators
    of hazardous waste often  obtain liability insurance as a prudent business practice, not
    because they are required to do so by Federal requirements. Unfortunately, over the past
    several years, the costs of all forms of commercial liability insurance available to generators
    and owners or operators of TSDFs have risen sharply, while the availability of liability
    insurance has been greatly reduced. Premiums have increased 50 to 300 percent, policies
    have been cancelled even where loss ratios have been excellent, and many companies have
    difficulty obtaining coverage at any price.  This is particularly true of pollution liability
    coverage (environmental impairment liability (EIL) insurance), which until 1985 was a
    popular financial instrument used by generators and  owners and operators of TSDFs to
    protect themselves from third party and government claims for damages resulting from
    environmental releases of hazardous substances.

          The major reason  for the current insurance  capacity shortage is the insurance
    underwriting cycle.  Traditionally, the insurance  industry derives its profits from the
    investment of insurance policy premium income. During periods (such as the late 1970s to
    early 1980s) when profit from investment income increased (due to high interest rates), a
    11     Taken collectively, the practical interpretation of these terms is that a generator can be
           held liable for all damages associated with pollution that could possibly have been emitted
           from the facility, even if that emission cannot be documented, and even if other facilities
           may have contributed wholly or partially to the alleged exposure.
                                          — 22 —

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                                                                             Background
highly competitive insurance industry accepted premiums that did not adequately reflect
risks under the presumption that investment income would offset policy losses and still
leave a substantial profit. As interest rates declined in the mid-1980s, investment income
also declined, leaving insurers with insufficient income to offset insurance policy risks.  As
a result, the insurance industry incurred broad underwriting losses ($3.55 billion in 1984)
in virtually all lines of liability coverage.  During periods when insurers are incurring broad
losses, capacity (i.e., investment in the insurance industry) decreases in all lines,  but
especially in those deemed high risk, such as pollution liability coverage.  As a result,
availability of these perceived high risk lines, including pollution liability, is insufficient.

       Pollution liability is  considered to be high risk by insurers because of:
       •      A  perceived lack of actuarial data and universally applied risk
              analysis methods to establish premiums that adequately reflect risk;
       •      Real and anticipated losses attributed  to hazardous waste-related
              legal claims for damages against ambiguous insurer contracts, due to
              courts following the judicial precedent of interpreting ambiguities in
              insurance contracts against the drafter (i.e., the insurer);
       •      A social perception that hazardous waste has not been and cannot be
              adequately managed;  and
              Resultant expanding ton liability for virtually  all policies,  a
              subsequent duty  to defend those policies, and high legal costs and
              policy losses  due to court rulings in favor of the insured for
              coverage that the insurer did not intend to provide.

       The result of this situation  is that many generators and  handlers of hazardous
wastes are vulnerable to potentially enormous financial liability. In addition, units at over
1,000 of the  1,551  land disposal facilities which have stopped receiving wastes under
Section 3005(e) of RCRA lost interim status due to their inability to certify compliance with
applicable financial responsibility requirements under RCRA. Many of the 5,600 owners
and operators  of TSDFs  may be unable to comply with  financial responsibility
requirements against third  party claims for sudden or accidental releases because new
comprehensive general liability policies completely exclude pollution-related risks from
coverage. The shortage or high cost  of insurance will also affect 100,000 to 150,000 small
                                      — 23 —

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Background
    quantity generators who must comply with RCRA regulations and may face potential strict,
    joint, and several liability under State common law and CERCLA.

           As of February 1986, only  one insurer in the pollution insurance market still
    offered insurance coverage for environmental pollution to facilities that do not maintain
    other forms of coverage with the insurer. The market has experienced major changes with
    respect to how companies employ risk transfer of their potential pollution loss exposure
    through insurance. More companies  and their risk managers are retaining the costs of their
    potential pollution exposures because they are finding  the general liability and, specifically,
    pollution liability insurance unavailable and unaffordable because of high premiums, high
    deductibles or self insured retentions, and restrictive policy language.  Small quantity
    generators and medium and large quantity generators alike have  experienced the same
    increases in insurance premiums.  Small quantity generators, however, have been finding it
    increasingly difficult to afford insurance because they often lack the financial flexibility and
    resources typical of larger generators.

           In order to insure themselves against liability, TSDFs who must comply with
    RCRA provisions regarding liability coverage12 have resorted to creative methods to obtain
    12     Sections 3004 and  3005 (e) of RCRA. Under 40 CFR 264.147(a) and (b) as amended by
           51 FR 25354, July  11, 1986, owners and operators of hazardous waste treatment, storage,
           or disposal facilities must demonstrate financial responsibility for bodily  injury and
           property damage arising from both sudden and accidental and nonsudden accidental
           occurrences. For sudden and accidental occurrences, they must maintain liability coverage
           of at least SI million per occurrence and $2 million per year aggregate, exclusive of legal
           costs.  For nonsudden occurrences, they must demonstrate financial responsibility of at
           least S3 million per occurrence and 56 million annual aggregate, exclusive of legal costs;
           this can be demonstrated through liability insurance,  corporate guarantee, or a
           combination of the two.
                                             •24 —

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                                                                                Background
coverage.13    New  instruments under development  include:  (1) formation of
associations—captive stock or mutual insurance companies, (2) licensed carrier fronting
programs for trust funds in which banks hold funds to cover liability, (3) letters of credit,
and (4) self insurance (e.g., financial test).  Still, generators and TSDFs will continue to
have tremendous difficulty meeting pollution insurance requirements until fundamental
changes occur in the insurance marketplace. Perhaps one of the main changes that will
have a beneficial effect is a return to risk-based insurance, which should encourage waste
minimization, instead of the current attempt by insurance companies to recoup losses they
have incurred from cash-flow based underwriting in which they participated when interest
rates were extremely high in the early 1980s.

       The net effect of this insurance shortage and its possible continuation for several
years with no predictable resolution has exerted pressure on industry to reduce hazardous
waste generation.  In some instances, firms have already initiated source reduction and
alternative  waste management practices as a direct  response to their having to accept
increased uninsured liability.  While specific information on these responses is difficult to
obtain,  major companies are known to have substituted material inputs and changed
production  processes in order to reduce the quantity  of waste they generate. Action by
large companies  (who can better afford the research and retooling necessary to minimize
wastes) has been faster than that of small companies, as overall waste generation on a per
unit output basis has dropped significantly since the mid-1970s.

       Increases in insurance costs or an inability to obtain insurance will result in higher
treatment and disposal costs or the loss of available treatment or disposal capacity. This
13
       Currently, generators are not required to have liability coverage under RCRA unless they
       are treating, storing or disposing of wastes onsite.  The liability coverage requirement
       does not, however, apply if the generator's treatment and/or storage is in a tank or
       container for less than 90 days.  A proposed regulatory change published in 50 FR 33902
       (August 1, 1985) suggested several alternatives for demonstrating financial responsibility,
       including (1) maintaining existing financial  requirements,  (2) requiring  additional
       mechanisms for demonstrating financial capability, and (3) waiving or suspending the
       current financial requirements altogether.  EPA has recently published an interim final
       rule that will allow TSDFs to use a corporate guarantee to satisfy their liability coverage
       requirements (51 FR 25350, July 11, 1986).  Furthermore, EPA has established a work
       group which is considering more rulcmaking in this area, as suggested by 50 FR 33902
       August 21, 1985.
                                       — 25 —

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Background
   will provide a strong incentive to reduce the quantity of waste to be disposed of through the
   application of source reduction and onsite recycling techniques.

          Public perception of company responsibilities: While the strongest incentives for
   reducing waste generation are undoubtedly economic, many companies are setting up waste
   minimization programs out of sensitivity to public concern over toxic chemicals.  This type
   of corporate good citizenship is perceived to have long-term benefits for good relations
   between plants and local communities, as well as between companies and the general
   public. Although the larger companies are most likely to recognize public relations benefits
   in waste minimization, some  medium  and small-sized companies are also responding to
   public interest.

   Barriers to Waste Minimization

          Despite the downward trend in hazardous waste generation, the following general
   factors tend to discourage waste minimization programs in industry and elsewhere. They
   must be recognized and dealt with appropriately in developing a Federal waste minimization
   program.

          Economic barriers:  Although waste minimization practices often lead to cost
   savings, availability of capital  for plant modernization to upgrade plants is often a
   significant  obstacle to their implementation.  Projects for waste minimization must
   overcome internal hurdles for project funding. The benefits from waste minimization are
   highly dependent on the probability and costs of hazardous waste releases and attendant
   cleanup costs; other company projects are often competing for funding that offer higher,
   more predictable, and more immediate returns on investment.  Although major companies
   usually have  sufficient access to capital to  upgrade inefficient processes, small and
   medium-sized companies often do not. Nevertheless,  such small companies could, in the
   aggregate, generate large amounts of hazardous wastes.  Specialty chemical companies,
   agricultural chemical formulators, and metal finishing plants are examples of sectors
   dominated  by smaller  firms, which nevertheless produce significant volumes of highly
   toxic wastes and whose access to capital is limited.
                                         — 26 —

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                                                                            Background
       Where capital is readily available, industries and plants within industries follow
predictable business cycles in production investments.   Firms that have  recently
modernized their facilities could perceive limited incentives to reinvest in alternative
processes until their current plant is amortized and requires modernization. Operating costs
and other financial burdens (such as reporting requirements) could also tend to discourage
investment in waste minimization.   These factors can be less  important where waste
minimization provides cost savings—as it frequently will—but in other situations, they will
discourage action.

       Financial liability can, in at least one circumstance, also be a significant disincentive
for waste minimization.  When generators make use of offsite recycling, they are liable
under CERCLA and common law for damages caused by their wastes, even if there is no
demonstration of negligence by the generator, and even when the wastes are no longer
under the generator's control. This concern should, however, be weighed against potential
liabilities surrounding the alternatives for managing this waste.

       Technical barriers or considerations:  There are practical limits to waste
minimization, especially with respect to source reduction. Certain products simply cannot
be manufactured without producing hazardous wastes, since some chemical process
reactions produce residuals.  Excessive waste minimization requirements could, in such
cases, remove products from the  market or put companies out of business entirely. A
hazardous waste analog to the zero discharge policy, calling for across-the-board cuts of
fixed percentages in waste generation, is therefore  probably not realistic; in some
situations, possible source reductions  may turn out to be minor and achievable only at great
expense.  The law of diminishing  returns  suggests that the most easily effected and
cheapest reductions may often be the  most significant; additional incremental expenditures
on waste reduction are likely to produce fewer and fewer results and at progressively
higher costs.

       While performance  standards  can play  a constructive role in  forcing the
development of more environmentally sound technology, such standards can also  produce
perverse effects.  An instructive example is seen in  the printing  industry, where the
imposition of regulatory deadlines forced abandonment of research into new water-based
                                     — 27 —

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Background
   inks, in preference to adoption of incineration of solvent-based inks. Targets and timetables
   for technology-forcing regulations would have to be carefully defined.

          Another technical consideration in waste minimization is that industries producing
   high volume or high toxicity wastes often operate largely through batch processes, where
   waste minimization potential varies considerably among product lines and within the same
   plants in different phases of their production cycle. This is especially true, for instance, of
   the chemical and petrochemical industries. A source reduction measure must make sense
   within the process schedules that produce complex sequences of wastes  and may be
   critically affected by the timing of waste production.

          Source reduction measures must also be viewed in conjunction with potential for
   treatment, because wastes produced by a given process may be comparatively easy to treat
   or destroy, yet quite difficult to minimize  through source reduction or recycling.  Organic
   wastes, for example, are usually easy to incinerate, yielding destruction efficiencies of
   99.99 percent or greater. It may therefore make little  sense to require minor percentage
   reductions on waste generation when the remaining waste can or will be almost totally
   destroyed through treatment, or may be profitably recycled.

          Similarly, recycling is often technically limited by process realities and recycling
   logistics. Off-specification chemicals (such as pesticides or pharmaceuticals) are examples
   of products with little recycling potential.  Even where wastes are technically recyclable, it
   may be difficult to accumulate enough waste onsite to make the process economically
   attractive.  With respect to offsite recycling, it may be hard to establish permanent and
   stable relationships among  generators; generator  and  user processes  have  to be
   synchronized, purity may  vary over time, volumes of waste available may  not  meet
   minimum recycler needs, transportation costs have to be acceptable, and price variations in
   feedstocks and in product prices inevitably play an important role, i.e., the virgin material
   could be less expensive than the recycled product

          Regulatory barriers: Some of the provisions  of RCRA and other environmental
   statutes  may  tend  to inhibit generators from pursuing waste minimization.  Examples
   include the following:
                                         — 28 —

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                                                                           Background
              Source reduction sometimes requires the installation of new
              machinery that can, under RCRA, be considered "treatment."  This
              in turn could require a generator to obtain a permit as a treatment,
              storage, and disposal facility (TSDF), a process that is expensive
              and generally requires two years to complete. In addition, HSWA
              Sections 3004(u) and 3004(v) require permitted facilities to conduct
              corrective action to clean up any contamination that  could  have
              previously migrated from their facility.  Facing such time delays and
              expense, plants may prefer to pay for offsite treatment and disposal
              rather than attempt source reduction.

              The new definition of solid waste, promulgated by EPA to eliminate
              loopholes in  RCRA  controls and inhibit  unsafe (or "sham")
              recycling, brings more wastes into the hazardous waste system.
              This definitional change seems to be inhibiting some plants  from
              sending these wastes for recycling, because many companies believe
              manifested wastes present  greater financial liability for offsite
              activities out of their immediate control.

              Commercial recycling facilities that wish to increase their operations
              might be  reluctant to do so if the expansion were to  require a
              revision of their NPDES water pollution permit  to authorize a
              change in the composition of their discharges  or allow  for larger
              flows.
                  The Outlook for Federal Waste Minimization Policy


       Although waste minimization policy is interwoven with general issues of waste

management, waste minimization is ultimately a separate concept.  Waste management

deals with wastes after they are created; waste minimization deals with avoiding the

generation of wastes altogether. At this stage of RCRA's development, the two ideas are

often perceived as alternative methods for protecting human health and the environment,

but, in the long term waste, minimization must take on a priority of its own.


       EPA still has much to learn about the specifics and potential of waste minimization,

and is only beginning to develop an active strategy for studying and promoting it.  This

report is, however, timely because it raises basic issues about the nature, direction, and

methods of environmental policy at a time when options are still open.  Because the data are

insufficient and because it is still too soon to assess the effects of HSWA requirements,

EPA can do little more in this report than to  suggest the principal issues of concern.
                                     — 29 —

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Background
   Nevertheless, the Agency does believe that the recommendations made on the basis of the
   presentations in the next two chapters are the most positive and constructive steps that it can
   take at this time.
                                         — 30 —

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                                   Chapter Two
                 EXISTING WASTE MINIMIZATION ACTIVITIES
       The purpose of this chapter is to present the information that EPA has reviewed in
developing this Report to Congress. It draws extensively on the technical support material
developed for this report, Waste Minimization Issues and Options.1

      ' The chapter begins with a profile of hazardous waste generation in the United
States, discussing the volume and toxicity of wastes generated by different categories of
industry and commenting on trends.  It continues with a discussion of current technical
approaches to waste reduction and recycling. The third section describes activities of the
States in facilitating waste minimization through mandatory and voluntary programs. The
final  section of the chapter reviews  EPA's existing activities  in  support  of waste
minimization.

                        Profile of Current Waste Generation

       In characterizing current hazardous waste generation for the purposes of developing
waste minimization policy, the following factors are most important:
       •      Waste quantities or volumes contributed by various industrial
             sectors;
             Waste toxicity;
       Waste  Minimization  Issues and Options, Vols. 1 -  3, USEPA,  Office  of Solid Waste,
       Washington, D.C., October 1986.
                                     — 31 —

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Existing Waste Minimization Activities
           •       Relationships between waste streams and the industries that generate
                  them (type, size, number of facilities); and
           •       Special issues for small quantity generators (SQGs).

           The presentations in this chapter are drawn from four major studies of hazardous
    waste generation: (1) a mail survey of hazardous waste generators conducted by EPA in
    1981 as part of the regulatory impact analysis (RIA) for RCRA,2 (2) a study of hazardous
    waste generation by the Congressional Budget Office (CBO) based on surveys completed
    in 1983,3 (3) the waste stream data base compiled from secondary sources in 1984 for use
    in the RCRA Risk-Cost Analysis Model,4 and (4) the EPA 1985 survey of small quantity
    generators.5

           EPA has found that significant inaccuracies exist in the two principal national level
    studies examined for this report. First,  the age of the available source data reduces the
    reliability of the  derived statistics.  Economic factors, environmental regulations, and
    changes in manufacturing processes are known to have altered the quantity and quality of
    waste generated over the past five years; these changes have not  yet been documented.
    Second, the  source data suffer both from reporting errors and from the inherent difficulties
    of accurately characterizing the wastes.^ Third, all the studies have extrapolated sample
    findings  to  the country as a whole; inaccuracies  can therefore exist because of limited
    sampling sizes.
           National Survey of Hazardous Waste Generators and Treatment, Storage and Disposal Facilities
           Regulated Under RCRA in 1981, USEPA, Office of Solid Waste, Washington, D.C. 1984.
           Hazardous Waste Management: Recent Changes and Policy Alternatives.  Prepared for Senate
           Committee on Environment and Public Works, Congressional Budget Office, 1985.
           The RCRA Risk-Cost Analysis Model: Phase III Report — Appendix A.  USEPA, Office of
           Solid Waste, Washington, D.C., 1984.  This data base includes some streams that currently have
           no RCRA codes, but that meet the classification requirements of hazardous wastes.  They are
           included for the sake of completeness and, therefore, offer a somewhat fuller picture of hazardous
           waste generation patterns than is shown by the CBO and RIA studies.
           National Small Quantity Hazardous Waste Generator Survey, USEPA, Office of Solid Waste,
           Washington, D.C., February  1985.
           Wastes with a particular waste code may vary significantly  in content over time, from plant to
           plant and from industry to industry, making it very difficult to establish a "typical" content for any
           waste.
                                           — 32 —

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                                                          Existing Waste Minimization Activities
       In all of these studies, industries are identified by Standard Industrial Classification
(SIC) codes, down to the four-digit level.7 Use of the SIC classification code system for
defining industrial sectors is less than ideal for defining waste generation, since it usually
lacks the detail necessary to link individual wastes with individual processes.8

Analysis of Waste Volume

       To date, EPA has classified 207 separate hazardous waste streams, originating from
33 industrial sectors. Estimates for the total amount of hazardous waste generated annually
range between 158.2 and 266 million metric tons, depending on the study used.

       Figure 2-1  illustrates the contributions of the largest generators as described by
(a) the Congressional Budget Office (CBO) Survey based on the 1983 data set and (b) the
RIA Mail Survey, based on  1981 data.  In both surveys, four broad industrial sectors (as
defined by two-digit SIC codes) dominate.  In the CBO survey, these are chemicals and
allied  products,  primary metals,  petroleum and coal products, and  fabricated  metal
products.  In the RIA Mail Survey, the  high-ranking sectors  are chemicals and allied
products, machinery (except electrical machinery), transportation equipment, and motor
freight transportation.  Other sectors collectively contributed only a small fraction of the
wastes generated by the largest four.

The disagreement between  the two surveys on the  identity of the  major generators is
significant and underscores the caution necessary in developing waste minimization policy.
The differences can be attributed partly to the different years in which the samples were
       The Standard Industrial Classification (SIC) system identifies establishments by types of activity.
       Establishments are grouped together if they exhibit similar industrial characteristics.  Within a
       general two-digit SIC category, there are more detailed three- and four-digit categories.  Four-digit
       SIC codes (under a general two-digit heading) group all establishments primarily engaged in the
       same kind of economic activity.
       While the SIC system is highly useful for making links with some other types of information, it
       may be desirable in the future to look also at the more process-oriented Source Classification
       Codes (SCC), since they specifically identify the processes that generate waste streams.  Source
       Classification Codes (SCC) have been developed by the EPA Office of Air Quality Planning &
       Standards (OAQPS) for their Aerometric and Emissions Reporting Systems (AEROS).  SCCs
       identify production processes within an industrial operation  based on equipment type, fuel type,
       product, capacity, etc.
                                          33 —

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Existing Waste Minimization Activities
                                               Figure 2-1
                             Industry Ranking by Hazardous Waste Generation
               Industry Ranking by Hazardous Waste Generation,
                          Based RCRA Mail Survey
                     13%
            10%
                                       <.5% (SQGs)
                                                   68%
Ffl Chemicals & Allied Products
    (SIC 28)
    Machinery, Except Electrical
    (SIC 35)

    Transportation Equipment
    (SIC 37)

    Motor Freight Transportation
    (SIC 42)

    Other SICs (not SQGs)

    Small Quantity Generators (all
    industry groups)
                                  —B—
                Industry Ranking by Hazardous Waste Generation,
                            Based on CBO Study
                            7.2%
                   5.5%
           9.6%
           11.8%
                       18%
                                                       47.9%
    Chemical & Allied Products
     (SIC 28)
    Primary Metals (SIC 33)
    Petroleum & Coal Products
     (SIC 29)
     Fabricated Metal Products
     (SIC 34)
    Rubber & Plastic Products
    (SIC 30)
     Miscellaneous Manufacturing
     (SIC 39)
    Machinery,  Except Electrical
    (SIC 35)
    Transportation Equipment
    (SIC 37)
    Motor Freight Transportation
     (SIC 42)
    All Other Categories
  Sources: Office of Solid Waste, 1984, National Survey of Hazardous Waste Generators and Treatment .Storage and
    Disposal Facilities Regulated Under RCRA, USEPA; Congressional Budget Office, May 1985, Hazardous Waste
    Management: Recent Changes and Policy Alternatives, The Congress of the United States.
                                             — 34 —

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                                                      Existing Waste Minimization Activities
taken and  partly to differences  in each  study's definition of "hazard"  and applied
classification schemes.  As noted above, sampling and reporting errors may also be
important. More current data are clearly needed.

       One fact on which all available data agree, however, is that the chemical industry
(SIC 28: Chemicals and Allied Products) alone contributes far more hazardous waste than
any other industrial sector: 47.9 percent as measured by CBO, 68 percent as measured by
the RIA Mail Survey.  Another area of general agreement is that small quantity generators
collectively contribute only a small amount of hazardous waste—approximately 0.5 percent
of hazardous waste by volume,  according to the  1985 Small Quantity Generator (SQG)
survey.

       Aggregate figures for two-digit SIC  codes comprise the contributions of many
different individual waste streams which themselves vary widely in size. Patterns of waste
generation within industrial sectors are  similar to patterns across industrial sectors—a few
waste streams tend to dominate  the profile of each sector, with  the volumes of the
remaining streams decreasing dramatically. Table 2-1 shows total volume for each sector
as shown in the RCRA  Risk-Cost model data base.  The recurrent pattern, potentially
significant for minimizing waste volume and easing burdens on treatment capacity, is that
the majority of waste volume is contributed by a small number of streams.  In fact, if
hazardous waste streams are viewed in descending order of volume across all industries, it
is clear that the great majority of waste volume comes from a small fraction of the total
number of  streams,  as.shown in Figure 2-2.  Note that the range of even the first 100
ranking streams is very  large, spanning from 24  million metric tons per year9 down to
5,800 metric tons per year.

Analysis of Waste Toxicity

       In defining waste minimization, HSWA specifically refers to reducing both the
volume and the toxicity of hazardous wastes. This is appropriate, since impacts on human
       The highest volume ranking stream listed in the RCRA Risk/Cost Analysis Model data base
       happens to be a dilute wastcwater from the explosives manufacturing industry; it is included in the
       data base because it contains explosive, rather than toxic, materials.
                                       35 —

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                                                                            TaM« 2-1
                                                          Waste Stream Volume* for Hottest Volume Generator*
MustrW
Sector
Chemicals
andAUed
Product*





















RCRA
Code*


Characteristic
Characteristic
Characteristic
K011
Characteristic
Characteristic
Characteristic
K009
Characteristic
K104
Characteristic
Characteristic
Characteristic
Characteristic
Characteristic
P029
Characteristic
Characteristic
K027
K022
Characteristic
Characteristic
Remaining 136 streams
Totals:
158
Volume
(metric Tons
per year)


24.000,000
8.172,000
5.448.000
3.181.000
1.398,300
742,100
486,000
399,500
388,000
332.070
291,500
190.600
187,000
172.500
160,000
151.222
136,200
118.000
107,900
106.200
101,700
96.200
1.111.676
47,568,468
Percent of
Total Volume


50%
17%
11%
7%
3%
2%
1%
1%
1%
1%
1%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
2%
100%
Industrial RCflA
Sector Cod*'
Primary
Metal*
Characteristic
K062
Characteristic
Characteristic
Characteristic
K100
Characteristic
Characteristic
Characteristic
K060
K061
Characteristic
Characteristic
K087
Characteristic
Characteristic
K069
Characteristic
Characteristic
Characteristic
Characteristic
F012

Totals: 22
Volume 1 Percent
(metric tons I of Total
par year) | Volume


16,915,102 72%
2.950.000 13%
2,139.100 9%
640.000 3%
153.300 1%
139.500 1%
85.400 0%
83,600 0%
72.200 0%
72.000 0%
70.000 0%
60.000 0%
42.000 0%
39.800 0%
32,800 0%
30.000 0%
28.600 0%
16.000 0%
11.000 0%
8.000 0%
500 0%
190 0%

23,589,092 100%
Industrial
Sector
Petrol •uni
and Coal
Products










Totals:

Fabricated
Metal
Products







Totals:
RCRA
Code'


K048
Characteristic
K051
Characteristic
K049
Characteristic
Characteristic
K052
K050
Characteristic

10




Characteristic
F006
Characteristic
P007



4
Volume
(metric tons
per year)


297.600
263,900
196,200
154.700
92,400
40,300
20.600
7.100
1.700
1.000

1,075.500




17,300,000
488,400
30.700
1,990



17,821,090
Percent
of Total
Volume


28%
25%
18%
14%
9%
4%
2%
1%
0%
0%

100%




97%
3%
0%
0%



100%
• Waste streams labeled •Characteristic' are hazardous
wastes under RCRA definition ol Characteristic Wastes

Source Office ol Solid Waste, March 1.1984  the RCRA RisK-Cost Analysis
Model Waste Stream Data Base,' USEPA.

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                                                                          Existing Waste Minimization Activities
25,000,000 "I
20,000.000 -
15,000,000 .
    Metric
   Tons/Yr.

10,000,000
 5,000,000 -
                                                     Figure 2-2
                                       Hazardous Waste Stream Volume
                               100 Highest Volume Hazardous Waste Streams

                 Source: Office of Solid Waste. March 1.1984, The RCRA Rtak-Coet Analysis Model Waste Stream Data Base. USEPA.
                                                            Figure 2-3
                                        Hazardous Waste Stream Toxlctty Scores:
                                        Descending Order of Waste Stream Volume
                                                                                                           Cumulative
                                                                                                            Percent
                                                                                                             100%
                                                                      100th Ranking Stream:
                                                                      5,800 metric tons/year
7.00 •
6.00 •
5.00 •
4.00 •
Toxicity
Score
3.00 •
2.00 •
1.00 •
000 •





rju -. - - rt J.





*Jn





,











|, |





|




II,
.11 1 I'll , . ll
                                     100 Highest Volume Hazardous Waste Streams

             Sources. Data Irom the RCRA Rek-Cost Data Base, with the EPA toxlcrty ranking developed lor the land disposal restnction program schedule
                                                    — 37 —

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Existing Waste Minimization Activities
   health and the environment are not simply a function of the quantity of a hazardous waste
   produced (which relates at least indirectly to public exposure), but also of its toxicity.  The
   relative toxicity of hazardous wastes will therefore be important in setting priorities for
   waste minimization.

          For the purposes of illustration, this report provides an indication of the relative
   toxicity of various wastes through use of a simple scoring approach that takes into account
   both the concentration of hazardous constituents within each waste and the estimated
   potency of the constituents with regard to adverse human health effects. ^  Estimates of the
   concentration of constituents in  various waste streams are available from the data  base
   developed for the RCRA Risk Cost  Analysis Model; toxicity scores for the  main
   constituents found in these wastes have been developed for setting the land disposal ban
   schedule.11  These two sets of data have been combined to estimate toxicity scores for
   various wastes.

          In Figure 2-3, the results of this scoring technique are applied to the 100 highest
   volume  streams listed in Figure 2-2 to demonstrate that hazardous waste streams  vary
   widely in their toxicity. Many high volume wastes are diluted with large amounts of water,
    soil, or other nonhazardous materials and, therefore,  exhibit  low toxicity scores.
    Conversely, many low volume wastes may be highly concentrated with toxic materials;
    discarded off-specification chemicals are an example of low-volume, potentially high-
    toxicity wastes. While there are many significant exceptions, it is often the case that the
    volume and toxicity of individual streams are inversely correlated—the higher the toxicity
    of a stream, the lower its volume  is likely to be, and vice versa.
    10     For a more complete discussion of the difficulties of measuring toxicity and documentation of the
           derivation of the toxicity scores used here, see Appendix D.
    11     The methodology for development of the  toxicity  scores used here  is documented  in
           Documentation for the Development of Toxicity and Volume Scores for the Purpose of Scheduling
           Hazardous Wastes, USEPA, Office of Solid Waste, Washington, D.C., March 28, 1985.
                                          — 38 —

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                                                        Existing Waste Minimization Activities
       This point is important since, in many cases, HSWA's goal of toxicity and volume
reduction may turn out to be in conflict, at least for setting minimization priorities.12
Policies that focus on reducing the overall volume of hazardous wastes may not necessarily
be best from the point of view of protecting human health and the environment.  On the
other hand, if the overriding priority in waste minimization is to lower burdens on treatment
capacity, the Agency might want to focus on a different set of waste streams than if the
main goal is to reduce high toxicity streams.

       Patterns of waste volume and toxicity applying to broad, two-digit industrial groups
appear to be repeated within individual sectors within the industrial group.  Table 2-2
examines patterns of waste volume and waste toxicity for three four-digit industrial sectors:
industrial organic chemicals (SIC 2865), pesticides and agricultural chemicals (SIC 2979),
and  petroleum refining (SIC 2911).  It compares waste streams in terms of classes of
toxicity and volume so as to show them on comparable scales. Class 10 implies the highest
tenth in volume or toxicity of all wastes generated nationally; Class 1 implies the lowest
tenth in volume or toxicity.

       It is unwise to pursue this type of scoring very far at this time, since the data on
which it relies are uncertain and the toxicity  scoring algorithm used can yield only the most
approximate idea of relative hazards. Nevertheless, this exercise does provide insight into
the difficulties of estimating the ultimate human health and environmental risks of different
hazardous waste management practices.  It underscores the assumption that wastes vary
widely in both toxicity and volume and that there are  no consistent patterns across all
wastes or industry sectors.  It emphasizes the importance of developing better industry-
specific and waste-stream-specific data, and the need to set waste minimization priorities
carefully and deliberately with regard to specific waste management goals.  Actions may be
very different depending upon whether the goal of waste minimization is to relieve capacity
shortages,  reduce  risks to human health  or the environment,  or minimize  economic
inefficiencies.
       Yet another point to note is that toxicity is not the controlling consideration for listing all
       hazardous waste streams.  According to the RCRA Risk/Cost Analysis Model Data Base, for
       instance, the highest volume stream identified turns out to be hazardous because it contains large
       amounts of nitrocellulose, and it is treated as hazardous because it is explosive rather than toxic.
                                      — 39 —

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Existing Waste Minimization Activities
      I
                11
s

I
                II
                .83
                                                  CO GO 00 flO


                                                                                 II
                                                                                 o
                                           — 40 —

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                                                         Existing Waste Minimization Activities
       Small Quantity Generators:  In 1984, HSWA expanded the universe of regulated
generators under EPA by reducing the exclusion from hazardous waste regulations for
those firms that generate over 1,000 kg or more per month down to  100 kg or more per
month.13  Studies reveal that the small quantity generators represent by far the largest
number of hazardous waste producing establishments in the U.S., but they contribute only
a small amount of overall hazardous waste generated annually—less than 0.5 percent.

       Despite the amount of waste generated, the SQGs are of particular interest because
they may be  less capable of dealing with the waste they generate than larger  volume
generators.  They  also are likely to  have more difficulty in complying with the new
regulations and may also be less capable of implementing waste minimization techniques.
Such burdens may result in a higher percentage of the SQGs resorting to illegal dumping.
The extent of current illegal disposal  activities is a matter of speculation, but a report to
Congress based on 1983-84 data recognized it as a potential problem.14 As the cost of
managing their hazardous wastes increases, many economically distressed firms may see
illegal disposal as the only way to continue operating.

       Figure 2-4 indicates that the  largest percentage of SQGs  are nonmanufacturing
concerns, primarily vehicle maintenance  (70 percent).  Manufacturing  establishments
account for only about 14 percent of the total SQGs, with most of these falling in the metals
category. The distribution  of waste generated  by volume differs between SQGs and all
       Small Quantity Generators (SQGs) are defined by the EPA in terms of the quantity of waste they
       generate, not by size of firm.  SQGs are those firms,  "...who produce less than 1,000 kg of
       hazardous waste per month." National Small Quantity Hazardous Waste Generator Survey ,
       USEPA, Office of Solid Waste, Washington, D.C., February 1985,  p.l.
14     Illegal Disposal of Hazardous Waste: Difficult to Detect or Deter , U.S. House of Representatives,
       Subcommittee on Investigations & Oversight Committee on Public Works and Transportation,
       GAO/RCED-85-2, February 22, 1985.  The report also listed the disposition of 28 of 34 cases
       where illegal disposal or failure to follow regulations occurred and resulted in conviction.  Many
       were small firms (e.g., auto repair shop, septic tank servicing company, pool cleaning company,
       machine shop operation) that met the  pre-HSWA criterion for generation (less than 1000
       kg/month) but were not large producers.  This does not assume that small generators of hazardous
       waste are the predominant class of illegal dumpers or that they dump the largest percentage of
       waste; they may actually be less capable of camouflaging their dumping activities than larger more
       resourceful manufacturers, transporters, or disposers.
                                      — 41 —

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Existing Waste Minimization Activities
                                     Figure 2-4
              Distribution of Small Quantity Generators by Industry Group
                        9%
                  13%
                                                            70%
                   Q Vehicle Mantenance

                   B Other Non-manufacturing

                   H Metal Manufacturing

                   E3 Construction

                   D Other Manufacturing
                                                                               Source:  Office of Solid Waste,
                                                                               February 1985. National Small
                                                                               Quantity Hazardous Waste
                                                                               Generator Survey, USEPA.
                                     Figure 2-5
           Distribution of Small Quantity Generator Waste by Waste Stream
              5%
          (30,000 MT/yr)
                  18%

           (108,000 MT/yr)
                         (90,000 MT/yr)
                             15%
 62%
(370,000 MT/yr.)
                     S3 Lead-Acid Batteries

                     E9 Solvents

                     Q Acids and Alkalies

                     B Other
                                                                           Source: Office of Solid Waste,
                                                                           February 1985. National Small
                                                                           Quantity Hazardous Waste
                                                                           Generator Survey, USEPA.
                                               — 42 —

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                                                         Existing Waste Minimization Activities
other industries.15 For SQGs, the major portion of waste generated is lead-acid batteries
(62 percent), primarily from the nonmanufacturing vehicle maintenance establishments (see
Figure 2-5).16  Solvents, acids, and alkalies provide an additional 23 percent of the wastes
generated by SQGs.   These wastes  are primarily  from metal manufacturing, vehicle
maintenance, equipment repair, printing, and construction. The balance of SQG waste (15
percent) comes from pesticides, photographic wastes, dry cleaning filters and filtration
residues, ignitable wastes, and spent plating wastes.

       The SQG  survey data  do not allow for determination  of  key constituent
concentrations in the waste stream for each industry, but some of the SQG waste streams
are similar to  those of larger industries.  For example, the waste streams from SQG
chemical manufacturing include ignitable wastes, spent catalysts, spent solvents, heavy
metal dusts, and strong acids and alkaline wastes, waste streams that are similar to those
generated by larger firms in the same industrial sectors.

                    Current Industrial Waste Minimization Practices

       The two major categories of waste minimization activities considered in this report
are source reduction and recycling.  Each of these general activities comprises a wide range
of technologies and practices, with the nature and extent of waste minimization varying
dramatically from one  industrial sector to the next.  Current source reduction and recycling
practices are discussed separately below.
15     The industrial categories are not directly comparable among the SQG report and the industrial
       categories used by in the CBO study, the RCRA Risk/Cost Analysis Model, and the RIA Survey.
       The SQG report groups multiple 4-digit SICs together for each industry, whereas the other data are
       grouped individually by 4-digit SIC code.
       Lead acid batteries are a highly recyclable waste and, therefore,  less of a problem  for the
       environment. While the SQG report estimated that nearly 90 percent of lead acid batteries were
       recycled, a more recent study  for EPA's Office of Policy  Analysis  (May 1986) estimates that
       changes in the lead market have recently reduced the amount of lead recycled. This report stated
       that by 1985 the battery recycling rate  had dropped to about 59 percent from a high of 87 percent
       in 1980.  The report  further estimated that given current market conditions and predictions,
       "...there is no reason to expect that secondary production will increase from current levels, and it
       may even decline further."  See:7Vie Impacts of Lead Industry Economics on Battery Recycling,
       USEPA, Office of Policy Analysis, Washington, D.C., May 16, 1986.
                                       — 43 —

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Existing Waste Minimization Activities
   Source Reduction

          As discussed in Chapter One, source reduction is any activity that reduces or
   eliminates the volume or toxicity of a waste exiting from a manufacturing process. The
   activities most readily identifiable with source reduction are in-plant changes, such as the
   following:
          •      Input material modification: use of higher grade, more pure material
                 inputs.
          •      Technology modifications: changing the method of production or the
                 production equipment itself.
          •      Procedural/institutional management practices: good operating
                 practices or housekeeping practices.
          •      Product substitution: replacing original materials with substitutes of
                 equivalent function.

          In the past, industry typically considered the implementation of source reduction
   practices only if such  practices resulted in improved product yield (such as through
   improved chemical conversion) or lower manufacturing costs (such as from more efficient
   operating procedures, decreased use of raw materials, energy conservation, or lower labor
   costs). However, since about 1970, environmental regulations under RCRA, the Clean
   Water Act, and Clean Air Act have also influenced the context  in which  industry has
   calculated these costs; in some cases, source reduction has occurred as a direct consequence
   of regulation, such as under the Clean  Water Act requirements regarding waste water
   treatment.

          Preliminary estimates suggest that industry might be generating more than twice the
   amount  of waste per unit of production than it does at present if no source reduction
   techniques were in place today.17  This estimate is derived from an extrapolation of the
   effectiveness and extent of source reduction practices used in 22 individual industrial and
   manufacturing processes to a national basis. Moreover, this estimate of the effectiveness
   and rate of current application of the various source reduction techniques could only be
    17     Waste Minimization Issues and Options, Volume I, USEPA, Office of Solid Waste, Washington,
           D.C., October 1986. .
                                         — 44 —

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                                                       Existing Waste Minimization Activities
based on EPA's engineering analysis of qualitative information gathered from literature
reviews, case studies, trade associations, and other sources.  The results, therefore, must
necessarily be viewed as exploratory rather than definitive representations of the waste
minimization issue.

       Table 2-3 illustrates the relative extent of current and potential source reduction, by
volume. These estimates, based on the qualitative information described above,18 reflect
current practices and trends in the industries named.  They do not consider current
technological innovations, implementation of HSWA's new programs, or other incentives
now faced by generators.  It should be noted that much of the estimated current reduction
did not occur as a result of actions designed specifically to reduce waste, but were largely
incidental to efforts to maximize yields,  improve operating efficiency, and comply with
other Federal environmental regulations (e.g., the Clean Air Act, the Clean Water Act).  It
should be emphasized that, despite any current waste minimization, over 200 million metric
tons of hazardous waste continue to be generated annually.

       With the limited information available, it appears that American industry has made
progress towards minimizing waste. Based on its studies of industrial waste minimization
practices, however, EPA believes that significant additional reductions can still be made.
While there may be technical limits to the degree of source reduction that can be achieved in
an individual production process, EPA believes that in most cases such limits have not yet
been reached.  If generators are to achieve  their source reduction potential, significant
additional efforts will be needed.

       Available information suggests that the chemical and allied products industry,
which is the largest generator of hazardous waste, still has the greatest potential for volume
reduction. This appears to be true despite the fact that this industry has already reduced its
waste volume to a greater degree than other industrial sectors.  Preliminary evidence
suggests that, within the next 25 years, aggregate waste generation volumes can be reduced
an additional 15 to 30 percent by the extension of existing source control techniques and the
18     ibid.
                                     	45	

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                                                                                                                                               E?
                                                                                                                                              OQ
                                                          Table 2-3
                                    Estimated Extent of Current and Future Source Reduction
Industry Sector
Chemicals & Allied Products
Primary Metals
Petroleum & Coal Products
Fabricated Metals
Rubber & Plastics
Machinery (except Elec.)
Miscellaneous Manuf.
Transportation Equip.
Motor Freight Transportation
Electric & Electronic Equip.
Wood Preserving
Drum Reconditioning
Percent of Current
Waste Generated
Nationally
47.9
18.0
11.8
9.6
5.5
2.1
1.8
1.1
0.8
0.7
0.7
<0.1
Extent of Estimated
Source Reduction
since Mld-70's
High
High
Medium
Low-Medium
High
Medium
Medium
Medium
Low-Medium
Low
High
High
Potential for
Future Source
Reduction
Medium
Medium
Medium
Medium-High
Medium
Medium
Medium
Medium
Medium-High
Low-Medium
Low-High
Low-High
Volume of Waste
Remaining after
Future Reductions
Very High
Medium-High
Medium
Medium
Low-Medium
Low-Medium
Low-Medium
Very Low
Very Low
Very Low
Very Low
Very Low
Source: Office of Solid Waste. October 1, 1986. "Waste Minimization Issues and Options."
Volume I. USEPA. Washington, D.C.. Interpolation of data in text. Data is based
upon Congressional Budget Office, and RIA Mail Survey.
                                                                                                                                               I
                                                                                                                                               c-.

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                                                      Existing Waste Minimization Activities
development and application of new technologies.19 It should be noted, however, that
some firms or small industries may not be able to achieve such levels of reduction.

       Input material modification: The effectiveness of input material modification as a
source reduction technique generally differs according to the type of processing involved.
Raw materials that are directly synthesized (converted) into a product can be purified prior
to processing to reduce waste generation but, since most primary feed materials used in
synthesis are already relatively pure, this technique generally results in minimal source
reduction. For example, the use of a more costly, purer, propylene feed in the synthesis of
acrylonitrile does  not result in an  appreciable decrease in the volume of waste that is
generated.

       Where a process is essentially a purification step, the use of a higher grade (more
pure) material or ore  yields less waste.  The use of a higher grade crude in petroleum
refining, for example, reduces the amount  of impurities  requiring removal  during
processing. Auxiliary raw materials, which are used in  a process but are not converted into
product, can sometimes be replaced with less toxic, more environmentally safe, materials.
Examples include the substitution of innocuous  biodegradable detergents for toxic
chlorinated solvents and  the use of less toxic compounds in  lieu of chromate corrosion
inhibitors in cooling  towers.  Sometimes, however, a manufacturer may substitute a
material into the process not because the waste would be less toxic but because the waste is
simply not regulated by EPA (i.e., would not be defined  as hazardous under Subtitle C of
RCRA).

       Technology modifications:  In certain instances, technology modifications or
substitutes are also effective in minimizing  wastes.   A product  can sometimes be
manufactured by two or more distinct processes.  Certain processes, such as the chloride
process for producing  titanium dioxide, generate considerably less waste than alternative
processes, such as the sulfate process.  Unfortunately, modification of existing facilities
can involve considerable research and development and  capital investments, and can require
a lengthy implementation period.
19     Ibid., pp. 3-22.
                                     — 47 —

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Existing Waste Minimization Activities
          Inefficient chemical reactions in a process are a major source of increased waste
   generation.  Improving the efficiency of the process through modification of catalysts,
   reactor design, and operating parameters has been shown to reduce the quantity of waste
   generated significantly. For example, in the production of acrylonitrile by the catalytic
   ammoxidation of propylene,  switching from an  antimony-uranium  catalyst  to  a
   ferrobismuth phosphomolybdate catalyst has boosted the conversion of acrylonitrile by 35
   percent.  In another instance, there has been a significant decrease in tar formation where
   changes in reactor design improved mixing for the manufacture of epichlorohydrin.
   Attaining zero waste generation, however, is currently beyond the technical capabilities of
   most chemical processors.

          Modification of equipment is another way to reduce waste generation.   The
   invention of mechanical wipers to scrape the sides of paint tanks, for example, reduces the
   exposed volume of waste paint  that would otherwise produce fugitive volatile organic
   compound (VOC) emissions. Similarly, process automation, which helps optimize product
   yields by automatically  adjusting process parameters,  has in many cases minimized
   operator error, reduced the likelihood of spills, and discouraged the production of off-
   specification materials. As noted earlier, these off-specification materials can be highly
   toxic, albeit lower volume, wastes.

          Water conservation can also result in significant waste reduction.  Efficient product
    washing results in reduced sludge generation by minimizing the amount of product lost to
    the wash water and the quantity of wastewater that is generated.

          Technology modification is currently a central focus of waste minimization.
   Generally these changes are most cost-effective  when implemented during a plant's
   planning or design period or when a plant is retooling and replacing worn  out equipment.
    Retrofitting plants that have already been designed  and/or constructed is often expensive
    and difficult. Consequently, while technology modification may be of limited effectiveness
    in reducing waste generation and toxicity from existing sources, it can be effective in future
    expansion and construction.
                                         — 48 —

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                                                       Existing Waste Minimization Activities
       Procedural/Institutional management practices:  "Good operating practices" or
"good housekeeping practices" involve the alteration of existing procedural, organizational,
or institutional aspects of a manufacturing process.  The goal is to limit unnecessary
generation of waste attributable to human intervention (or the lack of it).  Employee
training,  management  initiatives, inventory  control,  waste  stream  segregation,
improvements in materials handling, scheduling improvements, spill and leak prevention,
and preventive maintenance are all examples of good operating practices. Others include
the scheduling of batch  operations to  limit the frequency of equipment cleaning and,
consequently, waste generation; the segregation of hazardous wastes from nonhazardous
wastes to minimize the volume of contaminated wastes; and the reduction of overspray and
runoff from  spraying by the paint booth operator during paint application  (refer to
Appendix A's section on Segregation of Wastes for additional examples).

       Product substitution: Replacement of an original product with a different product
that is intended for the identical use can be an effective method of source reduction. For
example, integrated pest management, an alternative to pesticide use in certain applications,
reduces pesticide production and, in turn, the waste generated during pesticide production
and application. The substitution of concrete pilings for creosote-treated timbers eliminates
wastes from  the manufacture of the creosote-treated pilrngs.  Substitution of less toxic
solvents, such as petroleum solvents for more toxic solvents such as perchloroethylene or
trichloroethylene, generates a spent solvent waste that is less  toxic.

       It is difficult to quantify the current status or effectiveness of this source reduction
technique.  Each substitution needs to be evaluated on a case or application-specific basis.
The viability of a substitute can be based on:
              Whether the substitute can function adequately as a replacement;
              Whether the economic cost of a substitute justifies  its use as  a
              replacement,
              Whether the manufacture and disposal of a substitute reduces
              environmental consequence;
              Whether  the  cost/environmental  benefit  of the  substitute  is
              sufficiently attractive; and
                                     — 49 —

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Existing Waste Minimization Activities
          •      Socio-political factors,  such  as  government  action  (e.g.,
                 procurement policy) to promote the substitute.

          Tradeoffs have to be weighed prior to the selection of substitutes. For example,
   water-based inks, sometimes used in gravure and flexographic printing, have the advantage
   of being less toxic than solvent-based inks, but require more energy to dry, possess a low
   gloss, can cause paper to curl, and  occasionally  require brief process stoppages.
   Petroleum solvents can be used in drycleaning, but they are much more flammable than the
   more commonly used but more toxic perchloroethylene.

          Available data are insufficient to quantify the current effectiveness of  source
   reduction practices in reducing volume or toxicity.  In qualitative terms, data indicate that
   industry has already  considerably reduced the volume of its wastes. Most of these source
   control methods, however, have been employed (1) to reduce costs or improve product
   quality, and, in turn, increase  profits and (2) to respond  to existing environmental
   regulations.   Rarely have these practices been used solely for the purpose  of waste
   minimization.  Based on EPA's analysis, information  suggests that further significant
   source reduction does appear feasible and practicable.

   Recycling

           Viewed generically, "recycling" encompasses both reuse and reclamation activities.
   The discussion in this section on recycling activities regulated  under HSWA pertains to
    hazardous waste recycling for  materials recovery as well as  for energy recovery.  A
   recycler's decision as to how to treat a waste is principally determined by the character of
   specific waste streams or waste mixtures. Where treatment should take place (either onsite
   or offsite), however, is a function of a generator's management practices which include:
           •      Sensitivity to insurance liability,
           •      Proximity to offsite recycling facilities,
           •      Economic costs related to the transportation of wastes,
           •      The volume of wastes available for processing, and
           •      Costs related to storage of waste onsite compared  to offsite.
                                         — 50 —

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                                                      Existing Waste Minimization Activities
       Recycling is characterized by three major practices: (1) direct use or reuse of a
waste in a process, (2) recovery of a secondary material for a separate end use such as the
recovery of a metal from a sludge, and (3) removal of impurities from a waste to obtain a
relatively  pure reusable substance. (Practices (2) and (3) are defined as reclamation by
EPA.)

       Materials recovery:  Although recycling of selected streams is practiced to a
considerable degree by certain industries, only about 4 percent of the hazardous waste
generated in the United States was recycled in 1981, according to the 1981 RIA Mail
Survey.  Of the waste  that was recycled,  81 percent by volume was recycled onsite.
Offsite recycling, however, is  becoming increasingly  common with the advent of
commercial recyclers and direct transfer of wastes from generators to others who can reuse
the wastes. Table 2-4 summarizes these data for the ten highest volume waste generating
industries.

       Recycled wastes are used as feedstocks in production processes or as substitutes
for commercial chemical products. Examples include:
       •      The reuse of solvents for equipment cleaning;
              The recycling of collected pesticide dusts at pesticide formulators;
              and
       •      The  reuse  of  ferric chloride  wastes from  titanium  dioxide
              manufacturing as a wastewater conditioner in water treatment.

       The  proportion of waste  that is recycled is both industry and waste-specific. In
general, certain wastes, such as solvents, tend to be recycled more often than others, such
as pesticides. Factors that influence whether an industry recycles its waste include (1) the
type of waste generation process used; (2) the volume, composition, and uniformity of
wastes; (3) whether uses and reuses of the wastes have been identified, and (4) availability
and  price of virgin materials  relative to the costs of recycling and storing the wastes.
Toxicity of the waste does not appear to be a direct factor in the recyclability of a generated
waste, although, as noted previously, high volume wastes, which are often less toxic, are
more commonly recycled.  Based on limited data, some industry-specific observations can
be made:
                                      — 51 —

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Existing Waste Minimization Activities
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             «?
             o !
                                                            OJ

                                                            w
                                       -68
                                               in oo
               -
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                                                       Existing Waste Minimization Activities
       •      As  shown  in Figure  2-6,  three  manufacturing  industries,
              transportation equipment, chemical and allied products, and primary
              metals, account for 91 percent of the total hazardous waste recycled
              in 1981.
       •      In Figure 2-7, it  is apparent that while these three sectors may
              account for the largest portion of the total volume of waste recycled,
              the amount they recycle compared to the total waste generated by all
              sectors is actually very small.
       •      Eighty-one percent of those recycled wastes were recycled onsite.
              Data indicate that large generators tend to recycle onsite, while
              smaller generators who  recycle ship their wastes offsite, often to
              commercial recyclers, because they lack (1) onsite space or (2) a
              waste volume of sufficient  quantity  to justify  the expense of
              recycling equipment.

       On review of the available data, most notably the 1981 RIA Mail Survey, one can
draw certain conclusions about the  types of waste streams that are most often recycled.
Generally, the streams that are recycled in the greatest volumes are dilute waste streams
containing a constituent  that can be reused in large-scale applications by a generator.  This
was true in 1981 for the chemical and allied products  sector, which recycled spent acids
and alkaline solutions  (classified  as D002 wastes under RCRA);  the  transportation
equipment industry, which recycled its  wastewater treatment sludges from electroplating
(F006) and chromium plating (D007) processes; and the primary metals industry, which
recycled spent pickle liquor (K062). These streams are of varying toxicity, and  data are
inconclusive as to whether toxicity plays a role in a stream's being recycled.

       Solvents tend to be recovered in larger proportion than other wastes.  This is
because there is both an existing technology to allow recovery and because a market exists
for the recycled solvent.  The  available  technology (e.g., distillation) is relatively
inexpensive to operate and can attain high purity levels (95 percent or higher).  In other
cases, however,  production processes generate wastes that  are not practical for recovery
since the recovered wastes themselves would not be useful in production. RCRA K-code
wastes fall into this category.  In  these cases, source reduction technologies may be more
appropriate to achieve waste minimization.
                                     — 53 —

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Existing Waste Minimization Activities
   Million
   Gallons
  Annually

     30,000


     25,000


     20,000 • •



     15,000 •


     10,000 ••


      5,000 • •


          0
                                            Figure 2-6
            Comparison of Total Volume Hazardous Waste Generated to Total Volume
                                    Recycled by SIC Category
                        28,000
                                                             10,030
                                                                            Total Recycled

                                                                            Total Generated
900
      2,300
                  340
170
      1,000
137
               Transportation     Chemicals and     Primary Metals
                 Equipment       Allied Products
                                                       Other SICs
    Sourot: Office ol SoUd Waste, 1984, National Survey of Hazardous Watte Generator* and Treatment, Storage, and Disposal FacjIMe* Regulated Under RCR/
                                                In 1981. USEPA.
                                        Figure 2-7
    Distribution of Total Volume* of Hazardous Waste Recycled during 1981, by SIC
                                        Category
                            11%
                 11%
                 22%
                                             *Total volume of hazardous waste recycled in 1981 was
                                                             1,580 million gallons
                                                            56,00%
                                                            «& Transportation Equipment

                                                            D Chemicals and Allied Products

                                                            IS Primary Metals

                                                            D Other SICs
                                                          Source:  Office of Solid Waste. 1984  •National Survey of Hazardous Waste
                                                            Generators  and Treatment. Storage, and Disposal Facilities Regulated
                                                                           Under RCRA in 1981.' USEPA

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                                                         Existing Waste Minimization Activities
       Energy recovery:  Based on the 1981 RIA Mail survey, data on recycling indicate
that recycling for materials recovery and reuse appears to be more popular than fuel use or
energy recovery. There are two reasons why this is so. First, some wastes that could be
recycled for energy recovery can also be reclaimed and reused over and over.  Energy
recovery,  in contrast,  destroys the  inputs.   Only when  the waste is too  "dirty"
(contaminated from repeated reuse) do generators consider energy recovery a desirable
option.  The 1981 data may not, however, provide a completely accurate picture of current
practices because of recent  developments in  energy recovery technology.  Many
technologies were not available in 1981, and others are only beginning to be commercially
available today.  Solvents tend to be used for energy recovery because they can possess
high energy values. Data from the RIA Mail Survey (see Figure 2-8 on recycling practices
for five waste streams) indicate that solvent wastes are either the most often or nearly the
most often waste recycled as a fuel supplement.20

       Data from the survey on hazardous waste generators indicates that among the
sample of generators handling their wastes most frequently onsite, energy recovery was
reported 78 times as a waste management objective. The types of wastes that generators
use for onsite energy recovery are those that fall under the RCRA Code for characteristic
ignitable wastes as well as spent non-halogenated solvents, spent halogenated solvents, and
slop oil emulsion solids from the petroleum refining industry.  Waste managers would also
       National Profiles Report for Recycling: A Preliminary Assessment, Draft Report, USEPA, Office
       of Solid Waste, Washington, D.C. July 8, 1985, pp. 3-1 to 3-4. The five generic waste streams
       are defined as follows:
       Solvents: Halogenated and/or nonhalogenated solvent wastes.
       Halogenated Organics other than Solvents; Halogenated organic compounds other than solvent
       wastes; pesticides are the major component of this waste category.
            s:  Wastes containing significant levels of metals, and organic  and inorganic metal
       compounds.
       Corrosives:  All acidic and basic corrosive wastes such as acids and bases.
       Cyanides and Other Reactives: Wastes with cyanide constituents, including complexes and organic
       and inorganic cyanides; sulfides; explosives; water reactives; and strong oxidizers and reductants.
                                       — 55 —

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   Existing Waste Minimization Activities
                                                  Figure 2-8
                                         Major Recycling Practices for
                                         Selected Waste Streams from
                                             the RIA TSDF Survey
Non-Solvent Halogenated Organics
 67%
                            33%
                                    48%
All Wastes
                                                               22%
                                                                   24%
Cyanides and Other
React ives
                                                                                                     35%
                                                                            47%
                                                      6%
                                                                                                     12%
           Corrosives
  Metals
          Solvents
37%
                           31%
       11%
                                      39%
                                                                                                     14%
                                                                   43%
                                                                             52%
                                                      13%
                                                                                                         29%
                                              0   Feedstock

                                              D   Fuel
                                                   Supplement

                                              •   Disposal

                                              CD   Reclaimed
          Source: Waste Treatment Branch, July 8, 1985, National Profiles Report for Recycling: A Preliminary
                 Assessment, Draft, USEPA, Washington, D.C.
                                                 — 56 —

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                                                            Existing Waste Minimization Activities
use other onsite recycling technologies for managing of these wastes, including use as a
feedstock, disposal,21 and reclamation.

Currently, only the burning of hazardous wastes in incinerators is subject to regulation
under RCRA, though burning hazardous waste in boilers and industrial furnaces can also
pose a hazard to human health and the environment.  EPA's definition of recycling, does
specifically  address burning, and indicates that burning of hazardous wastes for energy
recovery is a hazardous waste recycling activity.22

        Other recycling technologies: Wastes that have a higher constituent concentration
are usually selected for recovery and reclamation.  Data suggest that there are threshold
levels for those wastes that must be reached before they can be considered eligible for the
recycling process. Halogenated solvent and nonsolvent wastes must be, on average,  in the
range of 35 to 40 percent before recovery or reuse technologies are practical.23  For other
wastes, such as nonhalogenated solvents and corrosives, the threshold levels are lower for
recovery or  reuse practices.  In any case', the average concentration level for the material
being recovered using  reclamation technologies is higher than  that for any of the other
^ i
        Disposal refers to recycling by placement on the land. For example, a waste used as a fertilizer or
        soil stabilizer.
22      For EPA regulations that do concern burning see:  40 CFR 260.10 which defines a "boiler",
        "incinerator," and "industrial furnace"; also 40 CFR 261.6 and 40 CFR 266 (Subpart D) which
        address the burning of hazardous wastes for energy recovery in boilers and in industrial furnaces.
        To fit the definition of "boiler," devices must maintain a minimum amount of thermal energy
        recovery (60 percent). Of the 60 percent, 75 percent must be applied usefully and beneficially.
        The definition of "industrial furnace" also requires the recovery of materials or energy.  If a
        controlled  thermal combustion device  meets neither of these criteria, it is  defined as an
        "incinerator" by EPA and requires a permit under Subpart O of the RCRA regulations. In this
        report, references to such burning activities may in some instances include situations in which less
        than 60 percent energy recovery is achieved. We have assumed, however, that future instances of
        burning for energy recovery will meet the requirement stated in the EPA regulations.
        Currently, hazardous waste storage at existing boilers and industrial furnaces are subject only to
        interim status standards under Part 265. Regulation of the actual burning practices of boilers and
        industrial furnaces has been deferred pending Agency activities to determine whether regulations for
        burning in these devices should differ from those for incinerators in light of the scope, practices,
        and different combustion devices and wastes involved.
*y\
        Waste Minimization Issues and Options, Volume I, USEPA, Office of Solid Waste, Washington,
        D.C.,  October 1986.
                                         — 57 —

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Existing Waste Minimization Activities
   management practices  (such  as onsite wastewater treatment, surface  impoundments,
   wastewater discharge, land disposal, and treatment of organics).24

          A number of other typical characteristics are common to waste streams that are
   recycled.  To be economically and technically viable for recycling, a stream usually must be
   uniform, i.e., it must not contain more than one contaminant. Other factors that must be
   met in order for recycling to be successful include:
          •      A market for the recycled material must exist within an economically
                 viable distance;  and
          •      The recycled waste must meet purity requirements for manufacturing
                 processes.

          Because recyclable wastes must be economically competitive with virgin material
   they  are replacing, the wastes often must be processed prior to reuse.   Reclamation
   processes include chemical, physical, and electrochemical separation. Some of the major
   technologies include the following:
          •       Distillation of solvent wastes;
          •       Dechlorination of halogenated, nonsolvent wastes; and
          •       Metal concentrating techniques such as leaching, solvent extraction,
                  ion exchange, precipitation, crystallization, and evaporation to treat
                  dilute metal-bearing waste streams.

          While not as common as onsite recycling, commercial offsite recycling is becoming
    increasingly popular.  It is, in fact, favored by some  industries, most notably primary
    metals and small quantity generators of lead-acid battery wastes. Offsite recycling usually
    occurs at mobile plants, centralized recovery facilities, or other commercial recycling
    plants. An increasingly popular commercial recycling service called batch tolling accepts
    hazardous wastes from a generator only for treatment and return of the recovered product to
    the same generator for reuse.  The recycler charges a fee to the generator for recovery of
    the reclaimed material.  Some  small volume generators have actually pooled their resources
    24     Ibid., pp. 4-16 to 4-22.
                                         — 58 —

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                                                      Existing Waste Minimization Activities
and now operate centralized recycling facilities, thereby reducing their capital and operating
costs.25

       Certain wastes that are not useful to a generator may be desired by another industry
as a raw material.  Waste exchanges are often helpful in facilitating the transfer and
recycling of these wastes.  They serve as information clearinghouses (listing wastes that
are available or desired), and can also act as brokers; occasionally they actually transport
wastes from one plant to another. Available information suggests that approximately 20 to
30 percent of all wastes listed by exchanges  are eventually recycled. Some of the wastes
that are most often recycled include acids, alkalis, solvents, metal wastes, and corrosives.

               Activities of the States in Support of Waste Minimization

       Section 1003(a)(7) of RCRA directs the EPA to establish a "viable Federal-State
partnership to carry out the purposes of this Act" and "give a high priority to assisting and
cooperating with the States in obtaining full authorization of State programs under Subtitle
C."  This  directive reflects the intent of the Congress  that  the States bear final
implementation responsibility  for their hazardous waste  programs.  This approach
recognizes that the State hazardous waste programs are located closest to the communities
that  are most significantly affected by hazardous  waste problems.  The States  are,
therefore, the most appropriate level of government to take the initiative  to develop and
implement their own hazardous waste management program.

       Under RCRA, EPA implements the hazardous waste activities until States are given
authority to do so. EPA's management of the national hazardous waste system attempts to
strike a balance between the  need for a uniform national system and the wide-ranging
diversity of States' hazardous waste priorities. Differing priorities affect differences in the
magnitude  of States' hazardous waste problems, economic priorities, and financial and
institutional commitment to regulating hazardous waste. The limited extent of some States'
development of waste minimization programs may also reflect State decisions to spend
more time implementing HSWA and the base RCRA program.  The evidence suggests,
25
       Ibid.
                                     — 59 —

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Existing Waste Minimization Activities
   however, that many State officials support the hazardous waste programs since there is
   sufficient political support for their efforts.

          State officials' perceptions of State commitment:  Many State hazardous waste
   program officials believe that they currently enjoy sufficient political support for their
   regulatory activities.  Interviews of State hazardous waste program officials conducted in
   1985 during the initial implementation of HSWA revealed that among 26 environmental
   officials from 22 States, two-thirds believed that they enjoyed sufficient political support.26

          In addition to being informative, these interviews provided indications of how State
   program officials tend to assess the commitment of the State to support hazardous waste
   regulation.  Officials assessed commitment to regulation in the following ways:
          •      Adequacy of financial and administrative resources to carry out the
                 hazardous waste program activities;
          •      Adequacy of executive branch support most often displayed in terms
                 of the degree of priority in the Governor's operating budget;
          •      Adequacy of statutory authority granted to the regulatory agency by
                 the State legislature; and
          •      Adequacy of public support for the activities of the State program.

          For example, officials representing  17  State programs indicated that their
   legislatures had provided  adequate statutory authority to run  a viable hazardous waste
   program. Moreover,  14 State officials asserted that their programs had adequate executive
   branch support to implement their program activities, although they recognized that
   availability of financial resources would be a continuing source of concern, which generally
   extends to States' needs for funding to support waste minimization.

           Substantive State progress toward waste minimization: There are several types of
    activities by which States encourage waste minimization. The mix of waste minimization
    activities adopted by States  varies as does the size of waste minimization programs.
    Individual strategies include:
           Perceptions of Progress: Initial Reactions to HSWA, Hazardous Waste Management Project,
           USEPA, Office of Solid Waste, Washington, D.C., June 1, 1985.
                                          — 60 —

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                                                       Existing Waste Minimization Activities
       •       Regulatory exemptions if waste materials are recycled;
       •       Land disposal  restrictions for certain waste  materials and
              management practices;
       •       Fee and tax incentive programs, as well as financial assistance in the
              form of loan, bond, and grant assistance programs; and
       •       Information programs  such as information  transfer, technical
              assistance, and waste exchanges.27

       Table 2-5 indicates the types of activities that individual States have undertaken to
expedite waste minimization.  In sum, seven States have instituted recycling exemptions or
variances and land disposal restrictions.  Twenty States have instituted at least one type of
fee or tax incentive program. Nineteen States have initiated at least one of the three types of
information programs.

       Hazardous waste regulatory programs in most States are modeled after the Federal
RCRA program. Waste minimization practices are encouraged by State regulations through
exemptions from, or relaxation of, otherwise applicable regulatory requirements.  A
recycling unit does not require a TSD permit under the Federal regulations. Shipping of
hazardous wastes offsite for recycling requires a manifest, and  storing wastes for longer
than 90 days, even if wastes are to be recycled,  requires a permit.   For most  States,
exemptions from recycling practices are the same as Federal requirements.  For example,
Wisconsin's regulations provide "exemptions"  from licensing of a treatment facility for
legitimate reclamation or recovery  of hazardous wastes, beneficial  use or reuse, energy
recovery, or other innovative recycling activities.28  Beyond existing Federal requirements,
in California, generators of wastes deemed recyclable must recycle those wastes or must by
request of the State regulatory agency provide written justification for not recycling them.
Such justification must provide a summary of efforts made to find a use for the waste and
technological and economic reasons for not recycling the waste.29
27     Waste Minimization Issues  and Options, Vols. 1 - 3, USEPA, Office of Solid Waste,
       Washington, D.C., October 1986; see also Appendix A of this Report, "Technical and Financial
       Assistance Programs."
28     Ibid., pp. 7-23.
29     Article 12, Sections 66763 and 66796, California Hazardous Waste Control Act.
                                      — 61 —

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Existing Waste Minimization Activities
EXEMPTIONS

&

RESTRICTIONS
}-

-J 	
FEE AND TAX
INCENTIVES

INFORMATION
PROGRAMS
I , . J
     •> At****** on G*n*r*tor* or Dlioooor* by <*•
       on • WMU BMit and Ooos Met inciuo* Pormi
     b. ftoc*tv*tf for tmpi*m*miflg Source flMuction
       ^cycling.

     C Sourc** id*ntlfi»d No F«« MM TM lnc«fitlvo«
       Pro mot* WMIO Ulnimiution
       Saure««: C80 l«3. EP1 1**4, OAO 1M4,
       Witconwn ONH 1»I3. BuianowMI tl U. 1M1.
       P*r*onal Communication* wiin Slat* P*r*onn*4.

     A. fiompuofl i* m form of **• W*tv*r M tn* Wa*M
       i* H*nd*md Nonnatardoua Onait*.

     •• Soureo* Womift*d No tnformatton •Vognrna That
       Oiroctiy A«dr**» Waal* Umimt«ati«n mtiiin
       Th*** SUM*.
ALABAMA 	 '
ALASKA e«

ARKANSAS*
CALIFORNIAd




FLORIDA
GEO RGI A C


ILLINOIS









MINNESOTA





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VERMONT*


WEST VIRGINIA*
WISCONSIN
WYOMING C

















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       TABLE   2-5     SUMMARY  OF  STATES'  WASTE  MINIMIZATION  ACTIVITIES
                                                          — 62 —

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                                                        Existing Waste Minimization Activities
       Waste minimization  practices  are  also encouraged  through  State  disposal
restrictions, some of which may be more stringent than those of EPA.  Such restrictions
may include (1) bans on certain waste materials and types of management; (2) facility
standards (such as liner requirements and ground-water monitoring); and (3) requirements
for receipt of specific approval from a regulatory agency prior to disposal of a particular
waste stream. Kansas, Illinois, and New York are examples of States that prohibited the
land disposal of various solvents, dioxins, and other hazardous organics before the Federal
regulations called for restrictions of the substances in 1984.30  California established the
first State land disposal  restriction program  in late 1981.  The program banned specific
wastes from land disposal.  The schedule of bans is contingent upon a determination by the
California Department of Health Services (DHS) that sufficient recycling and treatment
capacity for the specified wastes will be permitted and fully operational by the day the land
disposal restrictions take effect.31

       State financial incentives to encourage preferred waste management alternatives
include (1) permit fees assessed on operators of TSD facilities; (2) taxes  assessed on the
waste volume of generators or disposers (e.g., waste end taxes); and (3) taxes on the raw
materials used by generators of hazardous waste (feedstock taxes).  Waste fees and taxes
serve not only to generate revenue for various purposes, but are intended to provide
incentives for waste minimization. Currently, no States directly tax the  manufacture of
hazardous substance feedstocks, although four States—Maine, Florida, New Hampshire,
and New Jersey—impose a tax on the transfer of petroleum and chemical feedstocks.32  In
1984, 20 States imposed waste end taxes on hazardous waste generators.

       State-provided credit assistance, whether through direct State loans, guaranteed
loans,  subsidized interest payments for private loans, or bond financing, is a means of
 ^     Waste Minimization Issues and Options, Vol. 1 , USEPA, Office of Solid Waste, Washington,
       D.C. , October 1986, p. 7-25.
       The scheduled dates were (1) June 1, 1983, banning of wastes containing free cyanides; (2) January
       1,  1984, banning of toxic metal wastes and polychlorinated biphenyls (PCBs); (3) January 1,
       1985, banning of liquid wastes containing halogenated organic compounds; and (4) July 1987,
       banning of organic sludges, solids containing halogenated organic compounds, and lab packs
       containing any of the restricted wastes.
32     Office of Solid Waste, op.  cit., p. 7-36.
                                      — 63 —

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Existing Waste Minimization Activities
   reducing the cost to firms of obtaining capital to make an investment toward the purchase of
   waste reduction equipment or to build and operate waste recycling facilities.  Although no
   States have actually established a loan guarantee program, California currently subsidizes
   interest  rates for the purchase of waste reducing equipment.  California, Illinois,
   Minnesota, and New York provide credit assistance in the form of direct loans for pollution
   control equipment, which generally include recycling  or source reduction investments.
   Revenue bond financing is used by several State programs to assist firms with the purchase
   and installation of pollution control equipment. For example, the Missouri Environmental
   Improvement and Energy Resources Authority (EIERA) has operated a successful bond
   program for over a decade to provide over $1.5 billion in financing for energy development
   and pollution prevention projects.33

          Waste minimization grants  are monies awarded to hazardous waste generators,
   processing facilities, and other public and private  organizations to support waste
   minimization efforts, including research and development activities and demonstrations of
   recycling  and source reduction technology.  State  grants  are  a direct method for
   investigating new and existing technologies.  For example, North Carolina's challenge
   grants program provides matching funds of up to $5,000 to  stimulate a generator's
   investigation of source reduction and recycling on a plant-specific basis; this program is
   aimed especially at small to medium-sized generators.  California, Georgia, Illinois,
   Minnesota, and Wisconsin also offer grants for projects involving research, development,
   and demonstrations of source reduction and recycling technology.34

          Technical and informational  assistance  at its  most basic level consists  of
   development of a library collection of technical information which generators can review to
   discover technologies that should be useful for minimizing their wastes or locating waste
   exchanges.3^.  North Carolina's technical information collection, maintained as pan of the
    "Pollution Prevention Pays" (PPP) program,  offers an information clearinghouse with
    33     Ibid.
    34     Ibid.
           Waste exchanges, a type of information program, provide a means for matching the need for waste
           with the availability of that waste: i.e., companies can use the service to advertise available wastes
           or to find waste materials they can use.
                                           .64 —

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                                                      Existing Waste Minimization Activities
1,200 references on waste minimization methods, organized by SIC code.   Numerous
publications are also available through the PPP, such as the Handbook of Environmental
Auditing  and a directory of recycling firms located within the State.  To facilitate the
exchange of wastes among generators, the California Waste Exchange, like other waste
exchanges throughout the country, issues a quarterly newsletter that contains  listings on
available or desirable wastes. The program also issues a Directory of Industry  Recyclers,
which lists names and locations of recycling companies and the types of materials they
recycle. New York's Industrial Materials Recycling Program, operated through the State's
Environmental Facilities Corporation (EEC), publishes informational newsletters, technical
papers, and a directory of permitted hazardous waste transporters.

       Some State technical assistance programs include direct efforts to help individual
generators as well as general efforts to educate important industry groups. Most of the
direct assistance to individual generators is provided by telephone, followed by distribution
of appropriate written information.  The technical assistance staffs in  several State
programs also provide onsite audits and reviews of particular plant sites.  Minnesota's
technical assistance program provides plants with engineering students who work directly
in the plant during the summer to assist in assessing the needs and opportunities for waste
minimization and in planning for them.

           Review of Existing EPA Activities Relating to Waste Minimization

       Consistent with HSWA  objectives to foster waste minimization practices  by
encouraging process substitution, materials recovery, and properly conducted recycling and
reuse wherever possible, and to implement RCRA through the  States, the Office of Solid
Waste  (OSW) has,  over  the  past  two  years, attempted  to  design an efficient
intergovernmental division of labor among EPA Headquarters, the EPA Regional Offices,
and the State hazardous waste programs.  EPA Headquarters and the Regional Offices are
taking  a leading role in  support of the  Federal-State  partnership by  conducting three
                                     — 65 —

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Existing Waste Minimization Activities
   essential functions: regulatory control; technical and financial assistance; and information
   sharing and management. Each of these is discussed below.

   Regulatory Control

          EPA has implemented the following waste minimization provisions of HSWA:

          Transport manifest certification statement: Effective September 1, 1985, HSWA
   Section 3002 (b) requires that generators certify that they have a program in place to reduce
   the volume or quantity and toxicity of hazardous  waste to the degree determined by the
   generator to  be economically practicable.  Further, the proposed method of treatment,
   storage, and disposal employed to treat hazardous waste is that practicable method currently
   available to the generator which minimizes present and future threats to human health and
   the environment.  Based on EPA's analysis of HSWA's legislative history, the Agency
   does not believe that it has the authority to dictate the content of these certifications.

          Onsite permit condition requirement: Effective September 1,1985, HSWA Section
   3005 (h) requires that, for any permit issued under this section for the treatment, storage,
   or disposal of hazardous waste on the premises where the waste was generated, generators
   certify annually that they have a program in place to reduce the volume or quantity and
   toxicity of hazardous waste to the degree determined by the generator to be economically
   practicable.  Furthermore, the proposed method of treatment, storage, or disposal is that
   practicable method currendy available to the generator which minimizes present and future
   threats to human health and the environment.^

          Inclusion of reporting requirements on Biennial Reports:  Generators must include
   in their biennial reports a narrative statement regarding efforts  undertaken  to reduce the
   volume and  toxicity of waste generated, along with a description of the  changes in the
   volumes and toxicity of waste actually achieved during the year in comparison to previous
    years, to the  extent such information is available for years prior to 1984.  EPA is currently
    conducting a study to ascertain how the biennial reporting requirements might best achieve
    a consistency of data collection that enhances the future utility of these reports.
    36     50 FR 28734, July 15, 1985
                                         — 66 —

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                                                     Existing Waste Minimization Activities
       Monitoring of compliance with the certification signatory requirement: Following
the HSWA change to the transporter manifest, EPA's enforcement responsibility has been
concerned with generator compliance with the signatory requirement. The amendment to
the transporter manifests, as interpreted by the Codification Rule, limits EPA to enforcing
compliance with the certification and signatory requirements. As stated below in the
Federal Register (50 FR 28734), EPA does not believe that this requirement provides
authority to intrude into industrial production process decisions.
       The amendment does not authorize EPA to interfere with or to intrude into the
       production process by requiring standards for waste minimization; rather, it
       specifically provides that the substantive "determinations" of "economically
       practicable," and "practicable methods currently available" are to be made by the
       generator  in light  of his own  particular  circumstances.   Thus, from  an
       enforcement perspective, the  Agency will  be concerned  primarily with
       compliance with the certification signatory requirement.  Each generator subject
       to the waste minimization requirement should  make  a good faith effort to
       minimize the amount and toxicity of waste generated and to select a means of
       treatment, storage, or disposal most likely to minimize the present and future
       threat to human health and the. environment.37

       Responses to specific inquiries from generators: Although EPA is not authorized
through the waste minimization certification to interfere with or intrude into the generator's
production process, each generator subject to the waste minimization requirement may seek
EPA clarification on waste minimization practices by letter to the Agency (see Appendix E
for copies of relevant correspondence).

       Development of an Environmental Auditing Policy Statement. The  Agency has
adopted  a policy with respect  to environmental  auditing  which seeks to strengthen
compliance with environmental regulations and to improve management controls  by
supporting conventional Federal, State,  and local  government oversight.  This policy
encourages regulated parties to conduct comprehensive audits to document how well
environmental practices are established.  One of the values of a comprehensive audit may
be in the  discovery of other previously unknown and unregulated risks in the management
of a generator's waste.  Such an audit could help a  generator identify other  waste
minimization opportunities.  For example, environmental audits may evaluate the extent to
37     50 FR 28734, July 15, 1985
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Existing Waste Minimization Activities
   which hazardous waste management systems exploit source reduction, recycling, or reuse
   of wastes wherever practical, or "substitute materials or processes to allow use of the least
   hazardous substances feasible."38

   Technical and Financial Assistance

          In the area of technical and financial assistance, EPA's role has been principally one
   of providing financial support through a number of EPA programs to promising  State
   waste minimization efforts.  It also provides research support for developing technologies
   that might facilitate waste  minimization by selected industries.  A limited amount of
   financing has been used to encourage States to continue with or to develop their own
   programs.

          The Office of Solid Waste provides technical and financial assistance to States
   through State grants. The short-term strategy of the Office of Solid Waste to implement
   HSWA recognizes that "EPA must make better use of interest groups, trade associations,
   the Regions and the States in explaining regulations requirements,...where compliance with
   regulations is technically complex,...  EPA and the States should make plans for providing
   adequate technical assistance and technology transfer."39  Moreover, the draft strategy
   emphasizes that: "One area of need for technical assistance is educating small business on
   techniques for minimizing waste."

          Congress has allocated $4.75 million in  supplemental grant funding to the EPA
   Regional Offices for State and local government hazardous waste management activities.
   Distributed according to each Region's proportional share of the total Fiscal Year 1986
   RCRA base State grants, the supplemental monies may support:
          •      Activities related  to  State or local  government development  of
                 innovative waste management activities that will reduce dependency
                 on land disposal; and
    38     51 FR 25010, July 9, 1986
    39     Draft: Hazardous Waste Management Strategy Office of Solid Waste., USEPA, Office of Solid
           Waste, Washington, D.C., April 1986.
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                                                      Existing Waste Minimization Activities
       •      Activities related to State or local government hazardous waste
              management efforts that accelerate issuance of permits to new or
              expanding hazardous waste management facilities.


       Grants will be awarded and managed by the Regional Offices and are to be awarded

with a 10 percent matching requirement, which grantees may fulfill with cash or in-kind
services.


       Eligible activities include:

              Conducting outreach or education activities in support of EPA Small
              Business Initiatives  and increased  Small Quantity Generator
              compliance with HSWA;

              Implementing a local or Regional collection, transfer, and transport
              system to handle Small Quantity Generator waste;

       •      Analyzing generator waste streams for evaluation of onsite treatment
              potential toward reduction of volume or toxicity of waste or potential
              for reuse or recycling;

              Analyzing generator processes for potential volume or toxicity
              reductions; and

       •      Conducting analysis of waste streams in  a  particular industry,
              geographical area, or demographic context for potential development
              and actual establishment of a waste exchange program.


       The Office of Research and Development's  Small  Business/Small Quantity

Generators' Research Program provides financial support for research and information

activities of agencies or associations working with small  businesses. Funding sources
include the following:

              Funding is partially provided to the Governmental Refuse Collection
              and Disposal Association clearinghouses for information on waste
              management options in association with State agencies and industry
              groups. Federal support for this project will be available for two
              years, after which the program will be self-supporting.

              Continued support is provided to State technical assistance and
              educational programs for applied research on waste minimization
              that can  be implemented by other State programs.   Funding is
              currently provided to North Carolina and Minnesota.
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Existing Waste Minimization Activities
          The Office of Research and Development also supports research and development

   of recycling technology and clean manufacturing processes  at the Industrial Waste

   Elimination Research Center at the Illinois Institute of Technology.


          Other Office of Research and Development activities providing research and

   technical support include the following activities:

          •      The regional support services (RSS) staff serves as a clearinghouse
                 for the  Regions and the States by fielding requests for technical
                 information or technology transfer that cut across media or
                 disciplines within the EPA. It provides assistance to the States by
                 fulfilling requests that require development of new information or
                 integration of unpublished information toward resolution of new
                 problems, and supporting the waste  minimization activities of the
                 States through cooperative agreements  with the State-focused
                 associations, such as the National Governor's Association (NGA).

          •      The  Hazardous Waste Environmental Research  Laboratory
                 (HWERL) is undertaking research on waste reduction and recycling
                 technologies.  HWERL  recently  studied waste minimization
                 practices of the printed circuit  board industry and  is currently
                 conducting eight waste minimization audits.

          •      The Office of Research and Development (ORD) administered
                 funding  for applied research recently conducted for OSW  in
                 cooperation with  the Tufts  University.  The Tufts Center for
                 Environmental Management conducted a foreign practices  study
                 which profiles current waste minimization activities in Canada,
                 Japan, and Western Europe.

    Information Sharing and Management

          EPA can draw upon several existing sources of information in order to further the

    dissemination and sharing of knowledge about hazardous waste generation and waste
    minimization  policy  among EPA, States, other Federal agencies, and  industry.

    Mechanisms for information sharing include conferences, workshops, biennial  reports of

    the waste generators, survey data bases, and census  data.

           Following the success of the 1985 conference entitled  "Waste Reduction—the

    Untold Story" at Woods Hole,  Massachusetts, at which representatives of 22  large

    companies discussed their waste  minimization activities, EPA sponsored a second waste
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                                                     Existing Waste Minimization Activities
minimization conference entitled "Waste Reduction—the Continuing Saga" on June 4-6,
1986.  Assistance was provided by Tufts University.  The program was expanded to
include waste minimization activities by small and medium-sized generators.

       During 1986, EPA co-sponsored and assisted in coordination of the third workshop
for State Waste Reduction Programs under the leadership of the North Carolina Pollution
Prevention Pays Program. These semiannual workshops provide a forum for the exchange
of current information and resources to further State efforts in waste minimization.
Approximately 20 to 30 State programs are represented at each meeting.

       During 1986, the  staff of the Office of Solid Waste and the Office of Policy,
Planning, and Evaluation conducted presentations on waste minimization at the following
events:
       •      Hazardous Materials Conference in Atlantic City, New Jersey;
       •      Annual Meeting of the American Institute of Chemical Engineers in
             Chicago;
             "Alternative Technologies to Hazardous Waste Management," a
             conference sponsored by the Engineering Foundation;
             Government Institute course on  Hazardous and Solid Waste
             Minimization;
       •      Pollution Prevention Pays: the Tennessee Approach;
       •      The Air Force Logistical Command First Annual  Hazardous Waste
             Minimization Conference; and
       •      A meeting of the American Wood Preserver's Institute.

       EPA provides support to the Environmental Audit Roundtable, which focuses on
the activities of industry.  Quarterly meetings are held in Washington, D.C., to address
topics  such as waste audits  and offsite waste  reduction activities.  To encourage
environmental audits by Federal facilities, EPA has provided initial coordination and
support for  a Department of Defense/EPA Memorandum of Understanding, which is
currently under discussion. EPA's special purpose mailing list on Environmental Auditing
includes over 900 names; most Fortune 500 companies are represented on this list, as are
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Existing Waste Minimization Activities
   over 100 Federal facilities. By August 1986, EPA had also issued over 2,000 copies of the
   general policy statement on Environmental Auditing.  Several EPA offices are currently
   reviewing a draft Federal facility compliance strategy by EPA's Office of Federal Activities
   that encourages environmental auditing. Environmental audits and waste minimization
   programs are encouraged and co-sponsored by the Office of Enforcement and Compliance
   Monitoring and the Office of Federal Activities at the regular meetings of the Federal
   Facility Environmental Managers

          Generators and treatment, storage, and disposal facilities (TSDFs) are required to
   report waste generation and disposal information on a biennial basis to EPA.   The
   information assists the Agency in its evaluation of the volume, type, and disposal and
   treatment of waste generated by industry in the country. The Agency is studying the data
   from the reports and may eventually revise the biennial report in  order to include more
   detailed information on waste minimization efforts by generating facilities.

          -Several existing  data bases provide a current picture of the Nation's waste
   generation. As  noted in the first section of this chapter, the information comes from
   surveys of large and small quantity generators and from industrial data bases. Two of the
   most comprehensive data bases are the RIA Mail Survey and the National Small Quantity
   Generator Survey. Although the data from the RIA Mail Survey are now over five  years
   old, the survey has provided useful information on how individual facilities are handling
   the waste  they generate.  The more recent (1985) Small Quantity Generators' survey
   provides information similar to the RIA Mail Survey on the activities of the small generator.
   The Industrial Studies Data Base (ISDB) has been developed from questionnaires sent to
   industries under Section  3007 of  RCRA.  It contains information from 12 different
   industrial  categories.  The ISDB  differs from the  other surveys in that it contains
   information on the various processes within  each of the  industrial categories surveyed.
   Despite some limitations (e.g., the age of the data, reporting errors), these data bases have
   been extremely helpful in the assessment of current waste generation and treatment/disposal
   activities.  If  they are continuously updated, the  surveys and industrial data could be
   accurate measures of the trends in waste generation and treatment by industry.
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                                                     Existing Waste Minimization Activities
       Census data provide another valuable source of information. Although the Bureau
of Census does not collect information on waste generation by industry, the Census does
provide useful economic data as well as information on the number of establishments, plant
size, production, raw material consumption, revenue, and regional location. Economic and
industry-specific knowledge, when combined with other data sources described above, can
extend the knowledge base that EPA and other Federal and State agencies need to make
informed policy decisions about future waste minimization efforts.

       Additional authority for the development of useful information in furthering waste
minimization objectives  may  be forthcoming  under CERCLA  reauthorization.  The
proposed bill contains a new act  which requires fairly comprehensive inventories of all
"hazardous chemicals."  The new act builds upon reporting requirements that already exist
under OSHA regulations for Material Safety Data Sheets. This act will also expand the list
of substances subject to emergency notification and require the development of a new list of
toxic  chemicals that will be subjected to reporting requirements.  This bill will be in
addition to the provisions of the  current CERCLA legislation that requires reporting in
Section 103(a)(14) only for specifically listed "hazardous substances." The act will require
information with respect to each  toxic chemical at a facility subject to the requirement,
concerning:
       •      The general use of the toxic chemical;
       •       An estimate of the maximum amount of the toxic chemical present at
              the facility at any time during the preceding year,
       •       For each waste stream, the treatment and disposal methods used and
              the efficiency of treatment; and
       •       Annual quantity of toxic chemical  entering each environmental
              medium.

In  sum,  these mechanisms  afford a significant basis upon  which to  develop  a
comprehensive overview  of the use, movement, and fate of all chemicals and wastes of
concern and to determine the changes resulting from altered economic and regulatory
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Existing Waste Minimization Activities
   conditions.   A suggested strategy for collecting  the necessary data is described in
   Chapter 4.

   Other EPA Activities Potentially Relevant to Waste Minimization

          EPA currently is developing a variety of regulatory and analytic mechanisms in
   response to existing environmental legislation.  This section reviews some existing EPA
   activities that could be redirected and integrated into the core of the hazardous  waste
   minimization program at a later date.

          Examination of RCRA program permit process: The Permit Process and Regional
   State  Operations Workgroup  of the  Office of Solid Waste,  Hazardous Waste
   Implementation Task Force, has recently completed its examination of the RCRA permit
   program  to identify significant  program problems  and weaknesses  and to develop
   recommendations for improving the program's structure, substance, and management. The
   workgroup's draft report recognizes that the time and expense involved in getting a final
   RCRA permit can delay the development of new waste treatment capacity. While many
   aspects of the HSWA have created strong incentives for waste minimization, some aspects
   of the new requirements related to permit procedures for onsite treatment, storage, or
   disposal are perceived by generators to inhibit waste  minimization but are in fact designed
   to inhibit only unsafe waste minimization.

          Suggested potential solutions include:
          •      Acceleration of the permit process for facilities with regard to  the
                 addition of new disposal or treatment capacity;
          •      Publication of treatment standards that focus on the treated material
                 (to ensure that it is no longer hazardous) rather than the treatment
                 technique, per se; and
          •      Continued EPA work group examination of the issues concerning
                 onsite recycling and hazardous waste  treatment such as the issuance
                 of waste generation permits.40
           Draft Final Report, Hazardous Waste Implementation Task Force Permit Process Workgroup,
           USEPA, Office of Solid Waste, Permits and State Programs Division, Washington , D.C., March
           14, 1986.
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                                                      Existing Waste Minimization Activities
       National survey of commercial hazardous waste treatment, storage, and disposal
facilities:  During 1986-87, the Office of Solid Waste plans to conduct a survey of
hazardous waste facilities in which questionnaires will be sent to a sample of commercial
and private facilities that store, treat, recycle, or dispose of hazardous wastes. One major
objective of the survey is to develop a categorization of the types of treatment and recycling
practices that hazardous waste facilities use based on a facility's capacity and operating
costs. The questionnaire is designed to elicit information on specific types of treatment and
recycling practices, for example, solvent recovery systems including fractionation, batch
still distillation, solvent extraction, and thin  film evaporation.

       Foreign practices study on hazardous waste minimization: Completed in July 1986,
this study was conducted  by of the Center for Environmental  Management at Tufts
University and funded by a grant from EPA.41  To supplement this report to Congress on
the feasibility of Federal initiatives in  waste minimization, the foreign practices study
examined activities in Japan, Canada, the Federal Republic of Germany, the Netherlands,
Denmark, and Sweden.  The study focused on government laws and programs affecting
waste minimization as well as the efforts of four industry sectors: organic and inorganic
chemicals, textiles, electroplating, and electronics.

       The study  found that  most  of  the countries rely on  a two-tier  governmental
approach to advance waste minimization.  Standards and pollution control policies are
developed at the Federal level.  The  regional government (State, province, or prefecture)
administers the cooperative managerial aspects of the waste minimization program.

       Central to most of the countries is a fairly  aggressive role on the pan of government
to working cooperatively with industry in improving waste minimization. In all countries,
industrial managers and government officials most commonly credited economic or market
forces with driving waste minimization.   Corporate public image is often noted as an
important motivator. The cooperative relationship between industry and government means
that the government agencies are frequently less regulatory in their approach  to waste
       Foreign Practices in Hazardous Waste Minimization, USEPA, Office of Solid Waste, Washington,
       D.C., June 4, 1986.
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Existing Waste Minimization Activities
   reduction. Industry managers are also more likely to anticipate environmental protection
   issues and comply with plans as developed.

          In all countries  surveyed,  there are public  programs and guidelines for the
   encouragement and  installation of waste reduction, recycling, waste exchange, and
   installation  of low pollution technologies.   However,  none of the countries directly
   mandates any form of waste minimization or establishes performance standards. Viewed in
   terms of generic categories, all countries use some combination of  the following policy
   options. Tax and economic incentives are frequently  used  together, as are technical
   assistance and research and development assistance.  Most countries have some kind of
   waste exchange in operation. Plans and permits are less frequently used but are important
   where they are employed.  Some topics that are frequently discussed in the U.S., such as
   the influence of tort liability and  the feasibility of performance standards, are  rarely
   considered in the six  countries. Similarities which these countries do share with the U.S.,
   however, relate to difficulties associated with the evaluation of program effectiveness.
   There are no comprehensive data collection systems. No detailed information is collected
   on a systematic basis concerning waste per unit product generation rates, or the degree to
   which industries or  firms conform with  suggested  waste  minimization guidelines or
   procedures.

           In Europe, much of the impetus for waste management comes from the efforts of
   the  European  Economic  Community,  which  has frequently characterized  waste
   minimization as a goal of member countries. The Third Environmental Action Program of
    1981 emphasized the  inclusion of environmental protection into all aspects of economic and
   social development.  The program directed that the greatest emphasis be placed on
   prevention of waste generation, on designing products to facilitate recycling, and on waste
   management that progressively substitutes reuse for disposal.

           Computerized hazardous waste management model: EPA's Regulatory Integration
    Division has developed an automated hazardous waste management model that may prove
    useful in State planning efforts for waste minimization. This model was developed to
    assess the risks inherent in current hazardous waste management practices and to evaluate
    potential changes in risk resulting from alternative waste management strategies.  New
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                                                     Existing Waste Minimization Activities
England was selected as the first region for development of this tool. The current model
integrates information on waste volumes and types,  transportation  routes, waste
management facilities, exposure probabilities, and health effects.

       Effluent guidelines revisions to encourage recycling: In keeping with the mandate
to clean and protect the Nation's water, EPA's Office of Water (OW) is reviewing effluent
limitations on wastewater discharges from various pollutants in specific industrial
categories under the authority of the Clean Water Act.  In making these determinations, OW
evaluates various technical alternatives in terms of their environmental impacts and technical
feasibility.  Included within these assessments are process modifications that reduce water
use, minimize wastewater generation, and substitute chemicals  to reduce pollutant
concentrations in wastewater.

       Also included in the OW assessments is the impact on possible intermedia pollution
shifts associated with effluent guideline compliance. In particular, OW's Industrial
Technology Division is conducting a study to identify intermedia effects associated with
discharges of volatile organic compounds (VOCs). In some cases, technologies to treat the
effluent may  transfer the problem of contamination by hazardous constituents to other
media, such as air or solid waste. In the case of VOCs, OW is coordinating with the Office
of Air and the Office of Solid Waste  in an attempt to adopt a standard that minimizes the
tradeoffs between water effluent and air and solid waste.

       United Nations Economic Commission for Europe:  EPA participates in
international  efforts to minimize wastes produced by industry.  The United Nations
Economic Commission for Europe (UNECE) currently provides a compendium of low and
non-waste technology to serve as a means of promoting process technology changes that
eliminate or reduce wastes, energy usage, or natural  resource usage.  The EPA has
supported this effort by contributing five descriptions to the compendium and assisting the
UNECE staff with other information as needed

       Use of Toxic Substances Control Act (TSCA) for waste minimization: TSCA,
which took effect January 1, 1977, charged EPA with protecting human  health and the
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Existing Waste Minimization Activities
   environment from unreasonable risks of injury from toxic chemicals. There are three
   general sections of TSCA that could be used to support various waste minimization needs.

          To support information gathering, TSCA Section 8 authorizes EPA  to require
   reporting and  recordkeeping by industry on chemical  substances  and  mixtures.
   Specifically, Section 8(a) provides authority for EPA to promulgate rules that industry must
   follow in order to maintain records and report certain production, use, and exposure related
   information to the Agency.  Such information could be collected through the recently
   proposed Comprehensive Assessment Information Rule (CAIR), for example, which
   improves the data gathering procedures for providing information on existing chemicals or
   via the development of other chemical specific TSCA Section 8(a) rules.

          To regulate the  introduction or importation of new chemical substances, TSCA
   Section 5(a) requires EPA to review new chemical substances prior to their manufacture.
   Manufacturers are required to provide EPA with a premanufacturing notification (PMN) 90
   days before beginning manufacture for any chemical substance not included on the TSCA
   Chemical Substances Inventory. EPA reviews and evaluates the potential risk posed by the
   new substance and determines whether controls are appropriate, whether additional data are
   needed, or whether production should be prohibited.  The Office of Toxic Substances and
   OSW  are conducting a review of how to use  the PMN program as an incentive to
   incorporate waste minimization techniques in the production of new chemical substances.
   EPA is currently  planning to prepare a New Chemical Information Bulletin that would
   provide  guidance to submitters of PMNs by stating that EPA will consider  waste
   minimization practices in its review of relative risks of new chemical substances.

          TSCA Section 6 could be used to limit the disposal of certain types of hazardous
   wastes through specification of those chemicals that cannot be disposed  of and by
   encouraging generators to undertake  treatments other than land disposal.   TSCA
   Section(6)(a) authorizes the Administrator to develop regulations to prohibit disposal  of a
   substance or mixture by its manufacturer or processor.  While EPA does not usually
   impose chemical-specific treatment, storage, or disposal methods  for a particular waste
   under TSCA, it can limit the number of options that are available and by doing so, pressure
   a generator into using preferable treatment methods.
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                                                      Existing Waste Minimization Activities
       TSCA Section 6(b) may also provide some control. Section 6(b) states that if the
Administrator has a reasonable basis to conclude that a particular manufacturer or processor
is  manufacturing or processing a chemical substance or mixture in a manner that
unintentionally causes the chemical substance or mixture to present or which will cause it to
present an unreasonable risk of injury to health or the environment, the Administrator may
(1) require the manufacturer or processor to submit a description of the relevant quality
control procedures followed and (2) if the quality control procedures are inadequate,
require the manufacturer or processor to revise such quality control procedures to the extent
necessary to remedy such inadequacy.  This second provision may be more difficult to
implement but could conceivably impose on a manufacturer requirements that ultimately
minimize waste.

       Determining whether a particular risk is "unreasonable," however, is very difficult.
Under TSCA, EPA must take into account the hazard presented, the magnitude of human
and environmental exposure, and the benefits and economic consequences of the proposed
regulations.  If  it is found  that the  impact on the economy from  regulatory control
outweighs the risk of harm to human health and the environment, EPA will not find the risk
unreasonable.  It might therefore be necessary to consider control alternatives under other
statutory authorities.
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                                 Chapter Three
              EVALUATION OF WASTE MINIMIZATION OPTIONS
      Many options are potentially available for use as part of an EPA waste minimization
program.  Congress has directed the Agency in  HSWA to address specifically three
categories of actions:
      •      S tandards of performance
      •      Changes to RCRA, including
             — Modifications to Section 3002 Generator Standards
             — Modifications to Section 3005 Permit Standards
      •      Management practices

 In addition, the Agency has identified a variety of other approaches to waste minimization,
some of which  would require new  statutory  authority, and some  of which could be
implemented on the basis of existing Agency authority.

      The purpose of this chapter is to present and evaluate these options. The first
section below describes the criteria used by EPA to make evaluations.  The second section
presents an overview of the options  themselves under four headings: Standards of
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Evaluation of Waste Minimization Options
   Performance, Modifications  to RCRA, Management Practices, and Other Available
   Options. Detailed evaluations of the options are contained in Appendix A of this report.1

                     Criteria for Evaluating Waste Minimization Options

          As Chapter Two discusses, the issues involved in designing waste minimization
   programs are complex.   As the many new  provisions  of HSWA are implemented,
   particularly the land disposal restriction program, many critical aspects  of the country's
   hazardous waste regulatory environment will be in a state of flux.  To meet HSWA's
   deadlines and requirements, EPA is facing heavy internal demands on its time and staff
   resources.   Simultaneously, States are  developing  their own programs. In the private
   sector, additional commercial treatment capacity must be installed, and large numbers of
   firms and plants not previously regulated will now  have to be issued, and comply with,
   RCRA permits.

          Waste minimization options must therefore be evaluated, not only  in terms of their
   effectiveness in minimizing waste, but also in terms of their feasibility of  implementation.
   Thus, in addition to effectiveness, the evaluation should consider the following.
          •      What the private  sector costs  and  other  impacts would be on
                 generators in light of their already existing need to accommodate the
                 many new requirements of HSWA ;
          •      What the internal  impacts would be on EPA for each option, in
                 terms of new research requirements,  additional regulatory
                 development  burdens,  and implementation  and enforcement
                 burdens; and
          •      What burdens would be put on the States.
           Waste Minimization Issues and Options , Office of Solid Waste, USEPA, Washington, D.C.,
           October 1986.  The Agency identified a number of options that are not discussed in this chapter.
           These have been dropped from active consideration at this time for the various reasons described in
           Appendix B of this report
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                                                    Evaluation of Waste Minimization Options
       The criteria used to evaluate the options have therefore been put under three general
headings:
       •       Technical effectiveness:  How well does the option meet the goals of
              waste minimization?
       •       Impacts on industry: What will be the costs and other burdens of
              compliance with each option?
       •       Implementation issues: How will this option be implemented, and
              what will the burdens be on EPA and State resources?

       Each of these areas is discussed separately below. As is evident from the detailed
discussions contained in Appendix A, the information necessary to answer many of these
questions properly is often unavailable.

Technical Effectiveness

       The first consideration in evaluating any option is the degree to which it achieves
the objectives set by Congress for minimizing the volume or quantity and toxicity of wastes
generated, or which would otherwise be sent to land disposal.

       Volume reduction: Volume reduction is of key concern for any waste minimization
option and will be particularly important in the short term, especially for those firms that
must rely on offsite commercial  treatment facilities.  While  the  overall goal of waste
minimization is to produce significant aggregate reductions in the total volume of hazardous
waste produced each year, it may often be important in the short term to direct minimization
efforts to those industries or waste streams for which  treatment capacity is in shortest
supply. In assessing the  effectiveness of a particular option in terms of potential for
reducing waste volume, pertinent questions include the following:
       •       What proportion of total national waste volume could it reduce?
       •       What proportion of the waste from the affected industries or waste
              streams might be reduced?
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Evaluation of Waste Minimization Options
          Toxicity reduction: The effectiveness of an option in achieving toxicity reduction

   may be harder to estimate than its effectiveness in reducing waste volume, but the questions

   involved are similar to those asked in regard to volume reduction:

          •      To what degree would the option tend to reduce the toxicity of a
                 particular waste stream?

          •      Would toxicity reduction interfere with volume reduction?


          Other technical effectiveness issues: There may be additional criteria under this
   heading  that are important to some options and not others. This section will allow for

   further detailed discussion of the option and will focus on issues such as the following.

          •      Side effects and  intermedia  transfers:  Important  technical
                 considerations in the evaluation of any option are the relationships
                 between volume reduction and toxicity reduction and the possibility
                 of unwanted transfers of pollution from one location or medium to
                 another.  As pointed out in Chapter Two, for instance, volume
                 reduction may produce more concentrated and, therefore, possibly
                 more toxic, wastes. Conversely, toxicity reduction may involve
                 dilution of wastes,  increasing their  volume. Certain options may
                 appear to minimize waste effectively, but in  fact may only be
                 transferring pollution to the air or  water.  Questions about such
                 concerns include:

                 — Will this option tend to produce undesirable side effects in terms
                    of the volume or toxicity of hazardous waste reduced?

                 — Will it produce adverse effects in  environmental media other than
                    those affected by hazardous waste management?

          •      Transaction costs:  Some waste minimization options, such as those
                 of waste exchanges, merely facilitate access to information, i.e.,
                 they reduce the transaction costs associated with improving the
                 management of hazardous wastes.  Evaluating  the  technical
                 effectiveness is, thus, quite subjective. Pertinent questions include:

                 — What waste minimization transactions does this option affect,
                    and what specific problems is it  aimed at  correcting or
                    ameliorating?

                 — How effective will it be in its stated objective?

          •      Measuring results:  A key factor in the technical effectiveness of any option
                 is the degree to which its success can be predicted in advance, or measured
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                                                    Evaluation of Waste Minimization Options
              after implementation. Standards of performance, for instance, might have
              fairly easily predictable and specific effects on the composition and volume
              of wastes produced.  On the other hand, it may be extremely difficult to
              estimate the effects produced by various types of incentive programs (such
              as loans, grants, or technology transfers), or options aimed at reducing
              transaction costs (information hotlines, waste brokers). It is not necessarily
              critical to be able to measure the effectiveness of an option, but it may be an
              important factor to consider, especially if the costs of an option are high.
              Questions include:

              — Is it possible to measure the effectiveness of the option?

              — If it is measurable, what are the relevant variables and what
                 methods would be employed?


Impacts on Industry


       There are a variety of potential burdens that a particular waste minimization option

might put on industry, especially since several options under consideration could intrude

significantly further into the details of production processes than traditional environmental

programs have done.  Compliance costs are usually the first concern. Other factors include

equity considerations, confidentiality issues, and incentives for noncompliance.


       Economic impacts: The costs of complying with a particular waste minimization

option can be negative as well as positive since waste reduction often saves rather than

costs money. Cost questions that might be asked are the following:

       •       What are the capital costs associated with the option? (These may be
              incurred with major process modifications.)

              What are its operation and maintenance costs?  (These can include
              changes in feedstock requirements,  energy use, transportation
              expenses, and so forth.)

              What is the reporting burden? (The costs of reporting to EPA or the
              State may be considerable for some options.)


       Equity:  Because some industries, and some firms within industries, have already

voluntarily begun  to minimize their wastes, equity among firms can be  an important

consideration in determining the desirability or feasibility of a particular option.  Some

options may, in effect, penalize industries that have already reduced their wastes. Others
                                     — 85 —

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Evaluation of Waste Minimization Options
   may unnecessarily interfere with the current competitive structure of markets.  Pertinent
   questions include the following:
          •      Do costs of compliance with this option vary significantly across
                 firms or industries with respect to size, category, location, or some
                 other factor?
          •      Does the option tend to alter markets for products, or to affect the
                 current competitive relationships among firms or industries?
          •      Does the option risk  violating  the legitimate confidentiality of
                 proprietary processes?

          Incentives for  noncompliance:  Some waste minimization options could create
   strong incentives for noncompliance of one type or another, ranging from nonparticipation
   or nonreporting to deliberate violation of regulatory requirements (falsification of records,
   illegal dumping, etc.).  Questions include:
          •      Does this option encourage noncompliance?
          •      Are enforcement tools adequate  to compensate for noncompliance
                 incentives?

   Implementation Issues

            A wide variety of issues are of concern here, including all aspects of developing,
   implementing, and  enforcing the option.  Also important are the  effects of the option on
   State programs, its effects on other environmental programs, its flexibility in responding to
   changing circumstances, its acceptability to the public, and its effects on changes in
   industrial technology.

          Legislative authority: It is important to determine what changes will be necessary,
   if any, in the legislative authority in order to implement each option. The types of authority
   that the Agency will need depends on the  option  itself.  In some cases,  the type of
   additional authority could be provided by a simple ruling change (e.g., waste audits),
   whereas in other cases it may require extensive Congressional legislation.  The type of
   questions that need to be answered are:
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                                                   Evaluation of Waste Minimization Options
       •      What are the types of legislative changes that will be necessary in
             order to implement the option?
       •      Is additional legislative change necessary or can modifications be
             made to existing authority?
       •      Would  a simple  ruling change instead of additional legislative
             authority be a  more appropriate method to extend the Agency's
             ability to implement the option?

       Time required for implementation: Timing is an important variable in the evaluation
of the options. For some options, implementation is contingent on the outcome of other
options or regulatory policies.  It may be that an option will not take long to implement, but
that implementation cannot occur until after the other options or policies take effect.
Questions that need to be addressed are:
       •      What is the  reasonable length of time it would take to develop the
             option?
       •      Are there delays or contingencies that might otherwise hold up the
             implementation of the option (e.g., land disposal restrictions)?
       •      How long after implementation would the option be expected  to
             influence waste minimization?

       Appropriate target industries: Not all the options are appropriate for every industry
or for every waste stream. It may be necessary to identify those industries and waste
streams that best meet the goals of waste minimization.  Issuing performance standards, for
example, might be a satisfactory means of minimizing waste, but the type of standard
would likely have to vary depending on the type of industry and waste stream(s) involved.
The important questions are:
       •      What are the most suitable industries for the option?
       •      What waste streams within a targeted industry are best adapted to the
             option?
       •      Will targeting  industries interfere  with implementation of other
             options?
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Evaluation of Waste Minimization Options
          Costs of development and implementation:  These include all direct costs to the

   Agency for conducting research, gathering and analyzing data, writing regulations, writing

   permits and enforcing regulations, or any other expenses necessary under the option. If

   grants or awards were selected, for example, costs would include the amount of the grants

   or awards.  Questions include:

          •      What would the intramural staff requirements be, at Headquarters
                 and in the Regional Offices?

          •      What would extramural costs  be (data gathering/data automation,
                 research, etc.)?

          •      Are  there any  special enforcement considerations (e.g., new
                 categories of regulated parties, history of poor compliance in a
                 regulated sector)?

   Other Considerations


          This final category covers criteria or concerns that may not be germane to all of the

   options.  It is a catch-all section in which it is possible to evaluate options that have unique

   aspects.  Additional  criteria include: flexibility in implementation, impacts on States, public

   perception, effects on other environmental programs, and effects on innovative technology.

          •      Flexibility in implementation:  flexibility may be an important issue,
                 particularly since the context in which waste minimization is being
                 enacted is still fluid.  Options that have strict administrative
                 requirements  (such  as standards of performance  issued  as
                 conventional regulations) are likely  to be considerably less flexible
                 than  others  (e.g., performance  standards enacted as phasedown
                 permits). Questions include the following:

                 — To what degree can enactment of the option be negotiated with
                    involved parties?

                 — Are formal administrative  variances  and other procedures
                    required to modify the specified conditions?

          •      Impacts on States:  States  are already an integral part of the
                 hazardous waste management  system. Their involvement in waste
                 minimization will likewise be important.  Questions include the
                 following:
                                           88 —

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                                      Evaluation of Waste Minimization Options
— Does the option interfere with or duplicate waste minimization or
   hazardous waste management policies already established by the
   States?

— What costs and staff burdens would  the options put on the
   States, and how would these expenses be defrayed?

— Is voluntary State involvement required in order for the option to
   work?

— Must State involvement be uniform across the country for the
   option to work?

Public perception: Because the whole subject of hazardous waste
management is  of such concern to the  general public, waste
minimization options should be compatible with public opinion.
Some of the options under consideration may be more difficult for
the public to accept than others: for instance, the public has always
been skeptical of environmental programs that appear to operate on a
"pay-to-pollute" basis.  Therefore, although options like phasedown
permits are considered to be an economically efficient way to reduce
waste generation, the public may not endorse a program where
companies buy permits that  allow  them  to generate hazardous
materials.  On the positive side, it may also be important to consider
whether a given option reduces public anxiety  about hazardous
waste.  Many companies have already embarked on voluntary waste
minimization programs partly to improve their public environmental
image.  The key questions are summarized below.

— Is this option compatible with public opinion?

— Does it allow industry to take credit for voluntary actions taken
   to reduce hazardous wastes?

Effects on other environmental programs: Some waste minimization
options may require extensive internal cooperation among EPA
programs. An example would be the use of the Effluent Guidelines
program to restrict hazardous waste generation.  If such cross
program relationships are important, they should be identified in
advance. The type of questions that need to be answered are listed
below.

— Does this option shift any wastes or risks out of the jurisdiction
   of  the hazardous  wastes system  and into  that  of another
   program?
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Evaluation of Waste Minimization Options
                 — If so, have such shifts been made deliberately, and are they in
                    the overall best interests of protecting human health and the
                    environment?
                 — If not, can they be mitigated or corrected?
                 Effects on innovative technology:  Some options may tend to
                 stimulate technological innovations in reducing the generation of
                 hazardous waste; others may tend to stifle innovation and lock in
                 existing technology. Major questions would be:
                 — Would this  option have a positive or a negative effect on
                    technological innovation?
                 — If so, would such effects have been noted in the development of
                    the option?
                                  Discussion of Options

          The following sections summarize the detailed evaluations of each of the options
    reviewed for this report to Congress;  Not all of the questions raised above are dealt with
    below;  Appendix A contains a more extensive analysis of the various factors considered.
    The sections below highlight the issues that have emerged as most critical in the detailed
    evaluations.

          To aid in the comparison of options, Figure 3-1 presents a timeline summarizing the
    schedule for implementing each option. Where additional Congressional authority might be
    needed before the Agency could proceed with a particular option, it has been assumed that
    authorization will be forthcoming by 1988.  Time is allocated for such tasks as data
    gathering, research, regulatory development, and regulatory implementation. Where the
    desirability or feasibility of an option is dependent on market reactions to any of the
    scheduled land disposal restrictions, the Agency has estimated that all necessary data could
    be available  within two years of promulgation of a rule (although it could take longer, in
    some cases, either for the new rule to change behavior, or for the gathering of data to trace
    such changes).

          As a  further aid for comparing the options, Table 3-1  briefly summarizes the pros
    and cons of each option, as revealed by the evaluations.  These represent the  Agency's
                                        — 90 —

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                                               Evaluation of Waste Minimization Options
Performince Sundard*
                          Legltlatlve
                       Changee to HSWA   Management Practice*       Other Option*
                              — 91 —

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                                                                     Table 3-1
                                        Summary of Advantages and Disadvantages of Wasta Minimization Options
    Option
Performance
Standards Limiting
the Volume or
Toxicity of Wastes
Prohibit or Restrict
Generation of
Specific Wastes
Waste Generation or
Management Phase-
down Permit Program
Modifications To
RCRA: Requirements
for Certification of
Waste Minimization
BantheLandfflling,
Treatment, or Incin—
oration of Potentially
Recyclable Wastes
               Advantages
                  Disadvantages
Directly mandates controls.
Generally acceptable to public.
Establish dear, numerical goals.
Define technology-based, defensible limits.
Suitable for industries producing high volume
  or high loxldty waste streams.
Provide Incentives to industry to invest in alt. technologies.
Encourage polluters to pay for pollution reduction.
Direct application of source reduction regulatory program.
Based on existing authority of TSCA 6(a).
Likely to be acceptable to public.
Consistent with HSWA and RCRA intent.
Sensitive to market mechanisms; economically efficient.
Mandates waste volume reduction.
Best targeted to industries with homogeneous waste
  streams.
Provides incentives to generators to develop new
  technologies.

Built on existing requirements.
Increase industry capacity to increase WM "voluntarily."
Improve EPA administration of HSWA.
Provide State tech. assist, programs with better information.
Modest administrative costs to clarify guidance.
Speed of implementation following Congressional authority.

Best targeted to highly toxic waste streams.
Based on existing HSWA authority.
EPA can choose to target waste streams or sites/generators.
Sets clear numerical goals.
Generally  acceptable to public.
Long development time.
Intrudes into industry operations.
Substantial information requirements.
High costs of development/implementation.
Potential for many variances.
Difficult to enforce.
Adverse Impact on construction of new facilities.
Inflexible to Industries that have significantly minimized wastes.
Potential for adverse effects.
Significant potential for litigation.
Imposes significant costs on States.
Resource intensive — economically inefficient approach to waste minimization.

Significant information requirements.
May encourage illegal disposal.
Potential for increased discharge to other media .
Controversy over rulemaking may significantly delay implementation.
May be viewed as government intrusion into manufacturing processes.
High costs of implementation.

Difficult to enforce.
Potential for large wealth transfers.
Need for EPA to minimize market uncertainties.
Potentially expensive to develop permit system.
Potential long development time.
Potential negative public perception.

Reporting burden on industry.
i.
I
o
                                                                                                                                                                 §
                                                                                                                                                                  3

                                                                                                                                                                  I
                                                                                                                                                                 1
Very resource intensive.
Difficult to enforce.
Potential for many variances.
Expensive to develop.
Inflexible in distinguishing between industries with high vs. low volume
 recycling potential.
Complex rulemaking.

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                                                                          Table 3-1
                                             Summary of Advantages and Disadvantages of Waste Minimization Options
         Option
     Segregation of
     Wastes
     Mandatory
     Waste Audits
     Technical Assistance
     Program
 I
VO
     Procurement
     Practice
              Advantages
                 Disadvantages
May reduce volumes of wastes generated.
Makes increased recycling feasible.
Renders non-recycled waste streams
  easier to treat.
Responsive to market mechanisms in selected industries.
Several processes with substantial recycling potential.

Speed of implementation.
Existing authority: Amendment to CERCLA.
Moderate enforcement costs re: notification.
Encourage targeted industries to self-police.
Flexible requirements allows EPA to follow up case-by-case.
Applicable to large volume or high toxicity target industries.

Support existing State program initiatives.
Encourage industry to act voluntarily to minimize waste.
Strengthen intragovernmental system.
Require modest increases in expenditures.
Support development of focused, centralized activity
  for States.
Avoids duplication of  State efforts.
Speed of implementation following Congressional authorization.
Industry and site-specific feasibility will vary.
Significant costs.
Significant Information requirements.
Long development time.
Significant enforcement  costs.
Imposes significant new  costs on State programs.

High enforcement costs if industry views it as a regulatory requirement.
High enforcement costs to verify implementation by SQGs.
Large-scale technical assistance programs are not traditional EPA activities.
Would require positive and sustained internal and external commitment and support.
Additional EPA staffing requirements.
Incur new administrative costs for developing computerized Information system.
Build on existing DOO waste minimization activities.
EPA can use existing RCRA authority Section 6002.
Voluntary, self enforceable.
Sign, cost of development for data collection, reproduction, substitution, and
  procurement of virgin materials; wastes associated with purchased products.
Would require significant coordination with other agencies.
Significant development time.
Potential difficulty to measure policy effectiveness.

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Evaluation of Waste Minimization Options
   assessment of the feasibility and desirability of each option and are the basis of the
   recommendations for action presented in Chapter Four.

          Each of the four categories of waste minimization options is presented below.

   Standards of Performance

          HSWA requires EPA to evaluate "standards of performance" as a general option for
   possible use in minimizing wastes through source reduction.  As a concept, standards of
   performance have the distinct advantage of specifically restricting the quantity or toxicity of
   a waste that is generated, but their implementation requires direct government intervention
   in the activities of specific industries and facilities. While performance standards have been
   the primary mechanism for reducing air and water pollution, the standards for controlling
   pollutants in these media were generally based on end-of-pipe control technologies.
   Performance standards for minimization of hazardous waste, however, would depend
   substantially on internal process modifications.  As such, they represent a significant
   departure from the existing philosophy and past practice  of environmental regulation,
   which generally deals with the pollutants after they are generated.

          The use of standards of performance to require waste  minimization does not imply a
   single type of regulation.  There are many possible variations in practice; the four most
   significant and practical have been evaluated for the purposes of this report. The  common
   thread among the various  approaches is that each would  probably require changes in the
   production processes responsible for the generation of hazardous wastes. The options
   differ in their approaches to accomplishing the changes. One is in the classic command and
   control method, i.e., by dictating exact processes to be used in  producing specific products
   or mandating specific amounts of reduction of waste on a per  unit output basis. Adoption
   of such an option would require modifying RCRA to create a program similar in type to the
   New Source Performance Standards program under the Clean Air Act, or the Effluent
   Guidelines program under  the Clean Water ACL

           Other options that fall generally under the concept of performance standards
   include:

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                                                   Evaluation of Waste Minimization Options
       •       Specific standards limiting the volume or toxicity of wastes based on
              authority under other programs to accomplish command and control
              type reduction in volume or toxicity of wastes;  this is discussed
              below in relation to the use of TSCA Section 6.
       •       Phasedown permits to accomplish source reduction indirectly, by
              setting up a market that lets EPA set minimization targets overall;
              this would let the affected industry or industries  determine which
              processes would be affected.
       •       Prohibit or restrict the generation of specific wastes; this would be
              similar to the basic performance standard option, but would be more
              selective.  It might also rely on the use of TSCA Section 6.

       Table 3-1 summarizes the pros and cons of each approach, based on the structured
evaluation conducted using the criteria presented above. The sections below outline the
reasoning behind these conclusions. A general approach is then suggested for determining
how and when standards of performance might be adopted.

       Traditional performance standards limiting volume and/or toxicity of wastes for
generators:   Performance standards are  technology based, limiting  the volume,
concentration,  and/or toxicity of a specific waste stream or toxic constituent generated per
unit of industrial production.  A  performance standard could  apply  either to  specific
industrial categories, or to specific waste  generating operations.   Limits  would be
established for a specific waste, based on the existence of an internal process modification
to reduce waste quantity or toxicity to the prescribed level. In the Agency's opinion,
performance standards for waste minimization should not dictate that a specific technology
be used, only that a specific generation level be met.

       Establishment of performance standards to achieve waste minimization would
require the enactment of legislative authority by Congress: neither RCRA nor HSWA
provide EPA with authority to establish waste minimization requirements for generators.
As noted earlier, under Section 6(a) of TSCA, EPA does have the authority to regulate a
substance or waste stream that poses an "unreasonable risk of injury to human health or the
environment."
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Evaluation of Waste Minimization Options
          The Agency believes that performance standards for waste minimization could be
   appropriate to those industries that produce high volume or high toxicity waste streams,
   and which continue to represent, after the imposition of the land disposal restrictions
   program, a significant risk to human health and the environment.  Not all such cases,
   however, are appropriate targets for performance standards. An evaluation would first be
   required to determine whether there are economically feasible technological alternatives to
   current industry production or recycling practices. Industries using batch, rather than
   continuous processes, for example, are likely to be more difficult to control. And in some
   cases (e.g., solvents), treatment by incineration may be more effective and less costly than
   alternative source reduction approaches.

          According to the data currently available, the organic chemicals industry (SIC 2869)
   is the largest generator of hazardous waste. Several industrial processes included under
   organic chemical manufacturing, such as the manufacture of acrylonitrile, epichlorohydrin,
    1,1,1-trichloroethane,  trichloroethylene, trichloroethylene/perchloroethylene, and, vinyl
   chloride monomer, are carried out in a small number of very large plants. While these
   processes produce large volumes of wastes, the engineering analysis in EPA's technical
   support document concluded that these facilities have already significantly reduced their
   wastes.  Because of the volumes involved, however, small percentage reductions-could still
   result in substantial overall volume reductions.

          Other industries with waste streams identified as highly toxic include dry cleaning
    and paint manufacturing.  Once again,  however, the waste streams involved, e.g.,
    tetrachloroethane distillation residues from dry cleaning (F002), or methyl ethyl ketone
    spent solvents from paint manufacture (F005),  are subject to the first phases of the land
   disposal restrictions, and practices may change as a result.

          In some cases, whether or not an industry would be an  appropriate target for
    performance standards may depend on available centralized treatment or recovery capacity
    and capability. The electroplating industry, for example, produces large volumes of metal
    bearing sludges (F006). Since most electroplating facilities are quite small, substantial
    process changes to reduce waste generation are not likely to be financially feasible, but
    centralized ion-exchange metal recovery waste processing plants to which electroplaters
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                                                    Evaluation of Waste Minimization Options
could send their wastes might substantially reduce the costs of recovery, making possible a
degree of waste reduction and recycling that could not otherwise be achieved by individual
electroplating plants.

       It is impossible at this time, however, to predict the extent to which performance
standards  can minimize waste, especially because of their long development time and
changes that may now be  occurring, although it is apparent that, in certain  cases,
performance standards can be effective in volume and toxicity reduction.  Achievable
reductions would also vary depending on the specific industry or process involved.

       While EPA has not utilized performance standards for the reduction of hazardous
wastes, it  obviously has considerable experience with their application to reduce air and
water pollution. Under the Clean Air Act, performance standards have been established for
emissions of "criteria" pollutants from new stationary sources (New Source Performance
Standards) for each major category of pollution source for criteria pollutants.  Existing
facilities are  similarly regulated through Reasonably Available Control Technology (RACT)
performance standards, which are applied to facilities through State regulations. These air
pollution standards apply only to criteria pollutants and are not for specific toxic pollutants.
The only  air standards intended specifically for highly toxic pollutants are the National
Emissions Standards for Hazardous Air Pollutants (NESHAPs).

       Under the Clean Water Act, effluent limitations are established for both
"conventional" and toxic pollutants.  These effluent standards are discussed in more detail
later in this section. Under both statutes, periodic review of the performance standards is
required to  take into account new technological developments that could permit more
effective control.

       Limitations on the volume and toxicity of hazardous wastes could be similarly
established  for specific industrial  categories. The major difference would be  that
performance standards for hazardous waste minimization would usually be based on the
potential for reduction resulting from process changes rather than on end-of-pipe controls,
which is  generally how performance  standards are developed under the  air and water
programs. (Exceptions would be requirements based on good operating practices, such as
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Evaluation of Waste Minimization Options
   segregation of different waste streams to facilitate recovery or treatment, requirements
   based on raw material substitution, or requirements based on recycling of specific wastes
   after their generation.) Because hazardous waste minimization standards would frequently
   be based on process modifications, their design would require substantially more process-
   specific information than the Agency currently has available, as well as the development of
   substantial new expertise on industrial processes within EPA.

          Performance standards can be structured many different ways.  They can be
   developed for all sources in an industrial category, or they can be limited to only the larger
   sources or to only new sources. The approach can be targeted for certain high volume or
   high toxicity waste streams. Performance standards can focus only on source reduction or
   they can be based on recycling.

          The type and scale of the program selected will have a significant bearing on both
   the costs and time required to implement the program. It is not feasible at present to make
   accurate estimates of the costs of implementation of developing a full scale performance
   standard.  However, it is  believed that the program would be  similar to the costs of
   implementing the Clean Air  Act and Clean Water Act.  It is likely that because of the
   complexity of performance standards that it will take a  number of years to develop the
   program. Since it would require the imposition of standards and limits directly impinging
   on the processes of production and not simply end-of-pipe controls, it seems likely that the
   time required for development would be as long or longer than for the air and  water
   standards.

          One major modification to performance  standards, the development of a  credit
   system, would substantially increase the flexibility of the approach. Credit could be given
   to a plant for recycling, incineration, or waste reduction beyond the limits of the standards;
   such credits might be banked against loadings from other regulated streams,  based on
   volume or toxicity.  Credits could  be used by a single plant or could be made available by a
   plant that created  them to a plant unable to meet one of the performance standard
   requirements reasonably. This could significantly alleviate the economic dislocation  which
    might otherwise be caused by standards directly affecting the production processes.  A
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                                                    Evaluation of Waste Minimization Options
credit system of this kind stands part way between a traditional performance standard
system and the phasedown permits system described in the next section.2

       The traditional approach to standards of performance has  the advantage of
mandating specific quantities of minimization that can be enforced. Consequently, such
performance standards are popular with the general public.  On  the other hand, the
development and enforcement of these standards would be extremely resource intensive,
requiring considerable investment of time and money over a decade or more.  Detailed
intermedia risk evaluations would have to be done in setting up such standards.

       Prohibit or restrict generation of specific wastes: Under this third option, EPA
would ban or otherwise restrict the manufacture, processing, or distribution of a chemical
substance.  The restriction or prohibition could focus on feedstocks that are responsible for
particular waste streams, and could be aimed at the waste streams themselves. The option
would be mostly implemented on a waste stream specific basis, although there would be
occasions to prohibit or restrict wastes on an industry specific basis.3  It would presumably
be enacted through the authority already existing under TSCA, Section 6.

       This option could be an extremely powerful tool  in controlling hazardous waste
generation.  It is probably the most direct application of a source reduction regulatory
program and should  be explored further. The effectiveness of this option in reducing
volume and toxicity is completely dependent on which waste streams are regulated,
however, and cannot be estimated at this time.

       Waste generation phasedown permit program:  A waste generation phasedown
permit program differs significantly from the other approaches to performance standards in
that it is a system of rights designed to limit the volume of hazardous wastes that generators
can produce. Like other standards of performance, however, a phasedown permit program
does mandate waste reduction in a direct and enforceable manner.
o
       For a more complete description of a possible credit system, see Appendix A.
       For example, methylene chloride use could be prohibited as a paint stripper in certain operations
       where bead blasting would be appropriate.
                                     — 99 —

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Evaluation of Waste Minimization Options
          Under this option, permits would be issued to generators (or waste treatment,
   storage, and disposal facilities) to allow them to produce certain quantities of wastes.
   Unlike the other performance standards approaches, however, these permits could be
   bought or sold in a market system.

          Permits could be initially assigned in one of three ways: through an auction,
   through a lottery, or by "grandfathering." In an auction, EPA would sell the permits at a
   market clearing price; if EPA did not want to keep the proceeds, they could return the
   revenue to current generators to compensate them for their loss of generator rights. In a
   lottery, the initial allocation of rights would be random; there would  then be a second round
   of transactions with lottery winners selling rights to generators with the greatest need, i.e.,
   generators  with the highest source reduction  or recycling  costs.   Finally, in a
   grandfathering allocation, all current generators  would receive permits for a certain
   percentage  of their  current waste generation;  in  the second round of transactions,
   generators with high waste reduction costs could buy extra permits from generators with
   low reduction costs.

          The  degree of EPA's involvement in a phasedown permit system could vary. The
   Agency  could act as an information broker, by identifying sellers and buyers,  and
   explaining the nature of the market and permit price. Alternatively, it could act as a certifier
   and enforcer of market transactions.  Since a phasedown  permit system would not self-
   enforce, the Agency might  want to serve as a gatekeeper and be directly involved in
   approving market transactions.

          Waste generation phasedown permits appear most effective for industries that are
   not dominated by a few major generators and would be most effective in industries that are
   composed of a limited number of homogeneous operations. If ownership is concentrated
   in the hands of a few generators, they could effectively dictate prices, defeating the purpose
   of the system. At the other extreme, industries with too many generators would be difficult
    to monitor.

          Phasedown permits can also be effective in reducing the hazardous waste volume,
    at lower cost. Since generators who utilize low cost methods for waste minimization will
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                                                    Evaluation of Waste Minimization Options
find the permits most attractive, phasedown permits will have the  added benefit of
stimulating the development of low cost source reduction technologies.  The effectiveness
of this option can be limited if permits are monopolized by a few owners, a problem that
could be overcome  by establishing a "maximum" market share, by  using an auction
scheme, or by stratifying  the  generators by volume into separate markets.   Market
"thinness," the hoarding of permits in anticipation of decreases in the number and size of
future  permits or because  of general market uncertainty, can cause  this option  to be
ineffective.

       Phasedown permits  would be generally effective in toxicity reduction only as a
by-product of volume reduction. EPA can specifically reduce the overall level of waste
toxicity by allocating permits for different waste streams according to their toxicity. Thus,
the permit for a  highly toxic  waste would not be used with a low toxic waste,  and vice
versa.  This would probably be extremely difficult to design and implement, as all such
constraints on the system reduce the size of the market and increase its  transaction costs,
thereby reducing the efficiency of the overall system.

       To develop this option, EPA would first have to decide what form that the system
would take.  It would have to decide  whether to issue permits to TSDFs  or to generators.4
It would also have to establish a waste limit, project how the amounts will change over
time, and decide which allocation scheme would be most effective — auction, lottery, or
grandfathering.  The Agency would also have to determine an adequate term for  the
permits, sufficient to recoup costs of any waste reduction technology; it might also have to
determine appropriate geographic restrictions for trading.  Finally, EPA would have to
identify a method for managing and enforcing the permits, keeping in mind that  the more
involved the Agency becomes, the higher its administrative costs will be.

       Implementation costs would vary depending on the extent of EPA involvement, the
complexity of the permit system, the method of permit allocation, and other variables.
       It would be easier and less expensive to permit the TSDFs, since they are fewer in number and
       already require permits, thus minimizing overall administrative burden;  however, the generators
       are the source of the hazardous waste, and permitting TSDFs would add an additional layer of
       uncertainty and transaction costs to the system.
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Evaluation of Waste Minimization Options
   Enforcement costs would be most affected by permitting TSDFs and generators. Of the
   two, the more ubiquitous generators would have the highest enforcement cost

          EPA might need additional legislative authority to implement such a program
   depending upon the format to be used to allocate permits. When the Agency attempted to
   use this type of approach for chlorofluorocarbons under TSCA, it felt that it did not have
   the legal authority to auction permits, but that it could distribute them with a lottery or by a
   grandfathering scheme.

          Recommendations on standards of performance:  The most important drawback to
   the use of any form of standards of performance for waste minimization is that they would
   mark a major departure from the traditional methods authorized by Congress for the control
   of pollution. Although certain statutes, most notably the Toxic Substances Control Act,
   give EPA the power to control production processes and production decisions directly, this
   authority  is rarely used. The vast majority of controls enacted under RCRA, the Clean
   Water Act, and the Clean Air Aqt are end-of-pipe measures; although examples exist where
   processes have been directly affected by regulations, these are the exception rather than the
   rule.

          The implementation of any of these options would require (1) data collection to
   identify target industries, processes, and substances and the (2) drafting of the necessary
   regulations. Because of the information needs, the Agency estimates that the total time to
   implement any of these options would be at least five years after authorization, and more
   probably seven or more. Therefore, there could be significant delay before the effects of
   performance standards would be felt. In the meantime, changes due to the land disposal
   restrictions program may make standards inappropriate, unnecessary, or ineffective.

          All standards of performance would require intensive government involvement in
   development and enforcement. The burden on States may be inordinate without technical
   assistance from the Federal government. In addition, while it is true that many of the costs
   of waste minimization through standards of performance will eventually be passed on to the
   consumer, it is not at all clear whether the reductions in damage to the environment and
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                                                    Evaluation of Waste Minimization Options
human health are commensurate with increased costs.  Additional study is needed to

resolve this issue.


       Because insufficient data are available to establish an accurate waste generation

baseline, or to compare costs and benefits, the Agency suggests that several steps be taken

before any final judgment on the desirability and feasibility of standards of performance is

made:

       •       Before the land disposal restrictions are fully implemented by 1990,
              a data base should be compiled to establish:

              — A baseline with regard to toxicity and volume of waste streams
                 by industrial category,  geographic area and size, and unit
                 product output;

              — A baseline with  regard  to recycling, treatment, and disposal
                 practices for those waste streams;

              — Short-term trends in these figures;

              — Changes in manufacturing processes that result in reduced
                 generation of waste; and

              — Changes in recycling, treatment, and disposal practices.

       •       EPA  should then evaluate the impact that standards of performance
              might have on waste minimization. It may be apparent at that time
              that certain industrial  sectors have not minimized wastes to the extent
              technically and economically feasible and desirable, or that particular
              waste streams still pose significant environmental or human health
              hazards.

              Where, as a result of  these analyses, it is determined that
              performance standards are the most appropriate means to ensure
              further necessary reductions in hazardous waste, EPA would then
              undertake the  development of such standards.  To the extent   "
              feasible, generators  should  be provided maximum flexibility in
              meeting these reduction requirements, possibly including some form
              of the credit system.

       •       Where specific hazardous waste streams are identified as causing
              potentially critical environmental  problems or human health risks
              between now and 1990, specific interim performance standards for
              these waste streams could be developed under Section 6(a) of the
              Toxic Substance Control Act (TSCA).
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Evaluation of Waste Minimization Options
   Legislative Changes to Certification Requirements on Generators' Manifests and TSD
   Permits

           Among the options that Congress has instructed EPA to consider are a number of
   actions that, along with performance standards, would require statutory amendments.
   These involve changes to the certification requirements for generators established by
   HSWA. They include two general areas:
           1.     Possible changes  to  the requirements established by HSWA in
                 Section 3002 (Generator Standards); and
          2.     Possible changes  to  the requirements established by HSWA in
                 Section 3005 (Permits Standards).

          Requirements for Certification of Waste Minimization: Based on the legislative
   history of HSWA, EPA interprets the certification requirement for generators as prohibiting
   the development of any formal guidance to generators concerning what would constitute
   appropriate waste reduction or recycling for minimizing the volume or quantity and toxicity
   of waste, or concerning what is economically practicable. In addition, only the generator
   may determine what constitutes the available practicable method of treatment, storage, or
   disposal that will minimize the future threat to human health and the environment.

           The Senate report on the certification stresses at several points that the requirement
   is strictly one of self-certification.
           "While these  provisions encourage the reduction of hazardous waste
           generated, they are directed at the generators of such waste and do not
           authorize the Environmental Protection Agency or any other person or
           organization to interfere with or intrude into the production process or
           production decision of individual generators... The nature of the criteria for
           the certification and the determination of compliance with those criteria are
           made solely by the generator."5

           Proposed modifications reflect an alternative method by which  EPA could
   determine more  specifically the range of generally acceptable practices. EPA would need
   to acquire express legislative authority to undertake any of  several initiatives in this area.
    5     Report of the Committee on Environment and Public Works to Accompany S. 757 ,  U.S. Senate,
          October 28, 1983, p. 66.
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                                                    Evaluation of Waste Minimization Options
Current statutory requirements for certification were clearly directed at generators and do
not authorize EPA to intrude into the production process via the certification.  If these
restrictions were relaxed, EPA could be given the discretionary authority to characterize
certain process modifications as waste minimization, or to evaluate economic practicability,
or both.  If EPA were permitted such increased authority, the Agency might also quickly
specify general practices that could npj be certified as acceptable waste minimization (e.g.,
merely listing a waste in a waste exchange  catalogue and  not taking part in a waste
transaction).

       EPA could use such increased discretionary authority in industrial sectors where
data or trends indicate residual risks to human health or the  environment.  The Agency
could determine more precisely what practices  are and are not acceptable as waste
minimization for certain environmentally critical targeted industries, once the impact of the
land bans upon specific industries becomes clear. These restrictions would constrain or
direct industry with respect to meeting the certification requirements. But if generators
were still permitted to determine the economic practicability of alternatives to their present
practices, they would still retain considerable  freedom of action in determining both the
timing and extent of changes to their manufacturing processes.  Where a generator certified
that there was no economically practicable alternative to present practices, however, EPA
might be provided with the discretionary authority to require that the generator submit a
written justification for such a certification.

       The effect of the use of such discretionary authority would be to force industry to
think more carefully about the opportunities for minimizing waste. If, after these steps, the
Agency still found a remaining unreasonable risk to human health or the environment, it
could use authority  under TSCA  Section 6(a)  or Section  6(b) to impose additional
requirements, either generally on the handling of particular waste streams by an  industrial
sector, or specifically on activities of a particular generator. Examples of general categories
of possible waste minimization activities might include process changes, substitution of
less toxic materials, good housekeeping practices, and alternative treatment techniques.

       EPA could develop such new guidance relatively quickly, i.e., within one year of
authorization.  (If the Agency decided to develop such guidance through rulemaking, an
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Evaluation of Waste Minimization Options
   additional six months to a year.) The initial phases for development might be very fast,
   since the guidance would focus on widely known or readily available opportunities to
   reduce, reuse, or recycle waste.  Identification of preferred management priorities  for
   certain major waste streams could also probably be developed and coordinated with  the
   States' technical assistance programs.

          For generators required to meet the stricter certification requirements, additional
   costs would only occur when the generators choose to certify and describe an alternative
   waste minimization activity, or when they would be required to justify that there were no
   economically practicable alternatives to their present practices.

          In order to carry out the modified certification program that has been described,
   EPA would require specific new discretionary authority to:
          •      Specify practices not certifiable as waste minimization;
         t •      Specify practices that may be considered to be waste minimization
                 for a specific industrial sector, and
          •      Require generators to submit justifications for certifications that no
                 waste minimization alternatives to present practices are economically
                 practicable.

          Recommendations on legislative changes to certification requirements: Giving EPA
    the discretionary authority to specify what does and does not constitute acceptable waste
    minimization actions would carry with it some indirect authority to influence production
    processes and production decisions. The Agency believes that such discretionary authority
    merits further study.  If EPA finds a need for longer term activities, this option could be
    used to prevent the implementation of ill-advised practices that could harm human health or
    the environment and increase the potential for constructive waste minimization.  It appears
    feasible because its use would be discretionary (used only selectively) and because it would
    not entail major new programs or expenditures or interfere to any significant degree with
    private production decisions.
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                                                    Evaluation of Waste Minimization Options
Management Practices

       Management practices as defined in this report are procedures or institutional
policies within a service or manufacturing operation that result in a reduction in hazardous
waste generation. These measures are considered to be a step beyond the prohibitions on
land disposal of specified hazardous wastes and include requirements restricting particular
disposal practices, requirements relating to the handling of wastes as they are generated,
and requirements related  to management control of the waste generation system, such as
through the use of waste audits.

       Three of the waste minimization options are classified as management practices.
These include:  (1) banning the  landfilling, treatment, or incineration of potentially
recyclable wastes; (2) segregation of wastes; and (3) use of mandatory waste audits.

       Banning the landfllling, treatment, or incineration of potentially-recyclable wastes:
By prohibiting the landfllling, treatment, or incineration of wastes that could otherwise be
recycled, EPA could indirectly promote waste minimization by forcing generators to recycle
these waste  streams, find source reduction methods, or stop producing the products that
generate potentially recyclable wastes.  Development of this option requires that target
industries and waste streams be identified; alternatively, a ban might be applied "across the
board" to all generators, regardless of size.

       To be cost effective, the  ban should be limited only to streams in  excess  of a
specified volume or possibly a specified level of toxicity. Once the categories of regulated
industries and streams are identified, EPA would have to develop a list of recyclable wastes
using standard notice-and-comment rulemaking.

       Banning  land disposal, treatment, or incineration of potentially-recyclable waste
streams would probably be controversial and possibly  inefficient. Costs of recycling can
be great, and the appropriateness of labeling certain wastes as "recyclable" is certain to be
debated. It may, in fact, be premature to consider this option prior to determining the effect
that land disposal restrictions will have on the quantities of wastes generated.
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Evaluation of Waste Minimization Options
          At least one State, California, has a limited ban that prohibits land disposal of
   recyclable wastes, but allows generators to treat or incinerate the waste. The California ban
   is a two-stage process;
          1.     A limited group of liquid wastes is banned from land disposal.  The
                 list includes concentrated cyanides and halogenated organics, strong
                 acids, and metals exceeding specified concentrations.
          2.     There is a second, longer list of wastes that are part of the California
                 waste exchange system. These wastes can be recycled regardless of
                 concentration.   Periodically, the State checks manifests  from
                 generators and notifies any facilities that have a recyclable waste that
                 is being land disposed; approximately 60 percent of the contacted
                 facilities were unaware that the waste could be recycled. Wastes
                 from the remaining 40 percent are either generated in small volumes
                 or mixed with other contaminants. California has no enforcement
                 authority for wastes on this second list.

          There are several drawbacks to this option.  First, a ban is difficult to enforce. It
   would be most difficult to ensure that all recyclable wastes are  managed in a prescribed
   manner, and, because a ban is expensive, noncompliance would presumably be substantial.
   Second, demand for many recycled wastes is currently  insufficient to sustain a recycling
   market. EPA can help strengthen demand (and market price) by adopting other measures
   such as an expanded use of waste exchanges. Third, requests for variances and appeals
   may become burdensome. In California, for example, to obtain a variance, a generator
   must prove that recycling is technically or economically not feasible.

          Generally, a ban is most appropriate for large generators of highly toxic wastes that
   can be recycled or reduced using existing technologies. A ban can be effective in reducing
   the volume of waste generated, but it is difficult to assess its effectiveness in reducing the
   toxicity of waste that is generated, since any measurement is dependent on the volume of
   wastes that are classified as recyclable and the degree of industry compliance.

          Bans would be an expensive approach to waste minimization.  Costs to industry
   can be minimized by properly targeting appropriate waste streams, based on the volume of
   wastes, toxicity, and technical and economic feasibility of recycling. Government costs for
   both development and enforcement of a ban would also be high. EPA would first have to
   define "recyclable" and formally identify recyclable streams. Since at a high enough cost
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                                                   Evaluation of Waste Minimization Options
almost any stream can be recycled, costs will have to be considered in defining "potentially
recyclable."   If costs  were  too  great,  a  firm would simply  stop producing the
waste-generating product.  The major drawback of this option is its lack of enforceability.
To enforce a ban, EPA would have to discover violations before the wastes have been
managed. It may be difficult to identify whether a waste was  defined as recyclable after it
has been treated or disposed of.  The  Agency must determine whether a two-stage ban
framework like that  used in California is preferred.  Such a determination should also
address the magnitude of expected reductions in toxicity or risk which might result from
EPA adoption of this  approach to a ban.

       The regulated community is likely to consider this option inequitable because its
costs are high and its perceived benefits low.  Generators and  managers are likely to argue
that (1) the option is inequitable, since  all waste streams and all generators are not equally
regulated, and (2) they already comply with Subtitle C regulations for managing waste,
which were established to protect human health and the environment.

       Segregation of wastes:  This option would ban the mixing of waste streams that are
determined to be potentially recyclable. EPA would decide when waste stream segregation
would be required based on the same types of technology evaluations and economic
analyses that are currently used to make the  technology based performance standard
determinations under the Clean Air and Clean Water Acts. This type of management
practice could include the isolation of hazardous materials from nonhazardous materials, the
isolation of hazardous waste by contaminant, or the isolation of liquid from solid waste.

       To encourage  segregation,  EPA would have to develop an  industry or
process-specific "best management practices" approach, similar to the technology-driven
standards currently used in Effluent Guidelines (under the  Clean Water Act)  and New
Source Performance Standards (under the Clean Air Act).  This process specific approach
is not applicable to all waste streams and, in fact, would be limited only to situations where
multiple waste streams have historically been combined prior to disposal. While it would
indirectly encourage  recycling, it would not specifically require that wastes be reclaimed
and reused.
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Evaluation of Waste Minimization Options
          The potential for segregation of waste streams is industry specific and would vary
   depending on the process being used, as well as the age of the plant, its physical layout,
   economics, and other factors. Standards could be established for new sources only, or for
   both new sources and existing sources.  In order to identify target industries, a survey
   would have to be undertaken to identify industries where segregation of wastes could
   actually achieve significant reductions in wastes. The survey and the subsequent industry
   specific analyses would be  both resource and time consuming; such  studies would be
   similar in scale to those described in relation to standards of performance. (If standards of
   performance were integrated into the comprehensive waste minimization strategy, then an
   assessment of the potential for, and the implementation of, waste stream  segregation could
   be incorporated at minimal additional effort and cost)

          Onsite recycling potential would have to be determined through industry analyses.
   Information on what materials could be recycled offsite could be developed through
   industry analyses and data obtained through waste exchanges.

          Some preliminary studies have been performed to evaluate the potential impact that
   waste segregation could have on minimization.  There are many instances where the
   potential  for recycling would be substantial if appropriate wastes were segregated.  For
   example, pesticide formulaters could reduce waste volumes by using air pollution controls
   (baghouses) dedicated to collecting a single type of dust, e.g., pesticides.  This would
   eliminate the contamination of one waste stream with a second waste, thus expediting
   recycling or reuse of the recovered materials. Other cases where segregation appears to be
   attractive include segregating aqueous and oily wastes in petroleum refineries,  wood
   preserving where "good operating practices" could be used to separate hazardous from
   nonhazardous contaminants, and segregating rinses at electroplaters.

           It is impossible at  this time to estimate quantitatively how effective  waste
    segregation would be in minimizing the quantities or toxicities of  wastes generated
    nationally.  It is clear, however, based on information already available, that certain streams
    that are indeed quite toxic.  Notable among these streams are solvent-laden wastes
    generated during the cleaning of equipment and metal surfaces, pesticide dusts collected in
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                                                   Evaluation of Waste Minimization Options
baghouses at formulators, and an assortment of wastes containing levels of highly toxic
organic compounds and metals.

       The segregation of wastes does have the potential in selected instances to be
economically attractive. It could, in fact, save some firms significant sums of money by
reducing treatment and disposal costs, lowering  expenses for the purchase of raw
materials, and/or generating a reclaimed product that can be marketed or sent to a waste
exchange.  Waste stream segregation might therefore become economically attractive
without additional regulation.  It is conceivable that new prohibitions on land disposal and
dramatically increased costs for all forms of disposal, coupled with substantial efforts to
increase industry awareness of recycling possibilities, could provide adequate information
and incentive for segregation without requiring any action though regulation.

       It is impossible to estimate the cost to develop and implement technology based
standards for segregating wastes. Information will be needed concerning which industries
and processes can segregate their waste, monitoring data will be needed to characterize the
streams, and data will be needed on the costs of process and treatment modifications  and
the economics of the  affected industries.  In addition, a survey  would have to be
undertaken to ascertain whether markets exist for  recycling the segregated wastes. If
performance  standards were required for specific industries, best management practices
such as segregation would most likely be considered in the development of those
standards.  The costs of segregation would also be considered an integral part of the
implementation of those regulations.  These costs could be high if other performance
standards are not considered.  In the absence of other performance standards, these costs
will likely be comparable to the cost of developing the performance standard programs
dictated by the Clean Air and Clean Water Acts.

       While TSCA Section 6(a) authority might be used to require waste segregation in
some circumstances, additional legislative authority would be needed if waste segregation
were to be mandated on a more comprehensive basis.

       Mandatory waste audits:  As an additional management practice, firms could be
required to carry out waste audits to identify possibilities for reduction and/or recycling of
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Evaluation of Waste Minimization Options
   wastes.  This requirement could be made generally for all generators (with a possible
   exclusion for small quantity generators) or limited to specific industries of special concern.
   As discussed here, firms would simply have to meet the auditing requirement, with the
   information retained for their own use. The assumption behind such a requirement would
   be that identification of opportunities for waste reduction (and elimination of products
   and/or raw materials) would provide sufficient incentive for the firms to take action.

          An alternative approach to a waste audit requirement would be that information
   from such audits would have to be made available to EPA. The Agency would then
   determine whether a generator was doing all that was possible to minimize wastes.  But
   such a use of audit information would raise considerably greater problems and objections,
   to say nothing of enormously higher Agency management costs, than would carrying out
   the audit for internal use.

          There are several elements to a waste audit:
          •      Identification of waste streams and flow rates in the facility being
                 audited;
          •      Delineation of waste generation problems;
          •      Suggestion of a range of solutions for each of these problems;
          •      Screening to determine which of these potential solutions should be
                 studied more  thoroughly (using criteria based on feasibility,
                 effectiveness,  cost, and current application experience within
                 industry);
          •      Documentation of these options and presentation to, and discussion
                 with, plant personnel;
          •      Final rankings of most reasonable options in light of evaluation and
                 discussions.

          The next steps—the actual selection and detailed analysis of one of these solutions
   to determine whether it is actually the option of choice—would go beyond what is generally
   considered to be part of the scope of the waste audit.
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       Were waste audits to be required, there would be two primary types of industries to
which  the requirement could most readily be applied. First, the requirement could  be
imposed on all industries that produce large volumes of hazardous wastes or highly toxic
hazardous wastes (e.g.,  within the organic chemical  manufacturing  industry,
epichlorohydrin manufacture, 1,1,1-trichloroethane, or vinyl chloride manufacture). This
would include some of the largest facilities, many of which may be well controlled now, on
the basis that a small percentage reduction could still make a significant difference in the
total volumes of waste generated.  It is likely that many or most of these facilities already
have a comprehensive auditing program.

       Another type of industry group to which such a requirement might  be applied
would  be  an industry characterized by large numbers of smaller facilities,  significant
resemblance in operations, and the generation of large volumes of highly toxic wastes.  A
principal example would be the electroplating industry (SIC code 3471).

       Since it is not possible to determine ahead of time what actions companies would
take on the basis of mandatory waste audits, it is not possible to anticipate what reductions
in the  volume or  toxicity of wastes would be achieved  as a result.  Certainly some
reductions would be achieved—most particularly in those plants that would have chosen to
undertake such audits on a voluntary basis.  Further, the kinds of changes which would
result from carrying out the recommendations of such audits would be unlikely to have
perverse side effects, such as intermedia pollution transfers.

       So long as there is no specific requirement to achieve reduction or recycling levels
found possible on the basis of the audit, companies would only act in circumstances where
they saw benefits in terms of reduced liability, reduced disposal or compliance costs, or
reduced raw material requirements.  These conditions are analogous to those that would
lead to action by generators under the technical assistance programs (see below).

       While the direct costs of  waste audits for industry are not extremely high (on
average $10,000 to $20,000 for an uncomplicated facility), requiring industry to carry out
waste audits could have some other detrimental effects. A crucial element in the success
and usefulness of such audits is the commitment of management to their value.  Where
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Evaluation of Waste Minimization Options
   management has committed to carrying out a waste audit in order to identify waste
   minimization opportunities, the probability of effective use of the results in redesigning
   plant operations or waste management is increased. If waste audits were imposed as an
   external regulatory requirement, this commitment would often be lacking.

          While waste audits are less comprehensive in scope and objective than a complete
   environmental auditing program, EPA believes that the final guidance adopted by the
   Agency for environmental auditing (51  FR 25004, July 9, 1986) is appropriate for waste
   audits as well:  "Because environmental auditing systems have been widely adopted on a
   voluntary basis  in the past, and  because audit quality depends to a large degree upon
   genuine management commitment to the program and its objectives, auditing should remain
   a voluntary activity."

          Primary equity considerations for industry would argue that audit efforts carried out
   before the institution of such a requirement could be credited. Otherwise, States would
   have a greater concern that existing voluntary programs would  be undercut, and that
   industry might be less interested in cooperating with the States to reduce pollution as a
   result.

          Implementation costs for the Federal government would be limited if the only
   requirement were  that all facilities undertake an environmental audit.   The only
   development, implementation, or enforcement costs for government would be the cost of
   notifying all generators of the requirement and ensuring  that audits are completed.
   Substantial additional  costs would be incurred if a decision were made to subsidize waste
   audits for small quantity generators, or if EPA were to decide to analyze audit results in any
   way.

          Requiring a waste audit of all generators  would probably require  additional
   legislative authority, although it might be argued that authority already exists under Section
   SofTSCA.

          Recommendations on the use of required management practices: While all of the
   options discussed under this section would have positive effects on waste minimization and
   are therefore desirable as part of a waste minimization strategy, the Agency believes that
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many of their goals can be reached through voluntary adoption of the measures, that
mandatory requirements would add little to the effectiveness of each measure, and that such
requirements would entail significant enforcement costs.  Where voluntary compliance with
this type of action is not likely (such as in voluntary segregation of wastes for recycling), it
would be most feasible to couple adoption of the option with the adoption of a broader
performance standard program.

Other Options Identified by EPA

       Other options for waste minimization identified by the Agency include activities that
may already exist in some form within  Agency programs.  Although existing Agency
authority may be adequate, development of any of these activities as part of a new waste
minimization program would often require significant increases in program resources and
deliberate redirection of activities toward specific objectives of waste minimization. Among
the additional options identified by EPA are (1) development of a significant technical
assistance effort to promote and explain waste minimization and (2) revision of government
procurement practices to avoid unnecessary discrimination against recycled products and to
support actively the development of markets in recycled commodities.

       Technical  assistance programs: EPA's current role in  developing  technical
assistance programs to promote waste minimization is one of facilitating and coordinating
with the States to make State efforts more productive. State programs attempt to accelerate
the dissemination of information on waste minimizing technologies and practices to waste
generators and TSD facilities.  Other State activities offer financial assistance to generators
to support investment in waste reduction or recycling  technology  which  the generators
might not  otherwise  undertake.  Despite the strong existing incentives for waste
minimization discussed earlier in this report, EPA's role could be considerably expanded
into an active, aggressive, and sustained program of technical information.  An expanded
EPA support role could accelerate development of existing State programs, encourage the
initiative of new waste  minimization programs in the remaining States, and improve
coordination of State activities by providing those centralized services which would make
efforts of many States more productive and minimize unnecessary duplication of States'
efforts.  An expanded technical  assistance program appears to be the strongest option
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Evaluation of Waste Minimization Options
   available to promote waste minimization, especially in the near term.  The program's
   purpose would be to encourage firms to include affirmative waste minimization options into
   their hazardous waste management planning and, where necessary, to provide access to
   technical information and assistance, and to encourage the development of markets for
   recyclers and recycled materials.

          To support this program, EPA could develop a computerized information system on
   waste minimization which would be accessible by the States. Such a data base could
   alleviate problems in several areas of concern to States and generators alike. Its categories
   of information could include:
          •      Current literature on waste minimization technology: Some of the
                 periodicals of potential interest are already accessible on commercial
                 data bases. This is one source of information on waste minimization
                 technology,  but other sources  might include  published and
                 unpublished local, State,  or Federal government documents.
                 Documents  could  be  key  worded  around  pertinent waste
                 minimization topics.
          •      Indices of current and  planned research programs:  It is often
                 extremely difficult to identify useful research programs and projects.
                 Putting State, Federal, and private research programs on one data
                 base would greatly facilitate access to emerging information.
          •      Cross tabulation of State/Federal activities: This aspect of the data
                 base could help transfer information rapidly among States, cutting
                 down duplication of effort and expanding the awareness of the most
                 successful waste minimization approaches.

          An expanded EPA technical information program could directly increase technical
    resources to industries previously targeted by several State programs. Research studies on
    technology,  technology transfer,  multistate market analyses for  waste recycling  and
    treatment, and economic analysis of commonly encountered barriers to increased waste
    minimization could also be conducted.

          Appropriate target industries would depend, to a significant extent, on the needs of
    the individual States.  Generally, however, the focus would be on small and medium-sized
    facilities (though not necessarily small quantity  generators).  Furthermore, many States
    have similar industrial environmental problems.  Electroplaters, paint manufacturers,
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printing operations, dry cleaners, and organic dye and pigment manufacturers could all
benefit from a technical assistance program.

       It would be difficult to determine what reductions in volumes or toxicity would
result from an active technical assistance program.  But some of the industries listed above
(e.g., electroplaters and pesticide manufacturers) generate highly toxic waste streams, and
the generators who would benefit from  such a program would often be those  with
inadequate controls.

       One critical benefit of technical assistance is that it can be started immediately and
can show at least some benefits within months of enactment.  This may be of critical
importance in the initial stages of the land disposal restrictions, as generators begin to make
long-term commitments to hazardous waste management.  Many  who would otherwise opt
for waste minimization might instead commit  to some other option,  such as onsite
treatment

       The principal drawback of a large scale commitment to technical assistance is that it
is a departure from past EPA practice, which has been traditionally oriented around the
promulgation and enforcement of regulations.  While past experience with technical
assistance programs and other nonregulatory approaches to pollution control have often
been unsuccessful, there are several important reasons why a high-visibility technical
assistance effort, if sustained over the critical next  five to ten years,  could  produce
substantial results:
       •      It would not be moving against industry's natural intentions: The
             program would be promoting and expediting a trend that already has
             strong economic momentum within industry.
       •      It would not be an independent effort: The program would directly
             supplement the existing regulatory programs to which Congress has
             already committed the Agency.
             It would work primarily through the States:  EPA's role would be in
             coordination,  and  provision of resources,   guidance, and
             computerized  information.   EPA would not be in a position of
             engaging directly in local contacts.
                                    — 117 —

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Evaluation of Waste Minimization Options
   Procurement Practices

          Government procurement programs may provide a means to create additional
   demand for products made with less hazardous materials.  This option would involve
   establishing procurement regulations or guidelines to encourage the following:
          •       Additional recycling of waste materials in certain types of products;
                 and
          •       Greater emphasis on waste minimization in the manufacture of
                 particular products based on the existing authority of RCRA Section
                 6002  (Procurement) which provides  authority  for general
                 procurement which is limited to Federal agencies. The object would
                 be to avoid needless discrimination against recycled materials (such
                 as currently exists through provisions requiring the use of virgin
                 materials, rather than materials equivalent to virgin  material
                 specifications). It would also actively promote (though it could not
                 require) government acquisition of recycled materials. This would
                 have the effect of legitimizing a market for recycled materials.

          In those instances where a Federal preference for a recycled product may make the
   product economically viable, EPA should work with agencies that are in the best position to
   create such markets.  For example, the Department of Defense (DOD) has the largest
   procurement operation in the country. It might be possible in cooperation with EPA to help
   establish  a program whereby DOD might establish a  preference to procure recycled
   commodities.

          Although DOD is currently in the process of developing a comprehensive waste
   minimization strategy,  thereby providing an  opportunity for EPA to coordinate joint
   development of a procurement strategy focused on Federal agencies, development of such a
   strategy would still be a long and complex process.  Significant research and analytical
   efforts would be needed to determine  the extent to which recycled materials could substitute
   for virgin materials  for various government requirements.  Moreover, analyses of the
   approximate volumes of wastes associated with the various types of products purchased
   and used  by Federal agencies (e.g.,  printed circuit boards, which are  purchased in large
   quantities by DOD) would be needed to establish a baseline against which reductions in
   waste could be measured.
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                                                    Evaluation of Waste Minimization Options
       Development of a policy that focuses on the manufacturing process rather than on
the material characteristics of the product would certainly have difficulties in data collection
and development of a baseline, and would be difficult to enforce. Such an effort to change
the purchasing habits of the Federal government is nevertheless consistent with the national
policy of minimizing wastes, and should probably be given significant priority over the
long term.

       Recommendations on the use of other options for waste minimization:  Both
options discussed in this section appear desirable and feasible. The adoption of technical
assistance programs, however, seems particularly desirable in the near term. It appears to
be the only approach available that can promote significant additional waste minimization
action without large additional costs or years of delay. It also has the flexibility to adapt to
changing  hazardous  waste  management program and  waste minimization needs.
                                     — 119 —

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                                  Chapter Four
                             RECOMMENDATIONS
       The preceding chapters have summarized EPA's current knowledge about the
generation and recycling of hazardous wastes, reviewed State efforts to minimize waste,
and evaluated several options for Federal waste minimization initiatives. This chapter
provides an overview of a program that EPA believes will provide the most productive
long-term strategy for waste minimization.  Most of the discrete recommendations in this
chapter have been discussed in the previous chapters. The objective of this discussion is to
show how these elements, taken together, compose a program that increases the potential
for waste reduction and recycling.

       EPA believes that waste minimization must be implemented as a general policy
throughout the hazardous  waste management system and, ultimately, more  broadly
throughout all of EPA's pollution control programs. In the short term, efforts within the
Office of Solid Waste should focus on the development of needed data on hazardous waste
management trends and issues, set up lines of communication to the States and to industry,
and develop needed technical assistance tools to enhance industry's natural incentives to
reduce  hazardous waste generation and enhance recycling. It is also necessary to begin the
process of setting priorities for future waste minimization programs so as to respond most
aggressively to problems that cannot be addressed adequately by the existing elements of
the waste treatment program  or by EPA  programs with jurisdiction over the  other
environmental media.
                                    — 121 —

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Recommendations
          In the design of a waste minimization strategy, it is particularly important to
   distinguish between short-term and long-term objectives. As has been stressed throughout
   this report, the nation's waste generation and waste treatment patterns will be in a state of
   flux over the next several years.  During that same period, firms will make  waste
   management commitments that may be difficult to change—if the Agency fails to act
   aggressively, it may miss a unique opportunity to make source reduction and recycling a
   more widely-adopted industrial strategy for hazardous waste management.

          Over the short-term,  waste minimization efforts must concentrate on data
   development, on information transfer, and on any and all methods available for increasing
   industry's awareness of waste minimization as a constructive and economically-efficient
   approach to hazardous waste management. The Agency must also lay the analytical ground
   work for deciding how and where it can focus source reduction and recycling to ease
   treatment and disposal capacity shortages. Over the longer term,  waste minimization
   priorities can turn increased attention to ways of reducing or recycling wastes that cause the
   greatest environmental risk.  If long-term controls targeted at particular environmental
   problems are found necessary to protect human health and the environment, these programs
   will demand considerable technical insight into waste generation processes, disposal
   options, and health and environmental damage as analyzed from a multimedia perspective.
   One mechanism to address problems at this level could indeed include performance
    standards similar to the engineering controls already in place in the air and water programs
    (Air Emissions, New Source Performance Standards, Effluent Guidelines), but, as has
    been emphasized in Chapter Three, performance standards for waste minimization raise a
    number of troublesome issues and may not be warranted.

           Writing waste minimization performance standards would involve the Agency in the
    internal operation of industrial processes to a far greater extent than has been true in other
    environmental programs.  Difficulties would include (1)  protecting the confidentiality of
    proprietary processes and production specifications, (2) ensuring adequate flexibility in
    standards to  meet variations in plant capacity, age, design, and production goals from firm
    to firm, and (3) maintaining reasonable process efficiency and profitability, consistent with
    waste minimization objectives. In all these areas, it can be argued that market forces are
    more efficient than prescriptive regulations.
                                        — 122 —

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                                                                       Recommendations
       As has been emphasized in Chapter Three, writing efficient process standards for a
broad range of industries would also be at least as difficult an undertaking as developing
New Source Performance Standards or Effluent Guidelines.  Like the other regulatory
programs, the cycle of writing and implementing the initial round of regulations would
most likely require seven to ten years to complete.  Such a major commitment would be
expensive and would have to  produce environmental results commensurate with its
investment  The data are not yet available to determine whether or not this is possible.

       Equally important is the issue of timing. Assuming that Congress were to mandate
a command-and-control approach to waste minimization in the near future, it would then
take several years to write and issue  standards.  Judging by the schedule of the effluent
guidelines program, or even the more rapid HSWA land disposal restriction program,
large-scale implementation of  such a program would probably not yield observable
reductions in waste generation until after the year 2000. As noted already,  they would have
no value in alleviating short-term capacity constraints.

       Finally, there is the issue of equity.  Economic incentives  for minimizing wastes
have been particularly strong over the last five years,  and many firms have already
implemented process modifications or taken other measures to reduce or recycle the amount
of waste they generate.  Some  plants are approaching practical  limits  for reducing or
recycling the wastes created by their production, but existing  information suggests  that
progress in this direction is uneven across industries and firms.  Stringent requirements to
minimize wastes across the board, such as by a fixed percentage across multiple industrial
sectors, might therefore be grossly inequitable, penalizing  firms that  have already
minimized their wastes, rewarding those that have not. It  is therefore important to define
correctly the starting point from which waste minimization programs should begin.  The
Agency must develop a general consensus  about how to define an equitable baseline from
which waste minimization progress can be measured.

       Given  the legal, technical, and scheduling problems  inherent  in performance
standards and the need to act quickly to establish stronger waste minimization policies, it is
clear that additional types of waste minimization options must be considered, especially in
the  short term. This report  has therefore described a range of nonregulatory controls,
                                    — 123 —

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Recommendations
   including various positive incentive programs, such as information clearinghouses,
   technology transfer programs, waste audits, and various other types of technical support.

          Many of these appear promising, but they too have their drawbacks. To make a
   significant impact on waste generation, such programs would have to be intensive and well
   directed. As a regulatory Agency, EPA has never attempted to mount a significant technical
   assistance effort within any major environmental program. Although the Agency has had
   experience with nonregulatory programs in the past (such as the transportation planning
   requirements in the air program, wetlands protection efforts, the Buy Quiet Program, the
   Chesapeake Bay and Great Lakes Programs, the agricultural lands program, and areawide
   wastewater treatment planning), these have tended to be peripheral to the major regulatory
   programs and have often met with mixed success due to lack of sustained commitment, or
   because their environmental goals were ambiguous.

          The Agency believes that nonregulatory options will be among the most efficient
   ways to reach waste minimization goals, but intensive implementation of a strategy relying
   on nonregulatory approaches will demand strong support and direction from Congress. It
   will also demand close cooperation with the States. Waste minimization is largely industry-
   specific, and only the States have the close knowledge of local industry that would be
   necessary to ensure successful implementation of nonregulatory programs.  If adopted as
   priorities by  EPA, these programs would best be implemented through the States, with
   EPA providing resources and technical capabilities.

                     EPA's Recommended Waste Minimization Strategy

           EPA's most pressing initial needs are to obtain more accurate information on the
   current status and trends of hazardous waste generation and management in the United
   States and to initiate activities that will encourage immediate efforts by generators to
   minimize wastes.  Over the longer term, as the information on trends in waste generation
   provides more insight into residual risks to human health and the environment, the Agency
   can institute additional measures to minimize those wastes that still create a human health or
   environmental hazard.
                                        — 124 —

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                                                                      Recommendations
       The Agency has concluded that mandatory standards of performance and required

management practices are not feasible or desirable in the near term.  If, after implementation

of other pertinent provisions of HSWA, the Agency determines that additional regulations

or other requirements are needed in order to protect human health and the environment, it

will then request additional authority from Congress.  As noted below, EPA will report

back to Congress on this issue in December 1990, the earliest date at which it believes a

recommendation on the need for a mandatory waste minimization program could be made.


       EPA does,  however, plan to enhance its current waste minimization efforts as

discussed below in the context of a three point waste minimization strategy to which EPA
hereafter is committed.


       The elements of this strategy are:

       1.      Information Gathering: Detailed data on industry's response to the
              land disposal restrictions program and other existing waste
              minimization incentives must be gathered in order to make a final
              determination on the desirability and feasibility of performance
              standards  and required management practices.

       2.      A Core Waste Minimization Program: During the interval when the
              new provisions of HSWA are taking effect, EPA will  launch a
              strong technical assistance and information transfer program through
              the States to promote voluntary waste  minimization in  industry,
              government, and the non-profit sectors of the economy.  It will also
              work with Federal agencies to encourage procurement practices that
              promote the use of recycled and reclaimed materials.

       3.      Longer Term Options:  Based on an  analysis of the new data
              gathered  under  (1) above,  performance standards  and other
              mandatory requirements can be  imposed, if necessary, once the
              HSWA amendments have taken full effect and their impacts  on
              waste generation have been assessed.

Information Gathering


       Agency actions to encourage waste minimization, whether through voluntary means

or through future regulatory action, must be based on a full understanding of the present

state of hazardous waste  generation and management and of how that system is evolving

under the many pressures to which it is now being subjected. The general patterns and
                                    — 125 —

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Recommendations
   trends of hazardous waste management systems are becoming clearer, but past trends may
   not persist through the next four to six years as HSWA's new provisions take effect, and
   as industry seeks to control the potential financial liabilities associated with hazardous
   waste management.

          Baseline and trends data: The best data available to the Agency on the amount and
   content of hazardous wastes were developed by surveys conducted in 1981 and 1983.
   These data are rapidly becoming out of date and are known to be of uneven quality because
   of reporting errors and the small and variable sample sizes from which information was
   extrapolated. They must be supplemented with new data documenting the changes that
   have already begun and will continue to progress over the next few years.

          In order  to make a final determination on the desirability and  feasibility  of
   mandatory waste minimization actions, the Agency must be able to document unresolved
   environmental problems for which  such a new  regulatory programs  would be the
   appropriate response.  One example of an unresolved problem would be  the continued
   generation of waste streams for which treatment and disposal capacity remain inadequate
   even after land disposal restrictions have been in place for a year or more. Another might
   be  a determination that certain types of hazardous waste treatment do not, in practice,
   adequately protect human health and the environment.

          The types of data needed include detailed baseline information on the volumes and
   toxicity of wastes generated, trends data on source reduction and recycling,  trends data on
   treatment and disposal capacity, and analyses of the health and environmental impacts of
   treatment and disposal  practices. No new  statutory authority is needed  to gather this
   additional data. One potential source will be the biennial reports, which will be upgraded to
   improve the consistency and coverage of the information submitted. Other sources include
   a possible new  generator and the 1986 TSD survey, information developed by EPA
   programs outside of the Office of Solid Waste (such as under TSCA), and the reporting
   requirements that may be enacted under amendments to CERCLA.

           Data to support technical assistance and information transfer:  Much of the same
   data  can be  used to set priorities for technical assistance programs to promote  source
                                        — 126 —

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                                                                       Recommendations
reduction and recycling programs, targeting them where they will be most successful in
reducing threats to human  health and the  environment.  However,  more detailed
information on the cost and effectiveness of specific waste minimization techniques will
also be needed for the targeted industries.  This information gathering program will enable
EPA to develop an accurate  profile of waste management trends and practices and to
develop performance standards or other requirements selectively as needed.

       Data to support possible new regulatory programs: If the trends data demonstrates
the need for mandatory measures, more detailed information will be needed, as it is in any
regulatory program, to support the development, implementation, and enforcement of new
regulatory actions. This additional information would be developed selectively, and would
build on the baseline data already established.

       EPA believes that existing statutory authority is sufficient to gather the additional
data on which long-term waste minimization planning will depend.  Based upon the policy
and objectives for RCRA established in Section  1003, the Agency recommends the
immediate development of a data gathering program to undertake the following general
activities:
       •       Develop baseline data on the volumes and detailed characteristics of
              wastes generated by specific sizes and categories of firms, and on
              the processes that generate them.
       •       Develop baseline  data on the recycling, treatment, storage, and
              disposal of these  wastes, including both engineering  and cost
              elements.
       •       Develop trends  data on the above.
       •       Characterize the human health and environmental risks associated
              with the generation and management (including disposal) of wastes
              that may pose significant impacts.

       A more detailed listing  of data needs and potential sources appears on Table 4-1.
EPA is in the process of developing a detailed strategy for acquiring and interpreting this
information.
                                    — 127 —

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Recommendations
                                                    Table 4-1

                                         Data Needs and Potential Sources
                                       for Future Waste Minimization Analysis
                         Data Needs
                    Potential Sources
   1.  Baseline information on waste volume and mass
      fraction, and constituents and constituent mass
      fractions, of waste streams by industry cate-
      gory, firm size, and geographic area. Figures are
      needed on the basis of unit production
      throughput and/or input.
   2. Baseline information with respect to recycling,
      treatment, and disposal practices for the waste
      streams and the constituents mentioned in
      #1 above.

   3. Cost figures by waste stream, volume and geo-
      graphic area for alternative treatment and disposal
      practices. This would consist of cost information
      if provided by the generator or price information
      if treatment and disposal services were purchased
      commercially.

   4. [Recycling only] Data on market prices of the materials
      recycled and market prices of virgin materials
      for which recycled materials substitute, or,
      alternatively, charges paid to have the waste
      removed, batch tolling agreements, or direct
      cost of onsite reclamation and recycling.

   5. Trend lines for all the above figures over a two-
      to four-year period.

   6. Changes in manufacturing or waste manage-
      ment practices which result in any changes noted
      in trend lines.

   7. Potential exposure figures, to the extent feasible,
      for selected wastes as well as figures for changes
      in the volumes generated or in methods or levels
      of recycling, treatment, or disposal.
    8. Toxicity and Risk: updated and expanded hazard
      assessments and dose-response estimates for con-
      stituents in selected waste streams.

    9. Environmental Impact Assessments for selected
      wastes with respect to the identification of recycling,
      treatment, and disposal  practices.

   10. Consolidated human health and environmental
      risk assessments - comprehensive and
      multi media.
•  New Generator Survey
   Biennial Report
   Section 8 of the Toxic Substances Control Act (TSCA)
   including information from TSCA's proposed compre-
   hensive Assessment Information Rule (CAIR),
                         and/or
   The proposed Toxic Chemical Inventory in Title III of the
    pending Superfund Reauthorization Act.

   Same sources as listed for #1.
   Current Treatment,  Storage and Disposal
   (TSD) Survey.
   TSD Survey.
   New Generator Survey
   TSCA Section 8.
   Surveys on commodity prices by the Dept.
   of Commerce.
   New Generator Survey.
   New Recyclers Survey.
   Use all the sources mentioned above.
   Biennial Report.
   Proposed CERCLA mass balance data.
   TSCA Section 8.

   Exposure assessements from EPA's Integrated
   Environmental Management Division (IEMD)
   Regional Hazardous Waste Pilot Project.
   Resource Conservation and Recovery Act (RCRA)
    Risk-Cost Analysis Model.

   Data developed by the EPA Office of Research and
   Development (ORD)
    Case studies developed by ORD.
    Modeling and analytical studies developed
    by ORD or OSW.

    Synthesis of data from all the above sources.
                                                  — 128 —

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                                                                      Recommendations
A Core Waste Minimization Program


       Many economic incentives are already influencing industry to reduce, reuse, and

recycle hazardous wastes.  As noted in this report, these include current compliance

requirements for environmental regulations, rising management costs, concern for future

liability, and rising costs for raw materials.


       As the land disposal restrictions come into force,  and costs for treatment and

disposal of wastes increase, these existing incentives for waste minimization will be

intensified.  But because of informational, technical, and  economic  barriers, many

generators may not act on economically-beneficial opportunities to minimize wastes.  As

discussed in Chapter Three, EPA believes that, given the current information base,  the

most effective immediate action the Agency and the States can take is to help generators

overcome those barriers.  Several States have already devoted considerable resources to

such waste minimization programs (see Chapter Two).  Although EPA does currently

provide some support for technical assistance to the States, funding is limited.


       Recommendations: The following short-term activities should be adopted as a core
waste minimization program:

       •      EPA should develop and publish an Agency policy statement on
              waste minimization including  informal  guidance to  generators
              concerning what constitutes waste minimization  under the reporting
              and certification requirements of RCRA. To the extent possible, this
              guidance  should be specific to particular industrial sectors and
              processes.

       •      EPA should substantially expand its role in providing for technical
              and informational assistance to generators, including small quantity
              generators. Because the States have more direct contact with the
              generators and hence have more awareness of generators' needs and
              problems, EPA's primary role should be to support and encourage
              the States in the development of their programs.

       •      In the event that mandatory controls are needed in the near term to
              control the volume or  toxicity of wastes generated by particular
              industries, EPA would use the authority that currently exists under
              Section 6 of the Toxic Substances Control Act.
                                    — 129 —

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Recommendations
                 An appropriate EPA sponsored technical assistance effort could
                 include:

                 — Assistance to specific States to initiate and develop programs for
                    providing direct  assistance  to generators (e.g., using waste
                    audits, dissemination of technical information, applied research
                    on new applications of existing technology).  Special attention
                    would be given to the unique needs of small quantity generators.

                 — Highlight ongoing research and development and  economic
                    feasibility  studies that might serve an entire region or have
                    regional application (e.g., central  treatment  and recovery of
                    electroplating sludges).

                 — Development of an information system on waste minimization,
                    accessible  by the States, including the following types of
                    information on waste reduction and recycling:

                        (a) Technical literature  and  data on  waste minimization
                           organized by waste stream, industrial process,  and
                           industrial sector,

                        (b) Status and interim or final results of current or planned
                           waste minimization R&D projects carried out under State
                           or Federal auspices;

                        (c) Economic data and analyses on technology investment
                           costs and recovery periods.

                 — Reciprocally elements of an expanded EPA supported State
                    technical assistance  program are expected  to include such
                    elements as:

                        (a) Technical information resource collection consisting of
                           current literature, newsletters, directories of available
                           recyclers and information hotlines.

                        (b) Technology  transfer programs  that directly assist
                           individual generators or selected industry groups with
                           onsite waste  minimization  audits,  onsite  needs
                           assessment, and planning and implementation  of focused
                           seminar training activities.

                        (c) Information planning and development activities to fulfill
                           generators' needs for technical analysis—prerequisite
                           for new investments in research and development or use
                           of alternative technologies.
                                        — 130 —

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                                                                      Recommendations
                    (d) Administrative support and coordination of State-wide
                       research to identify industries and waste streams creating
                       the largest local hazardous waste problems as well as to
                       identify and analyze economic and institutional barriers
                       to waste minimization innovation.

                    (e) Administrative support and coordination of State-EPA
                       supported waste minimization demonstration or research
                       projects  in  cooperation with State universities and
                       specific industry groups.

                    (0 Monitoring  and  coordination  for  planning  and
                       development  of a centralized national information
                       collection and dissemination system.


       In order that the technical assistance program can  remain  a long-term responsive

and dynamic aspect of EPA's waste minimization project, the Agency should establish a

formal process of coordination with  the States to ensure a continuing and responsive

technical assistance and outreach effort over the long term.


       In addition, EPA will continue to examine specific elements of this "core" waste

minimization program, and make recommendations, if needed, for legislative changes to

the existing waste minimization requirements as part of the next  RCRA reauthorization.

Possible options to consider would be modifications to the existing certification

requirements including:

       •      Prohibiting,  where appropriate, certification  of certain types of
              waste management practices as waste minimization.

       •      Providing, where appropriate, formal guidance as  to what may be
              certified as  waste  minimization.   Such  guidance could apply
              generally or to specific industrial sectors.  Flexibility for appeals and
              exceptions must also be provided. (In any case, where a generator
              was not carrying out one of the waste minimization activities that
              had been listed as certified, the generator could specify an alternative
              waste minimization activity, and a rationale for certifying it as waste
              minimization. Unless the Agency were to place the activity on the
              list of proscribed practices, it would have to accept the generator's
              self-certification).

       •      Requiring generators who have not undertaken any  of the approved
              waste minimization activities, but who certify that there is no
              economically practicable alternative to their present waste reduction
                                    — 131 —

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Recommendations
                 and management practices, to provide a written justification of such
                 certification.

   Longer Term Options


          Only after the land disposal restrictions and other principal provisions of the HSWA
   go into effect, and after EPA has developed the needed additional data on hazardous waste
   generation and management, will it be possible to assess whether standards of performance

   (including phasedown permits) or required management practices (such as waste audits) are

   necessary to achieve additional reductions in the volume or toxicity of wastes. The Agency
   therefore recommends that consideration of new mandatory programs be deferred until after

   such data can be gathered and analyzed, and proposes to report back to Congress on the

   desirability and feasibility of prescriptive approaches two years after the first of the land

   disposal restrictions has been fully implemented. Excluding the possibility of a one-year

   case-by-case extension (renewable for one additional year), the first of the land disposal

   restrictions will be fully implemented in November of 1988; EPA will therefore make its
   next formal report on this subject in December of 1990.

          Recommendations: The following longer term activities should be adopted  to

   augment the core waste minimization program consistent with the findings of  additional

   technical and policy analysis:

          •      EPA recommends that any decision on whether  to require the
                 adoption of performance standards or specific waste management
                 practices to bring about waste minimization be deferred until there
                 has been time to evaluate trends and residual problems evident in the
                 data.
                  i
                 EPA will  report to Congress on the desirability of prescriptive
                 approaches to waste minimization two years after the first of the land
               1  d)sposal restrictions  have been fully  implemented. Since,  with
                 possible two-year variances, the first of the  land bans will be fully
                 implemented in November of 1988, EPA  will make its next formal
                 report to Congress in December of 1990. This  will provide EPA
                 with an opportunity  to review changes  in  waste generation and
                 management patterns.
                                        — 132 —

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                                                                      Recommendations
                                   Conclusion

       EPA still has much to learn about waste minimization and recognizes that the
cooperation of private and public waste generators will be invaluable as it moves toward the
development of sound long-term policy. It also believes, however, that the incentives and
trends  within the hazardous waste management system are unmistakable, and that the
program presented here comprises the most positive and constructive steps that can be
taken at this time.  Aggressive action in favor of waste minimization is clearly needed, but a
major regulatory program—at least for the present—does not seem desirable or feasible.

       Incentives for waste minimization are already strong, so EPA must capitalize on
them.  Most often lacking is access to the information that will demonstrate the economic
benefits of waste minimization to industry, overcome logistical problems, and help develop
creative new approaches.  This can be  provided by a strong technical assistance and
information transfer effort, which can  achieve through voluntary means what would be
inefficient and possibly counterproductive to attempt through regulation. Unfortunately,
non-regulatory programs have often failed at EPA for lack  of statutory or regulatory
deadlines, and institutional  advocacy. For such a program to work, it must be given strong
organizational support within the Agency.

       EPA is willing  to make this commitment, and seeks  support from Congress to
ensure its success.
                    Environmental Prolec
                                     — 133 —

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