EPA-600/1 -76-01 /A
Socloeconomlc Environmental
Studies Series
Water Quality Guidance
DEVELOPMENT OF
RESIDUALS
MANAGEMENT STRATEGIES
AN EXECUTIVE
SUMMARY
U.S. Environmental Protection Agency
Washington, D.C. 20460
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1
THE SUBJECT OF THIS SUMMARY
THE INTENDED AUDIENCE
THE PURPOSE OF THE STUDY
DEFINITIONS
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1. INTRODUCTION
THE SUBJECT OF THIS SUMMARY . . .
is a study of the development of strategies for managing the residuals
that result from human activity. Conducted by Indiana
University's School of Public and Environmental Affairs, for the U.S.
Environmental Protection Agency, the study offers an
approach to the problem of residuals management.
Residuals—"leftovers" that inevitably result from all human
activity—are often referred to as "wastes" or "pollutants." The idea
of residuals management includes both the concept of waste
management and pollution control.
As any manager or administrator knows, it is often difficultto decide
which approach to a residuals problem will work best. This study
contains step-by-step guidelines for identifying alternate residuals
management strategies and then evaluating and selecting a strategy.
The selected strategy will provide decision makers with an
economical and effective means of solving their problems.
THE INTENDED AUDIENCE . . .
of this study includes all of the people who make informed decisions
about residuals management:
1. Elected officials—mayors and governors, city
councils, and state and national legislators;
2. Appointed administrators—commissioners of city
departments, directors of state agencies;
3. Public interest groups—special interest groups and
groups with general environmental objectives;
4. Planners and analysts for city and state
government;
5. Managers of residuals generators, both publicly and
privately owned.
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THE PURPOSES OF THE STUDY ... ARE TWOFOLD
Generally, the study is designed
1. To identify and describe a number of means for achieving
environmental quality in a fair and cost-effective way;
2. To help decision makers and managers find and implement
the best ways for them to manage residuals in order to
enhance environmental quality.
Specifically, the study seeks
1. To help administrators develop and maintain flexibility in
selecting methods for improving the environment;
2. To protect citizens from inequities and hardships which
result from implementing environmental controls without
considering a range of possible alternatives;
3. To reduce the costs of environmental quality to the general
taxpayer by
• reducing the need for publicly financed residuals
treatment works;
• reducing operation and maintenance costs of
publicly owned and operated facilities;
• reducing the cost of public supervision and
regulation of discharging residuals into the
environment; and
• shifting the cost of environmental protection and
improvement to residuals generators and dis-
charges.
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DEFINITIONS
Physical Methods: Technological orstructural actions which result in
a change of the quantity, type, timing, or spatial location of residuals
discharged into the ambient environment and/or improve the
assimilative capacity of the natural environment. Examples of
physical actions are changes in production process technologies,
changes in the operating rate of the production process, treatment of
residuals (changing form), in-stream aeration, and so on.
Implementation Measures: Non-structural actions such as laws,
regulations and ordinances to induce implementation of desired
physical methods. Implementation measures also achieve
established goals and objectives consistent with established
policies. Examples of implementation instruments include
performance and product specifications, emissions (residuals)
limitations, zoning, federal funding for treatment plants, accelerated
depreciation for pollution control devices, phosphate limitation on
home laundry detergents, and so on.
Institutional Arrangements: The established public organizations at
all levels which establish goals and objectives, which have the
authority to identify and adopt implementation measures.
Institutional arrangements also include intra-organization and inter-
organization arrangements. Examples include federal, state, city,
county, regional, and interstate legislative and administrative
bodies.
Residuals Management Strategy: A combination of physical
methods, implementation measures, and institutional arrangements
adopted for the purpose of reducing or eliminating the discharge of
residuals into the environment and/or reducing or eliminating their
impact if discharged—i.e. achieving environmental quality
objectives.
Physical methods may be viewed as the "hardware" as compared to
the other components which may be viewed as the "software" of the
residuals management strategy.
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2
Siudy
THE PROBLEM
THE CAUSES
THE SOLUTION
THE PROCESS
THE PROPOSED SYSTEM
EXAMPLES
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2. THE STUDY
WHAT IS THE PROBLEM?
The problem is residuals. In response to demand, goods and services
are produced; the production process itself creates some residuals.
After the goods and services reach the consumer, they are
"consumed"; this use also results in residuals.
WHAT CAUSES THE PROBLEM?
1. We have not considered environmental resources as items to "cost
out" when combining the production resources of labor, capital,
and raw material to produce goods and services.
We have used environmental resources—air, water,
land—relatively freely in producing and disposing of goods; that
is, we have combined our production resources in such a way as to
exploit environmental resources as extensively as
possible—because environmental resources have cost little or
nothing.
2. We have built up a consume-and-discard way of life. When goods
like cars, appliances, clothes, or even buildings no longer provide
the kind of utility we think we want, we "throw them away."
3. We have assumed that "away" is in the environment, ignoring a law
of Nature: the conservation of mass and energy —the same
quantity of material that went into a product remains in existence,
even if the product itself does not. A product is not really
"consumed," it merely changes form. It usually changes into the
form of residuals which are deposited into the environment.
4. Until recently, we considered the environment adequate to the
task of assimilating residuals as part of our use of environmental
resources. We are now beginning to realize that the environment
has only a finite capacity to assimilate some residuals from
production and consumption; and we are beginning to seethatthe
quality of human life suffers when the environment is taxed
beyond that finite capacity.
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THE ENVIRONMENT IS A FINITE SOURCE OF MATERIALS WITH A
FINITE CAPACITY TO ASSIMILATE RESIDUALS
FINITE ENVIRONMENTAL
RESOURCES (AIR, WATER,
LAND) USED AT LITTLE
OR NO COST
TO PRODUCER
DEMAND FOR
GOODS AND
SERVICES
ENVIRONMENTAL
RESOURCES
PRODUCTION
OF GOODS AND
SERVICES
CONSUMPTION
OF GOODS
AND SERVICES
NON-ASSIMILATED
RESIDUALS
DUMPED INTO A
FINITE ENVIRON-
MENT AT NO COST
TO THE DUMPER
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THE SOLUTION TO THE PROBLEM . . . MANAGING RESIDUALS
Through their government officials, people make a number of
decisions regarding environmental improvement. Such decisions
consider
1. Factors Influencing Plans for the Environment
• level of environmental quality desired
• costs of achieving that quality
• who bears those costs
• benefits of enhancing environmental quality
• strategies for achieving that quality
2. And Constraints on Environmental Management
economic
legal
political
technological
social
These basic decisions are used to establish long-range goals for
levels of environmental quality to be achieved and interim goals, or
objectives, to be reached.
Goals and objectives are set up during the planning process, which
also includes identifying and selecting strategies for achieving goals.
Planning and strategy selection are essential to effective residuals
management.
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A SYSTEMATIC PLANNING PROCESS CONSIDERS THE PROBLEM
AND THE FACTORS INSTRUMENTAL TO ITS SOLUTION.
1
ENVIRONMENTAL
PROBLEM
LEADS TO
ESTABLISHING
THAT ARE
TRANSLATED
INTO
WHICH
PROVIDE
BASIS TO
WHICH PROMPTS
DEVELOPMENT
OF
STRATEGIES
SPECIFIED LEVELS
OF ENVIRONMENTAL
QUALITY (SPECIFIC OBJECTIVES)
TO ACHIEVE
Constraints such as political, economic, legal,
scientific, technological, and social
considerations affect this process, principally in
Steps 3, 4, and 5.
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THE PROCESS
Through the systematic identification, selection, and evaluation of
strategies for residuals management, administrators can determine
the most effective ways to attack an environmental quality problem.
The process is outlined in the following pages.
THE PROPOSED SYSTEM FOR RESIDUALS MANAGEMENT
1. UNDERSTAND THE RESIDUALS GENERATION AND
DISCHARGE PROCESS
Within the framework of an overall environmental quality
management system, the proposed system for managing
residuals begins with a consideration of the residuals
generation and discharge process as depicted in a simple
model.
WHAT IS THE RESIDUALS GENERATION AND DISCHARGE
MODEL?
In response to producer and consumer demands for
goods and services, the production process brings
together raw materials, labor, and energy to produce a
product or service. The production process also results
in non-product outputs (outputs which are not the
primary or intended product). Non-product outputs
may be utilized or discarded, depending on their
economic value. If utilized, they are intermediate
products; if discarded, they are residuals. In other
words, residuals are non-product outputs which would
not be recycled, reused or recovered unless some type
of environmental or pollution control were imposed on
the producer.
Residuals can be handled by different methods:
1. Modified or treated pn-site;
2. Collected, and modified or treated, off-site;
3. Discharged into the environment without modi-
fication or treatment.
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THE RESIDUALS GENERATION AND DISCHARGE MODEL
1
DEMAND
FOR GOODS
PRODUCTION
PROCESSES
RESIDENTIAL
MANUFACTURING
TRANSPORTATION
UTILITIES
AGRICULTURAL
MINING
RECREATION
ON-SITE
MODIFICATION
OF RESIDUALS
GASEOUS
LIQUID
SOLID
ENERGY
OFF-SITE
MODIFICATION
OF RESIDUALS
ENVIRONMENT
LAND
AIR
WATER
ENVIRONMENTAL
PROCESSES
TRANSFORMATION
DILUTION
DEGRADATION
STORAGE
AMBIENT
ENVIRONMENTAL
QUALITY
LAND
AIR
WATER
RECEPTORS
HUMANS
ANIMAL
PLANTS
MATERIALS
OTHER
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2. IDENTIFYING THE RESIDUALS MANAGEMENT
STRATEGY
• WHAT IS A STRATEGY?
A residuals management strategy combines three
components—physical methods, implementation
measures, and institutional arrangements—to reduce or
eliminate the discharge of residuals into the
environment, and/or to lessen their impact on
environmental quality ii they are discharged.
• HOW TO FORMULATE ALTERNATIVE STRATEGIES
After determining goals and objectives, and identifying
"problem sources, alternative residuals management
strategies can be formulated in three steps:
First: Identify physical methods which can be
introduced at each point along the residuals
generation and discharge model.
Second: Identify implementation measures which will
induce implementation of the identified
physical methods.
Third: Identify the institutional arrangements which
have the capacity to- adopt, implement and
enforce the implementation measures.
NOTE:
Since the residuals generation and discharge process take place in a certain area, external
factors particular to that area may well determine whether a leftover has some economic
value or none, thus determining the degree of its usefulness to the producer as an
intermediate product or its uselessness as a residual.
External factors such as prices and supplies influence the production/consumption process
and therefore the residuals generation and discharge process. Other factors such as import
taxes, unemployment compensation, or minimum wages may affect materials, capital, or
labor. The administrator should consider these factors, which may heavJly influence the
generation and discharge process, when planning strategies for residuals management.
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DETERMINE
GOALS AND
OBJECTIVE
IDENTIFY
PROBLEM
SOURCES
IDENTIFY
PHYSICAL 1
METHODS /
IDENTIFY
IMPLEMENTATION
MEASURES
IDENTfFY
INSTITUTIONAL
ARRANGEMENTS
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1
RESIDUALS MANAGEMENT STRATEGIES ARE COMPRISED OF
THREE COMPONENTS
COMPONENTS DEFINITIONS EXAMPLES
1
3
PHYSICAL
METHODS
IMPLEMENTA-
TION
MEASURES
INSTITUTION-
AL ARRANGE-
MENTS
• Specific physical action,
technologically based,
that result in
• changingthequantity,
type, timing, orspatial
location of discharged
residuals; or
•improving the
assimilative capacity
of the environment.
• Measures such as
regulations, laws, or
ordinances that induce
residuals generators to
use appropriate phy-
sical methods for con-
trolling residuals.
• Governmental and
administrative agencies
that can
• select, initiate,
operate, and enforce
physical methods,
and
• identify and adopt
implementation
measures.
• Changing production process
technologies
• Changing the operating rate of
the production process
• Treating residuals
• Changing the environment to
increase its assimilative
capacity
• Limiting residuals emissions
• Passing zoning regulations
• Authorizing federal funding for
treatment plants
• Depreciating pollution control
devices at an accelerated rate.
• Federal, state, local, regional,
and interstate legislative and
administrative bodies.
• Inter-agency and intra-agency
planning and cooperation.
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ADMINISTRATORS CAN CONSIDER A NUMBER OF METHODS FOR
EACH ALTERNATIVE:
Alternatives
Methods
REDUCTION IN GEN-
ERATION OF
RESIDUALS CAN BE
ACCOMPLISHED BY:
Changing final demand for the mix and/or characteristics
of goods and services—e.g., switching from disposable to
returnable containers.
Changing production processes—e.g. if sulfurfumesfrom
an open-hearth furnace create air pollution, a different
method of manufacturing steel, such as the basic oxygen
furnace, may be introduced.
Changing raw material inputs—e.g., changing from high
sulfur content coal to low sulfur content coal would help
reduce the residual S02.
MODIFICATION OF
RESIDUALS AFTER
GENERATION CAN BE
ACCOMPLISHED BY:
Residuals modification and/or recovery on-site.
Residuals modification and/or recovery off-site in a
collective facility.
Residuals modification to a less harmful form of residual
in order to eliminate or reduce its adverse effect on the
environment.
IF RESIDUALS ARE
DISCHARGED INTO THE
ENVIRONMENT, THE
ASSIMILATIVE CAPA-
CITY OF THE ENVI-
RONMENT CAN BE IM-
PROVED BY:
Changing the spatial distribution of production activities
Changing the timing of production activities
Changing the spatial distribution of the discharge of
residuals.
NOTE:
There are many points in the residuals generation and discharge model that can be
identified and used as "valves" to control the process; before turning those valves,
however, administrators should define specific environmental problems andtheirsources,
establishing a relationship between those problems and possible strategiesforeliminating
or reducing them.
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MODIFICATIONS IN THERESIDUALGENERATION AND DISCHARGE MODEL
PROCESS
MODIFICA-
TION
METHODS
1
DEMAND
MODIFICATION
OF
DEMAND
1. REDUCE OR
ELIMINATE
DEMAND
2. CHANGE TIME
AND/OR PLACE
OF DEMAND
2
PRODUCTION
MODIFICATION
OF
PRODUCTION
1. CHANGE
LOCATION OF
ACTIVITIES
2. CHANGE TIME
OF ACTIVITIES
3. CHANGE RAW
MATERIAL
INPUT
4. CHANGE
ENERGY INPUT
5. CHANGE MIX OF
PRODUCT
OUTPUTS
6. CHANGE
PRODUCT
SPECIFICATIONS
7. CHANGE
PRODUCTION
PROCESS
3
RESIDUALS
PROCESSING
OF
RESIDUALS
1. ON-SITE
MODIFICATION
AND/OR
RECOVERY
2. OFF-SITE
MODIFICATION
AND/OR
RECOVERY
4
ENVIRONMENT
MODIFICATION
OF
ASSIMILATIVE
CAPACITY
1. MAKE BETTER
USE OF
2. INCREASE
CAPACITY OF
5
RECEPTORS
FINAL
PROTECTIVE
MEASURES
1. INDIVIDUAL
2. COLLECTIVE
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3. CLASSIFYING AND IDENTIFYING STRATEGIES
• THREE WAYS OF CLASSIFYING COMPONENTS OF THE STRATEGY:
1. Classify physical methods according to their points of
introduction in the residuals generation and discharge
model. Relate these methods to the source activities that
cause the pollution problem.
2. Classify implementation measures according to their effect
or purpose—regulatory, economic, administrative,
informative. Relate physical methods to implementation
instruments necessary to ensure their use.
3. Classify institutional arrangements according to different
levels and types of government. Relate implementation
measures to institutional arrangements which can enact
such measures.
4. RELATE COMPONENTS TO THE MODEL
Starting at each point of introduction along the residuals generation
and discharge model—e.g., final demand, production
process—identify applicable physical methods, implementation
measures and institutional arrangements that will accomplish the
desired environmental objectives.
5. ENFORCING THE STRATEGY
After choosing appropriate strategies, administrators must, of
course, apply and enforce them. The study does not deal in depth with
implementing and enforcing residuals management strategies, but
rather concentrates on steps for developing and evaluating strategy
alternatives.
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6. DEVELOPING AND EVALUATING A RESIDUALS MANAGEMENT
STRATEGY INCLUDES THE FOLLOWING SEVEN STEPS:
-| DEFINE THE
.
PROBLEM
SPECIFY ALTERNATIVE
PHYSICAL METHODS
ANALYZE ALTERNATIVE
PHYSICAL METHODS
IDENTIFY ALTERNATIVE
IMPLEMENTATION
MEASURES AND
INSTITUTIONAL
ARRANGEMENTS
FORMULATE ALTERNATIVE
RESIDUALS MANAGEMENT
STRATEGIES
EVALUATE ALTERNATIVE
RESIDUALS MANAGEMENT
STRATEGIES
7
CHOOSE STRATEGY
FOR IMPLEMENTATION
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STEP1
DEFINE THE PROBLEM
1. Define the problem in terms of
• Residual characteristics: gaseous, liquid, solid, energy
• Sources: residential, manufacturing, transportation,,
utilities, agriculture, mining, and recreation.
• Media: air, water, land.
2. Classify residuals in terms of their intermedia effects—the way
they interact with two or more media.
STEP 2
SPECIFY ALTERNATIVE PHYSICAL METHODS
1. Specify physical methods in relation to sources of the problem.
2. Differentiate among sources in terms of possible points of
introduction in the residuals generation and discharge process.
NOTE:
These two steps provide a "baseline" inventory and analysis of problems.
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STEP 3
ANALYZE ALTERNATIVE PHYSICAL METHODS
1. Analyze methods in terms of
• Physical effects
• Economic effects.
2. Utilize models if resources are adequate; if resources are limited,
call upon a panel of advisors or experts.
STEP 4
IDENTIFY ALTERNATIVE IMPLEMENTATION MEASURES
AND INSTITUTIONAL ARRANGEMENTS.
1. Consider actions prescribed by regulations or ordinances, or
actions offering incentives for changes in the production
processes used by residuals generators.
2. Consider agencies at various levels that can oversee and enforce
implementation measures chosen..
STEPS
FORMULATE ALTERNATIVE RESIDUALS MANAGEMENT
STRATEGIES
1. Consider the results that can be expected from each strategy in
terms of
• the environment
• the economy
2. Utilize'information developed in Step 3 for each residuals
management strategy. This information would indicate the
reductions to be achieved for each residual as well as costs for
each strategy.
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STEP 6
EVALUATE ALTERNATIVE RESIDUALS MANAGEMENT
STRATEGIES. SUGGESTED CRITERIA:
1. Physical effects:
• Reduction of residuals (quantity)
• Improvement in environmental quality
2. Economic effects:
• Direct costs: expenditures required to respond to a
particular strategy. These costs include investment and
operating costs for control equipment, incremental costs of
fuel switching, costs of production process changes,
emission monitoring costs, administrative costs for
accounting and reporting, costs of supervising personnel,
and costs required for implementing and enforcing a
strategy.
• Other economic effects to society: employment, income to
other firms, change in income tax and property taxes,
increased cost of user goods, and dislocation of people.
3. Legal considerations:
• Enabling legislation
• Legal precedents
• Susceptibility of implementation measure to legal challenge
• New legislation required
4. Administrative considerations: flexibility of the strategy in terms
of
• Seasonal variations
• Changes in prices, technology over time
• Ability of the strategy to incorporate new information
• Effects of new goals and priorities
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5. Time considerations:
• Time required to implement strategy
• Time needed to obtain first results and/or benefits
6. Political considerations:
• Feasibility of adoption
7. Public Responsiveness:
• Public response survey
STEP?
CHOOSE STRATEGY FOR IMPLEMENTATION
1. Use the materials generated in the evaluation process in Step 6 to
choose the most practical strategy.
2. Obtain advice from other sources as necessary.
NOTE:
If those who participate in the development of the residuals management strategy are also
those responsible for its implementation and enforcement, they will have a better
understanding of the obligations they are assuming. They will also have a more realistic
view of the results they can expect in terms of reduced residuals discharge into the
environment, the economic and social effects of that reduction, and the outlook for
improvement in environmental quality.
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3 Appli
CATIONS
WHAT TO LOOK FOR
WHERE TO LOOK
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3. THE APPLICATIONS
WHAT TO LOOK FOR
The study contains an extensive bibliography of practical
publications covering many aspects of environmental pollution
control. These publications range from Alternatives to the Internal
Combustion Engine through The Zoning Dilemma. A number of
theoretical references are noted at the end of each chapter in the
study.
WHERE TO GET THEM
Information on availability of copies of "Development of Residuals
Management Strategies" can be obtained from:
Mr. Charles N. Ehler
Program Manager
Regional Environmental Management
Office of Research and Development
U.S. Environmental Protection Agency
401 M Street, S.W.
Washington, D.C. 20460
Professor Richard Howe
School of Public and
Environmental Affairs
Indiana University
400 East Seventh Street
Bloomington, Indiana 47401
Professor Nicholas L. White
School of Law
Indiana University
Bloomington, Indiana 47401
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4 CoNclusioNS
CONCLUSIONS
RECOMMENDATIONS
PROJECT IDENTIFICATION
25
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4. CONCLUSIONS & RECOMMENDATIONS
CONCLUSIONS
1. H uman activity results in residuals that are generated and discharged
into the environment, affecting its quality. To the extent that human
activity can be changed, environmental quality can be enhanced.
2. A planning process to identify, evaluate, and select strategies for
overcoming or alleviating environmental problems caused by residuals
discharge can be based on the framework of a residuals generation and
discharge model.
3. This model identifies different methods for complying with recentfederal
legislation that requires a specified level of environmental quality.
4. This model provides a method for identifying and evaluating residuals
management strategies. These strategies are helpful in the formulation of
environmental assessments and impact statements.
5. The residuals management strategy identifies many points in the
residuals generation and discharge model at which physical methods can
be introduced, or changes made, to reduce or alleviate the effect of
discharging residuals into the environment.
6. A planning process that uses the residuals management model can prove
beneficial to elected officials and administrators at all levels of
government. It is particularly useful to local and regional officials who
must deal with problems first-hand.
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RECOMMENDATIONS
1. A planning process for residuals management (pollution control) could
use the residuals generation and discharge model as a framework.
2. The planning process for identifying residuals management strategies
should start without considering legal, political, technological, or social
constraints so that officials can examine the broadest possible range of
alternatives.
3. Decision makers should consider all reasonable alternatives; they should
not limit themselves to conventional, end-of-the-pipe solutions to
residuals problems.
4. A planning process that uses the residuals generation and discharge
model should be followed by consumers, labor, business, and
government—by all decision makers concerned about environmental
quality—so that they share a common base for their residuals
management decisions.
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PROJECT IDENTIFICATION
AUTHORS: Richard S. Howe, Professor,
School of Public and Environmental Affairs
Nicholas L. White, Professor,
School of Law
Indiana University
Bloomington, Indiana
GRANT: R-803313-01-1
Regional Environmental Management
Program
Washington Environmental Research Center
U.S. Environmental Protection Agency
Washington, D.C. 20460
PROJECT OFFICER AND MANAGER: Charles N. Ehler
PREPARED FOR: Office of Research and Development
U.S. Environmental Protection Agency
Washington, D.C. 20460
EXECUTIVE SUMMARY DESIGNED BY: Gary Simmons
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GPO 898-997
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