vvEPA
                 United States
                 Environmental Protection
                 Agency
Office of Solid Waste
and Emergency Response
Washington, DC 20460
EPA/530-SW-86-033
October 1986
                 Solid Waste
            Report to Congress
          Minimization of Hazardous Waste
                     Appendices

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Report to Congress
Minimization of Hazardous Waste
         Appendices
          Prepared by
       Office of Solid Waste
 U.S. Environmental Protection Agency
        401 M Street, S.W.
      Washington, D.C. 20460
          October 1986


          Printed on 75% Recycled Paper

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                     TABLE OF CONTENTS
APPENDIX A: OPTIONS
      Introduction 	A-l
      Performance Standards Limiting the Volume
         or Toxicity of Wastes from Generators	A-l 1
       Prohibit or Restrict Generation
         of Specific Wastes	A-31
       Waste Generation or Management
         Phasedown Permit Program	A-40
       Requirements for Certification of
         Waste Minimization	 A-57
       Ban the Landfilling, Treatment,
         or Incineration of Potentially
         Recyclable Wastes	A-66
       Segregation of Wastes	A-73
       Mandatory Waste Audits	A-81
       Technical Assistance
         Programs	A-91
       Procurement Practices	A-109

APPENDIX B
       Waste Minimization Options
         Not Considered	B-l

APPENDIX C
       History of OSW Waste Minimization	C-l

APPENDIX D
       Toxicity Scoring Methodology	D-l

APPENDIX E
       Waste Minimization Correspondence
         and Briefings	£-1

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Appendix A





 OPTIONS

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                                                               Introduction: Appendix A
                            OPTIONS EVALUATION
                                  Introduction

       Appendix A provides a detailed evaluation of the options summarized in Chapter
Three. The purpose of this appendix is to present a more complete analysis of the impacts
of each option, as well as to explore the circumstances and conditions under which the
option might be useful for meeting the waste minimization objectives.  The evaluation
criteria remain identical to those found  in Chapter Three. They cover the specific
characteristics of each option  (i.e.,  technical  effectiveness, impacts on industry, and
implementation issues).  Two additional sections provide (1) a general summary of the
option (e.g., description, how it will  work, and the purpose for which it would be used)
and (2) recommendations for  adoption as part of EPA's overall waste minimization
program.

       The nine options have been grouped into four categories. Three of the categories
selected were mandated  by Congress.  These include performance standards, legislative
changes to RCRA, and management practices.  A fourth option category was added to
cover voluntary activities industry might take to reduce waste generation. Table A-l lists
both the categories and the options.
                                    Page A—1

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Introduction: Appendix A
                                       Table A-l
                              List of Categories and Options
                Option Category
          Options
           1.  Performance Standards
          2.  Legislative Changes to HSWA
          3.  Management Practices
          4.  Other Potions
1. Performance Standards Limiting
     the Volume or Toxicity of
     Wastes
2. Prohibit, Restrict the Generation
     of Specific Wastes
3. Phasedown Permits

1. Modifications to Requirements
     for Certification of Waste
     Minimization

1. Ban the Landfilling, Treatment,
     or Incineration of Potentially
     Recyclable Wastes
2. Segregation of Wastes
3. Mandatory Waste Audits

1. Technical Assistance
   Programs
2. Procurement Practices
           An important issue in evaluating options is the time required for implementation.
    Figure A-l displays a time line that divides each option into three different implementation

    stages (Congressional Action, EPA Program Milestone, and Activity of Industry). These

    are only preliminary estimates, and reflect EPA's best estimate of the shortest realistic

    implementation schedules.



                                    General Summary


           The summary section describes the option.  It explains what the option would look

    like and how it would work.  The summary also  covers the purpose of the option and,

    where possible, describes any previous experience that EPA or State agencies may have

    had with the option.
                                        Page A—2

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                                                                Introduction: Appendix A
                              Criteria for Evaluation


       Waste  minimization options must be evaluated not only in terms  of their

effectiveness in minimizing waste but also in terms of their implementation requirements.

The evaluation should consider the following:

       •       What the private sector costs and other impacts would be on
              industry,  as industry attempts 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 States.

       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 be the burdens on EPA and State resources?

       Each of these areas is discussed separately below.  As is evident from the detailed
discussions contained in this appendix, the information necessary to properly answer many
of these questions 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 that are generated or that would otherwise be sent to land  disposal (i.e., not
recycled).
                                    Page A—3

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Introduction: Appendix A
          Volume reduction: Volume reduction is a 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, 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?


          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 of the
                 option?


          Other technical effectiveness issues: There may be additional criteria under this

    heading that are important to some options and not to others.  This section will allow a

    more 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 media 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 effectively minimize waste, but  in fact may  only be
                  transferring  pollution to the  air or water.  Questions about such
                  concerns include:
                                        Page A—4

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                                                                 Introduction: Appendix A
             — 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
                 hazardous waste?

       •      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 are affected by this
                 option, 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 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 transfer), 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 the 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 to measure it?

Impacts on industry


       There are a variety of potential burdens that a particular waste minimization option
might put on industry, especially since several of them 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.
                                     Page A—5

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Introduction: Appendix A
          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 in regard to 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 to industry:  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  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 distort 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?
                                        Page A—6

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                                                                Introduction: Appendix A
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 depend 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
others it may require extensive Congressional legislation. The types of questions that need
to be answered are:
      r •      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?
                                     Page A—7

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Introduction: Appendix A
          Appropriate target industries: Not all the options arc 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.  Performance Standards, for
   example, might be a satisfactory means to minimize waste, but the type of standard would
   vary between the designated industries and types of waste streams. 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?

          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
                 regulated sector)?

    Other Considerations

          This final category covers criteria 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.
    The 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
                                        Page A—8

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                                                  Introduction: Appendix A
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 variance and other procedures required
   to modify conditions?

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

— 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 must 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?
                       Page A—9

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Introduction: Appendix A
                 — Does it allow industry to take legitimate 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 types 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?

                 — 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?
                                       Recommendations


           This section will discuss the circumstances and conditions under which the option

    would be useful for waste minimization.  It may not be possible to draw definitive

    recommendations, since many  of the ramifications  of the options are still unclear.

    However, to the extent  possible, the recommendations will stress the desirability and

    feasibility of implementing any changes in waste minimization policy mandated in the

    Hazardous Solid Waste Amendments (HSWA) of 1984.
                                       Page A—10

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                                                                          Performance Standards
                 Performance Standards Limiting the Volume or Toxicity
                               of Wastes from Generators
1.0    General Summary

       Under this option, performance standards setting limits on the volume or toxicity of
waste generation would be enacted as formal and enforceable regulations, similar in
concept and  operation to those established elsewhere for the control of air and  water
pollution (for example, under the Clean Air Act and the Clean Water Act). Performance
standards of this type could be applied either to an individual industry, to a particular waste
generating operation within an industry, or to common processes among several different
industries.  A major difference in this case, however, is that while performance standards
for air and water pollution are usually based on  pollution control procedures following
production, performance standards for waste minimization would commonly be based on
changes within manufacturing processes themselves.1 Performance standards  based on
        A reduction in the generation of metal hydroxide sludges or spent etchants might be
        required of printed circuit board manufacturers, for example, based on assumptions as to
        the additional reductions that could be made if a plant switched from the additive to the
        subtractive process of etching.  A performance standard could be stated in terms of
        volumes of sludge or spent etchant per unit of production.

        Another potential example would be a performance standard requiring reductions in the
        generation of ethyl chloride, vinylidene chloride, or 1-1 dichloroethane in the production
        of vinyl chloride monomer. Such a standard would be based on the assumption that the
        oxychlorinau'on step in the production of ethylene dichloride would be replaced by a direct
        HC1 oxidation step. (This would probably only be economically feasible—if at all—for
        new, large-scale operations.)
        On "the other hand, however, some standards could be based on the use of good operating
        practices preceding a production process. One example of such a practice is segregating
        wastes into distinct, usable components, rather than mixing all the wastes in a way which
        only allows the material to be disposed of. A printing firm, for example, segregated the
        toluene used to clean its presses according to the type and color of the ink cleaned and was
        then able to reuse the toluene to thin future batches of the same ink, rather than having to
        dispose of all the toluene.  A standard requiring such an operating practice might either
        specify the volume of toluene that could be disposed of per cleaning or simply require the
        segregation of the wastes.
                                        Page A—11

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Performance Standards
    assumptions of process change  or process control would require  substantially more
    information on industrial processes than is generally required for air and water pollution
    "end-of-pipe" controls. They also have potentially greater implications for both product
    quality and the economics of manufacturing.

           In some cases, it might be feasible to base a performance standard  on the
    assumption  that  a waste would be  reused  or reclaimed  within the  plant itself.
    (Alternatively, such use could be  mandatory, although such mandatory practices decrease
    the plant's flexibility in meeting  the performance requirements.) Such a requirement or
    assumption, however, could not reasonably be made where the waste could not be recycled
    within the plant itself, since market economics and purity specifications would alter demand
    for the material over time. In order to encourage recycling rather than disposal of wastes,
    without creating rigid recycling requirements or assumptions that might prove to be
    unrealistic, it might be desirable to develop a system  of credits for recycled wastes.
    Essentially,  every  volume unit of a  waste recycled would  be credited against (or
    "subtracted" from) the volume generated.2

           Performance standards could also impose limits on the toxicity of a  waste stream,
    specifying an allowable toxicity limit  per unit volume of the waste stream,  or placing
    ceilings on toxicity per unit volume of production.  To accomplish this,  some type of
    weighted toxicity index would probably have to be developed to characterize a stream's
           The operation of a credit system would depend on the specifications of the performance
           standard.  The relevant elements for a performance standard would include the amount of a
           waste stream, or toxic constituent, generated per unit of production or throughput (the rate
           of generation), the production capacity per hour, and the hours of production operation.
           If only the rate of generation were specified in the standard, the total volume of a waste
           stream that a facility would be permitted to generate could be based either on (a) the actual
           historical capacity utilized and hours of operation at the facility or (b) the assumption that
           the facility may operate at full capacity 24 hours per day. Whichever basis is used, the
           multiple of the  three factors would give the total volume of the particular waste that a
           plant would be permitted to generate.
           Under a credit system, a plant that exceeded its total allowable limit on a particular waste
           stream could come into compliance with the performance standard by recycling some
           proportion of the waste and crediting the volume recycled  against the excess volume
           generated. A credit system could be expanded in scope beyond such straightforward credit-
           for-recycling for a single  waste stream  to create substantial  flexibility within a
           performance standard system.
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                                                                      Performance Standards
toxicity and to set acceptable levels for changes in toxicity once the performance standard

was implemented (as is done using copper toxicity as the basis for the cost-effectiveness

analyses for the effluent guidelines).3


       Performance standards can be selective.  As applied to a particular industry, it

would be possible to select the most appropriate generators within the industry rather than

to apply standards to the industry as a whole.  For instance, a regulation could specify that

only facilities generating waste above a specific volume threshold must meet the standard,

or that only certain processes would have to meet the standard. Similarly, it might be

appropriate to write standards for wastes generated by one industrial process, yet not
regulate the same type of waste if it were generated by a different type of process or by a

different sector of industry. Conversely, similar wastes generated by different industries

could be required to meet identical performance standards.  For example, solvent wastes

from the cleaning of metal parts in several industries might be regulated using the same

standards of compliance (e.g., metal furniture, nonelectric machinery, electric equipment,

transportation equipment).


       The basic choices are as follows:

       •      Performance standards could be  applied to new and existing
              sources, or they could be restricted to new sources—at least in cases
              where costly process  change retrofits would be required of the
              existing sources.

       •      Performance standards could be developed broadly for each major
              industrial category, specifying limitations for regulated pollutants for
              each  process within  that category  (as  is done with effluent
              guidelines).  Alternatively, they could be written for specific  waste
              streams identified because of high volume and/or high toxicity, and
              developed for all sources of that waste stream (as with the National
              Emissions Standards  for Hazardous Air  Pollutants (NESHAPs)
              standards)—e.g., for specific solvents or specific metal-bearing
              wastes.
       The weighted toxicity index would have to take into account a number of factors, such as
       the toxicity value of a chemical compound as measured against a common standard (e.g.,
       some fraction or multiple  of the toxicity of copper), the mass fraction of the toxic
       constituent within the waste stream, and the total volume of the waste stream.
                                     Page A—13

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Performance Standards
          •      Standards could be developed to generally reduce the total volume of
                 hazardous wastes, to more narrowly focus on selectively reducing
                 the most toxic wastes, or sequentially to attack both problems (as
                 with the best practical control technology (BPT) and  the  best
                 available technology (BAT) under the effluent guidelines program).

          •      In addition to, or in place of, performance standards for the actual
                 reduction of waste generation, standards for some industrial
                 processes could specifically incorporate requirements for recycling
                 the waste that has been generated.

          •      A performance  standard  system could be  based entirely on
                 minimization, waste stream by waste stream, of the hazardous waste
                 generated during production, or credit could be given for any of
                 several alternative waste minimization activities. Credits could be
                 used to offset the generation of excess  volumes  of a particular
                 waste. Alternatively, the credits generated from reductions in one
                 waste stream could be used to offset excess generation from another
                 waste stream, as long as the waste stream producing the credits is of
                 equal or greater per unit toxicity than the waste stream with excess
                 generation.  Credit could also be given for waste minimization or
                 sound waste treatment practices such as the following:

                 — Recycling of hazardous wastes, whether by the generator or by
                     another plant or manufacturer,

                 — Over control (beyond that required  under  the  applicable
                     performance standard) of a waste stream by a generator, and

                 — Onsite incineration of hazardous wastes.

           •      Credits could either be allotted on a pound-for-pound basis  (one
                 pound credit for each pound of creditable over control, recycling, or
                 incineration) or on a discounted basis (e.g., credit for one pound for
                 every  two pounds  of actual  creditable  reduction).  In order to
                 prevent the possibility of a credit system wherein the least toxic
                 waste is purposely over controlled to provide credit for a more toxic
                 waste, however, it may  be necessary to restrict credits to the same
                 toxicity class or to only allow the use of credit from a more toxic
                 waste stream to a less toxic waste stream.  Credit use could also be
                 restricted to the individual generator. The system could be made still
                 more flexible if a generator that produces more credits than is needed
                 for its own operations could allot extra credits to other plants.


           Although EPA has  not had experience with  performance  standards for the

    minimization of hazardous wastes, it  has had substantial experience with performance
                                        Page A—14

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                                                                   Performance Standards
standards for the reduction of air and waste pollution.  EPA has  used performance
standards restricting the rates of emission, concentrations, or total volume of various
pollutants as the primary means for achieving pollution control under the Clean Air Act and
the Clean Water Act. These standards and examples provide some guidance as to how the
Agency might adapt performance standards to waste minimization.

       Under the Clean Air Act (Section  111), New Source Performance Standards
(NSPS) for new stationary sources of air pollution are established for each major category
of pollution source for each of the criteria pollutants (e.g., sulfur dioxide, volatile organic
compounds, nitrogen oxides).  The NSPS are emission limitations that apply to new or
modified sources of air pollution in specific industrial categories.  Some of the standards
apply to pieces  of equipment that are not specific to any one industry, such as industrial
boilers fired by  fossil fuels. Other standards apply to equipment that is industry specific,
such as paniculate emissions from fluid catalytic cracking units in petroleum refineries.
Emissions can be expressed in terms of pounds per million BTU heat input (1.2 Ibs SC>2
emissions per million BTU), volume per unit of production or application (e.g., 0.2 kg of
volatile organic compounds per kg of coating solids applied), or a concentration limit of the
total stack gas  volume being  emitted (e.g., 650 ppm SO2 for emissions from copper
smelting  furnaces).

       Some of the NSPS are expressed in terms of a work practice and/or equipment
standard  rather  than a performance standard.  For example, petroleum  dry cleaners are
required to use cartridge filters for solvent filtration systems, and used cartridge filters must
be drained for at least eight hours in their closed housings prior to disposal.

       Existing facilities are regulated under the Clean Air Act through Reasonable
Available Control Technology (RACT) performance standards, which are similar in design
and function to  the NSPS standards for new facilities.  The basic RACT standards are
developed by EPA. The States then incorporate the RACT standards (or equivalent or
stricter standards) into their own regulations for facilities within the State.  EPA reviews the
regulations for consistency with the requirements established by the Agency. Both EPA
and the State have the authority to take direct enforcement action against any facility that
violates the regulation.
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Performance Standards
          NSPS and RACT performance standards apply to emissions of pollutants which,
   though they have adverse health effects, are not currently deemed severely toxic or
   carcinogenic. The only performance standards intended specifically to limit emissions of
   highly toxic pollutants are the National Emissions Standards for Hazardous Air Pollutants
   (NESHAPs).  Functionally, these apply to facilities or classes of equipment in precisely the
   same way as the NSPS and RACT standards.

          In developing such performance standards, primary consideration is usually given
   to  the  efficiencies of  available control technologies (e.g., scrubbers, baghouses,
   incinerators) for cleaning or controlling the emissions after they exit the process units.  In
   some cases, however, consideration may also be given to the potential for process or input
   changes (e.g., operating parameters and type of resins used for the stripping unit for vinyl
   chloride, or the substitution of water based paints for solvent based paints for paint spray
   coating systems).

          Under the Clean Water Act, effluent limitations are established for various
   pollutants through sets of performance standards applied to plants in specific industrial
   categories. For existing sources, the largest volumes of conventional effluent pollutants
   (e.g., total suspended solids, nutrients) are reduced through the Best Practicable Control
   Technology (BPT) currently available.  An additional level of controls, Best Available
   Technology (BAT) economically achievable, is applied with the specific purpose of
   reducing  toxic effluents remaining after the imposition of BPT.  Requirements for new
    sources are developed under the New Source Performance Standards (NSPS). For those
    sources that send their effluents to publicly-owned treatment works (POTWs) instead of
   directly into rivers or lakes, pretreatment standards have been developed both for existing
    sources (PSES) and new sources (NSPS).

           Under both statutes, periodic review of the performance standards is required to
    take into account new technological developments that could lead to more effective control
    of pollutants.   If it is found  that technology has improved the ability to  meet the
    performance standards,  these  standards can then be incorporated into  the regulatory
    requirements.
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                                                                    Performance Standards
2.0    Evaluation

       2.1    Technical Effectiveness

       Volume Reduction

       Although performance standards can provide one of the most direct means of
requiring volume reductions in the generation of hazardous wastes, it is not possible to
determine at present what the effect of such standards would be. Furthermore, current data
are not sufficient to establish a useful baseline for measurement  of progress.  Before
making a decision on the desirability of performance standards, the Agency will have to
differentiate between the projected impacts of performance standards and those occurring as
the result of (1)  increased disposal costs caused by the land disposal restrictions and (2)
concerns for future liability.

       Once this information is available, performance standards would provide a basis for
achieving predetermined percentages of reductions in the generation of wastes.  Facilities
that wished to retain operating permits would have to meet such reduction requirements,
either directly or through credits from recycling or, possibly, from other waste reduction or
treatment activities (see list of creditable alternatives in the discussion above).   .

       Toxicity Reduction

       As noted above, performance standards could also, be used to reduce waste stream
toxicity. Such standards might be analogous to BAT standards  under the Clean Water Act,
where copper toxicity is used  as a  reference point for  effluent guidelines analysis.
Examples of wastes that might be selected for the purpose of toxicity reduction are those
produced by the  organic chemicals industry, which produces some of the most toxic wastes
listed by RCRA (e.g., heavy ends from distillation of vinyl  chloride in vinyl chloride
monomer production [K020] and distillation   bottoms  from  the  production  of
1,1,1—trichloroethylene [K095]4).
       K020 and K095 are both ranked extremely high in toxicity.
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Performance Standards
          Other Technical Effectiveness Issues

          Impact on innovative technology: In some cases, generators might choose to
    simply meet required performance targets rather than look for the most efficient method of
    reducing wastes. A standard that defines  compliance narrowly might therefore have an
    adverse effect on technological innovation.  Such effects have been noted in the past.

          For example, in order to meet RACT standards for volatile organic compounds
    (VOC) required under the Clean Air Act, flexographic printers needed either to use water
    based inks or to install incinerators.  Over the long term, use of the water based inks would
    be the environmentally preferable alternative. But when  the ink companies were unable to
    develop water based inks rapidly enough to ensure meeting the compliance deadline, the
    flexographic printers installed incinerators.  Once the incinerators were installed, there was
    no longer any incentive to continue research on water based inks.^

          2.2    Impacts on Industry

          Economic Impacts

          On the basis of current data, it is impossible to predict what a performance standard
    program for waste minimization would cost industry, either in terms of aggregate capital
    and operation and maintenance costs, or in terms of cost per ton of reduction in waste
    generated or recycled. Performance standards have the  potential, however, for being one
    of the least economically efficient approaches to waste minimization.

           The actual cost of this  type of program for industry would depend on its final
    structure.  For example, the  most costly approach  would probably be to mandate
    performance standards on an individual waste stream basis, with no credit for recycling
    (which could be required by a performance standard in some cases), onsite incineration, or
    over control of other waste streams. The  higher costs and lower economic efficiency of
    this form of performance standard would be due to the rigidity of the performance
    regulations and the absence of any compensating relief for generators.
           Yates and Auberle, November 1985, Bubbling of Volatile Organic Compound Emissions,
           (draft), prepared for the Regulatory Reform Staff, USEPA.
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                                                                    Performance Standards
       An illustration of the discrepancy in costs that can occur among performance
standards can be illustrated by looking at the cost of the various control measures required
under the promulgated effluent guideline for the iron and steel industry.  According to the
cost-effectiveness analysis for the guideline,  the lowest cost per pound equivalent (of
copper) removed was for one of the requirements for hot forming, which had a negative
cost of -$0.54 (the negative cost being due to the value of reused scale collected in the
control equipment).  The  highest cost was  for  sintering, that is,  $89.73 per pound
equivalent removed. One of the control requirements for hot forming contained in the
proposed effluent guideline  would have  cost up to $1,195.31 per pound equivalent
removed.

       If such performance standards were not required in each case without either a
highly flexible credit system  or a phasedown permit system,  such  costs could not be
evened out through market mechanisms. Use of a credit system such as is suggested in the
summary section above would provide a means of moderating the highest cost control
requirements. Further, they would provide an incentive for technological innovation to
find the lowest cost alternatives for all waste streams, since breakthroughs in the control of
one waste stream could be used to reduce the costs of controlling  other  waste streams.

       Several other factors should be considered and analyzed in order to more fully
evaluate the potential costs of performance standards to industry.  They include:
       •      In estimating the incremental cost of reductions  brought about by
              performance standards, the higher disposal costs created by the land
              disposal restrictions should  be regarded as a cost avoided for each
              ton of waste eliminated.  Thus, the net costs of reductions in waste
              generation would be significantly lower than the gross costs.
       •      Credits for recycling could provide some flexibility for performance
              standards requiring reductions in waste generation. The fluctuations
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Performance Standards
                  in the market for recyclable materials, however, make any effort to
                  project the benefits of such credits uncertain.6

           •      Delays in the development of standards or in the review of permits
                  create uncertainty. This can add substantially to the cost to industry
                  of a performance  standard.   Because these standards would
                  generally affect production processes, and not just end-of-pipe
                  controls, the delays  and their effects might be even greater than
                  under the air and water programs.

           Equity

           Performance standards are an unambiguous requirement that the generator reduce
    the generation of hazardous wastes. The concern that this option  is equitable will depend
    on how it is imposed on the industry.  There may be problems with equity if the standards
    are selective, that is, the standards affect some but not all of the regulated community.

           Incentives for Noncompliance

           The imposition of performance standards might create a number of adverse effects
    that might limit or delay the realization of waste minimization goals.  Some of the issues of
    concern are discussed below:

            •       If performance standards are imposed  on the smaller generators in
                   an industrial category for which standards are developed, there may
            Wall Street Journal, April 14, 1986.  Fluctuations in market prices of virgin materials
            can affect both the potential for resale of recyclable materials and decisions of the
            generator to reclaim the material for its own use. Dramatic reductions in the price of
            crude oil, for example, have increased the competitive problems for the recycling of used
            oil, independent of whether used oil is or is not finally determined to be a hazardous
            waste. Conversely, a rise in sulfur prices from $36/metric ton in 1977 to S140/metric
            ton currently, to a projected $200/metric ton in 1987 has resulted in the development of a
            process for recovering limestone and sulfur from the waste gypsum produced by utilities.

            Reclamation and recycling of pickle liquor by steel plants to recover sulfuric acid depends
            both on market conditions and geographic  location.  For  steel plants located in the
            Southwest, sulfuric acid can easily be obtained from the copper smelters, which generate
            the acid from their stack scrubbing control systems. For steel plants in the East, the
            question of whether it is cheaper to reclaim spent pickle liquor or to buy virgin sulfuric
            acid will depend on the cost of the reclamation process, the cost of the virgin material,
            and the net differential in the costs for disposal of the spent pickle liquor and the costs for
            disposal of the ferrous sulfate residue from reclamation of the pickle liquor.  '
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                                                                    Performance Standards
             be some effort by these generators to avoid compliance through such
             measures as underreporting and/or illegal disposal. A report by the
             General Accounting Office on illegal disposal of hazardous wastes
             (General Accounting Office/RCED-85-2) indicated the difficulty of
             discovering and  preventing such  practices  with the  limited
             enforcement resources available. It is likely, however, that  small
             facility exemptions would be allowed, as is the case with many of
             the air and water standards.

       •      Since performance standards requiring reduced generation of wastes
             are likely to require significant changes in manufacturing processes,
             with  potentially major impacts on both product quality and
             productivity,  the  likelihood of litigation is greatly  increased,
             resulting in further  delays  in  the  actual realization  of waste
             minimization.

       •      Since such performance standards would often involve redesigning
             industrial processes, the effort required is in some respects different
             in kind from that involved in developing effluent guidelines and air
             standards. It is not clear that the necessary expertise can readily be
             found outside of plant management, and this might both extend the
             time required for the Federal government to develop the standards
             and increase the uncertainty of the result


       2.3    Implementation Issues


       Legislative Authority  '


       A general program of performance standards  to achieve waste minimization would

require enactment of legislative authority by Congress. As has been noted throughout this

report, EPA understands  the legislative history of HSWA to specifically prohibit the

Agency from defining waste minimization in relation to any particular industrial production
process.


       Under Section 6(a) of TSCA, however, EPA  does have authority for any of a wide

range  of measures  with respect to  any substance or waste stream that poses an
"unreasonable risk of injury to human health or the environment." Specifically, the Agency

may institute "a requirement prohibiting or otherwise regulating any manner or method of

disposal of such  substance or mixture, or of any article containing such  substance or

mixture, by its manufacturer or processor or by any other person who uses, or disposes of,
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Performance Standards
   it for commercial purposes."  This authority could be used for imposition of the waste
   reduction requirement for specific waste streams that met the "unreasonable risk" criterion.

          Time Required for Implementation

          Performance standards are likely to require several years for development. Under
   both the air and water programs, performance standards have generally required about four
   years each for development, but the more complex performance standards dealing with the
   largest industrial categories or processes  have taken substantially longer.  The effluent
   guideline for the organic chemicals industry has been under development since 1977 and is
   expected to  be finally promulgated at the end of 1986. The NSPS standard for industrial
   boilers has been under development for over eight years and still has not been promulgated.

          Since performance standards for waste minimization would require imposition of
   standards and limits directly impinging on the processes of production and not simply on
   end-of-pipe controls,, it seems likely that the time required for development would be as
   long as or longer than for the air and water standards.  And if the record of those programs
   provides any precedent,  the larger and more complex the industry for which standards are
   being developed, the longer the process.

          The  most plausible timetable for designing and implementing a large-scale
   performance standards program would be as follows:
          •      Since EPA currently lacks legislative authority to  implement
                 performance standards, new authority would have to be established
                 during the next round of amendments to RCRA.  The earliest likely
                 date for this would be 1988.
          •      Assuming that adequate baseline data  have been developed during
                 the intervening period, selection and ranking of candidate industry
                 categories and/or industrial processes would occur during 1989.
          •      Optimistically, the development of the performance standard
                 requirements by EPA for the first of the selected industrial categories
                 would be completed during the following four to five years (by
                  1993-1994).
          •      Implementation of the standards by EPA and/or delegated States,
                 and purchase and installation of new equipment by industry, would
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                                                                      Performance Standards
              take a minimum of two to three years (perhaps a year less if only
              good operating practices are required). Thus, the earliest completion
              date for implementation of a standard would be somewhere between
              1995 and 1997.

       •       Results of the implementation would be visible the following year
              (i.e., approximately 1996 to 1998).

       •       For more complex standards, the date by which results would begin
              to become evident would probably be six or seven years later, most
              likely after 2003.

              If action on performance standards is delayed until it is possible to
              track at least the initial effects of the land disposal restrictions on
              industry waste minimization activities, from one to five additional
              years would be added onto the process.  With the two-year variance,
              1988 will be the first year when the initial land disposal restrictions
              would  go fully into effect. The first year's tracking data could then
              be gathered by 1989.   The last of  the subsequent land disposal
              restrictions could go into effect as late as 1992.


       Appropriate Target Industries


       Performance standards for waste minimization would be appropriate for those

industries that produce high volume and/or high toxicity waste streams and that continue to

represent, after the imposition of the land bans has been completed, a serious risk to human

health and the environment.7


       An evaluation would first be required to determine whether there are economically

feasible technological  alternatives to current industry production and/or recycling practices.


       Industries using batch rather than continuous processes, for example, are likely to

be more  difficult to control, even where total volumes are high.  In some cases (e.g.,

solvents), treatment by incineration may be more effective and less costly than alternative
source reduction approaches.
       Such an evaluation should take into account industry practice with respect to recycling
       and onsite incineration, since these practices may significantly reduce any risks created by
       the initial generation of a waste stream.
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Performance Standards
          According to the data currently available,8 the organic chemicals industry (SIC code
   2869) is the largest source of the most toxic hazardous wastes.  A recent survey by the
   Chemical  Manufacturers Association  indicates that the chemical  industry  has made
   substantial reductions in hazardous waste generation since 1981.9 Much of this reduction
   appears to be the result of concerns for liability by the large firms that dominate production
   and waste generation in the industry. In addition, process changes to maximize efficiency
   in use of raw materials are more cost effective in the largest chemical facilities. A separate
   study by INFORM (Cutting  Chemical Wastes), however, claims that the chemical industry
   has made little progress toward waste minimization.  "The millions of pounds of waste
   reduction reported by the study plants is only a minute fraction of the total wastes generated
   by them."10 EPA currently lacks a data base that would enable it to determine exactly what
   kinds of changes in waste generation have occurred within this industrial sector.

          EPA's technical  background report on waste minimization  developed for EPA
   reviewed several industrial processes included in the organic chemical manufacturing
   industry,   including  acrylonitrile  manufacture,  epichlorohydrin manufacture,
    1,1,1—trichloroethylene perchloroethylene manufacture,  and vinyl chloride monomer
   manufacture. Each of these manufacturing processes is carried out in a small number of
   very large plants.  While these processes produce large volumes of wastes, the engineering
    analysis concluded that these facilities have significantly minimized wastes. There are still
    opportunities, however, for small proportional changes that could be substantial  in volume.

          Many of the waste streams generated by chemical manufacturers are among the  first
    to be subject to the land disposal restrictions.  This will create a substantial additional
    incentive for plants to reduce waste generation, recycle, or incinerate their waste streams.
    It will take some time to determine the impact of these new regulations. That determination
    °      See summary on waste generation data in Chapter 2.
    "      Chemical Manufacturers Association, January 1986, Results of the 1984 CMA Hazardous
           Waste Survey .  The survey found a 16 percent decrease in the generation of hazardous
           waste between 1981 and 1984, and a 34.8 percent reduction in the volume of hazardous
           solid wastes sent to landfills.
    10     INFORM, Cutting Chemical Wastes, p. 31.
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                                                                    Performance Standards
will  be further delayed where variances of up to two years are granted because of
inadequate treatment capacity.

       Other industries with waste streams identified as highly toxic include dry cleaning
and   paint  manufacturing.    Once  again,   however,  the  waste  streams
involved—tetrachloroethylene distillation residues from dry cleaning (F002) or spent
methyl ethyl ketone solvents from paint manufacture (F005)—are subject to the first phases
of the land  disposal restrictions, and practices may change as a result.  In addition,
although it is assumed that the dry cleaning industry recycles a large portion of its solvents,
available data are not adequate to determine the precise extent of this practice or current
trends.

       An industry's suitability as a target for performance standards may also depend on
available centralized treatment and/or recovery capacity.  The electroplating industry, for
example, produces large volumes of metal-bearing sludges.   Since most electroplating
facilities are quite small, substantial process changes to reduce waste generation are not
likely to be financially feasible.  In New Jersey, Minnesota, and Illinois, however,
feasibility studies are under way on the possibility of constructing central ion exchange
metal-recovery waste processing plants to which electroplaters could send their wastes.
The existence of such  a facility would make possible a degree of waste reduction and
recycling that could  not otherwise be achieved by these facilities.  Where such facilities
become available, the imposition  of recycling  and  more  stringent waste  reduction
requirements might be feasible.

       Costs of Development and Implementation

       Until the scope  and design of a performance standard program is determined, it is
not possible to develop accurate estimates of the costs to government of developing a full-
scale performance standard program.  The best means of getting a perspective on those
costs is by looking at the cost of developing the performance  standard programs required
by the Clean Air Act and the Clean Water Act.

       According to estimates of staff at OAQPS, the cost of development of an individual
NSPS or NESHAPs standard  will generally vary from a low of $1 million to a high of $5
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Performance Standards
   to $10 million, and require from four to eight or more years to complete. An analysis done
   by the Industrial Technology Division in the Office of Water indicates that the total cost of
   development of the effluent guidelines program from 1973 to 1986 was about $300 million
   (in 1984 dollars).  The cost of developing one of the most complex guidelines, that for the
   organic chemicals industry, was about $15 million.

          Assuming the development of performance standards for a single waste stream
   within an industry sector or across industry sectors, using the authority  under TSCA,
   Section 6(a), the costs for single standards under the air program would probably provide
   the closest analogy to what would be required.

          Government  implementation  costs include the development  and operation of a
   permit program as well as resources expended at both the Federal and State levels.  As in
   the case of the air and water programs, a reasonably comprehensive performance standard
   program would require the permitting of most of the 43,000 generators throughout the
   country (excluding small quantity generators). The  largest part of this effort would be
   delegated to the States. The cost would depend on the scope of the program.

          The  1984 Report to Congress, The Cost of Clean Air and Water, provides some
   figures on the implementation costs  of the two programs at both the Federal and State
   levels.  Federal costs (actual or projected) for administration of the air program from 1971
   to 1984 (in 1981 dollars) were $1,955 million, of which $1,094 million comprised grants
   to the  States (which would  be used for all  State air program costs).  Additional
   expenditures by the  States during those years amounted to $2,412 million  (which, again,
   would include administration, enforcement, and all other facets of air program costs).  For
   the effluent guidelines permitting program,  which is delegated to the States, State
   expenditures during the period amounted to $3,169 million (which includes  all State water
   program costs).

           A performance standard program would impose enormous additional costs on the
   States.  Implementation of the air and water programs had been heavily assisted by Federal
   cost sharing, but Federal assistance has been cut back over the last few years.  It is not
   clear whether, given the current Federal budgetary constraints, similar initial support could
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                                                                   Performance Standards
be expected for implementation of a waste minimization performance standard program.
Imposing a program without providing for a major share of the cost to be picked up by the
Federal government would create an enormous burden for the States. It might even cause
many States to reconsider the feasibility of implementing and managing the hazardous
waste program at the State level.

       Other Issues

       Enforceability: A performance standard program would result in the development
of permits for specific levels of waste generation from the regulated processes within each
facility. The permit provides a clear legal benchmark against which enforcement action
could be taken. Where the standards are based on waste generation per unit of production,
standard documentation of production levels would generally be available against which
performance could be evaluated. If credits for over control or recycling are allowed, the
burden of proof would be on the generator to demonstrate that those credits are available
and allowable.

       While some elements of enforcement would thus be straightforward, others cause
difficulties. To the extent that the standards might be inflexible and/or extremely stringent,
there might be an incentive for some generators either to attempt illegal disposal or to
escape inclusion in the system (although  this is more likely to be a problem with small
quantity generators, who could be exempted from performance standard requirements).
This problem would be compounded by the enormous number of generators and processes
that could potentially require enforcement.  Substantial new resources for enforcement
would need to be appropriated if such a program were not to become unenforceable.

       Enforcement costs for performance standards would involve visiting the sites and
reviewing  the paperwork to determine whether  the required concentration of volume
limitations for each waste stream is being achieved. Conservatively, this would be likely to
require, at an average plant, a minimum of 1 to 1.5 person-days for enforcement personnel
for the site visit, followed by an additional  1 to 1.5 days for analysis, further review of
records, and follow up.
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Performance Standards
          A possible cost estimate can be developed from this by assuming that enforcement
   inspections would be carried out annually for 10 percent of all generators other than small
   quantity generators (or approximately 4,300 generators annually), requiring approximately
   56 additional enforcement person-years. With support staff, salary and other costs, this
   would require additional annual costs well in excess of $5 million.  (If small quantity
   generators were included under the requirements, even a one percent inspection frequency
   would add 1,750 enforcement inspections.  Even assuming these took only half the time of
   other enforcement inspections, this would require another $1 million.)

          Public perception: Performance standards can have the positive effect of being
   generally acceptable to the public. Performance standards provide clear evidence of the
   effort  being made to clean up the environment. This positive public perception might,
   however, be tempered by the possibility of adverse economic or employment effects.

          Information: The gathering of information by the government and its subsequent
   use in the development of performance standards can raise serious legal questions about
   confidentiality with respect to proprietary information.  Alternative processes used by a
   company to manufacture a given product may be a major reason for that company's
   comparative advantage  in the market.  A proprietary process that reduces raw material
   inputs or makes more efficient use of those inputs may be the basis for a company's being
   able to undersell others in the market It might happen with some frequency that a firm will
   be very reluctant to divulge any information about its processes to the government.

   3.0    Recommendations

          Under certain circumstances and conditions, performance standards might be a
   desirable and feasible method  for minimizing  waste.  As was the case when performance
   standards were mandated by the Clean Air and Clean Water Acts, substantial economic and
   legal pressures must be  overcome before a performance standard for waste minimization
   can be implemented. Given current data and  evidence, it is uncertain at  this point what
   progress will be  achieved in waste minimization  from other Agency activities and
   regulatory policy and where  there will be gaps  in regulation that  might be filled  by
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                                                                   Performance Standards
performance standards.  Because of the uncertainty of the situation, the following steps

appear appropriate:

       •      Between  now and  full implementation of the land disposal
             restrictions scheduled under HSWA by 1990, comprehensive data
             should  be developed to make  possible an evaluation of trends
             relevant to waste minimization. These data and information could be
             gathered through the Comprehensive Assessment Information Rule
             (CAIR) system authorized  under Section 8(a) of TSCA and
             currently  being developed by the Office of Toxic Substances and
             through information derived from a redesigned waste minimization
             section  in  the biennial report. This effort should focus on obtaining:

             — More adequate baseline data  with respect to toxicity and volume
                 of  waste streams,  by  industry  and process category,
                 geographical area, and plant size;

             — Trends in these figures over the next several years;

             — Changes in recycling and treatment practices with respect to the
                 various combinations of these factors;  and

             — Changes in  manufacturing processes that result  in reduced
                 generation of waste.

       •      The above data should be evaluated to identify changes and trends in
             waste  generation and minimization.   Appropriate reduction
             requirements could then be mandated with respect to the  specific
             waste streams or industry sectors that have not minimized wastes to
             the extent desirable and economically feasible. Requirements could
             also be mandated  for specific waste streams that pose significant
             environmental or human health hazards.

       •      After the land disposal restrictions are in  place, their effects should
             be evaluated.  The contributing effect  of liability concerns should
             also be examined.  The following types of problems should be
             assessed:  (1)  waste  streams that are still causing environmental
             problems despite the imposition of land disposal restrictions and
             (2) industry sectors whose generation of these or other wastes are
             causing environmental problems.   Those waste streams and/or
             industry sectors that fall under the above two criteria should be
             further  examined to determine whether technological alternatives to
             current industry production  processes exist  and whether
             performance standards are  appropriate.  If performance standards
             are found to  be appropriate, it would be preferable  to develop
             standards  that maximize flexibility (and thereby minimize impact on
             the actual  production process) for the generator by:
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Performance Standards
                  —- Permitting credit for recycling;

                  — Permitting credit, in some circumstances, for onsite incineration;
                      and

                  — Permitting over control of one regulated  waste stream to be
                      credited against under control of another waste stream in the
                      same plant or at  other plants (with credit limited to use for
                      wastes in the same or a lower toxicity class).

                  Where specific hazardous waste streams are identified as causing
                  potentially critical environmental problems or health risks between
                  now and  1990, specific performance  standards for these waste
                  streams could  be developed under Section   6(a) of the Toxic
                  Substances Control Act (TSCA).11
            Section 6(a) of TSCA allows EPA to impose restrictions on the manufacture, processing,
            use, or disposal of chemical substances. It specifically gives the Agency the authority to
            impose "a requirement prohibiting or otherwise regulating any manner or method of
            disposal" of a chemical substance or mixture.  These authorities are all contingent on a
            finding that,  unless such restrictions are imposed,  the substance "will present  an
            unreasonable risk of injury to health or the environment." Relatively few actions have
            been proposed or promulgated to date under this section. The substances regulated or
            proposed for regulation have been asbestos, chlorinated fluorocarbons (CFCs), dioxins,
            formaldehyde (ANPR), methylene chloride (ANPR), and metal working fluids.
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                                               Prohibit or Restrict Generation of Specific Wastes
                      Prohibit or Restrict Generation of Specific Wastes
1.0    General Summary

       Under this type of performance standard, EPA would be able to ban or otherwise
restrict the manufacture, processing, or distribution of a chemical substance that poses
unavoidable human health and environmental risk.  This option is distinctive for three
reasons.  First, it differs from other more conventional performance standards because its
objective is to completely prevent the waste from being generated.  Other types of
performance standards impose reductions through various methods, but are not specifically
oriented toward total elimination of the waste.

       Second, the determination to prohibit or restrict a particular waste will be based in
part upon the feedstocks responsible  for generating a waste, rather than simply on  the
waste stream itself. More  than any other option it is necessary to carefully evaluate  the
feedstocks responsible for generating the waste under consideration, since prohibiting or
restricting the particular waste could have dramatic implications for industry.  On the other
hand,  this option might stimulate new  and  innovative approaches  to resolving or
minimizing waste generation. It could also encourage better technical approaches toward
reducing waste generation  because of the nature of substances being banned or restricted
and the incentives to develop substitutes.  However, where production processes cannot
substitute feedstocks in order to avoid generation of a prohibited or restricted waste other
options might be better candidates for minimizing waste.  Otherwise, the industry using  the
process might have to stop production  altogether.  In this regard, it may be more
appropriate and logistically feasible to prohibit or restrict the feedstocks responsible  for
generating the waste streams than to prohibit  or restrict the  waste itself. Prohibiting or
restricting feedstocks for production of a particular process could, among  other things,
reduce the possibility of noncompliance and improve the monitoring and enforceability of
this option.
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Prohibit or Restrict Generation of Specific Wastes
          Third, this option is product oriented.  Some products, when used, might result in a
    waste that is under consideration for prohibition or restriction. It might thus be necessary
    to find substitute products in order to avoid the generation of the particular waste.  For
    example, methylene chloride as a paint stripper generates a hazardous waste  stream.
    Instead of prohibiting or restricting the waste another method of paint stripping  such  as
    bead blasting might be used as a substitute thereby not generating the same waste.

          The option can be implemented for the most part on a waste stream-specific basis.
    Occasions would arise, though, for prohibiting or restricting wastes on an industry-specific
    basis. Finally, the option can also lend itself to negotiated compliance schedules, similar to
    the phase-out of asbestos and lead in gasoline.

    2.0    Evaluation

          2.1    Technical Effectiveness

          Volume Reduction

          While more data are needed to fully assess of its volume-reducing potential, the
    effectiveness of this option is dependent upon the substances involved, their prevalence in
    industry, the wastes associated with their use, and the degree to which substitutions can  be
    found.  Prohibiting or restricting a particular waste will drastically reduce its volume.
    Under certain circumstances there is the possibility that this option may result in increases
    in the volume of waste discharged to other media.  This option might actually have a greater
    impact on the reduction of toxicity than a reduction in volume.

           Toxicity Reduction

           There is a significant potential for reduction in toxicity; however, like volume
    reduction, there is little information available to fully evaluate the impact on toxicity.  By
    prohibiting or restricting the generation of specific wastes, industry will have an incentive
    to seek out less toxic and persistent feedstocks to  use in products.  Alternatively, where
    there is a threat of a future prohibition or restriction on generating wastes, industry may
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                                              Prohibit or Restrict Generation of Specific Wastes
take the initiative and develop improved treatment processes.  For example, the pesticide
manufacturing industry may develop more easily detoxified pesticides.

       Other Technical Effectiveness Issues

       Measuring Results:  Some form of monitoring would be necessary in order to
assess the ability of this option to achieve the waste minimization objective.  The option
could be measured by requiring firms to keep inventories  of the substances used in
processing and manufacture, similar to the requirements of right-to-know laws. TSCA can
require  that such records be kept.   Resulting reductions of  waste can then be tracked
through the RCRA reporting mechanisms, i.e., biennial report data, manifests, and future
RCRA surveys.

       2.2   Impacts on Industry

       Economic Impacts

       Initial capital investments for alternative production processes are likely to be high.
Costs would be low for user industries able to substitute raw materials or feedstocks.

       Since the option would result in a retooling of some plants,  operation  and
maintenance costs could be a problem if additional personnel and/or expertise are needed to
implement changes.

       Equity

       Some companies within a given industry might be affected more severely than
others; however, more data are needed to assess this issue. For example, manufacturers of
certain types of pesticides would be severely affected by a ban on the generation of waste
materials associated with their production.  Manufacturers of competing compounds would
probably gain an increased market share as a result of such regulations. It is anticipated
that larger companies would be better able to shoulder the costs than  would smaller
companies.  Problems may arise if the waste material to be restricted from generation is
produced entirely by small companies with limited product lines.
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          Another equity concern is the impact that this option would have on U.S. industrial
    competitiveness.  Foreign producers who may have less stringent waste minimization
    requirements may have an advantage over U.S. manufacturers of the same product

          Industry might protest this option on the grounds that government is intruding into
    private manufacturing processes. Although industry maty have some incentive to develop
    product substitutes or alternative processes, it is highly unlikly that such would always be
    the case.  Where proven substitutes are readily available, the regulated community might
    rapidly switch feedstocks to avoid new regulations. For example, pesticide formulators
    would handle and formulate new products having an effectiveness similar to the banned
    produces if regulations restricting generation of particular pesticide wastes are enacted.

          2.3    Implementation Issues

          Appropriate Target Industries

          At present, data are not sufficient  to designate appropriate target industries.

          Incentives for Noncompliance

          The possibility of noncompliance could be significant for this option.  If the waste
    stream is prohibited or restricted from generation, facilities unable to develop substitute
    feedstocks, other products or alternative treatments for the waste stream will be confronted
    with two choices (1) to close down operation of the process, and perhaps the business as
    well, or (2) to continue production and generation of the prohibited waste. Facilities that
    choose  to continue to produce the prohibited or restricted waste will be  faced with
    disposing of this illegally generated waste. If, instead of wastes, feedstocks or products
    are prohibited or restricted, a facility would have fewer incentives not to comply.  It would
    be unlikely that the facility could be able to obtain the prohibited or restricted feedstock and
    thus it would not  be put into a position of producing the  waste stream.  For example,
    chlorinated fluorocarbons, a feedstock which at one time was commonly used in aerosols,
    is now banned. A facility is therefore not likely to use chlorinated fluorocarbons illegally in
    aerosol production, since the ingredient is unavailable.
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                                               Prohibit or Restrict Generation of Specific Wastes
       Legislative Authority

       EPA could use its power under Section 6(a) of the Toxic Substances Control Act
(TSCA) to ban or otherwise restrict the manufacture, processing, or distribution of a
chemical substance, or to regulate "any manner or method of disposal" or any chemical
substance or mixture that "presents, or will present an unreasonable risk of injury to health
or the environment."   One example of the use of Section 6(a) authority is the ban on
manufacture for most uses of chlorinated fluorocarbons for aerosol propellants.

       Time Required for Implementation

       Because implementation of this option will require some collection and analysis of
data, it is estimated that approximately  two years will be needed to identify industries,
processes, and substances to be targeted. Time will also be required to set up the option
and draft the regulations. Depending on the volume of wastes associated with  particular
production processes, it may take from three to five years for the effects of this option to
become visible.  For other processes,  the results may not be readily apparent.  For
instance, if chrome plating of auto bumpers were banned, the resulting reduction of
chromium wastes would be hard to detect because other chrome plating operations are still
being practiced.

       Costs of Development and Implementation

       Data are insufficient at this time to estimate  the overall cost of this option, although
it is possible to determine the approximate cost of  some factors such as enforcement.  To
determine costs, data should address  industry's behavior under the authorized land disposal
restrictions, under certain State waste-end tax regimes, and under other relevant programs.
Information is also needed on the success of particular procurement programs  that  are
implemented by some government agencies, such as the Department of Defense.

       Enforcement activities for prohibiting or restricting generation of specific wastes
would be fairly straightforward. A site visit, a review of records, and, in some  cases,  the
evaluation of a sample from a waste stream would be required.  At an average plant, the site
visit and sampling would require about  1 to  1.5 person-days for enforcement personnel,
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   followed by an additional 1 to 1.5 days for analysis, further review of records, and
   followup. The total effort involved might increase if more sampling is required.

          A possible cost estimate can be developed by  assuming that enforcement
   inspections would be carried out annually for 10 percent of all generators other than small
   quantity generators (or 4,300 generators annually), requiring approximately 33 additional
   enforcement person-years. With support staff, salary, and other costs, this would mean
   additional annual costs well in excess of $3  million.  (If small quantity generators were
   included under the requirements, even a 1 percent inspection frequency would add 1,750
   enforcement inspections.  Even assuming these took  only half the  time of other
   enforcement inspections, this would require about $1.5 million.

          Coordination with other agencies  may also be  necessary to improve the
   effectiveness of this option. It is unclear at  this time what level of coordination will be
   required or what the costs associated with the coordination will be. For example, banning
   certain pesticides which are difficult to detoxify might have to be coupled with, approval of
   alternative products  for pest control.  This may require coordination with other Federal
   agencies such as the U.S. Department of Agriculture.

          The cost estimates should also  include staffing requirements for the implementing
   office as well as the costs for analysis of the results. The costs would probably be similar
   to  programs run under TSCA, in particular, the programs for banning PCBs and
   chlorinated fluorocarbons in aerosols.  The cost of the  analysis required may be similar to
   the level of effort expended for the technical  support document on waste minimization or
   other similar studies.

          There would probably be few costs associated with Federal or State agency
    interaction, since implementation of this option would not be mandatory in order for this
   option to work. The program could be run autonomously by the Federal government in the
    same  fashion  as are the bans on polychlorinated biphenyls (PCBs) and chlorinated
    fluorocarbon (CFC). The option also would not be likely to conflict with State programs.
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                                               Prohibit or Restrict Generation of Specific Wastes
       Other Issues

       Information:  One of the major handicaps to a full evaluation of this option is the

lack of important information. In order to better understand the implications of this option

a number of other issues must be taken into consideration, including:

       •      Identification of substances and processes that cause the generation
              of particular waste streams.

       •      Identification of  industries and/or processes  that use such
              substances.

       •      Identification of substitute materials that could be used in place of
              materials that cause the waste stream.

       •      Identification and evaluation of process changes that  could  be
              implemented in support of banning or restricting particular wastes,
              either on an industry-wide or waste stream basis, or on a process-
              specific basis.

       •      Identification of products used, the production of which may result
              in the generation of  hazardous  wastes, and the use of which may
              result in disposal of product (or its residual) in Subpart D landfills.
              (For example, styrofoam  products may  degrade  into  toxic
              constituents.)

       •      Identification of substitute  products for those identified  in the
              previous item above, that would result in reduced or zero generation
              of hazardous wastes, or generation of wastes that are less toxic or
              more easily detoxified.

       •      Measurement of changes in air and water effluent levels. This could
              probably be done in conjunction with a mass balance reporting requirement.

       Public Perception: Unlike some schemes in which "the polluter pays," this option
may result in the  consumer paying. If prohibition or restriction results in  substitute

products that are more expensive than  the original, the consumer is forced to pay the
difference. To some degree, market competition factors may keep prices at a reasonable
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   level.  Aerosol products, for example, do not seem to be appreciably higher now than
   before CFC was banned.

          The general public would probably accept this option since it appears to reduce
   health and/or environmental risks. On the other hand, the option has  the potential to
   threaten employment. Since product substitution may result, there is always the possibility
   of layoffs or temporary shutdowns until the particular industry(s) affected is able to re-enter
   the market place via  introduction of alternative products.  Thus,  the option  creates
   incentives for new industries, which could increase jobs through the need for alternative
   processes and substitute products.

   3.0    Recommendations

          This option would be an extremely powerful tool with which to control hazardous
   substances.  It is probably the most direct application of a source reduction regulatory
   program and has the potential to reduce the generation  of specific wastes if used properly.
   Certain conditions must be met before the option could  be considered desirable, however.

          Since this option is expected to have a more dramatic impact than  others, it should
   not be implemented until these other options have been analyzed and those waste  streams
   that are the most appropriate candidates have been specifically identified.  Careful analysis
   of the waste streams and processes involved must be performed in order that imposition of
   the option will achieve its objective most efficiently. Where the prohibition or restriction of
   a waste stream leads to product or feedstock substitution, or stimulates new and innovative
   treatment technologies, it might be appropriate to impose the option.  However, where it
    appears unlikely  that  industry will find substitutes or new treatment technologies and
    therefore will be forced to  terminate the production process, it will be critical to assess
    whether  the improvement  in human health and the  environment will  offset the other
    expected impacts from implementing the option.

          This option should be the last resort for stimulating waste minimization. It would
    be appropriate only when the following conditions are met:
           •       The waste streams under consideration are extremely toxic;
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EPA  is convinced that current management practices cannot
overcome unacceptable levels of risk from waste generated in their
facility; and

When other waste minimization measures have failed.
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Phasedown Permits
                Waste Generation or Management Phasedovm Permit Program
    1.0    General Summary

          This approach to waste minimization would involve a variation on the concept of
    marketable permits. A marketable permit regulatory program for hazardous wastes would
    create transferable rights via permit stipulations limiting the total volume of hazardous
    waste that industry could either legally produce or manage.  It is a form of mandatory
    standards of performance because it would impose specific waste generation limits either
    directly on source generators, or indirectly on those who treat, store, or dispose of wastes.
    In a phasedown permit scheme, permits would be reissued from time to time with the total
    amount of waste allowed for all permits being reduced ("phased down") with each reissue.
    Trading among permit holders would be allowed as in any marketable permit system.

          While the marketable permit concept has not yet been widely applied, there are a
    number of precedents  suggesting that its use as a vehicle for reducing hazardous waste
    generation might be effective. These include several EPA applications as well as a variety
    of examples from other agencies and levels of government.

          Since 1976, EPA has successfully implemented approaches resembling phasedown
    permits in emissions trading, where concern centers on controlling aggregate levels of
    ambient pollution  allowed rather than on controlling specific geographic  or source
    distributions.  The "bubble" allows the creation of surplus reductions beyond those legally
    required at certain emissions sources to compensate for excess emissions at other existing
    plants or groups of nearby plants. Emissions trading allows States and sources (1) to "net
    out of preconstruction reviews for new plants or plant modernizations  where plant-wide
    emissions will not increase  by significant amounts; (2)  to  offset modernization or
    expansions in nonattainment areas by securing extra reductions from nearby firms; and (3)
    to  store or "bank" qualified emissions reduction for later use in bubble, netting, or
    offsetting transactions. Banked emission reduction credits (ERCs) can  also  be sold or
    leased to firms seeking alternative ways to meet regulatory requirements more quickly and
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flexibly.  To be used in trades, any reduction credits must be surplus (i.e., beyond current
legal requirements), permanent, enforceable, and quantifiable.  Effectively implementing
such trades  requires  the establishment of emissions baselines while avoiding double
counting reductions that have already been taken into account in area-wide air quality
attainment plans.  However, because plant-specific emissions must be quantified with
precision in  order to engage in an approvable trade, individual bubbles can improve the
quality of such plans.  Similarly, because potential savings from bubbles can occur, they
also can improve compliance and enforcement due to trading and willingness to agree to
invest in advanced compliance methods (e.g., continuous emissions monitoring) in order to
obtain them. Since EPA issued its comprehensive Emissions Trading Policy Statement in
April 1982  (47 FR 15076) about 100 existing-source bubbles involving an estimated
"average savings"  of $3 million each have been approved by the Agency in delegated
States, with another 100 under development for total estimated savings of about $1 billion
over the cost of conventional, source-by-source pollution control. In 1985, EPA proposed
to extend this bubble approach to  new  facilities subject to stringent New Source
Performance Standards under Section 111 of the Clean Air Act,  noting that the single trade
proposed for approval would yield estimated savings of up to $25 million per year, and
additional emissions reductions of 3,000 tons per year over  traditional stack-by-stack
compliance (50 FR 3688).

       In a  second example, EPA has also proposed the use  of marketable permits for
restricting chlorofluorocarbons.  In  this case, EPA compared the potential  cost of a
mandatory control system to  the potential cost of a marketable permits program. The
comparison  showed that the permits program would be less costly overall.  Nevertheless,
the expected transfer payments from consumers to industry turned out to be unexpectedly
large. The transfer payments reflected higher product prices which, in the aggregate, was
estimated by an EPA consultant to amount to $1.7 billion, or about 16 times the incremental
control costs.

       EPA has also proposed a program to allow the banking, transfer, or trading of
asbestos mining and importing permits during a ten  year  phase down of  asbestos
production. Under the proposal, miners and importers would apply for permits that would
restrict asbestos use to 30 percent of EPA's base period volumes in the first year and phase
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   down use by 3  percent per year over the subsequent years.  Only those applying for
   permits would be granted permits. Firms could enter the market by obtaining a permit from
   a current holder. EPA is also considering acting as information liaison between parties.

          Another example of government use of marketable permits is the Federal Aviation
   Administration's adoption in early 1986 of a scheme for more efficient and flexible
   allocation of landing and departure slots at high density airports.  In this case the FAA
   established a system wherein 15 percent of available slots were saved for new entrants,
   with the remaining slots "grandfathered" to existing users.  The administrative plan
   includes a "use or lose" provision by which slots not used 65 percent of the time over a two
   month period revert back to the FAA for reallocation. Although the initial allocation of
   slots is free  of charge to  carriers, the carriers  may buy, sell, or lease slots to suit their
   needs.  By June of 1986 there had been about  15 transactions under this program. This
   has raised concern in Congress over potential windfall profits—carriers obtained the slots
   at no cost,  but can sell  them for a substantial profit.  For this reason, Congress is
   considering a bill to repeal the FAA's rule. In the meantime, Texas Air recently sold three
   gates and 32 slots at La Guardia Airport to Pan Am for $65 million.

          A third example is that of taxi service in New York City, wherein cabs are required
   to have "medallions." Medallions are in effect a form of marketable permit which owners
   can buy and sell on the open market. The city established a fixed supply of medallions
   allocated to preserve the historic distribution between  fleets and individual owners.  The
   city does not allow transfers of medallions between categories.

           EPA has already  fully instituted or considered  regulation schemes resembling
    phasedown permits for certain air pollutant emissions trading, reduced lead content in
    gasoline, asbestos mining, and chlorofluorocarbon (CFC) reduction.  These experiences
    can inform current deliberations on phasedown permits for hazardous waste minimization.

           In at least one important way, the end point of a phasedown permits program is like
    a performance standard mandating waste reduction: both allow EPA to decide in advance
    the maximum quantity of waste which can be generated per unit of time (e.g., one year).
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Permits would then be issued either to generators or waste treatment, storage, and disposal
facilities (TSDFs) for this volume of waste.

       Phasedown permits, however, differ  from performance standards in many
important ways.  Most important, they potentially cost society less for achieving a given
level of waste reduction. This is because phasedown permits can be transferred (bought,
sold, leased) in an open market system. The degree of incentive for trading is primarily
dependent on variations in control costs within the participating group of firms; if variations
are high (i.e., if some firms can reduce wastes  much less expensively than others)  then
there is an incentive for permits to be transferred.  If variations in control costs are small,
then there will be few if any trades, and the system will not be any less costly to society
than a conventional command-and-control type of performance standard.

       For example, assume there are only two  producers of a given waste stream.  Each
manufacturer produces ten tons of waste, and that it would cost producer A $3 per ton to
reduce his waste, while producer B would incur $30 per ton to reduce his waste.  If a
performance standard required a 50 percent waste reduction so that each had to reduce
waste by five tons per period, then the two firms would have total costs of $165 ($3 x 5
tons plus $30 x 5  tons).  If,  however, it is only important that society obtain a  total
reduction of 10 tons (50 percent), independent of where the reduction occurs, then a
phasedown permit system in which permits for only 10 tons of waste  production were
issued would achieve  the same environmental goal at lower costs.

       Assume, for purposes of illustration, that EPA makes an initial allocation of permits
at the rate of one permit per  one ton  of waste, with each firm allowed to receive five
permits.  Firms A and B- have the option of then reducing each of their respective waste
streams by 50 percent, as would have occurred under the  scenario of the performance
standard. They also have other options open to them, since they can negotiate with  each
other to obtain more permits.  As stated above, it is more expensive for Firm B to reduce
waste than for Firm  A.  Both firms would like to continue producing  10 tons of waste
apiece, but that is no longer allowed, and it is  highly unlikely that either of them could
achieve or be willing to achieve a zero waste production rate.  Firm B may be willing to
produce 8 tons of waste raiher than 10. Since Firm B  already has been issued five permits
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Phasedown Permits
   (thus allowing it to produce 5 tons of waste) it would need three additional permits. These
   three permits could be purchased from Firm A, if that firm were able to reduce its waste by
   three tons.

          Assuming that Firm A reduces its waste by three tons (resulting in a net waste
   production of two tons), it could then sell three permits to Firm B. As stated above, Firm
   A can reduce its waste at $3 per ton. It would thus be willing to produce three tons less
   waste  if it could sell its permits for any amount more than $3 per ton. Firm B would be
   willing to pay any amount up to $30 per ton since it could save money at these prices.

          When both firms are aware of each other's position, Firm A will want a price as
   close to $30 as possible, while Firm B  will want the price as close to $3 as possible. This
   example assumes that only these two firms exist, so that the normal forces of supply and
   demand competition cannot be applied to arrive at the negotiated price. The total cost to
   society can be calculated, however, because the cost of reduction is still $3 per ton for
   wastes reduced by Firm A and $30 per ton for wastes reduced by Firm B, regardless of the
   permit price.  The  total  cost to society is thus ($3 x  8  tons) + ($30 x 2 tons), or
   $84—approximately 50 percent of the control cost under the performance standard
   scenario.

           A system of phasedown permits can be structured in many ways depending on the
   nature and terms of the permit (e.g., who gets them—generators or disposers?); the initial
   allocation scheme (e.g., are current users "grandfathered"?); and the type and extent of
   government involvement in the permit  market (e.g., does EPA serve as banker or broker as
   well as enforcer of permit limits?).

           To implement a phasedown permits system, EPA must first decide what to allow.
    If permits were issued to generators, each permit, like  a performance standard, would
    allow its owner  to generate up to a given amount of hazardous waste per year, as measured
    in volume or toxicity in different waste streams.  Alternatively, permits could be issued to
    treatment, storage, and disposal facilities rather than to generators. The permit would then
    allow its owner to treat, store, or dispose of a certain volume (or volume weighted by
    toxicity)  of hazardous waste per year.  Since the allowed volume of waste would be less
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                                                                     Phasedown Permits
than current volumes, the TSDFs would raise the prices charged to generators.  The permit
could be permanent or temporary, with terms from one year to ten years or even longer,
with perhaps some fixed amount within each year or other restrictions on permit use.  A
permit system could also combine these two approaches (e.g., by issuing 10 times more
treatment permits as disposal permits). Generators, in turn, would have a greater incentive
to find ways to reduce the waste they produce.

       Once the nature of the permit is decided, the next requirement is an initial allocation
scheme. There are two practical ways to structure the initial allocation: through an auction
or through "grandfathering."  In an auction, the permits would be sold at a market clearing
price. Under grandfathering, all current generators (or TSDFs)  would be given permits for
a certain percentage  of their current waste generation.  Generators with  high waste
reduction costs could then buy extra permits from generators with low waste reduction
costs, as shown in the example above.

       Since owners could buy and sell permits, EPA's choice of an allocation scheme
should not affect the final cost to society of the waste minimization desired, i.e., waste
reductions would take place where they cost least, and permits would be used to generate
and dispose of wastes having the highest  costs of management.  The allocation scheme
would, however, determine the total amount of transfer payments (i.e., transfers of income
that result from either giving away or selling permits). Unless taken into account prior to
implementation, transfer payments could be very large, as mentioned already in the CFC
control case.

       The third  aspect of a  phasedown permit system  is the extent  of  Agency
involvement.  Government could act only  as an information broker by helping generators
find sellers or buyers and by explaining the nature of the permit and the market price.
Alternatively, it could act  as a certifier,  banker, and enforcer of market transactions.
Finally, government could choose to be a gatekeeper, directly involved in approving all
market transactions.

       Unlike taxes, which in theory may produce the same results, transferable permits
directly limit the amount of waste to desired levels, rather than depending on prices, which
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Phasedown Permits
   may entail inordinate amounts of information, frequent adjustment, and allegations that
   generators are being allowed to "pay to pollute."  From the perspective of social cost,
   phasedown permits are the least expensive way, to attain a given waste minimization goal,
   so long as permit holders do in fact engage in cost-minimizing transfers. If they do not, the
   system would still be as effective as a performance standard mandating the same percentage
   of waste reduction.  EPA has implemented several marketable permit strategies, as have
   other Federal agencies and local governments, and has proposed to implement several
   others.

   2.0    Evaluation

          2.1    Technical Effectiveness

          Volume Reduction

          Since EPA  can specify  the maximum allowable volume of hazardous waste,
   phasedown permits should be effective in achieving volume reduction of hazardous wastes,
   whether permits are offered  to generators or TSDFs.  This option would also  be
   economically efficient in that the waste reduction  would come from generators with the
   lowest cost for source reduction or recycling.

          This option would  also provide many generators with  additional  economic
   incentives to  develop new  technologies that lower the costs of source reduction and
   recycling. If generators receive permits and can produce less hazardous waste, they can
   sell unneeded excess permits.  Likewise, if TSDFs receive permits, generators would be
   faced with even higher costs of offsite management, thus providing a further incentive to
   reduce waste volumes before treatment or disposal becomes necessary.  However, issue
   permits  to TSDFs might raise questions about further restrictions on treatment capacity
   rather than direct waste minimization at the source, especially during periods where other
   traditional alternatives (e.g., land disposal) are also being substantially restructured.
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                                                                      Phasedown Permits
       Toxicity Reduction

       In general, the phasedown permits option is most easily aimed at volume reduction
for hazardous waste streams.  Wastes could be classed or rated by their toxicity, but this
would add an additional layer of complexity to the system that would restrict the size of
markets within which trades could occur. In addition, if the system allowed cross trading
among classes of wastes, risks could actually increase.

       2.2    Impacts on Industry

       Economic Impacts

       Assuming significant variation in individual firms' control costs, and assuming that
actual trades are made, phasedown permits would cost industry and society less than either
performance standards or a ban on recyclable wastes.  Generators who have the lowest cost
for source reduction or recycling will sell their permits to generators with higher costs.
Generators with low costs for reducing waste will reduce their waste and sell their new
valuable excess permits to generators with higher costs.  Thus, unlike a performance
standard, firms have a strong incentive to generate  additional reductions beyond those
mandated because this creates  a  valuable resource for them  to sell  or  lease in the
marketplace.

       Equity

       Phasedown permits would entail substantial transfer payments.  As EPA learned
from its proposal to establish marketable permits for CFCs, transfer payments are not
popular with the losers, and may even be unpopular with those who reap the benefits of the
transfer. If the government sells the permits at market prices, the transfer payments would
be from generators with high recycling or source reduction costs to the government. If
EPA issues permits in proportion to current volumes, the transfer payments would be from
generators with high recycling or source reduction costs to generators with low recycling
costs, or, what may or may not be the  same, from firms who have already reduced
volume/toxicity to those who have not.  Although the distributive effects  are different
depending on the allocation scheme, any scheme potentially creates big  winners and big
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Phasedown Permits
   losers. If EPA were to use a grandfathering allocation and issued permits in proportion to
   current waste generation volumes, generators who have already taken the  initiative to
   recycle and reduce their wastes would be penalized.  Allowing an appeal procedure for
   generators to show that they have already significantly reduced volumes could alleviate this
   inequity but could create a substantial administrative burden.

          In spite of the foregoing, phasedown permits would be more acceptable to some
   generators than performance standards because they allow generators to get credit for
   initiatives that increase efficiency and lower reduction/recycling costs.  However,  the
   degree of acceptability among generators may vary considerably depending on the nature of
   the permit, their control costs, and the initial allocation scheme. Current generators may
   prefer grandfathering since this is the least disruptive to the status quo.  EPA could lessen
   resistance to an auction of permits by rebating the revenues in a way that does not distort
   firms' decisions,  although  there is  some  inevitable  conflict between  EPA waste
   minimization objectives and current industry behavior. EPA could also implement a limited
   auction (e.g., grandfathering a portion and auctioning the rest).

          Incentives for Noncompliance

          As with  any additional regulations, a phasedown permit system may encourage
   illegal dumping of hazardous wastes by generators unwilling to purchase the necessary
   number of permits.  If this approach were adopted, it would be crucial to create  ways to
   accurately measure permitted waste volumes. Also, if permits were allocated in proportion
   to current waste volumes, there would be an incentive for generators to inflate statements of
   current volumes or to increase their waste generation in anticipation of the market. (In an
    auction distribution system there would be no over reporting incentive.)  In general,
   phasedown permits would create a whole new industry, including brokers  to make the
    system work. If EPA takes this role, illegal activities would be of less concern.

           If, however, phasedown permits were issued to TSDFs , ather than to generators,
    the related enforcement effort applies  to both generators and TSDFs.  Generators, faced
    with diminishing capacities and high prices for waste management options,  may be
    encouraged to dispose of their waste illegally.  EPA must then allocate its  enforcement
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                                                                     Phasedown Permits
resources to both groups—to the generators to ensure that they do not illegally dispose of
wastes, and to the TSDFs to ensure that they do not treat or accept wastes in excess of what
is allowed by  their phasedown permits.  Issuing the permits to TSDFs rather than to
generators would present EPA with a more difficult enforcement task, and could result in
more illegal dumping because of a decrease in enforcement efficiency. On the other hand,
if phasedown permits are issued only to generators, EPA's enforcement effort could be
confined to the generators, ensuring  that they do  not exceed their permits and do not
illegally dispose of their wastes.

       2.3    Implementation Issues

       Legislative Authority

       EPA may need additional legislative authority, depending on allocation scheme, to
implement the program broadly and  effectively.  In the case of CFCs, EPA generally
believed that they lacked legal authority to auction  permits, but that they could distribute
them based on historical waste  generation  patterns.  Given recent  unfavorable
Congressional reaction to the concept of letting the market set a price for landing slots at
congested airports, EPA would be prudent to seek legislation specifically allowing the
Agency to implement phasedown permits before they adopt the system.

       Time Required for Implementation

       A broadly based system of phasedown permits would probably require at least five
or six years to develop and implement and might require a pilot program to assure that final
implementation is  successful. This estimate includes time to resolve the regulatory  and
policy disputes that have generally accompanied phasedown permit schemes as well as time
for the market to work. For example,  EPA's proposal to regulate chlorofluorocarbons
(CFCs) took about four years from the point when the Agency began studying options to
publishing a proposed rule.  It usually requires another year to review comments  and
promulgate a final rule. If the Agency were to distribute permits to generators rather than
TSDFs, the process would take even longer since there are no current plans  to permit
generators, and there would be a much larger population involved.
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Phasedown Permits
          If Congress were to authorize EPA's development of such a system in 1988,
   phasedown permits could possibly be issued to TSDFs by 1994.  On the other hand, if
   EPA chose to issue permits to generators, which are far more numerous than TSDFs, such
   permits might not be ready for issue until 1995.  The effects of such permits on waste
   minimization might not be visible until 1996.

          Appropriate Target Industries

          EPA could target all industries and all waste streams, or apply a permit system
   sequentially to each set of the land ban wastes. The choice of target industries or waste
   streams  would depend on whether unresolved problems continue with regard to the
   management of the wastes in question, and also whether the industry sector involved is
   suitable for application of a phasedown permit system. Suitability would be a function of
   (1) significant variation in control costs across firms, and (2) ability to set up a market that
   can support trades among firms. The choice to implement trading widely would facilitate
   the operation of the market, but would raise questions regarding trades across wastes of
   differing toxicities.

          Costs of Development and Implementation

          The costs of developing and implementing this option would depend heavily on a
   number of design decisions concerning the scope and structure of the program. The issues
   involved are as follows.

          A phasedown permit system could fall short of its objective if permits became
   concentrated in the hands of only a few owners. These owners could create competitive
   barriers to entry, charge monopolistic prices, or refuse to sell permits to direct competitors.
   Concentration, particularly in favor of large owners, has been a characteristic criticism of
   other similar types of permit systems, particularly where current users are "grandfathered."
   EPA could address this problem by specifying a "maximum market share" to prevent
   concentration of permits. EPA could also try to bypass the concentration problem by
   picking an initial allocation scheme that does not favor the largest generators. This could be
    accomplished by random distribution (lottery), or stratified allocation of permits according
    to some criteria such as large scale generators and small scale generators, SIC code, or
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                                                                      Phasedown Permits
waste code. EPA could also prevent permit concentration by printing more permits and
accordingly devalue the permits.  Although  devaluing the permits would remedy the
concentration problem, it might also provide a disincentive for permit transactions if
potential buyers believe permit values are likely to decrease.

       The efficiency of the phasedown permits system could  also be diminished if for
some reason generators who have more permits than they need choose not to sell the extra
permits on the open market.  For instance, if generators perceive that each year the permits
they are allowed will decrease by a certain percentage, they may want to hold on to the
extra permits in order to ensure their ability to generate waste in later years. This may not
be a problem, though, if permits are leased instead of sold. Also, if the transaction costs of
finding buyers and sellers or negotiating the conditions of trade were very high, buyers and
sellers might find that these costs outweigh any potential benefit, and choose not to
participate in the market.  If, on the other hand, permit holders did not use and did not sell
their permits, aggregate waste production would be even less  waste than if the system
worked as designed.  If this occurred, volume reductions would be larger than planned, but
they would occur at a higher than necessary cost.

       Another factor that might cause this option to fail is market uncertainty. Generators
might not buy permit credits at any price if they thought these credits could shortly become
worthless.   For example, in 1981, Radio Corporation  of America (RCA)  auctioned
transponder rights for satellite communications.  The FCC later disallowed the sale on the
grounds that the particular auction  process resulted in rate discrimination.  Similarly, the
FAA's current rule to allow the buying and selling of landing rights at airports by initial
allocation based on grandfathering may be reversed by Congress and the rights reallocated
by lottery instead. As  noted earlier, however, this potential uncertainty has not deterred
many airlines from buying and selling slots.

       Market uncertainty may also result if generators believe that EPA could decide that
the system is too expensive to administer and that the Agency will pull back the  permits or
convert them to traditional ones.  For these reasons initiation of any permit system will
require a firm, long-term commitment by EPA and by implementing States, with criteria
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Phasedown Permits
   and mechanisms for any mid-source corrections which are clearly specified in advance in
   order to counteract the compelling effect that overhanging uncertainty can have.

          In each possible example of market imperfection or outright failure, the failure is
   important only if it results in noncompliance with waste reduction requirements, or if it
   produces other serious inequities within or across industries and firms.

          EPA would therefore have to address a number of issues and perform a number of
   analyses to implement this option.  It would have to determine:
          •      What waste volume to permit,
          •      Whether or not to target reductions in such a way as to reduce
                 toxicity,
          •      Who gets the permits (generators, TSDFs, or both),
          •      What the terms would be,
          •      How the Agency would manage the system, and
          •      How to respond to market defects or trades across location and time,
                 or whether a  certain amount of permits will be reserved for new
                 entrants.

          First, the Agency  needs to determine the quantity of waste or toxicity-weighted
   volume, and how that quantity will change over time, particularly with regard to possible
   industrial  growth or economic  contractions.   A subsidiary problem is whether new
   generators or waste managers will be issued additional permits or whether they will have to
   buy permits from existing permit holders. If EPA decides to phase the permits or make
   them temporary rather than  permanent, it can achieve waste minimization gradually by
    lowering the number of permits issued each cycle, or by staggering the effective date of
   permits issued at auction.  This might also make the option more acceptable to those who
   do not secure permits at an initial allocation.

           Second,  EPA must decide who gets permits: does it make more  sense to  issue
    permits to generators or to treatment, storage, and disposal facilities?  There are currently
    about 4,600 TSDFs, while there are approximately 15,000 generators and 170,000 newly
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                                                                      Phasedown Permits
regulated small quantity generators.  It would be much easier for EPA to issue permits to
TSDFs, both because there would be fewer permits to write and because those permits
would be easier to enforce.

       Third, once the Agency decides who receives the initial permits, it must evaluate the
different allocation schemes in terms of implementation costs, equity, and administration.
(If EPA is to sell the permits, it needs to determine the appropriate market price.) To do
this, the Agency needs to determine how much it will cost generators to reduce the quantity
of waste they generate. With this information, it is possible to estimate who will buy and
who will sell permits in the marketplace, and what the market clearing price will be. The
necessary data include the number of current generators, their respective volumes of
particular hazardous wastes, their current management  costs, and recycling and source
reduction costs per metric ton. Extensive data gathering and analysis will be necessary to
develop this information.  If permits are allocated by grandfathering, the Agency needs to
decide whether to charge a fee for the permits.  In both cases, EPA needs to consider what
to do with the revenue generated. The fees could help defray the significant administrative
and enforcement costs associated with this option.

       Fourth, EPA needs to determine the optimal term for waste generation permits.
This would probably depend on how long it would take generators to recover the costs of
their investment in waste reduction technology, the relative impacts on State and local areas
and on total waste  reduction, and whether use of credits would be confined to given
geographic areas  or stratified by industry or waste stream. Permits could be marketable
nationally or they could be  confined to a State or a region.  If permits are marketable
nationally, EPA must decide how to handle trades across locations (e.g., moving waste
generation or management  from a  low risk area to a  high risk area in terms of fate,
transport, and exposure).  EPA must also decide how to handle a potential futures market
for waste permits.

       Fifth, EPA must determine how to manage and enforce the phasedown permits
system. The more directly involved EPA gets, the higher the costs for implementation and
enforcement.
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Phasedown Permits
          Sixth, EPA must determine if there are any market defects which may not allow the
   phasedown permit system to work well. For example, concentration of ownership could be
   a problem, as well as "market thinness", which means the market has very few buyers and
   sellers  because of the high costs of  transactions.   In  order to encourage  market
   effectiveness, the Agency needs to consider whether it is appropriate to use a stratified
   scheme, in which the market is segmented into two or more classes. Stratification may also
   help if the Agency wants to selectively encourage waste reduction for the more toxic waste
   streams.  Stratification by industry group would help to avoid market concentration and
   monopoly power  for a few  large waste generators.   Consideration of other agencies'
   experience with phasedown permits should provide both options and a range of potential
   answers to these and related concerns.

          Given the complexities of the issues discussed above, the costs to implement this
   option are likely to be high. If EPA decides to act as an information broker there would be
   substantial costs to put buyers and sellers in touch with each other. If the Agency decides
   to act as certifier and enforcer, it would need  a mechanism to keep track of permit
   transactions.  If EPA decides to act as gatekeeper, implementation  costs would  be even
   higher, since this would require an administrative procedure to act  on applications from
   buyers and sellers, and also may incur the costs of litigation. This would  also impose  time
   constraints and thus limit the number of transactions.

           If the Agency decided to use a stratified approach (e.g., two classes of permits for
   different toxicity classes of wastes), administrative costs would be higher than if there were
   only one market to keep track of. The term of the permit would also affect implementation
   costs. However, while a shorter term would mean more administrative cycles for EPA,
    this would provide for more control over how fast waste reduction occurred.

           Enforcement costs for this option would depend on whether EPA  issued permits to
    generators or to TSDFs.  It would be more  difficult  and more expensive to ensure that
    generators are not producing more waste than they are allowed, since EPA exercises less
    oversight over generators than over management facilities. In order to enforce this option,
    EPA would need to keep track of changes in the initial allocation of permits. This would be
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                                                                      Phasedown Permits
possible if the Agency acts as a certifier and enforcer. All transactions would then have to
be filed with EPA.

       Other Issues

       Public Reaction: A drawback of this option is the common perception that it allows
the rich to pollute.  In fact, a phasedown permits system would generally reward generators
who have low recycling and source reduction costs, regardless of whether they are rich or
poor.

       Whether the public and industry ultimately accept this option may depend on the
allocation scheme adopted. Since all versions of this option cause significant transfers of
wealth, the general public  may  not like the  government  or  certain large  generators
benefiting at the expense of small generators, if small generators are less likely to be able
to reduce waste volumes economically and therefore need to purchase more permits. In
addition,  there  are  likely  to  be  diverse  interests among  state governments,
environmentalists, and industry associations. EPA would have to consider whether State
governments can become involved as subsidiary regulators controlling the buying and
selling of permits.   The Agency would also  have to undertake substantial public
information efforts to communicate the program's goals and benefits.

       It is interesting that the cost to society for controlling any specific set of wastes is
the same for all variations of the phasedown permits option.  Whether EPA auctions the
permits or generators buy and sell the permits after a lottery or grandfathering allocation,
the price of a permit should eventually reach a market equilibrium. However, while the
cost to society is the same for the various phasedown permit options, the transfer payments
differ significantly.

3.0    Recommendations

       Data are not yet available to make a specific recommendation on the desirability and
feasibility of instituting a phasedown permit system for hazardous waste minimization. If
specific  problems are still found to exist with  regard  to individual waste  streams or
industrial sectors after full implementation of the land disposal restrictions program and
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Phasedown Permits
   other key provisions of HSWA, then mandatory waste reduction measures may be

   appropriate. A phasedown permit system would be desirable and feasible in this situation

   under the following conditions:

          1.      For the industrial sector or waste streams in question, the costs of
                 control per unit reduction  in waste generation vary  significantly
                 among potential participating firms. (If costs do not vary  among
                 firms, there would be no benefits to trades except to arrive at a
                 distribution of permits proportional to previous generation rates.)

          2.      EPA determines that the location at which waste might be generated,
                 treated,  or disposed of  would  not  affect  human health  or
                 environmental impacts.

          3.      EPA determines that it would be less expensive to implement this
                 system than to implement  an equivalently effective conventional
                 performance standard.


          Under this option, EPA should consider exempting small quantity generators from

   the requirements or should consider subjecting them to simplified and  less burdensome

   requirements. Because small quantity  generators collectively account for only a small

   fraction of the waste generated annually, subjecting them to stringent  and  expensive

   regulations would probably not be cost-effective.
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                                                   Modifications to Certification Requirements
                           Requirements for Certification
                              of Waste Minimization
1.0    General Summary

       The Hazardous and Solid Waste Amendments (HSWA) of 1984 impose new
requirements on generators of hazardous wastes for waste minimization.

       First,  generators must certify  that they  are  making efforts, to the extent
economically  practicable, to minimize wastes—a certification based entirely on the
generator's judgment. The certification of waste minimization is required on hazardous
waste manifests and on the operating log of any RCRA-permitted TSD facility operated on
the premises of a generator. Second, generators must submit information on their biennial
reports about the nature and scope of their efforts. The intent of these requirements is to
provide the generators with an incentive to think more closely about the desirability and
opportunity to minimize wastes and  to keep EPA and the  States abreast of waste
minimization efforts occurring throughout the country.

       The specific requirement for generators to certify efforts to minimize wastes applies
in two circumstances:
       •      Generators shipping wastes offsite must sign a waste minimization
              certification on the hazardous waste manifest.
              Permitted TSD facilities on the premises of a generator must provide
              a certification  of waste  minimization  efforts being made by the
              generator. This certification is retained as part of the operating log
              of the facility.

       The actual requirement in  HSWA is the same  in both cases. The generator or
permittee must certify that:
       •      "The generator of the hazardous waste has a program in place to
              reduce the volume or quantity and toxicity of such waste to the
              degree determined by the generator to be economically practicable;
              and
       •      "The  proposed method of treatment, storage, or disposal is that
              practicable method  currently available to the generator which
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Modifications to Certification Requirements
                 minimizes the present and future threat to human health and the
                 environment."

          The Senate Report on certification stresses at several points that the requirement is
    strictly one of certification by the generator:
                 "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."

          Only the generator, therefore, may determine what constitutes appropriate action for
    reducing the volume or quantity and toxicity of waste, or what is economically practicable.
    Similarly, only the generator may determine  what constitutes,  for the generator,  the
    available practicable method of treatment, storage, or disposal which will minimize the-
    future threat to human health and  the  environment.   EPA  therefore interprets  the
    certification requirements as prohibiting the development of any formal guidance 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 in most cases generators should continue to determine
    what their waste minimization options are, and, at  this time, that EPA should not make
    specific process related decisions to  force waste minimization.  EPA will, however, be
    developing general guidance on approaches to waste minimization which it believes to be
    beneficial or desirable, and is currently engaged in research on waste audit techniques to
    better identify opportunities for waste minimization.  EPA has responded to letters of
    inquiry on these issues by specifically endorsing certain  general activities as sound waste
    minimization practices. For example, the Agency has stated that sending hazardous wastes
    to solvent recycling facilities for reclamation and reuse meets the  intent of the waste
    minimization certification.  It has also encouraged transferring hazardous wastes through
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                                                   Modifications to Certification Requirements
waste exchanges to companies which can reclaim or reuse them, when such wastes would

otherwise be disposed of.

       The option under consideration here is to allow EPA to provide more specific

guidance on waste minimization practices in specific circumstances. The authority would

be used selectively in limited circumstances where the Agency has reason to believe that

self certified programs are not protective of human health and the environment.  Economic
practicability assessments would remain under the purview  of the generator, but EPA

would seek discretionary authority to require that a generator submit a written explanation

why he or she believes that an available and commonly used waste minimization practice is

not economically practicable  in a specific case.  This authority could be used as a

mechanism to ensure the exchange of pertinent technical and economic information. (While

small quantity generators might be subject to somewhat increased reporting responsibilities

under this option, EPA could consider subjecting them to less rigorous and burdensome
requirements than those affecting large quantity generators.)


       There is a range of ways in which EPA's  role with respect to such certifications

could be modified. The possible combinations of authority would be:

       •      EPA could develop guidance characterizing certain practices to be
              unacceptable as waste  minimization (e.g.,  dewatering), and
              effectively prohibit their use as a basis for certification.  While this
              would prohibit  certification  based on that activity, it would, by
              itself, have no mandatory effect on industry with respect to other
              aspects of the certification.

              — If EPA were also  given authority  to  determine economic
                 practicability, it would have no additional  impact unless EPA
                 also had the authority to develop guidance on what is waste
                 minimization.

       •      EPA could develop broad classes of waste minimization practices,
              as well as industry-specific guidance as to what constitutes waste
              minimization for a particular industrial sector.  Depending on the
              requirements for its industrial sector, a generator would be required
              to meet one or more of these specifications in order to certify that it
              has a waste minimization program in place.  In lieu of this,  the
              generator could offer an explanation of an alternative practice which
              the generator believes meets waste minimization objectives.
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Modifications to Certification Requirements
                 — If EPA  also had the authority  to  evaluate  the  generator's
                    certification that  none  of the  specified  practices were
                    economically practicable, it would in effect be empowered to
                    impose performance standards through the certification process.

                 — If the assessment of economic practicability continued to be
                    based strictly on the selfcertification  of the  generator, the
                    generator would still be  free to certify  that it had  met the
                    requirement because it was not  economically practicable to
                    undertake any of the waste minimization practices.


          Since EPA's authority would be discretionary, these requirements could be applied

   selectively in cases where analysis of baseline and trends data on waste generation,

   recycling, and management indicate  that particular industrial sectors are still creating

   residual problems and health risks because  of the volume and/or toxicity of the wastes

   generated, and the waste minimization or management practices used.


          Examples of circumstances where the availability  of this discretionary authority

   would substantially enhance the effectiveness  of waste minimization efforts include:

           1.     Where generators' self-certified waste minimization programs are in
                 fact ineffective: Certain practices that  generators may certify as
                 waste minimization may in fact produce no net reduction in waste
                 volume or toxicity. For instance, some companies list membership
                 in a waste exchange as a waste minimization program, even though
                 they have never made a transaction in that exchange. Discretionary
                 authority to define waste minimization practices specifically would
                 help force all generators to adopt good-faith programs.

           2.     Where  generators' waste minimization  activities present adverse
                 environmental risks:  In a limited number of cases, generators waste
                 minimization efforts might actually be increasing human health and
                 environmental risks rather than decreasing them. An example might
                 be the use of air stripping to remove volatile organic compounds
                 from waste streams, thereby creating an  air pollution problem.  By
                 specifically describing technologies, practices, and situations that
                 must  not be considered valid waste minimization approaches, the
                 Agency would discourage such activities.

           3.     Where valid waste minimization practices have not been adopted for
                 reasons of economic practicability:  Where, despite clear guidance
                 on what constitutes  a  constructive waste minimization program,
                 generators take no action on grounds of economic impracticability,
                 this discretionary authority would give EPA better insight into the
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                                                    Modifications to Certification Requirements
              economic forces involved.   This data would be  valuable in
              reviewing the practicability all other waste minimization options,
              from mandatory performance standards to technical assistance
              programs.

       The current legislation would have to be amended to allow EPA to define these
acceptable waste minimization practices, as well as practices that could not be certified as
waste minimization in certain circumstances (e.g., those practices, such as noted above,
that result in adverse cross-media pollution transfers). 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. The Agency
emphasizes that this authority would be used sparingly, not as a method of enacting de
facto performance standards on a large scale.

2.0    Evaluation

       2.1    Technical Effectiveness

       Volume and Toxicity Reduction

       It is impossible to predict the effect of modifications of the certification process on
the volume, quantity, or toxicity of wastes that could be associated with the changes to the
certification program described above, though the overall effect would certainly be positive.
Clearly, the important aspect of this  program would be that it would operate as part of a
more comprehensive waste minimization strategy.  As such it would allow EPA to provide
specific guidance to firms that need  it (and often  ask for it); it would also  allow EPA to
curtail use of approaches that might be counterproductive in protecting human health and
the environment.

       2.2    Impacts on Industry

       Economic Impacts

       For those facilities required to meet the stricter certification requirements, the costs
would depend on whether they were currently practicing waste minimization alternatives or
have a waste minimization program determined to be certifiable. If so, the certification
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Modifications to Certification Requirements
   requirement would be identical to that under existing law and regulations, and would
   involve no new costs. If not, the facility would have the additional cost either of describing
   an alternative waste minimization activity or of writing a justification for certifying that
   none of the specified waste minimization alternatives were economically practicable.

          Equity

          There  are two equity issues of importance.  The first is  whether appropriate
   industries are selected for application of the new certification procedure.  The second is
   whether the  requirement for demonstrating economic  impracticability is unduly
   burdensome.  These issues  would have  to be properly addressed when  guidance is
   developed.

          Incentives for Non-compliance

          Non-compliance could  be an  issue  if a firm  knowingly adopted a waste
   minimization practice that EPA had specifically listed as undesirable. Since the authority
   would be used selectively and in relation to known problem areas, discovery of this type of
   non-compliance would presumably not be difficult

          2.3    Implementation Issues

           Legislative Authority

           EPA would need to acquire express legislative authority to undertake any of these
    alternatives, since the current statutory requirements are clearly intended to be directed at
    generators. EPA could be given the authority to characterize certain practices as waste
    minimization, to prohibit the characterization of specific practices as waste minimization, or
    to determine economic practicability.

           Time Required for Implementation

           Since amendments to RCRA would be required to provide EPA with the authority
    necessary to specify certifiable waste minimization activities,  the earliest date at which EPA
    could have the legal authority to implement this option would be 1988.  A decision to use
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                                                   Modifications to Certification Requirements
such discretionary authority would be based on a careful review of data on trends in waste
generation and management, taking into account the impacts of successive phases of the
land disposal restrictions. With the possibility of two year variances, data incorporating the
impacts of the first phase of the land disposal restrictions would probably not be available
until 1989.  Specifications of particular activities as constituting or not constituting waste
minimization would require a rulemaking,  necessitating at minimum an additional six
months.  Subsequent implementation would  depend on development of data as other
phases of the land disposal restrictions take effect. With variances, the last of these would
be in 1992.

       Appropriate Target Industries

       The most appropriate industrial sectors to review for possible application of the
guidance procedures outlined above would be those most affected by each successive phase
of the land disposal restrictions. Such a procedure would only be  used in cases where the
available data indicate that opportunities for waste minimization are not being utilized and
there remained a significant risk to human health and the environment.  It is not possible to
predict at present which industrial sectors  would be most likely to require such additional
pressure.   They are most likely to be  among those  for which reductions in waste
generation would be extremely costly.

       Costs of Development and Implementation

       There would be some limited costs  involved in the development of guidance for the
selected industrial sectors, but much of this would be developed from already existing
information and based on ongoing data evaluations. Required rulemaking could be both
time consuming and costly, however, the overall costs would depend on how extensively
EPA made use of this authority.

       Enforcement costs, like implementation costs, would depend primarily on how
often the Agency made use of its discretionary  authority. Enforcement resources required
for reviewing either the alternative waste minimization strategy  filings or the economic
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Modifications to Certification Requirements
   justification filings could be substantial. Enforceability would depend on use of penalties
   applicable to generators who fail to fulfill permit or hazardous waste manifest requirements.

   3.0    Recommendations

          EPA recommends that certification by the generator should continue in order to
   assure that waste minimization programs remain economically practicable; the certification
   of waste minimization programs by generators on manifests and on the operating logs of
   TSD facilities should also continue.

          Nevertheless, as data on trends in waste generation and  management become
   available some problem areas may become apparent where the availability of additional
   discretionary  authority would be a valuable tool to  enhance waste minimization.  Under
   circumstances where the generator has not undertaken any waste minimization activities,
   which could be determined through the biennial reporting requirement, the Administrator
   could be provided  discretionary authority to require the generator to  submit to the
   Administrator a justification as to why none of the waste  minimization alternatives are
   economically practicable.12  The generator's rationale would not be  challengeable, but
   nonproprietary information would be publicly available.

          The intent of the additional legislative authority would be for EPA to be able to
   promulgate a  limited number of programs.  For instance:
                 After careful consideration of all the implications for cross-media
                 environmental effects, EPA might specify one or more practices that
                 could not acceptably be certified as waste minimization.
           •      Once data are available to develop meaningful information on what
                 changes and trends are occurring, EPA might increase the specificity
                 of its guidance,  and  define  more  precisely for  certain
                 environmentally critical industries which practices constitute waste
                 minimization.  Generators would remain  free to specify other
                 practices as meeting the waste minimization requirement, and to
                 submit a description of those practices. Unless EPA were to choose
           An alternative format of the certification would have to be written to allow for a two part
           certification separately  covering waste minimization activities  and economic
           practicability.
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                                                    Modifications to Certification Requirements
              to place such a practice on the list of unacceptable practices for
              certification, it would have to accept the generator's certification.

       EPA would use its new discretionary authority only in cases where data developed
through biennial reports, the CAIR questionnaire, or other data sources indicated that
current waste generation and management or specified waste minimization practices result
in potential risks to human health or the  environment.  The effect would be to force
industry to think more carefully about the opportunities open to it to minimize waste. If,
after these steps, the Agency still finds that unreasonable risks to human health or the
environment remain, it would use authority under TSCA Section 6(a) or 6(b) to impose
additional requirements either generally on the handling of particular waste streams by an
industrial sector, or specifically on the activities of a particular generator.

       At this time EPA is not able to recommend the implementation of this option.
however, as part of the next RCRA reauthorization, EPA will provide Congress its most
current assessment of the need to modify the existing /aste minimization requirements.
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Ban Landfilling of Recyclable Wastes
                       Ban the Landfilling, Treatment, or Incineration
                              of Potentially Recyclable Wastes
    1.0    General Summary

          The Agency could encourage waste minimization by imposing an option which
    would ban land disposal, treatment or incineration of wastes that it considers to be
    recyclable.  This management practice option would force generators of selected wastes to
    decide  whether to recycle  waste streams, find  source reduction  measures, or stop
    producing the products that generate the potentially recyclable wastes altogether.

          The types of wastes  most appropriate for  this option would be those that have
    already been shown to be recyclable or could become recyclable with further research and
    technological development. Obviously, wastes that  are not yet known to be recycled or are
    only in the research and development stage are not expected to be recycled by industry. It
    is less obvious, however, why a waste that is known to be recyclable is not recycled.

           Recycling may be more expensive than conventional methods of treating, landfilling
    or incinerating wastes. Other reasons include lack of information on recycling potential, a
    latent or undeveloped market for a recycled waste, an inability for a firm to meet the same
    purity standards that apply for virgin materials, and  lack of financial capability of a facility
    to make the necessary changes in the production process to prepare a waste for recycling.

           The rationale for Agency intervention using this option would be to help stimulate
    industry's behavior toward recycling.  The option would not  only encourage reuse of
    wastes but it would reduce the volume  of wastes that are  being disposed of through
    conventional means, thus, freeing up room in landfills for wastes that cannot be recycled.
    In conjunction with other options that have been evaluated in this report (e.g., technical
    assistance, procurement practices), banning recyclable wastes would help speed industry's
    effort to recycle wastes.

           Unlike a complete prohibition or restriction  in the generation of waste, this option's
    primary attention is on  wastes at the end-of-pipe.  This option is only concerned with
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                                                         Ban Landfilling of Recyclable Wastes
feedstocks to the extent that the recycled waste can be recycled as an input in other
production processes.  In some cases the waste can be recycled back into the same process
as a feedstock from whence it had been generated (e.g., dry cleaning solvents).

       In developing this option, it is necessary to address a number of other issues. First,
the Agency needs to define "recyclable" and identify recyclable  waste  streams.  Since
almost any waste stream could be recycled, albeit at a high cost, it appears that it will be
necessary to consider cost  in the definition of wastes potentially recyclable.  However,
there is no obvious correct level of costs below which wastes are recyclable and above
which  they are not.  If the cost is set too high, firms may stop producing the waste
generating product altogether.  After defining the term, the Agency needs to decide how
often it will revise its list of recyclable wastes as technological advances provide increased
opportunities for reducing the cost of recycling.

       A very limited example of this option  exists in California.   To make  the  ban
manageable, California only prohibits land disposal  of recyclable wastes, but it allows
generators to treat or incinerate the recyclable  wastes.  Furthermore, the list of wastes
banned from land disposal includes only some, not all, recyclable wastes.
2.0    Evaluation
       2.1    Technical Effectiveness
       Volume Reduction

       This option has the potential to induce significant reductions in the volume of waste
that  would ordinarily be sent to landfills, treatment or incineration.  The actual volume
reduction will depend On  the number and volume of the waste streams  classified as
recyclable.  The impact on  volume reduction will also be dependent on how the recycled
waste  will be used. The impact on volume may be greater if the waste  can be recycled
several times before it is must be disposed (e.g., dry cleaning solvents or recovery of acids
from spent pickle liquor in  the primary metals industry). However, preparing a waste for
recycling may generate a waste (impurities that are removed from the recycled waste) which
will  have to be disposed. In other cases a waste may only be recycled once as a feedstock
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Ban Landfilling of Recyclable Wastes
   in another process (e.g., recycling of pesticide dusts at pesticide fomulating facilities).
   These processes will, in turn, generate a volume of waste that must also be disposed.

          Toxicity Reduction

          The impact on toxicity that this option will have depends on the type of waste that is
   recycled. Some wastes that are prepared for recycling may require removing impurities.
   The residual waste may be more concentrated and more toxic than the waste being recycled.
   If the recyclable waste does not have a residual waste then there should be no impact on
   toxicity of the remaining wastes.

          Other Technical Effectiveness Issues

          Two  factors could limit the effectiveness of this option: (1) lack of demand for
   recycled wastes, and (2) the use of a variance program.  Insufficient demand for the
   recycled products creates potential problems with  the program's effectiveness. Waste
   generators are currently recycling only to the extent that demand exists to justify the cost of
   recycling. This option may have to be coupled with  other EPA measures (e.g., expanded
   use of a waste exchange system) to increase the demand for the wastes that  may be
   recycled.

          A variance or appeals program could also reduce the effectiveness of this option.
   California currently has in place a limited form of this option. Some variances are granted.
   To obtain a variance, generators are  supposed to show that recycling, treating or
   incinerating the recyclable waste will be either technically or economically infeasible. If
   such a method is allowed under this option, it could be very cumbersome since appeals
   would slow the process of implementation.

   2.2    Impacts on Industry

           Economic Impacts

           Bans may be an expensive means of obtaining volume reductions compared to other
    proposed options such as phasedown permits. Unlike these other options, the mechanism
    for banning the generation of certain waste streams is not a function  of a  market.
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                                                         Ban Landfilling of Recyclable Wastes
Therefore, a ban is indifferent to the costs that would be involved in the actual processes
that would be required of a facility to meet the option.

       Total cost to industry would depend on how much of a potentially recyclable waste
is selected to be recycled. It could be very expensive if the option is applied to all of the
waste rather than to a portion of the waste.  Other factors that need to be evaluated in order
to estimate the costs to industry are:
       •      The costs of retrofitting a facility with the machinery to prepare the
              designated waste for recycling.
       •      The costs for developing a market for the  recycled wastes. There
              may be very little demand in the early stages of recycling the waste.
              Facilities may  have  to absorb  the costs of recycling in order to
              generate demand for their wastes.

       Equity

       Waste generators may view the option as inequitable since only selected waste
streams and generators will participate  in the option.

       Incentives for Noncompliance

       There is the  possibility that imposing a ban on recyclable wastes could create
incentives for noncompliance. If the imposition of this option is more costly than the
current way a facility disposes  waste it might deliberately continue to treat its wastes rather
than comply with the recycling "regulations. The degree that a facility might choose to not
comply, however, will be dependent on the enforceability of this option.

       2.3    Implementation issues

       Legislative Authority

       It does not appear that  there is  authority under RCRA to enact such a ban with the
exception of the portion relating to landfilling.  An examination of Section 6 (a)(6)(A) of
the Toxic Substances Control Act (TSCA) indicates  that any disposal method  can be
prohibited or regulated. Such  an action  may be taken only if the Administrator finds that
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Ban LandfUling of Recyclable Wastes
   the disposal of a chemical substance or mixture presents an "unreasonable risk of injury to
   human health or the environment,"(Section 6 (a)). Thus, to enact this option, EPA would
   need to evaluate recyclable substances for their risk to human health and the environment
   when landfilled, incinerated, or treated. The likelihood, however, of a waste posing an
   "unreasonable risk" when landfilled, treated, or incinerated but not when recycled seems
   low. Thus, TSGA does not seem to be a vehicle for implementation of this option.

          Time Required for Implementation

          It will take about eight years to implement this option; four years to determine
   whether this option is necessary; three years to propose regulations; and another year to
   promulgate them.  In comparison, it took EPA a few more years to promulgate its
   redefinition of solid waste, an issue only slightly more complex. It is likely that the period
   during which regulations are proposed would be quite controversial and time consuming.
   One of the  major factors in this process will be EPA's determination of the degree that
   economics will play in the definition of what wastes are recyclable.

          Appropriate Target Industries

          This option will be most appropriate for industries generating highly toxic waste
   streams  whose wastes have a  potential for recycling or source reduction and for which
   recycling technologies are available. Without careful analysis prohibiting waste generation
   could have  a deleterious  effect on improperly selected industries.  It is conceivable that a
   ban could exceed a'facility's capability of changing its production processes. In these cases
   firms would be forced to  stop production.

           Costs of Development and Implementation

           There is insufficient information to make clear cost estimates on the implementation
    of this option.   First, perhaps the most costly  aspect of implementing this option is
    enforcement. "Honor systems" will be least apt to work under conditions where recycling
    may be  more expensive than conventional treatment of wastes; in such cases the Agency
    would have to be particularly vigilant in monitoring recycling practices. To enforce these
    regulations the Agency wculd have to discover failure to recycle before wastes are sent
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                                                         Ban Landfilling of Recyclable Wastes
offsite, since it will be difficult, if not impossible, to identify violations after treatment,
disposal, or incineration.

       Second, the staffing requirements of the option may be large. This would be
particularly true for enforcement. For other administration, staffing size and cost would
depend in part on whether Regional Offices or Headquarters will be responsible for
implementing the regulations.

       Third, EPA needs to aid in the promotion and development of additional, recycled
wastes, uses  and markets for recycled wastes.  There would presumably be some costs
involved for research and development on recylcling technologies, and continued support
of waste exchange programs would be necessary to assure continued access by regulated
generators to markets for recycled materials.

       Finally, the Agency might study the experience of California for other costs that
would be involved with a  ban on disposal, treatment and incineration of wastes.  Their
experience can help to define the outline and logistical structure for implementation. For
instance, it would be important to study whether the ban works best under a two-stage
whereby  California  strictly enforces compliance for a limited number of streams, yet
encourages recycling by industry for a much larger number of wastes than are regulated. ^
3.0    Recommendations

       Banning land disposal, treatment, or incineration of potentially recyclable waste
streams appears to be an expensive method of achieving reductions in the quantity of
hazardous waste generated and the risk/toxicity of wastes.  It is probably premature to
consider this option prior to determining the effect that land disposal restrictions and the
issuance of Part 264 permits will have on the quantity of waste generated.  This option
should probably be the last resort for inducing waste minimization. It would be appropriate
only when the following conditions are met:
       «      The waste streams under consideration are extremely toxic,
       in California, generators must explain why they did not recycle or treat recyclable wastes.
       The State  cannot force generators to recycle unless the wastes exceed certain
       concentrations
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Ban Landfilling of Recyclable Wastes
                 EPA is convinced that  current management practices cannot
                 overcome unacceptable levels of risk from waste generated in their
                 facility, and

                 When other waste minimization measures have failed.
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                                                                   Segregation of Wastes
                              Segregation of Wastes
1.0    General Summary

       Many waste streams are in reality a mixture of t-wo or more component wastes
generated at different points in a production process, but combined to reduce handling
requirements, save transportation costs, or achieve scale economies in treatment or
disposal. This management practice would ban the mixing of waste streams where one or
more of the components is identified as recyclable. While the option would not require a
segregated waste to be recycled (this could only be done through banning the waste's
treatment or disposal), it is assumed that once  having segregated recyclable wastes, a
generator would have a strong incentive to initiate recycling.

       This option could be implemented at varying levels of stringency. At one extreme,
segregation could be  required on a self-enforcing basis to the extent determined to be
practical or economically feasible by the generator.  At the other extreme, it could be
mandated through detailed and enforceable regulations, such as in conjunction with a
general waste minimization performance standard (see "Performance Standards").

       Recycling covers both reuse and reclamation activities; the recycling method most
appropriate would depend on the type of waste that is segregated.  In some cases the waste
could be used for energy recovery (as is often possible, for instance, with solvents). In
other instances the waste might be appropriate as a feedstock in the production of another
product (for example, ferric chloride waste from titanium dioxide manufacturing can be
used as a feedstock in water treatment), or reused in the same production process  (for
example, acids from  spent pickle liquor in the primary metals industry can often be
recovered).

       Internal or onsite recycling potential would have to be determined through industry-
specific  analyses.  Information on what materials could  be recycled offsite could be
developed through industry analyses as well as  through  data obtained  through waste
exchanges. While such a regulatory requirement might not specifically require recycling of
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Segregation of Wastes
   the streams once they are segregated, it would make recycling more feasible by producing
   waste streams that are relatively uncontaminated (by virtue of not being a random mixture)
   and thus more amenable to subsequent recovery. In addition, the remaining waste streams
   might be easier and safer to treat and dispose of than combined waste streams.

          EPA could 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.  Management practices could include:
          •      Isolation of hazardous materials from nonhazardous materials,
          •      Isolation of recyclable materials from nonhazardous materials,
          •      Isolation of hazardous waste by contaminant, and
          •      Isolation of liquid from solid waste.

          In certain cases, cost savings may be the greatest nonregulatory incentive for
   segregation.  Segregation can be economically attractive to a  facility by potentially (a)
   reducing  treatment and disposal costs, (b) lowering expenses for the purchase of raw
   materials, and/or (c) producing a desirable product that can be marketed or sent to a waste
   exchange. In fact, requiring segregation of wastes could facilitate waste exchange efforts
   by expanding the market for the purchase and sale of recyclable wastes.  It should be
   noted, however, that even after a segregated waste has been determined to be "potentially
   recyclable," recycling is still dependent on market, geographic, and technical factors, which
   can vary  substantially.  In some cases, generators complying  with a segregation
   requirement may not be able to recycle and may be forced to continue to send their wastes
    to treatment or land disposal.

           This option is  clearly not applicable to all waste streams, and, in fact, might be
    applied only in limited situations. Merging streams is usually done both  for convenience
    and to save costs.  Streams have sometimes been combined to reduce piping requirements
    or minimize treatment expenditures through the construction and operation of single large
    treatment facilities, rather than through distributed smaller units. Consequently, little or no
    cost savings would be realized in some situations.
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                                                                   Segregation of Wastes
       Data needs for establishing a waste segregation requirement would be considerable.
First, technical information would be needed on which industries and processes can
potentially segregate their wastes.  Monitoring data would be needed for selected waste
streams to adequately characterize the streams to assess  their recycling potential.
Information would be needed on the costs of process and treatment modifications and the
economics of the affected industries.  Finally, a survey might have to be undertaken to
identify markets for recycling the segregated wastes.

2.0    Detailed Evaluation

       Volume Reduction

       This option has the potential to significantly reduce the volume of some wastes
otherwise treated or disposed of on  land.  Based  on data  developed for the  RCRA
Risk/Cost Analysis Model, it appears that segregation of streams can be effective in
reducing waste volumes for such industries and processes as acrylonitrile manufacturing,
petroleum refining, phenolic resins manufacturing, and metal treating.

       Toxicity Reduction

       It is also apparent, based on limited data in the RCRA Risk/Cost Analysis Model,14
that some relatively high volume streams  that have been  identified  as potentially
segregatable are also quite toxic.  Notable among these are solvent laden wastes generated
during the cleaning of equipment and metal surfaces, pesticide dusts collected in baghouses
at formulators, and an assortment of wastes  containing levels of highly toxic organic
compounds and metals.   If such highly toxic wastes were segregated from existing
composite waste streams, it is possible that the remainder of the waste stream  (which
would be  sent  to treatment or some  form of land disposal) would  be less toxic.
Segregating wastes may therefore indirectly accomplish some reduction in waste stream
toxicity.
 14     The RCRA Risk-Cost Analysis Model: Phase III Report — Appendix, A.  USEPA, Office of
       Solid Waste, Washington, D.C., 1984.
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Segregation of Wastes
          2.2    Impacts on Industry

          Economk Impacts

          Without detailed identification of potential targets, and considerable information on
   compliance costs, it is impossible to estimate how much the development of technology
   based standards for segregating wastes would cost industry. If other technology-based
   performance standards were implemented simultaneously, then the marginal cost of
   complying with segregation requirements would presumably be relatively minor.

          Segregation does have  the potential in selected instances to  be economically
   attractive, and can in some cases save an industry or a facility significant sums of money.
   Actual costs, however, will vary based on the type of process, the size and composition of
   the waste stream, the market for  and value of the recycled waste, the  age and physical
   constraints of the plants, and geographic location.  In addition, 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, may provide adequate
   information and incentive for waste stream segregation without requiring such action by
   regulation. Estimating the actual cost impacts is complicated by fluctuations in the demand
   for (and cost of) the segregated, recyclable material.

          The cost of waste segregation may, however, fall disproportionately on the
   consumer. This is so if some industrial sectors can avoid the costs of segregating wastes
   by passing on these costs to the consumer. The  trade off in the consumer's absorption of
   the costs of segregation would  be if there is a real benefit through a reduction in human
   health and environmental risks.  However, the benefit of reduction in the human health and
   environmental risk would  presumably be shared equally among both  the producer and
   consumer.

           Equity

           Because of the nature of the wastes to be  segregated for recycling, the option could
    fall disproportionately on selected industries. Since there is, however, the possibility that
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                                                                   Segregation of Wastes
the regulated industries may realize a profit from the generation of wastes, the regulations
for those industries may not actually be much of a burden.

       Incentives for Noncompliance

       Compliance may not be a problem if segregation of wastes results in an economic
return.  However, if compliance with the option is more costly than the way a facility
normally treats waste, it might deliberately continue to treat its wastes in a conventional
manner. The degree that a facility might choose to not comply, however, will be dependent
on the enforcement of this option.

       2.3    Implementation Issues

       Legislative Authority

       It is not clear what the legislative authority is for requiring segregation of wastes.
Section 3002 of RCRA states that EPA shall establish standards for generators "as may be
necessary to protect human health and the environment," but d^s not specifically list waste
segregation as a requirement.  If this option is not currently mandated by RCRA, the Act
may have to be amended.  Another possible approach would be through the use of TSCA
Section 6.

       Appropriate Target Industries

       In order to identify the target industries, a survey must be undertaken to identify
those industries where segregation of wastes can, in fact, achieve significant reductions in
wastes. The survey and.the subsequent industry-specific analyses will be  both resource
intensive and time consuming.  Some preliminary studies have been performed to evaluate
the potential impact that waste segregation can have on minimization for specific industries.
There are a number of industries and processes where the potential for recycling would be
substantial if the appropriate wastes were segregated. The following are a few examples:
       •      The agricultural chemical formulation and paint manufacturing
              industries could both reduce their waste volumes  by  using air
              pollution controls (baghouses) dedicated to collecting a single type
              of dust,  i.e.,  pesticide or pigment.  This  would eliminate the
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Segregation of Wastes
                 contamination of one waste stream with a second waste, thus
                 expediting recycling or reuse of the recovered materials.

          •      By segregating aqueous and oily wastes, the petroleum refining
                 industry could bypass the API Separator, thereby reducing its load
                 and allowing for better separation efficiency for existing separators.
                 This could be accomplished by installing a separate sewer system to
                 convey oil free aqueous wastes.

          •      During the  treatment of metal  surfaces prior  to electroplating,
                 plating, anodizing, coloring, and finishing, rinse waters and spent
                 baths were often mixed and treated jointly. Recycling and reuse can
                 be promoted by segregating various rinses.

          •      The wood preserving industry can apply "good operating practices"
                 to segregate  waste streams by isolating (a) hazardous materials from
                 nonhazardous materials, (b)  hazardous waste by contaminant, and
                 (c) liquid waste from solid waste.


          Costs of Implementation


          The cost of implementation is not yet quantifiable, but it  would be likely to include
    the development and operation of a permit program, and would include resources expended
    at both the Federal and State levels.  Incremental costs  would presumably be modest if
    waste segregation were implemented in  conjunction with performance standards.
    Implementation costs, however, would likely be significant if segregation were required in
    the absence of performance standards.

          As noted earlier, the development of a regulation of this  type could be as simple as
    requiring that facilities segregate their wastes to the extent that is feasible and practicable, or
    could be as  technically complex as the establishment  of technology based standards.
    Technology based standards would require extensive surveys of industry (to identify which
    operations and processes offer potential for segregation), site visits, monitoring  of waste

    streams, surveys of potential facilities, and identification of markets for recycling of the

    streams.

          If enacted on a mandatory basis, a waste segregation requirement could impose

    significant additional costs on the States. It is likely that considerable effort will be needed
    to review permit applications, including design and operating modifications, and to conduct
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                                                                    Segregation of Wastes
onsite enforcement inspections.  Federal  assistance may be  needed if these best
management practice requirements are to be managed on a State level.  If performance
standards were enacted to minimize wastes, then enforcement of segregation requirements
could be included at minimal additional cost to the States.

       Enforcement cost would involve visiting the sites to check piping, tanks, drums,
and general waste handling practices.  Except for segregation of wastes involving waste
handling practices  by personnel, enforcement would primarily require verifying that the
pipes and the plant waste stream diagrams showing waste stream segregation corresponded
with each other.  The site visit at an average plant  could require one person-day for
enforcement personnel.

       Assuming that enforcement inspections would be carried out annually for 10
percent of all generators other than small quantity generators (or 4,300 generators
annually), approximately 24 additional enforcement man-years would be required. With
support staff, salary, and other costs, this would entail additional annual costs of about
$2.1 million.

3.0    Recommendations

       Several conditions should be met before this option is implemented for any
particular waste stream.  First, only wastes that have realistic economic and technical
potential to be recycled on the scale at which they are produced should be segregated;
segregation would clearly not be desirable if the amount segregated substantially exceeded
the size of the recycling market. The selection of an inappropriate  waste stream—a stream
with  no economical recyclability, or a stream produced in far larger volume than the
capacity of the recycling market—would present unnecessary costs to industry, and would
achieve no beneficial effect (since the waste would have to be treated and disposed of as
before).  Second,  a market for the recycled waste should be in operation or nearing
operation, so that facilities could quickly begin to recycle their segregated wastes. Third,
there would have  to be  a continued  effort  by  the Agency to encourage recycling by
promoting  waste exchanges and by disseminating information to facilities on technologies
for segregation.   Finally, this  management practice would probably  work  best in
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Segregation of Wastes
   conjunction with some type of performance standard, such as the option to prohibit
   conventional treatment of a waste that is designated as recyclable, or in conjunction with a
   major performance standard program.
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                                                                  Mandatory Waste Audits
                              Mandatory Waste Audits
1.0    General Summary

       A waste audit is defined as the formal study of waste generation within a specific
facility and identification of possibilities for reduction and/or recycling of wastes.  Its
purpose is to identify the waste  streams, the quantity of waste generated, and the
production processes that are responsible for generating each particular stream.  Many
firms already conduct waste audits voluntarily; the option under consideration here is
whether or not to make waste audits mandatory, and if so, to what extent and in regard to
which categories of generators.

       Information from an audit could be handled under two slightly different alternatives:
it could be retained by the firm for internal use, or it could be shared with EPA. The two
alternatives imply different assumptions  about how audits would influence waste
minimization. The first assumes that the audit itself would provide sufficient incentive for
the firm to take corrective action.  The second alternative would allow EPA to determine
whether a firm was doing everthing possible to minimize waste. In the latter instance, the
use of audit information by EPA raises serious questions regarding access to proprietary
information, as well as significant increases in Agency management costs.

       Currently, several State technical assistance programs provide some waste audit
services.  These may be carried out either by  State personnel or through arrangements with
private sector consultants.  Minnesota's MnTAP program, for example, places engineering
interns in plants for an entire summer to carry out such audits in cooperation with engineers
at the facility. The State programs, however, are strictly voluntary.  Firms are not required
to undertake waste audits, nor  are they required to adopt the recommendations of audits
they agree to conduct.
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Mandatory Waste Audits
          A number of factors should be addressed by any waste audit, including:15
          •      Identification of waste streams and flow rates in the facility being
                 audited;
          •      Delineation of waste generation problems;
          •      Postulation 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, current application experience within a waste
                 generating sector);
          •      Documentation of these options, and presentation to and discussion
                 with plant personnel; and
          •      Final rankings of most reasonable options in light of evaluation and
                 discussions.

          Following the final ranking, it would be necessary to examine the feasibility of
    implementing the recommended waste reduction option or options.  This step would go
    beyond what is generally considered to be part of the waste audit and involve an actual
    engineering or feasibility study.

          It is usually considered preferable to have waste audits conducted by engineers who
    are not directly associated with a plant's operations or employees of the audited company.
    This avoids conflict of interest problems and reduces the possibility that the auditor is
    committed to the standard operating procedures within the facility. In a large company it
    might be possible to meet this criterion of neutrality while having such studies carried out
    by uninvolved company personnel. It is extremely important, however, to assure that such
    an audit  is applied as rigorously as it would be had external consulting engineers  been
    contracted to carry out the work.
           See Carl H. Fromm and Michael Callahan, "Waste Reduction Audit Procedure—A
           Methodology for Identification, Assessment and Screening of Waste Minimization
           Options," in Waste Minimization Programs, pp. 427-435.
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2.0    Evaluation

       2.1   Technical Effectiveness

       Volume Reduction

       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 predetermine what volume
reductions waste audits would achieve.  Statistics are not available on average levels of
waste reduction following waste audits. Certainly some reductions would be achieved,
especially in plants that would have chosen to undertake such audits on a voluntary basis.
So long as there is no specific requirement to achieve reduction or recycling levels based on
audit results, companies would be likely to act only 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 program option.

       If the results of waste  audits were to make certain actions mandatory, volume
reductions would probably be substantially increased.  But such an approach would have
most of the disadvantages  of a performance standard program (high development and
implementation costs—see below) without the compensating advantage of careful economic
and engineering studies of what could reasonably be required of an waste generating
sector. It would at least be necessary to require feasibility studies to determine which of the
possibilities identified in the waste audits were truly viable. If this were done on a site-by-
site basis, the management burden on EPA and on the States would, in fact, be many times
greater than under a performance standard.  EPA would at least need to establish threshold
criteria for combinations of waste minimization and economic tradeoffs that would compel
action by a company.

       Toxicity Reduction

       As with reductions in volume, it is impossible  to predict the actual reductions in
toxicity that would result from mandatory waste audits.  Unless some incentive were given
for reductions of the more toxic hazardous wastes, however, it is likely that waste audits
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Mandatory Waste Audits
    would have a proportionately larger impact on volume than on toxicity. Most of the market
    incentives affecting such decisions would tend more to encourage reductions in volume,
    since it is volume that most influences disposal costs as the waste management system is
    currently structured.16

          2.2     Impacts on Industry

          Economic Impacts

          The cost of a waste audit depends on such factors as its scope, the size of the plant,
    the number of waste streams involved, and whether the audit is done by a company's staff
    or external consulting engineers.

          One engineering firm, for example,  suggests the following  as a cost profile for a
    facility of  medium complexity (i.e., three to six different waste streams with up to four
    different production steps). The audit would require seven to eight engineering person-
    weeks.  Costs  per hour for external consulting engineering services  would be in the range
    of $60 to $65/hour. If done by company staff, costs would be about $35/hour. Therefore,
    the resulting cost range for a waste audit for such a medium-sized facility could range from
    $9,800 to $20,800. For smaller facilities, the costs could  be substantially lower, perhaps
    under $5,000,  and for large, complex facilities, the costs could be substantially higher.

           Whether the demand for services created by such a requirement would drive costs
    higher is not certain. A substantial reservoir of engineering expertise in environmental
    auditing and value engineering already exists and could, with limited reorientation, be
    available for carrying out waste audits.  The effect of such a large, one-time demand,
    however, is difficult to project.
    16     Under some options, such as certain variations of phasedown permits, reductions in toxicity per se
           might be emphasized by such measures as higher permit costs for more highly toxic wastes.
           EPA's analysis at this point suggests that trying to set up separate incentive structures for volume
           reduction  versus toxicity reduction would raise many  complex technical and implementation
           issues. It  may  happen, however, that under the land disposal restrictions program costs of
           treatment of high-toxicity wastes may in certain circumstances be higher than costs for lower-
           toxicity wastes.  If this occurred, it would provide an independent market incentive  for firms to
           reduce waste toxicity.
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                                                                  Mandatory Waste Audits
       Recognizing that these figures provide no more than the roughest estimates, if
waste audits were required for all but the small quantity  generators and a midpoint of
$15,000 were selected as the cost figure for audits of all such facilities, the cost to the
43,000 generators identified in the 1983 biennial  report would be approximately $645
million.  If a figure of only $3,000 were selected as the cost for waste audits of small
quantity generators, the cost of such audits for those generators would run to an additional
$525 million. It must be kept in mind, however, that these costs include only the waste
audits themselves. They do not include the costs of subsequent engineering, feasibility
studies, or implementation of the proposed changes at a plant.

       Equity

       If waste audits were applied on a voluntary basis, no new administrative burdens
would be imposed on firms, and equity concerns would not be a significant issue.

       Some concern might arise if the information generated by audits were to be made
available to EPA or the  States. Firms might fear that proprietary information might be
made available inadvertently to competitors.

       If audits were selectively applied on a mandatory basis, equity issues might become
a more serious issue, particularly with regard to  inadvertent disclosure of proprietary
information. If requirements were included to compel firms to adopt the recommendations
of audits, equity concerns would presumably be substantial.  Fortunately, a mandatory
waste audit program would not tend to penalize firms that had already invested in waste
reduction: the audit would simply reveal that such firms have less  additional opportunity to
reduce or recycle wastes.

       Incentives for Noncompliance

       If implementing  the results of  waste audits were  not  mandatory,  then
"noncompliance" with the option should be realistically defined as noncooperation with the
process.  Firms presumably would not deny access to plants by authorized and accredited
auditors.
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Mandatory Waste Audits
          The principal negative effect of mandatory waste audits would be that companies
   may treat waste audits as a regulatory imposition rather than an effective management tool.
   Resentment might be further exacerbated if a facility were required to undertake the audit in
   spite of substantial previous waste minimization activity. The result might be that, even
   though more audits would be done than under an active technical assistance program, less
   follow-through action  based on the audit results would be carried out by the plants.
   Furthermore, plant personnel might resist the audit process and deny auditors relevant
   information, rather than cooperate with them as potential contributors to the plant's more
   efficient and profitable operation.

          Industry would also be concerned that such a program could risk  proprietary
   information. In order to identify waste streams and the processes that generate them,  a
   tremendous amount of confidential information would need to be gathered. If the audits are
   subject to review, they risk divulging this information when  the report is forwarded to
   EPA.   Under these circumstances, management may be less than candid about the
   information  that would go into an audit report.

           If implementing the results of waste audits were made mandatory, noncompliance
   would clearly be a major issue, with serious implications on State and Federal enforcement
   budgets (see below).

           2.3    Implementation Issues

           Legislative Authority

           If waste audits were promoted by EPA as  a voluntary measure,  no additional
   legislative authority would be required. -

           While waste audits are less comprehensive  and objective than a complete
   environmental auditing program, EPA believes that the interim guidance adopted by the
   Agency for environmental auditing (50 FR 46504, November 8, 1985) is appropriate for
   waste audits.  This guidance states that, "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,
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                                                                 Mandatory Waste Audits
auditing should remain a voluntary activity."  A possible exception to this voluntary
approach would be in enforcement actions, "where auditing could provide a remedy for
identified problems and reduce the likelihood of similar problems recurring in the future."
Though the Agency is reluctant to interfere with the long-term impact of a waste audit, it
may on a case-by-case basis, request reports if "...[it] determines it needs an audit report,
or relevant portions of a report, to accomplish a statutory mission...."

       Requiring a waste audit of all generators would at least  require a rulemaking
procedure.  It might  be necessary to obtain direct legislative authority, although such
authority might be argued to already exist under Section 8 of TSCA: requiring waste audits
of all  generators in specific industrial categories, because of specific toxicity and health
concerns related to that industrial category, would be more clearly the kind of information
gathering permitted under Section 8. If mandatory audits were applied selectively rather
than across broad industrial sectors, use of existing authority under Section 8 of TSCA
might be feasible. The difficulty would be in demonstrating a need for such information to
be developed by all generators for effective operation of TSCA—particularly if it were not
the  Agency's intention to require  the information for themselves. Passage of some of the
informational requirements proposed in the CERCLA amendments, however,  would
probably provide the requisite authority. Otherwise, the Agency would have to depend on
a further modification to RCRA.

       Time Required for Implementation

       If waste audits were supported by EPA as a voluntary program, individual firms
could begin to plan and conduct audits as soon as funds were allocate 1 for this purpose.

       Since new legislation followed by a rulemaking would  probably be required to
make waste audits mandatory for all industries, it would take a considerable amount of time
before the impact of a mandatory program would be visible.  Impacts could be felt sooner if
current proposed information requirements amending CERCLA  are passed by Congress.
Assuming that the current CERCLA amendments pass by the end of 1986 anu that
rulemaking is to be completed by the end of 1987, the requirement would most likely be
implemented between late 1988 and early 1990. Implementation of recommendations from
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   the audits would occur over subsequent years.  If such authority is not created under
   CERCLA, separate legislative authority under RCRA could be passed by the end of 1988,
   which would delay the timetable by two years.

          If EPA decides to implement  waste audits on an industry-by-industry basis, a
   rulemaking under Section 8 of the Toxic Substances Control Act might be feasible.  The
   timetable could be shortened by nearly a year.

          Appropriate Target Industries

          The  industry studies  in  EPA's  technical  background  document on  waste
   minimization, for  example,  indicate  that  epichlorohydrin  manufacture,  1,1,1-
   trichloroethane manufacture, trichloroethylene/perchloroethylene manufacture, and vinyl
   chloride monomer manufacture (all of which are part of the organic chemicals industry,
   SIC code 2869) are all carried out at a few very large facilities. Engineering reviews in
   these studies indicate that the plants involved have already taken substantial steps toward
   waste minimization and are generally well controlled. But such wastes as heavy ends from
   the distillation of vinyl chloride in vinyl chloride monomer production (K020) and heavy
   ends from the distillation of ethylene dichloride in ethylene dichloride production (K019)
   are (ac'cording to currently available data) among the largest volume RCRA waste streams;
   they are also produced from plants that are parts of integrated operations. The organic
   chemicals industry, taken as a whole, is the largest single generator of RCRA wastes and
   produces the most toxic wastes.

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

          Waste audits may actually be useful over the entire range of industries. While it
    might be argued that certain industries will benefit more from a requirement that they
    conduct a waste audit, many other industries might also find it a helpful way to identify
    waste streams and the production technologies that generate them.  Knowledge of the
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                                                                  Mandatory Waste Audits
wastes and techniques that generate them can be a preliminary step by a firm in determining
what appropriate actions it may take to reduce waste generation.

       Costs of Development and Implementation

       If all facilities were required to undertake a waste audit, the only development and
implementation costs for government would be the costs of notifying all generators of the
requirement. 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.

       If EPA requires that a facility, upon completion of an audit, implement feasible
changes identified in the audit, it would drive enforcement costs into the range estimated for
standards of performance—about $7.5 million annually.

       Other Impacts

       The major benefit of a mandatory waste audit program would be that companies,
once made aware of changes that would enable them to minimize wastes, would take action
to achieve feasible reductions, insofar as there was an economic reason to do so.

       Such a program could be described in a way that would be appealing to the public,
since the requirement could be seen as encouraging industry to take further steps toward
waste minimization.  It  is  not clear, however, that the actual results would provide greater,
or even equal, protection to the public than voluntary  State technical assistance programs
encouraging generators to undertake audits on their own volition.

       Impacts on States: Requiring waste audits might undercut State technical/financial
assistance programs by creating an adversarial situation with respect to the very kinds of
services being offered  by the States. If many  generators were to be less responsive than
they would be when management initiated a waste audit effort, the result could be to limit
the actual  impact of some of the  facets of the State programs, which depend on an effective
waste audit, or on effective State and generator cooperation.
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   3.0    Recommendations

          Waste audits can be extremely useful in diagnosing the ways in which a facility can
   reduce or recycle wastes. The information developed during such an audit can be a valuable
   step in making plant management aware of changes in processes, operating practices, and
   management of wastes that  could save on disposal costs, reduce raw material demands,
   increase efficiency in meeting compliance requirements under other environmental statutes,
   and/or reduce future liability concerns.

          Notwithstanding these advantages, EPA believes that such waste audits should
   remain voluntary.  EPA believes it is preferable to support State technical assistance
   programs  and to encourage the inclusion within those programs  of a  waste audit
   component.

          A crucial element in  the success and usefulness of such audits is the recognition of
   the audit's value by a facility's management.  There is a greater probability that waste
   reduction innovations will be incorporated into redesigned plant operations if an audit has
   been initiated by  management.  If waste audits are imposed as an external regulatory
   requirement, this commitment might often be lacking; suspicion that EPA may sooner or
   later use the results of the audit to require specific changes within the plant may tend to limit
   the audit's  effectiveness. An uncooperative attitude would also reduce the likelihood that
   the results of the audit would be used effectively by the plant in altering its operations to
   minimize wastes.
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                                                            Technical Assistance Programs
                          Technical Assistance Programs
1.0    General Summary

       EPA already provides  some technical assistance  to certain active State waste
minimization programs. The range of potential additional technical support activities could,
however, be broadened substantially and its level of intensity significantly increased. Not
all States have waste minimization technical assistance programs, and among those that do,
the scope and depth of activities vary widely.   The option under consideration here is
whether or not an expanded EPA-supported program would be an effective and desirable
method of encouraging firms to adopt affirmative waste minimization programs as part of
their hazardous waste managerr.  u agenda, and  if so,  to  suggest  the  priorities for
developing such a program.

       Generic elements for an  expanded program might appropriately include:
       •       Technical information development and transfer,
       •       Increased coordination and cooperation between EPA- and State-
              supported activities, including direct outreach to firms; and
       •       Cooperative research on source reduction and recycling methods.

       It is important to note that the success of this  approach is not to be  based
exclusively, or even primarily,  on the civic concerns of the  companies involved. Because
companies can choose not to participate in these programs, such nonregulatory approaches
to environmental problems are sometimes viewed  as noncompelling—"voluntary" almost in
the sense of public philanthropy. A crucial and powerful element in the success of a
technical assistance programs for the minimization of hazardous wastes is that they do not
operate in isolation from  the economic realities that drive the firms generating those wastes.

       Several factors are involved in a firm's search for solutions to its waste generation
problems, or its receptivity to the information provided.  These factors include current
regulatory requirements (e.g., Clean Air Act, Clean Water Act), steeply rising  waste
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    management costs (which may increase further as land restrictions are implemented), future
    liability concerns, and potential for savings through recycled materials.  Many of the
    hazardous waste generators subject to these pressures face obstacles to implementing waste
    minimizing processes or practices, because they lack awareness of the technical alternatives
    available, have inadequate capital to make the necessary investments, lack engineering
    expertise to redesign  processes, or fail to understand the importance of considering
    compliance or disposal costs in time/cash flow calculations.

          The principal point is that, while the incentives listed above not are as compelling as
    an enforceable performance standard, they do in fact lead generators to act voluntarily to
    reduce wastes. Some generators, however, will probably not be subject to these pressures,
    or at least not to the extent that they will change their operating practices.  Identifying these
    industrial sectors, and the percentage of wastes they contribute, thus will not likely become
    apparent until the programs and external financial and compliance pressures have had some
    time to operate.

          In general, EPA-supported technical assistance programs have had uneven and
    limited success. Often support levels have been not been adequate to develop strong State
    programs, or to ensure that they are sustained long enough and predictably enough to reach
    their potential.   Moreover,  technical  assistance per se has often  been considered
    inconsistent with EPA's primary identity as a regulatory agency. If an expanded technical
    and program  were found to  be  a desirable and feasible means of  achieving waste
    minimization, adequate resources would have to be available both to spur individual State
    efforts and to provide a centralized information and direction upon which the States could
    rely.  The program would have to  have a distinct and well-defined purpose and be
    integrated into the Agency's overall waste minimization strategy. While the funds required
    would be small relative to a typical regulatory program, they must be reliably provided if
    State efforts are not to be undercut after initial commitments are made. If funding for this
    option is considered "soft" (i.e., subject to unpredictable reduction or termination), it is
    likely that this option would not be successful.

           To avoid such pitfalls, a waste minimization technical assistance program would
    have to be designed as a close adjunct to existing Federal  and State  hazardous waste
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programs, facilitating the regulatory goals of the rest of the RCRA effort and exploiting the

incentives for waste minimization that these regulatory programs have partially created.

Opportunities exist to build on:

       •      The HSWA objective to strengthen the States' basic implementation
             role for hazardous waste management;

       •      States' direct experience with the problems and priorities of local
             generators and TSDFs; and

       •      Industry's existing economic incentives to minimize waste, created
             in large part through the land disposal restrictions program and other
             HSWA initiatives.


       Combining the generic elements of possible technical assistance  programs with

these more focused opportunities for success in relation to RCRA objectives, a long-term

assistance program might well include the following specific elements:

       •      Identification of industries and waste streams  creating the largest
             hazardous waste problems for each  State.  While much of the
             impetus for this process may come from the RCRA program, a non-
             regulatory technical assistance program offers  an opportunity to look
             at the pollution generation problems in a cross media perspective.

       •      Analysis or survey of  the barriers  to  waste reduction in the
             industries identified.  In some  cases, the barriers may be strictly
             informational (as with many of the smaller  generators).  In other
             cases,  there may  be genuine technology  problems (e.g., the
             limitations  imposed  by the rapid technological changes in the
             electronics components industry) or lack of staff engineering skills
             that can be dedicated to waste minimization problems (depending, to
             some extent, on the proportion  of production costs represented by
             waste management or the potential savings from recovered product).

       •      Evaluation of  whether  and  how the  various  technical,  and
             informational options described  above could meet the needs or
             overcome the  unidentified obstacles.   It  is also  necessary to
             determine the  appropriate allocation  of effort and funds for
             overcoming each obstacle. At this early stage, the combination of
             effort and funds  will be somewhat subjective until hard evidence has
             been developed for the cost-effectiveness of specific approaches.

       •      Focusing aid over the long term on those elements of a technical
             assistance program where EPA can effectively gather, collate, and
             analyze daca on a  nationwide basis. For example, EPA assistance
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                 may be most helpful in the identification of common industrial and
                 waste stream problems, development and cataloguing of model
                 solutions  to those problems, and analysis  of typical financial
                 tradeoffs.   While  these factors  obviously  vary  with the
                 characteristics of individual States, or with  the particularities  of
                 individual plants, the useful common base of information will
                 generally be substantial.

          •      Providing support to the States for activities that would generate
                 useful new information.   EPA  could assist, for example,  in
                 supporting waste audits  conducted as part of State technical
                 assistance programs.  Such  support would  be particularly
                 appropriate where a State has industries with highly toxic waste
                 streams on which little information has been  developed about
                 opportunities for waste minimization.

          •      Highlighting ongoing research and development efforts that might
                 serve a larger area than a single State and that would enhance waste
                 minimization by large numbers of generators.  Some of this support
                 may be as much a matter of planning as financial assistance. Central
                 facilities  for  handling and recovering  wastes  generated  by
                 electroplaters, for example, are in the planning and/or feasibility
                 study stages in New Jersey, Illinois, and Minnesota. Such central
                 facilities have  the potential of serving large numbers of generators
                 who would otherwise dispose of their wastes in landfills or other
                 land disposal sites. The problems involved in implementing such a
                 project are technical, financial, and regulatory (the  relationship of
                 the implementation schedule, for example, to  compliance deadlines
                 under the Clean Water Act's pretreatment program).  Because of the
                 broad potential for waste minimization in such centers, EPA could
                 usefully provide technical and planning assistance.

          Almost all of the State assistance programs are relatively new.  In some States

    major resource commitments have been made, and substantial efforts to develop a waste

    minimization program are underway.  These programs disseminate information on waste

    minimization technologies and practices to generators.  Other States have offered financial

    assistance to generators to make investments in waste reduction or recycling technologies

    that they might not otherwise make.  A signficant EPA commitment  to supporting programs

    could be instrumental in accelerating the growth  of existing  State programs and the

    initiation of new programs in the remaining States.


           At its most basic level, technical assistance has meant providing a library resource

    of technical information that  generators can review to learn  which technologies would be
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useful for  minimizing their own wastes.  New York and North  Carolina both have
established significant technical information collections available for use by generators (or
by other State agencies providing more direct technical assistance to generators).  New
York's Industrial Materials Recycling Program, operated through the State's Environmental
Facilities Corporation (EFC), publishes informational newsletters, technical papers, and a
directory of permitted hazardous waste transporters. North Carolina's Pollution Prevention
Pays  (PPP) program has an  Information Clearinghouse with over  1,200 references on
waste minimization methods organized by SIC code. Numerous other publications are also
available through PPP, such as the Handbook of Environmental Auditing  and a directory of
State recycling firms.

       Some States have  developed more  active technical assistance programs.  These
include direct efforts to help individual generators and educate important industry groups.
Minnesota, North Carolina, and Illinois, for example, provide direct advice to individual
generators. Most of the direct assistance to individual generators is provided by telephone,
followed by distribution of appropriate written information.  Technical assistance staffs in
each of these States also provide onsite audits and reviews of particular plant sites.  Since
onsite audits are resource intensive, often involving an effort of several days, it is important
that the sites selected represent prevalent industry problems within the State.

       Minnesota has carried onsite technical  assistance a step further by providing plants
with engineering students who work directly in the plant during the summer to assist in
assessing the needs and opportunities for  waste  minimization.  During  the  summer  of
1985, several of these interns worked on problems  involving electroplating and spray
coating, two industrial processes of major importance in Minnesota. While most of the
plants were smaller companies, one intern worked with Sperry  Corporation, redesigning  its
metal plating processes so that wastes could be segregated and the metals recovered (rather
than disposed of as hazardous wastes).  Other States are considering  the possibility  of
establishing senior intern positions for retired engineers who could provide the benefit  of
their experience to smaller companies to assist them in designing and implementing waste
minimization options.
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           Several States have designed seminar programs for specific industrial sectors. The
    seminars try to cover sectors that either exhibit the most need and potential for waste
    reduction or are the greatest volume generators. Tennessee, for example, has developed a
    list of several initial target industries.  After completing waste audits for representative
    companies in each of the industrial sectors, seminars will be held throughout the State
    incorporating the results of the audit and other relevant technical information to help educate
    those industry groups on waste minimization opportunities.

           Beyond technical engineering advice, considerable effort has gone into developing
    information on the economics of waste minimizing processes, documenting for smaller
    companies either the direct cost savings from recovered materials, or the net savings
    resulting from reduced disposal costs.  North Carolina, for example, funded several case
    studies of cost savings from installation of processes to reduce wastes.17

           Technical assistance programs also provide support in the area of research and
    development (R&D), along with planning and feasibility studies that target industries are
    often unable to initiate on their own.  This aspect is illustrated by studies that have been
    undertaken in both Illinois and Minnesota for a centralized facility to process electroplating
    wastes.  R&D has determined that such a facility, depending on its design, can either
    recover the metals directly for reuse or make use of other recovered material.  Not only
    does it have the potential for substantially lowering the costs of the generator, but it can
    also reduce the total volume of waste that would otherwise have to be disposed of.  The
    planning and feasibility studies stated that, for the centralized facility to be economical,  a
    large number of electroplating processors would have to be willing to send their wastes for
    processing.

           Research and development support for technical assistance efforts can also take the
    form of grants to universities to investigate alternative technological approaches to waste
    minimization. The results of this research can then be used by generators in the relevant
    industry group within the State. For example, North Carolina this year has funded studies
           Some of the North Carolina case studies are available in summary form from the PPP
           program; others have been published in Proven Profits from Pollution Prevention, by
           the Institute for Local Self-Reliance.
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                                                             Technical Assistance Programs
on topics relating to pollution reduction systems for selected food processes and a new
method for recovering metals from aqueous waste solutions.

       Direct financial assistance to generators is provided through a variety of State loan
and grant programs.  Financial support is sometimes provided for installation of waste
reduction or recycling equipment or processes, waste audits by generators to determine the
opportunities for waste reduction, or research done directly by the generators on their own
plant sites. The goal of such research is to develop processes or technologies that will be
transferable to other generators using the same types of processes or producing similar
products.

       Loan assistance is available through mechanisms ranging from tax deferred bonds
and  defrayal of loan costs to direct  loans.  California's  Pollution Control Financing
Authority, for instance, has the authority  to subsidize loans for small and  medium-sized
generators for the cost of purchasing waste reducing equipment.  The Financing Authority
has $2.6 million to invest in  these activities or in financing the cost of issuing revenue
bonds.

       Illinois provides financing for waste reduction investments for generators through
environmental control revenue bonds. The interest on the bonds is exempt from Federal
taxes, which lowers the interest costs on the loans to the generators. The State, however,
does not stand behind bond repayments; that is strictly the responsibility of the borrower.

       Minnesota offers research grants to generators or groups of generators to study the
applicability of known waste reduction processes  to other waste  streams or processes.
Generators can receive up to $30,000 for such a research project. North Carolina provides
up to $5,000 in  "Challenge Grants" in matching funds to firms (or communities).

       Some of the money  distributed  by  States has been supplied by EPA.  Some
examples include the following:
       •       Georgia's Hazardous Waste Onsite Consultation Program has been
              partially funded on a pilot basis by EPA.
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                 Tennessee's program to identify, analyze, and develop training
                 seminars for various industries received $90,000 of support from
                 EPA for a 15-month period that began in the fall of 1984.
                 North Carolina's research  grant program has EPA funding of
                 $100,000/year  for  three years.  Minnesota has  also received
                 $100,000 for support of a research program.
                 Small quantity  generator audits in New York are supported by  a
                 $30,000 grant from EPA.
   2.0    Evaluation
          2.1    Technical Effectiveness

          Volume Reduction

          It will be difficult to predict or to measure the impact of technical programs on
   waste generation rates, but the Agency believes it is potentially substantial.  Both direct and
   indirect effects must be considered. Direct technical assistance would presumably focus on
   small and medium-sized companies, not the largest generators, since the large firms tend to
   have greatest access to information and capital to support waste minimization programs.  A
   sustained and well-publicized program would, however, help change the general climate
   within which firms make waste management decisions,  exploiting peer pressure and
   creating a milieu in which firms can demonstrate technological leadership and innovation in
   a field where public anxieties are great.

          State technical assistance offices indicate that the largest reductions in disposal of
    hazardous wastes as a result of the technical assistance provided to generators are taking
   place through increased recycling of spent solvents (F001 to F005)—solvent wastes are
   produced in significant volumes by a number of different industries.  Also identified are
    generators of electroplating sludge (F006), one of the largest volume RCRA  wastes, as
    candidates for future waste minimization technical assistance.
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       Toxicity Reduction

       As with volume reduction, the degree to which technical assistance programs could
help reduce waste toxicity is still speculative. However, although high-volume wastes tend
to be associated with large firms, the same is definitely not true with high-toxicity wastes.
Some categories of industries dominated by small and medium size firms are known to
generate highly toxic wastes; examples include electroplating operations and pesticides
formulators. Technical assistance could potentially have a significant beneficial effect on
the  toxicity of wastes produced by large numbers of firms.

       Other Issues

       Multimedia Issues: One advantage of expanded technical assistance programs is
that they could encourage thinking about environmental problems on a cross media basis.
Waste audits and technical assistance provided to companies generally focus on the entire
pollution generation profile of a company—not just RCRA wastes.

       2.2    Impacts on Industry

       Economic Impacts

       A technical assistance program would create no new costs for industry. It has the
potential to lower some costs that would otherwise exist by making companies aware of
cost saving approaches to reducing and recycling wastes, by directly financing installation
of waste reducing technologies, or by  implementing waste minimizing practices.  For
example, a technical assistance program might be useful in lowering costs by aiding a
company  facing compliance requirements for effluent or air standards.  Employing
information from a technical assistance  program to develop an overall waste minimizing
strategy might  be more  cost-effective  than just satisfying  minimal performance
requirements under the applicable standard.

       How well a technical assistance program works depends on the other costs industry
faces. Where disposal, compliance, and potential liability costs are high, there will be
greater concern with finding waste minimization opportunities.   Costly  technical,
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Technical Assistance Programs
   instructive, and economic information might prevent smaller companies from being able to
   research opportunities with their own resources.  State programs that remove or reduce
   some of the cost barriers may, therefore, have a significant impact on company decisions.

          Equity

          No major negative equity issues arise under a technical assistance program. This
   approach provides a benefit for industry, enabling it to find more cost-effective approaches
   for compliance with environmental program standards and providing incentives for waste
   reduction, which, over the long term, could reduce disposal costs or create savings through
   materials recovery.

          Incentives for Noncompliance

          Since this option carries no mandatory requirements for industry, noncompliance is
   not a direct issue in this evaluation.

          The General Accounting Office report, Illegal Disposal of Hazardous Waste:
   Difficult to Detect or Deter ^ recognized the potential enforcement problems of HSWA
   generally, and pointed out that current State and Federal enforcement capabilities are limited
   in their ability to cope with the extent of the illegal dumping problem. Because this option
   provides incentives for small quantity generators and other small facilities to seek the
   assistance needed to  help overcome the high costs of meeting regulations on treating or
   disposing of wastes, it may offer some promise of limiting the problem of illegal dumping.

           2.3    Implementation Issues

           Legislative Authority

           Existing authority is sufficient to set up the programs contemplated within  this
    option;  no additional legislative authority would be necessary. The only legislative
    requirement would be for increased appropriations to ensure that there is a coherent  and
           General Accounting Office, February 22, 1985, Illegal Disposal of Hazardous Waste:
           Difficult to Detect or Deter, GAO/RCED-85-2.
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                                                            Technical Assistance Programs
predictable program effort for several years.  Such a commitment  might well make
implementation of some of the costlier alternatives for achieving waste reduction and reuse
unnecessary.

       Time Required for Implementation

       Several States have already initiated technical or financial assistance programs,
some with EPA support, as a significant proportion of their budget.  Both State and EPA
funding has also been provided for research into waste minimization potential in specific
industries.

       EPA could accelerate  and expand efforts in some States, spur the creation of
programs in other States with no current programs, and boost the research efforts that help
these programs to develop more effectively. The effects of these additional program and
funding efforts would be relatively direct  and  immediate.   Support  directly to
technical/informational assistance would show results earliest, since these would be used
within the year  allocated for activities  such as  information  dissemination and waste
auditing. Plants  might begin acting on the information or analysis received within a few
months.  The longest time periods between funded programs and actual impact would be
during the research phase, where the time involved would depend on the duration of the
research project and the extent to which results would  be directly applicable. For example,
the market research construction and operation  of oil/water separator sludges would
probably take a number of years to complete.  Other projects involving research into the
transferability of existing  technology into plants in other industries might show quicker
results.

       Appropriate Target Industries

       State technical assistance programs have focused on the industrial sectors identified
as serious sources of problems for in-plant assistance  and for general education programs.
Many State programs have highlighted the problems of small quantity generators for
attention, while others have placed as much or  more emphasis on medium-sized
generators.  This is important because in some States the medium-sized generators are
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   producers of the largest portion of the wastes, yet they often lack the resources and
   expertise to identify and/or implement waste minimization activities.

          Metal finishing/electroplating has been a major industry of concern in almost all the
   States with active technical assistance programs.  The industry is characterized by large
   numbers of smaller plants that produce substantial volumes of highly toxic wastewater
   treatment sludges with cadmium, chromium, copper, nickel, and other metallic wastes.
   Similar waste streams constitute a large proportion of the hazardous wastes generated by
   the printed circuit board industry, which is also characterized by a large proportion of
   medium-sized and smaller facilities.  Within individual electroplating plants, there are a
   number of steps that can reduce the generation of wastes, including minimization of drag-
   out from the plating bath to a rinsing bath (through  increased solution temperature,
   decreased concentration of metal salts and other components of the plating solution, or
   reduced period of withdrawal), segregation of waste streams, or reduced use of rinsewater
   by recycling.

          In-plant waste audits, educational seminars, and publication and distribution of
   relevant engineering information may facilitate adoption  of waste minimization changes in
   operating procedures.  In some cases, it will require financial assistance from the State in
   order to make it more  feasible for a small plant to implement changes.

           It should be noted that while the emphasis is on smaller or midsized facilities, it is
   not limited to  them.  Tennessee's initial outreach  was to generators of all sizes, though
   State officials do not expect substantial participation  by the very largest firms  (partially
   because their  technical resources are greater and partially because of concerns about
   proprietary information).  In Minnesota, although most engineering interns were assigned
    to smaller firms, one was assigned to a plant for Sperry Corporation to identify potential
    ways to reduce electroplating wastes in the facility.

           In the  electroplating industry, there is an  opportunity for cooperative  technical
    efforts involving States and generators. In areas where there is a large concentration of
    plants generating electroplating wastes, States and  generators may be able to jointly
    sponsor construction of a central processing plant, which will make possible greater waste
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reduction at lower cost than could be achieved by individual facilities. In another example
of a cooperative venture, an ion exchange process (long used for recovering gold and silver
wastes) is currently planned for the Passaic Valley in New Jersey. Other possibilities of
technology transfer and cooperative waste  reduction/recovery are being explored
elsewhere.

       Many other industry groups also offer major opportunities for technical assistance
and have been the focus of efforts in several States. These include industries such as plate
making and printing, painting and coating, paper products, dry cleaners, automotive repair,
furniture fabricators, wood preservers, and chemical formulators (including pesticides).
All of these industries are characterized by large numbers of small facilities (even though
there are large plants), by substantial  similarities with respect to processes and operations,
and by the volumes of wastes they generate (e.g., halogenated solvents for dry cleaners,
bottom sediment  sludges from creosote or pentachlorophenol  production for wood
preserving, and nonhalogenated solvents from painting). There are enough similarities
across plants, in spite of idiosyncrasies, to make general technical  information  and
demonstration projects of considerable value, or to make the  technical and economic
lessons learned from a waste audit in one plant helpful in providing recommendations for
another.  Additional opportunities will  be developed as State  programs become more
extensive.

       By contrast, this  option is  likely to be the least valuable where there are small
numbers of large plants (e.g., vinyl chloride or epichlorohydrin manufacture).  Similarly,
the opportunities are likely to be limited where an industry has large numbers of small and
medium-sized facilities that are undergoing continuous rapid technological change, are
highly competitive (and therefore very concerned about loss of proprietary  secrets), and
must reinvest heavily in  research and development in order to remain  competitive. The
electronic components industry is an example where State efforts appear to have produced
limited benefits.

       Direct technical assistance may be useful for industries with many small companies
for which technological innovations for waste minimization are prevented by limited cash
flow and/or poor access to capital markets.  Direct technical assistance can provide a useful
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    incentive in circumstances where the waste minimization techniques will involve longer
    term cost savings resulting from  foregone environmental compliance costs (e.g.,
    pretreatment requirements for electroplaters) or decreased raw material requirements (e.g.,
    through recycling of pigment dusts in paint manufacturing). Projects that would benefit
    large numbers of small generators, such as the centralized metal wastes processing facility
    discussed above, could be financed through a public authority with general revenue bonds.
    This would essentially amount to a subsidy of waste minimization costs for all participating
    facilities;  the  extent of the subsidy would depend on  subsequent fees charged  the
    companies.

           Grants for research do not have to be large to assist in meeting the waste reduction
    requirements of smaller companies.  For example, a challenge grant (maximum $5,000)
    was given to a firm in North Carolina to assess the market feasibility, and design a plant,
    for a vehicle maintenance wastewater pretreatment facility to recover used oil and grease
    from oil/water separator sludges at vehicle repair and maintenance shops.  Over a thousand
    potential users in several counties were identified, and it was estimated  that such a plant
    would require a 1.3 million gallon/year capacity.

           Targeting industries for technical assistance is primarily a State role. This would
    include research dollars invested in studies on technology and technology transfer, multi-
    State market analyses for waste recycling and treatment, and economic analyses of common
    difficulties in  an industry.  Many of the industries listed below—e.g., electroplating,
    printing, painting and  coating—might be appropriate  focuses for EPA efforts that go
    beyond support of State technical assistance programs.

           The type, number, and  size of industries that might be targeted for this option are
    listed  below.   The  sectors include a large number  of medium- and smaller-sized
    facilities. !9 These industrial sectors are:
                  Paint manufacturing  (SIC 2851)—1,321 of 1,441  facilities have
                  fewer than 100 employees.
           Data from Appendix B of Waste Minimization:!ssues and Options, USEPA Office of
           Solid Waste, February 17, 1986.
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             Electroplating (SIC 3471)—3,349 of 3,450 facilities have fewer
             than 100 employees.
             Wood preserving (SIC 2491)—511 of 524 facilities have fewer than
             100 employees.
      •      Organic dyes and pigments manufacturing (SIC 28652/3)—118 of
             189 facilities have fewer than 100 employees.
             Printed circuit board manufacture (SIC 3679)—286 of 585 facilities
             have fewer than 100 employees.
      •      Agricultural chemicals formulation—302 of 330 facilities have fewer
             than 100 employees.
             Printing operations (SIC 27)—51,155 of 53,356 facilities have
             fewer than 100 employees.

      Costs of Development and Implementation

      Although EPA support of State activities is desirable, long-term general support of
technical assistance programs involving loans, loan guarantees, or defrayal of interest costs
is a relatively high cost State-specific effort. EPA's role in such programs is not likely to
provide a major impetus to State action, nor will it be more cost-effective than the States'
own efforts. In any case, EPA's role would be unlikely to  match in importance the current
Federal subsidy role allowing States to issue tax free bonds to finance  pollution control
investments (at least so long as this subsidy is n-..>t eliminated in the tax reform legislation).
These types of programs should be left to the States to fund where they believe such
funding is beneficial and appropriate.

      Costs to  EPA for development and studies  under this program  would include
funding for technological research, for additional personnel to manage the program at the
Agency, for a computerized information system accessible by the States, and for analyzing
impacts of the State's efforts.  The costs for each of these are variable, depending on the
scope of the program.   Current ORD funding  to the States for research programs, for
example, amounts to $300,000 per year (though current  planning calls for phasing this
down to zero by FY 1988).
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          A possible program would call for the implementation and maintenance of a
   computerized information system (perhaps $100,000 a year for developing the system,
   gathering, analyzing, and entering available data); an EPA supported research effort of
   $500,000/year, and two additional personnel each in OSW and ORD ($275,000 total costs)
   for planning, program analysis, and research.

          EPA could provide direct support to the technical assistance programs of the States
   of from $2.5 to $3 million in the first year and some front loading of expenditures in the
   early years thereafter. The direct support would consist of grants to States beginning their
   programs (of perhaps $50,000 to $100,000), and smaller support grants after the first three
   years. Since not all States would begin their programs simultaneously, the peak years
   would probably be the second through the fourth years.  This would  be a substantial
   program for EPA, which would provide significant support for making State programs
   effective.

          Even if direct financial assistance to generators from the Federal Government were
   a desirable objective, it is not a feasible one under current budget constraints.  With respect
   to direct technical assistance to the generators, the States are far more directly involved with
   local needs, and the delegation of hazardous waste control programs to the States is one of
   the stated objectives of RCRA. EPA's activities under this option, therefore, would be
   twofold.  The Agency would provide support to the States to assist them in  their own
   technical assistance efforts. EPA would also provide centralized services and support that
   would be inefficiently provided if done by each State.  These lines  are not, however,
   absolutely distinct.

          The option under .consideration would involve an expansion of EPA's current level
   of support of these or similar State efforts, as well as coordination with the States for the
   provision of  services  and capabilities that can most cost effectively be provided on  a
   centralized basis. In particular, EPA could facilitate the rapid dissemination of each State's
   research  and experience to the other States.  This would be particularly helpful for the
    States that have not yet undertaken waste minimization programs.
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       To facilitate the rapid dissemination of each State's research and experience to other
States, EPA could develop a computerized information system on waste minimization. It
would be ac.. ssible by the States and would include elements such as the following for
particular industries or waste streams identified by the States or EPA as important or
problematic:
       •     Technical literature  on the  options available to achieve waste
             minimization for the particular industry or waste stream;
       •     Types  of  technical assistance provided by various States to a
             particular industry group, and resultant changes in waste reduction
             or reuse practices;
       •     Highlighting of ongoing  or planned  demonstration or research
             projects and their status or results; and
       •     Economic analyses of the investment costs and recovery periods
             typically experienced with respect to available waste minimization
             options in an industry.  Analyses of costs and results  of various
             approaches to technical, informational, and financial  assistance
             practiced  by  the  States  (these  studies would  be  carried out
             cooperatively with the States).

       State costs could vary substantially and would depend both on the scope and nature
of the State commitment.   North Carolina's PPP  program, one of the most extensive
technical assistance efforts, has been funded for three years at $500,000 per year (with an
additional $100,000 from EPA).  Minnesota's MnTAP program has received $180,000
from the State (in addition to $100,000 from EPA).  California established a capital fund,
the Hazardous Waste  Reduction Incentive Fund, at  $5.2 million, of which $2.6 million is
available for tax exempt bond financing and other forms of credit through the California
Pollution Control Financing Authority (although this would not be exclusively for waste
minimization by generators). Other States (e.g., Tennessee) are planning several million
dollar investments in technological research to support the technical assistance efforts (an
effort  where  effective  EPA  coordination  with   the  States could  increase  the
cost-effectiveness of each State's efforts). Because  of the diversity of State programs and
efforts to date,  and the fact that some States have not yet initiated programs, it would be
extremely difficult to make any meaningful generalizations on State costs.
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   3.0    Recommendations

          EPA's current technical assistance effort is restricted. Few States receive direct
   support and the support that is available is limited.  Research programs are selected and
   funded without any systematic determination as to whether their research might duplicate
   efforts of other States.   Duplication could be avoided if, for example, prior  to
   commissioning a specific research project a State could determine through a central data
   system whether other States had already undertaken or completed a similar research project.
   Nevertheless, some flexibility must be built into the  selection process to allow for
   variability among States in the development of their own programs.

          An active, aggressive, and sustained program for technical assistance appears to be
   the strongest option available to EPA and the States to promote waste minimization in an
   efficient manner without interfering with a generator's  ultimate control over his or her
   production processes. It appears to be both desirable and feasible as a near-term option.

          EPA therefore recommends development of an expanded support capacity for State
   technical, and informational assistance programs to encourage waste  minimization. The
   Agency's  primary focus should  be on those elements of technical assistance programs
   where the EPA's contributions can  be of most benefit  to  the largest  number of State
   programs.
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                                                                  Procurement Practices
                              Procurement Practices
1.0    General Summary

       Government procurement programs may provide a means of creating additional
demand for products made with less harmful materials or for products with a higher
proportion of recycled materials.  This option would involve establishing procurement
regulations or guidelines to encourage (1) additional recycling of waste materials in certain
types of products and (2) greater emphasis on waste minimization in the manufacture of
particular products.

       There is ample precedent for the first part of this option. Between 1978 and 1982
EPA had a cooperative venture with the National Institute of Governmental Purchasing
(NIGP) and the National League of Cities (NLC) known as the "Buy Quiet" program; the
goal of this program was to  encourage governments to ask for quieter products and
equipment (e.g., vacuum cleaners, lawn mowers) through the competitive bidding process.
A secondary goal of this program was to encourage the private sector to manufacture and
market products and equipment that make less noise.

       More than 200 State and local government agencies participated in the program.
The participants  asked for quieter products and equipment by using model specifications
and bid evaluation formulas that established maximum noise levels and rewarded bidders
for offering products which made less  noise than the noisiest product offered, or the
maximum noise level allowed by the specification.

       The Buy Quiet program achieved a number of objectives. First, it showed how the
competitive bid process could be  used to obtain attributes other than "low bid"  for the
products purchased. The concept was  not limited  to noise; this type of program was
explored by Southern California local governments to purchase vehicles and equipment that
have lower air pollutant emission levels. Second, the program demonstrated that a social
benefit could be obtained through the free market mechanism rather than through
regulations. Third,  it showed that the results could be obtained by cooperative ventures
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   with State and local governmental agencies, rather than solely through Federal agencies.
   This is important, because EPA is not prohibited by any law from working with State and
   local agencies.

          Additional recycling of waste materials could be accomplished  through direct
   Federal Government procurement guidelines or regulations, such as the EPA guidelines
   recommending purchase of cement or concrete containing fly ash, or as mandated by
   RCRA for recycling paper.  Other methods could include cooperative ventures with State
   and local governments such as the Buy Quiet program. EPA could help the State and local
   governments implement purchasing programs. There is a distinct advantage in this type of
   involvement rather than EPA's developing Federal procurement policies because State and
   local governments can often implement purchasing policies more easily than can the Federal
   government.

          As  was evident in  the Buy  Quiet program, implementation of the purchasing
   program came about as a result of shared goals of the various  governments.  The
   implementation was enhanced  by extensive interaction with the private sector.  Such
   interaction between government and private industry at the Federal level is difficult, since
   purchasing policy at the Federal level means the preparation and publication of guidance.
   That is, the guidance and implementation suggestions come from EPA, but  there is little or
   no interaction with the personnel actually involved in the purchasing actions and decisions
   other than the requirement that consideration be given to the requestor.

          In contrast, the Buy Quiet program is an example of dynamic interaction; that is, the
   institutional arrangements evolved in a grass roots style of growth that has been described
   as "social entrepreneuring." Such programs involve more than establishing guidelines;
   they stimulate dialogues among the  government purchasing departments and suppliers of
   the items to be purchased.

          EPA's role in such an effort would be as the facilitator or "social entrepreneur" to
   encourage State and local governments to take the lead in pursuing the increased use of
   recycled materials in products purchased by governmental entities. Such an effort would
   not be limited to recycled materials.  Product substitutes would also be a goal.  For
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example, there is no actual need for cars to have chrome bumpers; possibly cars with high
impact rubber bumpers could be ordered by government agencies with large fleets of cars.
Similarly, products that are cadmium plated could be plated with less hazardous materials.
Soft drinks in glass bottles could replace the plastic bottles routinely disposed of in Class D
sanitary landfills.

       Implementing the second type of procurement activity (i.e., greater emphasis on
waste minimization processes in the manufacture of particular products) is a more difficult
problem to solve.  The objective would be to create a preference for the purchase of
products manufactured with processes that minimize the volume and/or toxicity of wastes.
The difficulty lies in focusing the  purchasing decision on the manufacturing process rather
than on the material characteristics of the product.  Products may be essentially identical,
except that the creation of one involves a manufacturing process that minimizes volume and
toxicity of waste.

       The Department of Defense, for example, has the potential for implementing such a
purchasing program. Exercising this option would require cooperation between EPA and
DOD and would focus on purchases from government contractors that manufacture
equipment for  DOD.  Agency guidance on procurement for such products could encourage
manufacturers to voluntarily certify to DOD that they had instituted a waste minimization
program. The certification would then be made a part of the contract with DOD.   The
certification statement could be the same as that required on hazardous waste manifests,
i.e., that such a program be instituted to the degree that is economically practicable.  One
major difference, however, would be that the contract would allow DOD to check to see
that such a program was indeed being carried out. Such an auditing mechanism already
exists within DOD. The Defense Contract Audit Agency performs this auditing function
for DOD through the Defense Contract Administrative  Services Regions (DCASR).
Briefly, it ensures that product quality control, as well as contract conditions,  are being
met.  The audit teams may receive training by specialists, depending on the nature of what
is to be examined.  Thus, this option, if implemented  by DOD, could entail training in
environmental auditing, with special emphasis on waste minimization practices for the
particular industry being audited.
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          Another mechanism exists within DOD through which this option can be (and to
   some degree already is being) implemented.  This is through the Government Owned
   Contractor Operated facilities (GOCOs) in which a manufacturing facility is owned by a
   government agency and operated by a private firm.  An example of such a situation is U.S.
   Air Force Plant No. 44, which is a Federally owned defense system manufacturing facility
   located in Tucson, Arizona.  It is operated by the Hughes Aircraft Company.  The Air
   Force is attempting to minimize hazardous waste generation at the facility, for which it has
   retained a consultant to perform waste audits and to make recommendations for changes
   that should be made in operating procedures, processes, and other methods. This type of
   situation  offers  the most control and probably represents the "ultimate procurement
   specification" in that it allows direct control of the manufacturing process as well as of the
   final product.

   2.0     Evaluation

           2.1    Technical Effectiveness

           Volume Reduction

           Volume reductions cannot be estimated at this time. To determine the impact this
   option would have on minimizing the volume of hazardous waste generated would require
   an assessment of the waste streams associated with products currently purchased through
   the procurement process. These products would then have to be compared with either the
   changes in volume if more recovered materials were incorporated into products or the waste
   minimization techniques incorporated in the manufacture of purchased products.

           Toxicity Reduction

           This is difficult to assess, since this option involves the incorporation of recovered
   materials into products, as well as the establishment of waste minimization practices at
   manufacturing facilities, rather than direct modification of particular waste streams.  The
   degree to which reductions would occur in specific industries cannot be estimated at this
   time.
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       2.2    Impacts on Industry

       Economic Impacts

       Products that incorporate recycled materials may tend to be higher in cost than 100
percent virgin materials.  Because costs are the  driving factor in agencies' purchasing
decisions,  it is unlikely that this option will drive material costs up substantially.

       The cost impact of the second part of the option would depend on how waste
minimization is  assessed by the agency auditors. If economic  feasibility is taken into
account, costs may not rise appreciably. In certain  instances there may be cost savings.

       Equity

       By forcing agencies to consider using products made of recycled materials that have
been perceived to be inferior to virgin products, the first part of  the option may actually
ensure more equitable competition among contractors who supply the government. A
policy encouraging the use of recycled materials will increase competition among suppliers
of both virgin and recycled materials. Similarly,  government contractors using recycled
materials who may have been shunned under previous government procurement practices
would now be  competitive with those contractors who use virgin material.  For the second
part of this option, there would tend to be a bias toward larger companies.  Larger
companies would be better able to initiate waste minimization practices than would small
companies and they would often have a competitive advantage by virtue of their volume of
product and efficiency of production.

       Incentives for Noncompliance

       This option would not create an incentive for illegal disposal because it is involved
only  with the creation of products and the enlistment of waste minimization in their
production. Enforcement will not be an issue since the option is voluntary and self-
enforceable.

       The option would  permit the industry to  take credit for its own initiatives.  The
program,  if implemented, would result in  a  shift  in evaluation procedures used for
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Procurement Practices
   procurement, so that more attention would be given to recycled materials and waste
   minimization. The option takes advantage of existing market mechanisms. That is, if
   bidders feel that they would have a competitive advantage in marketing products that
   contain recycled materials, or by committing to waste minimization programs by contract
   with the procuring agency, then they will do so to the extent feasible.

          2.3    Implementation Issues

          Legislative Authority

          The legislative authority for issuing general procurement guidelines directed at
   Federal agencies exists in Section 6002 of RCRA. EPA may prepare guidelines for the use
   of procuring agencies. These guidelines must designate items that "are or can be produced
   with recovered materials."  Procuring agencies purchasing any of these items for which
   guidelines are drafted "shall procure such items composed of the highest percentage of
   recovered materials practicable (Section 6002(c)(l))."

           Although there is legislative authority for EPA to develop procurement guidelines
   for purchase of items with recovered materials, there is no requirement that guidelines be
   the only mechanism by which such a program could be implemented. EPA may choose to
   work cooperatively with various procuring agencies to help  the agencies  develop a
   procurement procedure.

           The second type of procurement activity described above would also involve direct
   interaction with purchasing agencies  (in this case, DOD appears to be the appropriate
   agency).   It  would be up to the purchasing agency to pursue a procurement waste
   minimization strategy.  Since bidders would not be required to certify that waste
   minimization was being practiced, legislative authority would not be an issue.  The
   voluntary agreement to submit to the requirement of certification as part of the purchasing
   contract would not guarantee procurement.  It would only be  one of the  factors to be
   weighed by the purchasing agency.
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       Time Required for Implementation

       Implementation of the option would be a continuing Agency activity.  It could
initially take from one to two years to develop this option if consideration is given to
cooperative arrangements with other agencies (such as the Department of Defense) and
audit training programs (associated with greater emphasis on waste minimization in the
manufacture of particular products).  It would take another two years for EPA to write
procurement guidelines, if this were to be part of the option. The earliest the program
could be fully developed would therefore be 1989, with final guidance to States and local
governments being issued no earlier than 1991.

       It is difficult to judge when effects would be visible. Changes in purchasing trends
could occur within one year's time (i.e., by 1987), depending on the emphasis placed on
environmental considerations by the purchasing agencies.

       There is an advantage in EPA's  moving rapidly to coordinate  with  DOD  in
developing procurement strategies and studies related to them because DOD is currently in
the process of developing a comprehensive waste minimization strategy.  DOD may be
more receptive than at other times to altering procurement specifications and procedures.
EPA coordination with DOD would take advantage of a ready-made mechanism for
consideration of new ideas.

       Appropriate Target Industry or Industries

       This option would be directed toward internal changes in  Federal procurement
practices to ensure against biases in the purchase of recycled goods. The second part of the
option (waste minimization processes rather than product content specifications) would
concern manufacturing industries. At this time, it appears that the  printed circuit (P-C)
board  industry would be most affected by such an option, since P-C boards are key
components of communication and computer equipment that is purchased  extensively by
DOD;  however, this option would not be focused exclusively on this  industry.
                                   Page A—115

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Procurement Practices
          Costs of Development and Implementation

          The costs of implementing this option would be similar to those of programs such
   as the environmental auditing or the emissions trading programs, in which EPA developed
   guidance to "help agencies to help themselves."

          Enlistment of both aspects of this option (procurement of recycled materials and
   emphasis on waste minimization processes) would require an examination of the types of
   virgin materials used in products. Where a substitution of a recycled waste may result in a
   substantial reduction in hazardous waste generation, a procurement policy involving these
   materials could then be pursued.  For example, many government agencies purchase
   automobiles for their fleets. High impact rubber could be substituted for chrome bumpers,
   thus reducing the generation of wastes containing chromium. An analysis would need to
   be made, however, of the wastes associated with production of the high impact rubber
   bumpers to  determine whether the substitute product results in a decrease in toxicity of
   waste produced.

          Additional data would be necessary prior to any decision making regarding the type
   of materials and products purchased by the government and the production processes that
   may lead to a reduction in waste. These data are:
                 The amounts  of products purchased  by various government
                 agencies, and volumes and types of hazardous wastes associated
                 with such products (e.g.,  cars with chrome bumpers, cadmium
                 plated products that could be plated with less hazardous materials;
                 plastic beverage bottles as opposed to glass).  These data would be
                 used as  a  baseline against which reductions  in wastes (resulting
                 from changes  in procurement policy) could be assessed.   This
                 information would be essential in targeting types of products and
                 purchases that would result in significant reductions in hazardous
                 waste generated and/or treated, stored, or land disposed.
          •      Data on  substitutes for various products and their toxicity relative to
                 the original product.
          •      The amount and types of hazardous wastes associated with P-C
                 board production, as well as the approximate quantity  of such
                 equipment purchased by DOD.
                                       Page A—116

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                                                                    Procurement Practices
       Incorporation of recycled materials in products could result in discharges to other
media, while waste minimization practices  may shift waste discharge locations.  For
example, wood preservers may be able to increase the amount of wood preservative that is
absorbed in the wood itself, with less waste discharged at the plant site.  The wood that is
placed in the ground, however, can potentially leach more wood preservative into the
ground than before.   Thus, a high yield,  low waste product may  result in  greater
transmission of the toxic material to the environment via consumer use versus industrial
discharge at the plant site.

       Measuring and monitoring the results of this option could be very difficult. It may
only be possible to document the instances in which these types of activities have taken
place rather  than to measure the effects of the procurement policy. For  the first aspect of
the option, agencies can track the amount of products purchased that contain recycled
materials. The type and percent of recovered materials could be broken out on a per
product basis and compared with the  amounts of the same materials that are in each product
prior to implementation of the procurement program. For the second aspect of the option,
measurements could be made at the manufacturing plant.  This poses problems in instances
where  plants may already have been enlisting waste minimization techniques prior to
contracting with the purchasing agencies.

       Other Issues

       Inter-Agency Impacts:

       Inter- and intra-Agency cooperation  will be necessary to avoid problems in the
implementation of this option.  In the case of the second part of the option, there is the
potential for cross media shifts between water and air.  Coordination with the other
program offices within EPA would help to minimize the shifts.  Providing  auditing
guidance to  DOD in assessing waste minimization programs at GOCOs or other facilities
will also helpful.

       Impacts on States: The first  pan of the option is most likely to work best if
cooperation  is encouraged with  States whose bureaucracies allow a bit more flexibility in
                                    Page A—117

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Procurement Practices
   developing procurement strategies.  It is also not likely to conflict with State waste
   minimization programs. In fact, it will probably complement existing programs.

          Public Perception:  The general public is not likely to find the option objectionable.
   If the program results in no increase in recycled materials or no waste minimization, then
   there may be some criticism of the program.  In general,  however, the public is not
   particularly attentive to the environmental aspects of products that government agencies
   purchase.

   3.0    Recommendations

          Although EPA could write procurement guidelines, its role would be better served
   as facilitator of procurement strategies for Federal agencies.  Such strategies could also be
   coordinated with the procurement activities of State purchasing agencies. The difficulty of
   this role is that such activities have traditionally been downplayed  within the Agency
   because of the problems involved in measuring results. In order for such an option to be
   accepted, the Agency would probably have to issue some type of procurement guideline.
   The ultimate success of such a program, however, is in convincing the various agencies to
   actually change their purchasing habits.

           Procurement standards should be quite flexible and should encourage negotiation
   between manufacturers and purchasing agencies.  DOD, for instance, could serve as a
   model for companies within the private sector, particularly where waste minimization cost
   savings are demonstrated.

           This option  appears to have the potential to change waste generation rates and
   should therefore be pursued.  EPA also has the added advantage of existing legislative
   authority to implement it.  The Agency will report on the status of these activities at a later
   date.
                                        Page A—118

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         Appendix B
WASTE MINIMIZATION OPTIONS
      NOT CONSIDERED

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                                                                   Options Not Considered
                            Waste Minimization Options
                                  Not Considered
       Eight options that were listed in the Technical Support Document (TSD)l have not
received further consideration in this Report To Congress for one or more of the following
general reasons: (1) they did not further the goals of waste minimization as is defined in
this Report to Congress, (2) they were not adequately developed in the Technical Support
Document to pursue as a individual options, and/or (3) action to implement the particular
option has already begun. The options excluded from analysis include:
       •      Establishment of toxicity levels for delisting petitions.
       •      Expedited delisting petitions.
       •      Improved  waste  marketing  capability  for hazardous  wastes
              generated by the military services.
       •      Waste end tax.
       •      Developing certification standards for outstanding recycling facility
              performance.
       •      Reduced  liability  for generators  if using  specially  permitted
              recyclers.
       •      Recycled Substances Act.
       •      Enforcement bounties.

       Each is discussed in turn below.
 *      Office of Solid Waste, February 17, 1986  Draft Final Report: Waste Minimization
       Issues and Options, volume 1. USEPA, Chapter eight.
                                     Page  B — 1

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Options Not Considered
    Establishment of Toxicity Levels for Delisting Petitions

          The establishment of toxicity levels  was withdrawn as an option because of its
    relationship to expedited delisting petitions. Toxicity levels would determine the thresholds
    for delisting of wastes.  Setting levels below which a waste would no longer be considered
    hazardous  and thus subject to RCRA regulation,  would  not be a  genuine waste
    minimization technique. Rather, it could be a technique to define away a class of wastes
    that were previously considered hazardous.

          The extent to which such a modification in procedure might actually minimize
    hazardous waste generation would depend on whether the petitioner is encouraged to
    manage wastes such that they fall below the toxicity thresholds, and/or will apply a portion
    of the cost  savings to waste minimization practices for the remaining hazardous wastes.
    The present case-by-case delisting approach has been adopted because hazardous wastes or
    hazardous constituents behave differently in different environments and in the presence of
    other wastes or constituents.  Adopting a standard threshold might require setting a value at
    worst-case levels, which might result in having virtually no waste qualifying for delisting.
    Further, determining if a petitioner's waste qualified for delisting might still require time
    consuming  case-by-case consideration.  Given these constraints, setting toxicity levels for
    delisting is not a feasible waste minimization option.

    Expedited Delisting Petitions

          Expedited delisting petitions was eliminated as a candidate for option consideration
    because it would merely define away hazardous wastes. Currently, EPA allows a waste to
    be delisted for two reasons, neither of them constitute waste minimization.  The first reason
    for delisting is if a waste does not meet the  criteria that defines hazardous wastes.  The
    second reason is if a listed hazardous waste is treated to the extent that is no longer meets
    the hazardous waste criteria (40 CFR 261).
                                         Page B —2

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                                                                 Options Not Considered
Develop Improved Waste Marketing Capability for Hazardous Waste of the Military
Services

       The Department of Defense is embarking on several programs to expand its its
marketing of hazardous wastes.  This approach to waste minimization is, therefore, a
current activity, and is no longer an option that requires further consideration.

Waste End Tax

       A waste end tax has been proposed under the pending CERCLA reauthorization
legislation. While the purpose of the amendment is to meet the funding needs for future
clean up of abandoned hazardous  waste sites, one indirect effect might be to encourage
waste minimization.  The present  report therefore considers this option to be within the
realm of existing activities.
Developing Certification Standards for Outstanding Recycling Facility Performance

       EPA eliminated this  as  an option because it  does not get involved in the
development of standards.  This would be the purview of ASTM.

Reduced Liability for Generators if Using Specially Permitted Recyclers

       This option is not  considered because, in the opinion of the Office of General
Counsel, common law tort liability would remain unchanged.   The option, therefore,
would have little practical effect.

Recycled Substances Act

       EPA believes it already has adequate authority to encourage recycling through
RCRA, rendering a Recycled Substances Act largely superfluous. The existing mechanism
is derived from the Definition and Exemption sections of EPA's regulations for identifying
solid and hazardous wastes (§261.2—§261.4). The Agency could, perhaps, employ the
same rationale they have already used for exempting certain chemicals because of their
intrinsic value in a generator's production process. Chemicals such as pulping liquors and
spent sulfuric acid are exempt from  hazardous  waste regulations since generators are
unlikely to dispose of them as wastes. They, instead, continuously reclaim the chemicals
                                   Page B —3

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Options Not Considered
   for reuse in the production process rather than treating them as wastes for disposal.  If,
   after study, EPA finds that a particular chemical such as toluene or acetone is normally
   reclaimed for reuse rather than disposed of by the generator, the Agency could use its
   authority to exempt that chemical from regulation.  Regulation of these chemicals under
   these circumstances would be unnecessary as an incentive to encourage recycling since the
   chemical is typically reclaimed anyway. Such an approach would essentially accomplish
   the same purpose as legislation for recycled substances.

   Enforcement Bounties

          Third party participation in the enforcement of EPA regulations is an option that
   may have some beneficial effect on EPA's monitoring and enforcement responsibility. It is
   not, though, a direct means to achieve waste minimization. Several methods are currently
   in existence  or have already been proposed to encourage citizen participation in the
   enforcement of EPA regulations. These include the setting up of telephone hot lines,
   initiation of citizen suits and the awarding of money for information leading to prosecution
   or punitive action against a violator.

          Some  States have begun developing telephone hot lines to encourage citizens to
   contact them  should they have questions about  waste generation regulations.  State and
   federal telephone hot lines may also be used to anonymously report violators to the State
   regulatory  agency.

          Section 7002  of HSWA extended the power citizen  suits for the  enforcement of
   RCRA.  It allows a citizen(s) to, "commence a civil action  on his own  behalf against
   anyone including the  government that is in violation of the RCRA. The costs of litigation
   are born by the citizen(s) taking action but the court may awards the costs of litigation to
   the, "substantially  prevailing party, whenever the  court determines such  an award is
   appropriate."

          Finally, an award system has been proposed in the reauthorization legislation for
   CERCLA. Awards for information are to be used where the information leads to the arrest
   and conviction of persons engaged in criminal hazardous waste activities.
                                       Page B —4

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      Appendix C
HISTORY OF OSW WASTE
    MINIMIZATION

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                                                                OSW Waste Minimization
                        History of OSW Waste Minimization
1.0.    Introduction

       Beginning with the Solid Waste Disposal Act of 1965 and continuing to the
promulgation of the Hazardous and Solid Waste Amendments of 1984 (HSWA), the U.S.
Congress has directed the Federal Government, particularly the Environmental Protection
Agency (EPA), to improve industrial and manufacturing systems of managing and
disposing of hazardous waste. In this process, EPA's efforts have reflected three stages of
development which have resulted in the current emphasis by the Office of Solid Waste
(OSW) upon development of alternative methods to minimize the generation of hazardous
waste.  Over nearly 20 years of experimentation and innovation, EPA has begun to develop
the requisite base of information on the magnitude and sources of the national hazardous
waste problem, the institutional framework for managing the volume of waste generated,
and the legal basis for encouraging aggressive development of new technological processes
from the private sector.

Phase I:  1965-1976

       The Solid Waste Disposal Act of 1965 ( PL-98-272) established a modest research
effort and technical assistance program for States and localities to improve management and
conservation practices with respect to municipal waste.1

       The Resource Recovery Act of 1970 mandated a national disposal site study and
strengthened the programatic emphasis upon recycling of municipal and post-consumer
wastes. Although the activities of the waste generators continued essentially unregulated
during this initial phase, EPA and other organizations undertook research activities focused
on solid waste recycling. These studies concluded the following:
       •       Recycling was technically possible;
       Senate, July 25, 1984, Congressional Record, SB. 9149.
                                   Page C — 1

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OSW Waste Minimization
          •      Because the level of recycling was almost entirely dependent on
                 economics, recycling as an effective alternative to land disposal
                 would probably not occur until  government specifications and
                 legislation changed to encourage  development of  markets for
                 recycled and reprocessed materials;
          •      Viable  markets are essential to encourage industry to plan for
                 recycling and reuse in the design of new products;2
          •      Air and water pollution regulations must be strengthened to support
                 industrial incentives for reusing secondary materials.3

    Phase II: 1976-83

          Phase II was characterized by EPA efforts  to essentially manage and control the
    symptoms of the hazardous waste problem. By 1977, EPA estimated that about 10 percent
    of industrial wastes generated may fall in the "hazardous waste" category. Industrial waste
    generation was growing at a rate of about 3 percent per year.. The generation of municipal
    solid waste (residential and commercial) refuse was also increasing.

          The extent of the groundwater contamination problems related to improper disposal
    of hazardous waste was clarified by EPA through a survey  and  study implemented
    pursuant to Section 1442 (a) (4) of the Safe Water Drinking Act and reported to Congress
    in 1977. The study concluded: "Waste disposal practices have contaminated groundwater
    on a local basis in all parts of the nation and on a regional basis in many heavily populated
    and industrialized areas. Nationally, the principal sources of groundwater contamination
    related to waste disposal practices are industrial wastewater impoundments and solid waste
    land disposal sites."4

           In response to  growing  evidence on  the  serious  problem of  groundwater
    contamination from hazardous wastes, the Resource  Conservation and Recovery Act
           Ann Tasseff, 1972, "Recycling Solid Waste, " Environmental Reporter, Volume 3, No.
           13, Monograph 12, p. 26.
           Office of Solid Waste Management, 1974, First Report to Congress: Resource Recovery
           'and Source Reduction, USEPA, Washington, D.C., p. ix.
           USEPA., 1978, "EPA Activities under RCRA of 1976" Annual Report to the President
           and Congress, FY 1977, USEPA, Washington, D.C., p.3.
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                                                                OSW Waste Minimization
(RCRA) provided a "cradle to grave" management system of hazardous waste generated
from current industrial operations.  Centered around Subtitle C, three distinct sets of
standards and responsibilities were applied to hazardous waste generators, transporters,
and owners and operators  of disposal  facilities.  Concurrently, the Act established a
program for comprehensive management planning for  municipal waste and called for
closure of open dumps.

       Significantly, in 1976 EPA indicated the preferred future direction of hazardous
waste management efforts with publication of a statement of "EPA Preferred Waste
Management Strategies"  The hierarchy of practices was the following:
       1       Waste Reduction  — reducing the amount of waste at the source
              through process change;
       2       Waste Separation — isolating wastes from mixtures in which they
              occur,
       3       Waste Exchange — transferring of wastes through clearinghouses;
       4       Energy/ Materials Recovery — reusing and recycling wastes for
              original or some other purpose, such as for materials recovery or
              energy production;
       5       Incineration/Treatment — destroying, detoxifying and neutralizing
              wastes to less harmful substances;
       6       Secure  Land  Disposal  —  including  volume  reduction,
              encapsulation, leachate containment, monitoring, and controlled air
              and surface/subsurface water releases.

       From 1981 to 1983,  while the OSW activities centered around development of the
regulations and guidance for generators, transporters, and owners/operators of hazardous
waste disposal facilities, new evidence of the growing volume of hazardous waste  brought
increased Congressional concern toward  the national  program.  The  recent national
generators survey indicated and increase in the production rate from 11 billion gallons or
400 million metric tons of hazardous waste produced  annually dated in 1980.  By August
1983, EPA increased this estimate to roughly 40 billion gallons,  that is, to an annual
generation rate of 1,500 million metric tons of hazardous waste each year.  These estimates
involved hazardous  waste generators as well as treatment, storage, and disposal facilities
                                   Page C — 3

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OSW Waste Minimization
   regulated under RCRA in 1981. This national survey did not include mining wastes, some
   of which are hazardous, or household wastes such as discarded pesticides, paint thinners,
   and cleaning solvents.  These waste estimates also excluded hazardous waste generated by
   individual businesses who produce less than 1,000 kilograms per month. 5 By 1984, EPA
   estimated that there were more that 71 billion gallons of hazardous waste generated in the
   U.S. every year. This is equivalent to 264 million metric tons.

   Phase HI: 1984-1986

          Promulgation of HSWA implies a new phase in the development of the national
   hazardous waste management program by its new emphasis upon the cause of hazardous
   waste generation.  HSWA  encourages alternative production processes and raises  the
   economic costs of relatively cheap land disposal.

          HSWA adds new requirements that "the Administrator shall compile and submit to
   Congress a report on the feasibility of establishing standards of performance or taking other
   additional actions... and any recommendations for legislative  changes to implement the
   newly added statement of national policy. "Wherever feasible, the generation of hazardous
   waste is to be reduced, or eliminated as expeditiously as  possible.  Waste that is
   nevertheless generated shall be treated, stored,'or disposed of so as to minimize the present
   and future threat to human health and the environment" 6

          Generators of hazardous waste must now certify that they have a "program in place
   to reduce the volume or quantity and toxicity of such wastes to the degree determined by
   the generator to be economically practicable;" and that "the proposed method of generation,
   treatment, storage and disposal is that practicable method currently  available to  the
    generator which  minimizes the present and future threat to human  health  and  the
   environment." 7
           Senate, July 25, 1984, Congressional Record, SB. 9149.
           Section 1003 (b), Hazardous Solid Waste Amendments to the Resource Conservation and
           Recovery Act of 1976.
           Ibid., Amendment to Section 3002.
                                        Page  C —4

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                                                                 OSW Waste Minimization
       During Congressional debate on the amendments to RCRA proposed by the Senate,
members indicated that "the need to minimize the volume and toxicity of all hazardous
waste is clear and is made explicit national policy in  this bill." 8  Senator Stafford,
Chairman of the Committee, paid particular attention to the proposed amendments in
Section 26 of HSWA. and argued that "At the Federal level, we must look for ways to
encourage the development of alternative production processes, the substitution of less
hazardous materials for more toxic ones, and other means to reduce both the quantity and
toxicity of the wastes.  We must also provide incentives for the development of treatment
and disposal practices that minimize threats from the hazardous wastes that continue to be
produced...Those changes will...emphasize  waste reduction with the goal of eliminating
disposal of hazardous wastes where they might in any  way harm public health or the
environment. "^
       Senate, Committee on Environment and Public Works, 1983 Solid Waste Disposal Act,
       98-284, re. S. 757. p, 65.
       Congressional Record,, July 25, 1984, S.B. 9148
                                    Page C —5

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    Appendix D
TOXICITY SCORING
  METHODOLOGY

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                                                              Toxicity Scoring Methodology
                           Toxicity Scoring Methodology
                                    Introduction

       The HSWA's  language promulgating  the  national policy  favoring waste
minimization refers to the need to reduce the "volume or quantity and toxicity" of hazardous
wastes. In discussing this policy, the Senate report on the HSWA amendments refers to
the "amount and toxicity" of wastes as targets for waste minimization.  It states, for
instance, that "the need to minimize the volume and toxicity of all hazardous waste is clear
and is made an explicit national policy in this bill."1 In discussing Section 3002 manifest
certification requirements, the Senate report elaborates that certification indicates that a
generator "has a program in place to reduce the volume  or quantity  and toxicity of
hazardous waste...to the degree economically practicable...and that the practicable method
currently available...minimizes the present and future threat to human health and the
environment." 2

       While neither the Act nor the Senate report explicitly defines the concept of toxicity,
the Senate report does imply that the concentration of toxic components in a waste affects
its toxicity when it says that "[generators] may find that the reduction of waste volume
would result in  increased  toxicity" 3. By calling for simultaneous reductions in  both
1      U.S. Senate, Committee on Environment and Public Works, 1983, Solid Waste Disposal Act, re:
       Senate Bill 757, p.65.
2      Ibid, p. 65.
3      Ibid, p. 66..
                                    Page D — 1

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Toxicity Scoring Methodology
    volume and toxicity, Congress clearly wishes to avoid defining dewatering and other
    waste-concentrating processes as being valid types of waste minimization.4

           This Appendix discusses the concept of toxicity as it applies to hazardous wastes
    and  waste minimization.  To  be responsive to Congress's interest in using  waste
    minimization to reduce waste toxicity, EPA has conducted a preliminary screening exercise
    to rank wastes in order of their toxicity and assign them to very general toxicity categories.
    Such an effort explores the following questions:
           •      What is the range of toxicities encountered among known hazardous
                  wastes?
           •      How is toxicity of wastes distributed (i.e., what percentage of listed
                  waste categories are high toxicity, medium toxicity, or low toxicity)?
           »      How is toxicity of waste correlated with volume?

           The last question addresses Congress's concern that waste minimization not simply
    reduce waste volume at the expense of increasing its toxicity.  The other questions are not
    explicitly brought up in the Act or the Senate report, but are of interest to EPA in defining
    appropriate targets for the Agency's waste minimization efforts.

    General Approach to Scoring Toxicity

           Although  the concept of waste toxicity is intuitively meaningful, there is no
    generally acknowledged scientific approach to scoring toxicity in quantitative terms. Most
    toxicological studies can estimate relationships between a particular substance and health
    effects,^  but  such studies  clearly specify (1) the  context of the exposure in question,
    including such factors as route of ingestion, duration of exposure, and effective dose, as
           EPA agrees in principle with this policy.  As stated in the main body of this report, however, the
           Agency believes that Congress did not intend this wording to disqualify volume reduction by itself
           (with no change in toxicity) as being legitimate waste minimization. For example, EPA considers
           it beneficial if a firm can change its processes to produce less waste per unit product, even if the
           composition of the waste does not change.
           Toxicological studies generally involve a mammalian animal species; results of such studies can
           be used to assess potential toxicity to humans.  For chemicials  for which epidemiological studies
           are available, the results can be directly applied usually with a high degree of confidence.
                                          Page D —2

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                                                                Toxicity Scoring Methodology
well as (2)  the particular human health effect of concern (e.g., cancer, liver damage,
neurological effects, etc.).  Toxicological considerations become more complex because a
hazardous waste may be a heterogeneous mixtures of many contaminants, each of which
could potentially pose a risk of several different human health  effects,  and which may
interact with other components in the waste to enhance or decrease the effective toxicity of
specific components.

       The approach used here is to create an aggregate score that combines information on
constituent hazards, constituent fractions, and waste composition for each waste stream.
While such scores have no toxicological meaning, such a scoring process does permit us to
make intuitively logical distinctions among wastes. Highly dilute waste streams containing
small amounts of materials with comparatively weak adverse health effects are strongly
distinguished from highly concentrated streams made up of extremely hazardous materials
(such as PCBs or dioxins).  The actual equation  used  to develop the score is discussed
below.  Its key features are:
        1.     Consideration of all hazardous constituents: The score is developed
              using all available information on hazardous constituents (i.e., it is
              not based exclusively on the potency of, for instance, the most
              hazardous compound in the waste).
        2.     Consideration of mass fraction of hazardous compounds: Scores
              are weighted according  to  the combined concentration of all
              hazardous constituents known to be in the waste stream.
       3.     All health endpoints are considered: Rather than select for a single
              health effect (such as cancer), all health effects  known to be
              associated with the constituents are included.^
       Although a variety of health endpoints are considered, no attempt is made to adjust the score to
       take into account of effect thresholds that may be associated with a given health effect.  This
       applies to most noncancer health impacts, but has no effect on scoring for carcinogens (see
       methodological discussion).  Lack of consideration of thresholds is not expected to result in any
       significant impact on the toxicity score component obtained using  the scoring  approach.  In
       addition, no attempt if made to weight the relative importance of health effects—all effects arc
       given equal weight.
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Toxicity Scoring Methodology
          Precedents for Toxicity Scoring

          Comparatively few efforts have been made in the past to create scores of this type.
    The most important  in this context is the work done by the Office of Solid Waste to
    schedule prohibition determinations for waste streams listed in 40 CFR 261 into the
    required statutory "tiers" required by RCRA Section 3004.7 This effort divided wastes into
    categories based on their toxicity and volume; it was intended to put  wastes  with  high
    volumes and toxicities into the first priority category.

          The toxicity scoring method used in this case was  different  from the current
    proposed method in two important ways.  First, wastes were ranked based on the toxic
    potency of the most hazardous constituent in the waste, rather than the toxic potencies of all
    known hazardous constituents. Second,  the  method did not take account of the mass
    fraction (concentration) of the constituent; therefore, dilute wastes and concentrated wastes
    containing the same constituent were ranked identically as to  toxicity. This method was,
    however, appropriate to the task at hand only because the wastes in question were
    frequently single-constituent wastes that were often highly concentrated.  Specifically, they
    included many of the U and P classified RCRA streams, which include off-specification
    chemicals and spills.

          For the current exercise it was determined that it is  highly important to weight
    scores by mass fraction  because  (1) of Congressional concern that waste minimization
    goals not be circumvented by dilution or concentration of wastes, and  (2) all classes of
    wastes are of concern (including solvent and dioxin wastes, the "California list"  wastes, as
    well as the scheduled "tiered" wastes).  To ensure as  much consistency as possible with
    this scoring effort, however, the toxicity score components of the overall  scores for
    individual waste constituents developed by this previous project were used here; gaps  were
    filled as necessary using the same methodology (see below).
           Office of Solid Waste, March 28, 1985, "Documentation for the Development of Toxicity and
           Volume Scores for the purpose of scheduling Hazardous Wastes," USEPA.
                                        Page  D —4

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                                                               Toxicity Scoring Methodology
       Limitations of the Approach


       There are a number of critical limitations in the toxicity scoring approach used here,

some of which are discussed at greater length below. Results must therefore be interpreted

accordingly. The principal caveats are:

       •      Quality of data on waste streams: Existing data characterizing the
              identity and mass fraction of hazardous constituents within waste
              streams is highly uncertain and preliminary.  This effort was based
              on  the comprehensive information developed for  the  RCRA
              Risk/Cost Analysis Model, since that data base is the most complete
              and comprehensive currently available.

       •      Synergisms among health effects are disregarded: The toxic effects
              of multiple toxic compounds  in a mixture may  be higher or lower
              than the effects of exposure  to the same compounds separately.
              Data are not available to make  any statement about such joint effects;
              they are typically disregarded in standard toxicological practice.

       •      Scores for different health effects are added together:  The score
              adds together different categories of health effects into a single
              score, without weighting.^

       •      Uncertainties in health effects data: The health effects data on which
              scores were developed contain inherent unquantifiable uncertainties.
              The impact of these uncertainties is  that the actual toxicities of the
              individual components may be higher or lower than those presented
              in this report. Furthermore, health effects data on some chemicals
              are extremely limited or  incomplete; thus, future  toxicological
              research may generate more comprehensive data  that would result in
              different toxicity scores.


       Despite  these limitations, the Agency believes that the results of this scoring
exercise are useful in comparing basic patterns of variations among waste streams.
       Efforts have been made elsewhere in EPA to assign relative weights to health effects based on such
       considerations as pain  and  suffering, wages lost, years of  life lost, the  reversibility  or
       irrcversibility of an effect, and costs of  treatment.  One example was the scoring approach
       developed  in 1981 by Dr. Milton Weinstein of the Harvard School of Public Health for the
       Integrated Environmental Management Program in the Office of Policy Analysis.
                                     Page D —5

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Toxicity Scoring Methodology
                             Methodology for Toxicity Scoring

          The lexicological significance of a given waste stream is defined in this report as
    being proportional to the sum of the products of the toxicity ranking factor (T)  and the
    concentration ranking factor (C) over the n constituents in the waste stream, or:
                                             n
                 overall ranking of waste stream = £ (Tj • Q)
                                             i=l

          The  range of the overall rankings  for all the waste streams is then condensed by
    taking the logjo of these values and distributing the resulting values into ten classes.  The
    toxicities of the individual waste stream components are ranked in this system based on an
    effective dose equivalent (EDE) calculated using unit risk values, unit risks calculated for
    noncancer effects, and other lexicological benchmarks for chronic effects and acute toxicity
    data.

    Method for Developing Toxic Potential Scores

          The report that scheduled hazardous wastes calculated the toxic potential of 363
    hazardous waste  constituents listed  in Appendix VII of 40 CFR 261. It gave consideration
    to both  acute and chronic forms of toxicity and assigned a value representing  toxicity
    potential to each constituent regardless of the data base available to the constituent. The
    constituents were ranked according to their toxic potential, but because of the assumptions
    that they had to make the authors of the report considered it imprudent to use the  ranking
    scheme, "...for purposes other than relative comparison of the inherent toxic potential of
    waste constituents. "^

           Scoring Acute Toxicity: Acute toxicity represents the inherent short term hazard
    potential of a chemical.  It is generally expressed as the minimum quantity of a  toxicant
    necessary to be lethal to  50 percent of a test population based on a single exposure typically
    measured over a 96 hour period. Chemicals vary in their acute toxicities. Some may be
           Office of Solid Waste, March 28, 1985. Documentation for the Development of Toxicity and
           Volume Scores for the Purpose of Scheduling Hazardous Wastes, USEPA; pp. 5.
                                        Page D —6

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                                                             Toxicity Scoring Methodology
lethal in small doses while others that are not very potent are lethal only in large doses.
LD5o's are usually derived from oral or dermal exposure; however, the counterpart for
inhalation does exist as the lethal concentration at which fifty percent of the tested
population is killed (LC50).  In cases where LD5Q or LC5Q have not been calculated the
report relies on an LDi0 (lowest dose causing death).  When  this is unavailable  for a
particular chemical the report relies on acute data from structurally similar chemicals.

       Under normal circumstances exposure to a fatal single  dose of a chemical from
environmental sources  is rare.   Human populations normally experience long  term,
intermittent, repeated, or continuous exposures at concentrations that are well below  those
associated with acute toxicity.  The methodology in this report takes into account typical
real world exposures to chemicals by assigning acute toxicity the highest score of one only
in those few instances where exposure to chemical compounds even at low levels is very
hazardous (i.e., for highly acutely toxic  chemicals with LDso's  less than 50 mg/kg body
weight). ^ Most chemicals received an acute toxicity score of zero (i.e., no acute toxic
effect on the population at expected environmental levels signifying a low acute toxicity.

       Scoring Chronic Toxicity: Unlike acute toxicity, chronic toxicity refers to adverse
impacts of exposure to a  chemical experienced over a long period  of time (years to an entire
lifetime).  An Effective  Dose Equivalent (EDE) standardizes chronic toxicity in order to
make comparisons  between chemicals.  EDE  is defined as the dose at which the,
"...estimated risk associated with a compound is comparable among all compounds being
evaluated."11 Several calculations are  necessary  for determining EDEs.  For  a given
noncarcinogen, either an acceptable  daily intake (ADI), a no observed effects  level
(NOEL), or a unit risk is used as a basis for determining the EDE. A unit carcinogenic risk
(UCR) value is applied for calculating EDE values for carcinogenic compounds.

       Values for the UCR are based on the probability of a chemical causing cancer over a
life time of 70 years at  a relatively low  dose exposure(l mg/kg body weight/day).  The
UCR represents the upper bound of risk, referred to statistically as the upper 95 percent
 10     The report used the same cutoff value cited in 40 CFR 261.11(a)(2) which delineated acute
       hazardous wastes from toxic waste.
 11     Ibid. p. 9.
                                    Page D —7

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Toxicity Scoring Methodology
    confidence limit, which means that in 95 percent of cases, the true risk to an individual will
    be equal to or less than the UCR. The risk value, which is related to the expected incidence
    of cancer at this low dose, becomes the slope of the dose-response curve; this curve is
    assumed to  be linear at these low  doses.  Furthermore, for carcinogenic effects, it is
    assumed that there is no no-effect threshold; that is, carcinogens will exhibit some nonzero
    risk at each dosage level regardless of how small.

           In order to make carcinogens comparable with noncarcinogens an adjustment is
    necessary to develop an EDE.  A standardization factor of 10*6 (risk of of a toxic effect
    occurring in 1 in 1,000,000 population) is used for both carcinogens and noncarcinogens.
    The conversion into standardized values represents uniform risk levels for carcinogens and
    noncarcinogens.
                         EDE carcinogen = Standardization Factor
                                              UCR

           The ADI is the basis of noncarcinogenic EDE.  It is defined as that quantity of a
    chemical measured by mg/kg body weight/day that is not expected to have an effect on the
    general population.12 An ADI is calculated by dividing a no observed effect level (NOEL)
    with an uncertainty factor. The NOEL represents the highest dose level which does not
    have an effect on the test  population.  Where a NOEL is unavailable for a chemical in
    question other methods and additional uncertainty factors are used to determine an ADI.
    The uncertainty factors take into account level of confidence in  the supporting study, the
    transposition of animal test data to the expected effect on the human population, etc.1^
    12     USEPA, 1980. Water Quality Criteria Documents: Availability.  Appendix C - Guidelines and
           Methodology Used in the Preparation of Health Effect Assessment Chapters of the Consent Decree
           Water Criteria Documents.
    13     The uncertainty factor selected depends on the type of study conducted to determine ADI and is
           usually a factor of 10, 100, or 1000. The lowest uncertainty factor of 10 is used where the NOEL
           is based on chronic human data. This factor is meant to account for individual variability. 100 is
           used where the NOEL is based on animal studies and it accounts for both inter- and intra-species
           variation. The final number, 1000, is used where the NOEL is based on subchronic animal data
           and takes into consideration the uncertainty of extrapolating from subchronic to chronic exposures
           as well as accounting for the two previous uncertainty factors.
                                          Page D —8

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                                                             Toxicity Scoring Methodology
       Not all chemicals have a NOEL value available. In cases where a NOEL is not
available a LOEL or lowest observed effect level is used.  In instances where subchronic
and chronic data are unavailable, the EDE is calculated by taking the  EDE value  of a
structurally similar chemical, or by using the chemical's known acute toxicity.

       In all cases, a standardization factor must be used to convert the ADI values and
acute toxicity values when NOEL or LOEL are not available into EDEs. For the NOEL the
the formula is relatively straight forward.  It is the division of the NOEL by the
standardization factor of 10'6:

                    EDE noncarcinogen =	NQEL	
                                      Standardization Factor

For LOELs, a severity factor is applied in addition to the  standardization factor.  The
severity factor corrects for the type of observed effect.  A lower number  is selected if the
observed  effect  is considered reversible (2.14), a mid-range number is selected (4.68)
where there  is increasing severity of the observed effect (e.g., organ necrosis, neurological
effects, reproductive dysfunction or teratogenic effects). Finally, for chemicals using only
acute toxic data, the EDE is calculated by dividing the acute toxicity value by 100,000 or
50,000 if the LD50 is based on an injection study.

Toxicity Ranking

       Once EDEs are calculated for all the chemicals of concern, a ranking scheme is
created to allow comparisons of the chromic toxicities of individual chemicals.  The raw
EDE values vary by 10 orders of magnitude or a 10 billion fold difference between the
highest and lowest EDE.  A  1 to 9 scoring based on the 10  orders  of magnitude  is
calculated in order to express the differences in the toxicity of the chemicals. Table D-l
shows  the boundaries for each of these categories.
                                    Page D —9

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Toxicity Scoring Methodology
                                       Table D-l
                                 Chronic Toxicity Scoring
                  Equivalent Dose Estimate               Score
                           EDE

                          JuH~
                       >10-7tolO-6                       8
                       >10-6tolO-5                       7
                       >10'5 to 10-4                       6
                       >l(HtolO-3                       5
                       >1O3 to 1C'2                       4
                       >10-2 to 1(H                       3
                        >10-! to 1                        2
                           >1                           1
           The acute toxicity scores of 1 or 0 are then added to the chronic EDE scores to
    calculate the total toxicity score for each of the chemicals. Of the 363 chemicals examined
    140 (39 percent) have acute toxicity scores of 1.

    Uncertainties in the Toxicity Potential Scoring

           There are a number of limitations regarding this scoring  methodology and the
    approach to ranking taken by this report.  The scores themselves have no intrinsic value but
    are only used as an expression of the relative differences among the chemical compounds.
                                       Page  D —10

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                                                              Toxicity Scoring Methodology
       There is a limitation with creating an EDE from incomplete and/or nonequivalent
data.  The report notes that many of the 363 chemicals were poorly studied.14 Twenty
percent of the chemicals only have data on the acute effects of single exposure to the
chemical. The frequent lack of a NOEL or other chronic data means that this report has had
to rely on other data sources which in some instances are associated with a lower degree of
confidence.

       Most of  the data are derived from animal studies, requiring extrapolations to
estimate impacts on the general population.  Interspecies extrapolation, while challenging,
can be accomplished by such methods as accounting for metabolic rate differences, and by
using surface area/body weight correction factors.  Results from animal studies are often
generated from doses that are much higher than what the general human population would
normally experience.  Probabilistic models are therefore used to generate dose-response
curves that  extrapolate from the higher experimental dose levels to the  lower doses
experienced by human populations from environmental sources. There are certain inherent
limitations with  high to low dose extrapolations. It is sometimes difficult to accurately
predict what will be the impact on the  human population due to factors that cannot be
detected in high dose animal testing.15  There are uncertainties about the synergistic effects.
The studies assume independence of the chemicals and therefore do not take account of the
impact of the combined effect they have on the human population.

       Further uncertainties arise in that  the scoring system attempts to compare chemicals
that have qualitatively different toxic effects on the human population.

       Furthermore, the scoring of a waste stream is based on single chemical compound.
While a particular waste stream may have several constituents, the method selects the most
hazardous constituent as a proxy to characterize the relative hazardousness of the whole
waste stream.
       Office of Solid Waste, March 28, 1985. Documentation for the Development of Toxicity and
       Volume Scores for the Purpose of Scheduling Hazardous Wastes, USEPA; pp. 6-7.
       Charles C. Brown, 1934. "High— to Low—Dose extrapolation in Animals," in, Assessment and
       Management of Chemical Risks, American Chemical Society, Washington, D.C., pp. 57-79.
                                    Page D — 11

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Toxicity Scoring Methodology
    Calculating Toxicity Potential Scores for Wastes Not Listed in the Scheduling of
    Hazardous Waste Report

          There were 34 constituents for which toxic potential toxicity scores did not exist in
    the report on scheduling hazardous wastes. Scores were calculated for these hazardous
    waste constituents using the same methodology as employed in the scheduling report.
    Table D-2 displays the constituents, their potential toxicity scores and the sources for the
    data used in the calculations.

          Methodology for Determining Mass Fractions of the Chemicals

          The RCRA Risk-Cost Analysis Model gathered data on hazardous waste streams.
    The methodology involved measuring the concentrations of the constituents that made up a
    particular waste stream. The model gathered data on 154 waste streams which accounted
    for an annual generation of about 158 million metric tons.16 The wastes investigated were
    primarily those considered hazardous  under Subtitle C of RCRA (F and K wastes listed in
    40 CFR 261). EP wastes were taken from Appendix VIII to 40 CFR 161. The model did
    not consider P and U wastes.  The absence of P and U wastes, however, did not obstruct
    our toxicity analysis  since they were typically single constituent highly concentrated
    wastes.  Some of these streams were almost 100 percent of the chemical of concern (i.e.,
    had a mass fraction of one); at such high concentration levels the toxicity scores from the
    Environ,  Inc. report were considered accurate.

           The risk-cost model also identified the industries that generated the waste streams in
    order to be able to make intra- and inter-industrial comparisons.  By linking wastes with
    generators it was possible to identify  which industries were generating the most and least
    toxic as well as the most and least voluminous hazardous wastes.
           Data sources for the risk-cost analysis model came from EPA industry studies, permit applications,
           delisting petitions, state data, and trade associations. For further explanation see: Office of Solid
           Waste, March 1984. The RCRA Risk-Cost Analysis Model,  USEPA.
                                        Page D — 12

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                                                               Toxicity Scoring Methodology
Determining the Overall Toxicity Score for Each Constituent

       An overall toxicity score is calculated by multiplying the toxic potential score and
the mass fraction. The raw values range by ten orders of magnitude from the most to the
least hazardous constituent.

       Several alternative methods are used  to determine toxicity categories.  Since our
main objective is to show relative differences  between groups of waste streams rather than
absolute differences between  individual waste streams, it does not seem relevant to classify
constituents by their raw values. If raw values are the basis of the categories, there would
have been a clustering of a few waste streams at the highest toxicity category and the major
portion of the streams at the low end of the spectrum. In the middle there would be gaps
with very few or no waste streams. By taking a logjo of the toxicity scores it is possible to
distribute the waste streams in such a fashion that relative toxicity could be compared by
group classes.  The problem with the logiQ, however, is the fact that while it softens the
impact of a relatively few highly toxic constituents, it leaves the impression that there is not
as great a difference between the high and low toxicity scores as there would have been had
the raw scores been kept.  It is considered worth the minor sacrifice in accuracy by using
the logjo m °rder to be able to make some general observations about toxicity of hazardous
waste streams and there relationship to the volume of waste generated.

General Observations

       Several generalizations can be deduced from the overall toxicity  scores and the
ranking classification.  First, the purpose of this exercise has been to weight the potential
toxic scores according to the constituent's mass fraction.  Such an approach provides a
relatively accurate picture of the toxicity of waste streams and their potential hazard to the
human population. It is possible that a constituent with a high potential toxicity can have a
low overall toxicity score and low rank if the  concentration of the constituent in the waste
stream  is low. The converse is  also possible  — a constituent  of relatively low toxic
potential might very well have a high concentration and, therefore, a high overall toxicity
score.  What this implies is that the hazardousness of exposure to a waste stream is
                                    Page D— 13

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Toxicity Scoring Methodology
   dependent not only on the toxic potential of the waste but also the concentration in which it
   might exist in the waste stream itself.

          Second, the ten toxicity categories provides a way to make relative comparisons
   between groups of waste streams. The uncertainties of the methodology for determining
   the potential toxicity score weakens the ability to make cpmparisons between constituents
   based on their absolute differences.   This methodology works best for grouping the
   constituents with similar toxicity scores and comparing relative differences between waste
   streams.

          Toxicity scores could be useful in the general comparison of toxicity and waste
   stream volume.  Volumes of waste streams were calculated from the mail survey of
   hazardous waste generators, and like the toxicity scores the volumes were classified into
   ten categories in descending order of volume after determining the log^ of the raw volume
   scores.  With these two scores it was possible to contrast a constituent's toxicity and
   volume. Table D-3 displays these scores. There appears to be a weak inverse  correlation
   between toxicity and volume of a waste stream, but in some cases there are highly toxic
   constituents appearing in very low volume, and in others there are low volume  wastes that
   are highly toxic. Figure D-l graphically  depicts the relationship in Table D-3 for 100 of
   the highest volume wastes.  It is apparent that the most voluminous streams  are not the
   most toxic.  In fact, it is at the middle and lower end of the volume spectrum that one finds
   the highest toxic streams.  For select  industries waste streams do exhibit a  correlation
   between toxicity and volume.  In Table D-4 three industries and their waste  streams are
   listed by toxicity and volume. There is a tendency for the waste streams in these industries
   to be inversely correlated between volume and toxicity.
                                       Page D — 14

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                                                                         Figure D-1

                                                   Hazardous Waste Stream Toxlclty Scores: Descending

                                                               Order of Waste Stream Volume
6J
03
n
/.uu •
6.00 -
5.00 -
4.00 -
Raw Toxicity
Score
3.00 -
200 -
1 00 -
000 -




..n 	 irrt.rmnJ'mfflftni 	 n.




fl




fl









MH









1




,«l




L




^




i
                                                       100 Highest Volume Hazardous Waste Streams


                                                   Source: Using data horn the HCRA Risk-Cost Data Base, with the EPA toxicity ranking

                                                           developed (or the land disposal restriction program schedule.
                                                                                                                                              H
                                                                                                                                              o
                                                                                                                                              X
                                                                                                                                              K-
IS)
n
O
1

5'
tta
                                                                                                                                              tr
                                                                                                                                              a

-------
Toxicity Scoring Methodology
                                           Table 0-2
                             Toxicity Potential Scores For Missing Data
             Hazardous Waste
                Constituent
Acute Score   I  Chronic Score  I   Total Toxicity
                                  Potential Score
1.1, Dichloroethane °°
1,1,1 — Trichloroethane °°
1,2,4, Trichloroelhane °°
1,3, Dinitrobenzene °°
1,4 — Naphthoquinone °°
2,3,7,8, TCDD °
2,4—0*
2— Chbrophenol °°
Acenaphthene °°
Barium °°
Benzalkonium Chloride*
Benzo (K) Fluoranthene °
Beta — Hexachlorocyclohexane °
Bis(2,3,3,3 - Tetrapropyl) Either**
Cobalt"
Copper °°
Cyanide °°
Di-N-Butyl Phthalate**
Dibenzo (a,h) Anthracene °
Dichloroethane °
Dichloromethane °
Dimethyl Alkylamine °°
Epichlorohydrin °
Fluorides °°
Gamma — Hexachlorocyclohexane °
Hydroquinone °°
PCB— 1254°°
Pentachlorophenol °°
Phorate °°
Pyrene °
Toxaphene °
Trichlorobenzene °°
Vanadium °°
Znc°°
0A
0*
0A
0*
0*
1*
0
QAA
0*
Of
0
0
0*
0*
0*
0*
r
0*
0*
0*
0*
0*
r
0A
0*
QAA
0*
r
IA
0*
1*
0*
0*
0*
8
4
5
6
6
9
4
5
9
6
4
9
8
3
5
8
6
3
3
6
6
4
5
9
9
6
9
5
9
9
8
5
6
3
8
4
5
6
6
10
4
5
9
6
4
9
8
3
5
8
7
3
3
6
6
4
6
9
9
6
9
6
10
9
9
5
6
3
     *Tatken, R.L; R.J. Levine (eds.), 1983, Registry of Toxic Effects of Chemical Substances,
     Volumes 1,2,3; National Institute for Occupational Safety and Health; Cincinnati, Ohio.
     "Office of Solid Waste, 1986, "Documentation for W-E-T Model Impact Parameters"; March, 1986.
     "Office of Health and Environmental Assessment,1985, Health Assessment
     Document For Nickel; USEPA—€00/8-83/012F. pp. 8—199 to 8-202.
     °°ICF, Inc. 1984, The RCRA Risk—Cost Analysis Model; ICF, Inc., Washington, D.C.
     A Verschverens, K., 1983, Handbook on Environmental Data on Organic
     Chemicals; Van Nostrand, Reinhold Co., NY.
     AA USEPA, 1979, Multimedia Environmental Goals for Environmental
     Assessments; Volumes III & IV, USEPA 600/7-79-176 A&B.
     •fUSEPA, 1980, Ambient Water Quality Criteria Documents; USEPA 440/5-80, Series.
                                             Page D — 16

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                                      Toxicity Scoring Methodology
        Table D-3
Toxicity and Volume scorces
  of RCRA Listed Wastes
SIC Code
2819
2869
2869
2869
2869
2869
2865
2812
2869
2869
2869
2869
2879
721
2869
2869
2865
2869
2879
2869
2869
2851
2865
2869
2865
2879
2833
721
2879
2851
2819
2869
2869
2869
2865
2865
2869
2819
2819
2879
2869
2879
2869
2865
2865
RCRA Code
P063
Characteristic
K030
K020
K018
K019
K083
K073
K095
K096
K029
K021
K042
F002
Characteristic
K016
K025
K017
K043
Characteristic
Characteristic
F005
K085
Characteristic
Characteristic
F002
K084
F002
K034
F005
P120
K010
Characteristic-
Characteristic
K023
K093
P016
P011
P012
P059
K026
U036
U078
K015
Characteristic
Toxicity
Score
7.0000
5.5560
5.2100
5.1990
4.9500
4.9340
4.8910
4.8850
4.8050
4.7440
4.1700
4.0020
3.5000
3.0000
2.7060
2.4850
2.4520
2.3200
2.3000
2.2740
2.0400
1.8000
1.7000
1.6080
1.6000
1.5000
1.4400
1.2500
1 .2350
1.2000
1.2000
1.1990
1.1520
1.0800
1.0000
1.0000
1 .0000
0.9000
0.9000
0.9000
0.8500
0.8000
0.8000
0.7470
0.7000
Toxicity
Group*
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
Volume
(kkg/yr)
55,831
9.60
48,400
52,700
35,400
80,300
1,800
340
35,500
3,200
1,300
270
6
38,040
2,700
1,600
1,500
6,360
4,990
1,400
8,200
3,070
4,500
2,600
17,300
1,230
500
9,510
170
5,430
1,842
26,300
140
9,100
760
2,100
72
10
140
44
1,440
150
0
680
22,700
Volume
Group*
3
6
4
4
4
3
5
6
4
5
5
6
8
4
5
5
5
5
5
5
4
5
5
5
4
5
6
4
6
5
5
4
6
4
6
5
7
8
6
7
5
6
0
6
4
         Page D — 17

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Toxicity Scoring Methodology
     Table D-3: Continued
                                   Toxicity and Volume scorces
                                      of RCRA Listed Wastes
SIC Code
2819
2819
2819
2819
2819
2819
2819
2865
2865
2851
2819
2819
2869
2869
2869
2819
2819
2819
2819
2865
2992
2819
2869
2869
2869
2869
2869
2819
2869
2869
2869
2865
2865
2869
2491
3333
285
2879
2869
2869
2869
2819
2819
2819
262
RCRA Code
P021
P029
P074
P098
P104
P106
P121
U023
U127
F005
P113
P115
U080
U209
U211
U214
U215
U216
U217
U242
Characteristic
U032
U043
U044
U077
U128
U131
U151
U208
U227
U228
U231
K094
Characteristic
K001
Characteristic
F005
K036
Characteristic
Characteristic
U084
U144
U145
U146
U226
Toxicity Toxicity
Score Group*
0.7000 2
0.7000 2
0.7000 2
0.7000 2
0.7000 2
0.7000 2
0.7000 2
0.7000 2
0.7000 2
0.6000 2
0.6000 2
0.6000 2
0.6000 2
0.6000 2
0.6000 2
0.6000 2
0.6000 2
0.6000 2
0.6000 2
0.6000 2
0.5300 2
0.5000 2
0.5000 2
0.5000 2
0.5000 2
0.5000 2
0.5000 2
0.5000 2
0.5000 2
0.5000 2
0.5000 2
0.5000 2
' 0.4450 2
0.4400 2
0.4356 2
0.4306 2
0.4000 2
0.4000 2
0.4000 2
0.4000 2
0.4000 2
0.4000 2
0.4000 2
0.4000 2
0.4000 2
Volume Volume
(kkg/yr) Group* j
25 7
151,222 3
2 9
6 8
0 0
637 6
10 8
58 7
201 6
580 6
82 7
6,083 5
24,094 4
1,930 5
108 7
1,231 5
1,231 5
82 7
656 6
58 7
9,000 4
24 7
243 6
318 6
2 9
193 6
96 7
219 6
193 6
11 8
155 6
0 0
700 6
43,650 4
35,700 4
500 6
1 ,030 5
130 6
820 6
40 7
169 6
1 9
1 9
0 0
6,117 5
                                             Page D—18

-------
                                                                     Toxicity Scoring Methodology
Table D-3: Continued
                              Toxicity and Volume scorces
                                 of RCRA Listed Wastes
SIC Code
2865
2865
2992
2869
3312
2865
2865
2865
2869
3333
2869
2865
2869
2879
3351
2491
3341
3341
2992
2869
2869
2865
2869
2869
2892
2865
2865
2821
2869
2879
3691
3692
2851
3398
2869
2812
3333
3332
2865
2821
2869
2879
2869
3312
2869
RCRA Code
K024
K103
Characteristic
Characteristic
K087
P028
U037
U070
U083
Characteristic
Characteristic
K015
P023
Characteristic
Characteristic
Characteristic
K069
Characteristic
Characteristic
Characteristic
U045
U072
U081
U082
K045
Characteristic
Characteristic
Characteristic
Characteristic
Characteristic
Characteristic
Characteristic
Characteristic
F012
Characteristic
K106
Characteristic
Characteristic
Characteristic
Characteristic
K028
K041
Characteristic
K060
Characteristic
Toxicity
Score
0.3600
0.3485
0.3400
0.3160
0.3034
0.3000
0.3000
0.3000
0.3000
0.2808
0.2700
0.2520
0.2500
0.2400
0.2400
0.2390
0.2324
0.2272
0.2200
0.2000
0.2000
0.2000
0.2000
0.2000
0.1825
0.1750
0. 1 740
0.1600
0.1570
0.1500
0.1400
0.1300
0.1255
0.1232
0.1230
0.1050
0.1046
0.1025
0.1010
0.1000
0.0905
0.0900
0.0780
0.0737
0.0706
Toxicity
Group*
2
2
2
2
2
2
2
2
2
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
Volume
(kkg/yr)
2,500
15,150
69,000
15,500
39,800
201
2,586
20
95
1 1 ,000
22,700
8,380
169
500
8,000
25,100
28,600
153,300
32,000
5,800
650
16
649
169
242
187,000
5,600
486,000
1,600
500
150,000
1,300
500
190
3,600
7,000
16,000
42,000
30,000
53,000
610
5,000
45,400
72,000
172,500
Volume
Group*
5
4
3
4
4
6
5
7
7
4
4
4
6
6
4
4
4
3
4
5
6
8
6
6
6
3
5
2
5
6
3
5
6
6
5
5
4
4
4
4
6
5
4
3
3
                                        Page D — 19

-------
Toxicity Scoring Methodology
     Table D-3: Continued
                                   Toxicity and Volume scorces
                                     of RCRA Listed Wastes
SIC Code
2879
3471
2869
2869
2869
2879
2879
2869
2812
2865
3312
2865
3312
2865
2869
3320
2865
286
2869
3000
2879
3331
2869
2865
2879
2816
2869
3313
2861
2892
2865
2865
2865
3313
2869
3471
2911
2823
2861
3313
2893
2879
3313
2879
2812
RCRA Code
K097
F006
Characteristic
Characteristic
Characteristic
K031
K035
Characteristic
Characteristic
K104
K061
K022
K062
Characteristic
K011
Characteristic
Characteristic
U240
Characteristic
Characteristic
K032
Characteristic
Characteristic
Characteristic
K040
K002
K009
Characteristic
Characteristic
K044
Characteristic
K105
Characteristic
Characteristic
Characteristic
F007
K050
Characteristic
Characteristic
Characteristic
K086
K037
Characteristic
K033
K071
Toxicity
Score
0.0682
0.0624
0.0600
0.0600
0.0600
0.0569
0.0560
0.0520
0.0500
0.0492
0.0478
0.0450
0.0425
0.0420
0.0418
0.0407
0.0400
0.0400
0.0390
0.0385
0.0350
0.0341
0.0279
0.0260
0.0259
0.0249
0.0240
' 0.0206
0.0203
0.0200
0.0200
0.0117
0.0099
0.0092
0.0090
0.0089
0.0073
0.0053
0.0044
0.0043
0.0040
0.0026
0.0024
0.0020
0.0020
Toxicity
Group*
3
3
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
5
5
5
5
5
5
5
5
5
5
6
6
6
6
Volume
(kkg/yr)
2,300
488,400
291,500
2,720
4,500
12,980
3,130
8,172,000
25,900
332,070
70,000
106,200
2,950,000
136,200
3,181,000
2,139,100
388,000
43,500
5,448,000
52,000
160
640,000
101,700
118,000
150
27,000
399,500
85,400
28,400
1,700
12,500
Volume
Group*
5
2
3
5
5
4
5
1
4
3
3
3
2
3
1
2
3
4
1
4
6
2
3
3
6
4
3
3
4
5
4
520 6
90,800
72,200
3,630
1,990
1,700
160,000
11,500
32,800
10,000
3
3
5
5
5
3
4
4
4
50 7
83,600
8,280
39,000
3
4
4
                                            Page  D —20

-------
                                                                     Toxicity Scoring Methodology
Table D-3: Continued
                               Toxicity and Volume scorces
                                 of RCRA Listed Wastes
SIC Code
2869
3312
2911
2869
3341
2892
2892
2911
3471
2879
3312
2879
3471
2911
2869
2911
2911
3320
2861
2911
2816
2865
2911
2911
2911
2879
RCRA Code
Characteristic
Characteristic
K048
Characteristic
K100
Characteristic
K047
K049
Characteristic
K038
Characteristic
K099
Characteristic
K051
Characteristic
Characteristic
K052
Characteristic
Characteristic
Characteristic
Characteristic
K027
Characteristic
Characteristic
Characteristic
K039
Toxlcity
Score
0.0017
0.0015
0.0014
0.0010
0.0008
0.0007
0.0007
0.0007
0.0005
0.0005
0.0004
0.0004
0.0004
0.0003
0.0003
0.0003
0.0003
0.0002
0.0002
0.0001
0.0001
0.0000
0.0000
0.0000
0.0000
0.0000
Toxicity
Group*
6
6
6
6
6
6
6
6
7
7
7
7
7
7
7
7
7
7
7
8
8
8
8
8
9
10
Volume
(kkg/yr)
190,600
60,000
297,600
2,100
139,500
24,000,000
81,600
92,400
17,300,000
7,280
30,000
26,180
30,700
196,200
1,398,300
40,300
7,100
16,915,102
96,200
20,600
742,100
107,900
154,700
263,900
1,000
355
Volume
Group*
3
3
3
5
3
1
3
3
1
5
4
4
4
3
2
4
5 •
1
3
4
2
3
. 3
3
5
6
  1= high toxicity and Volume, 10= lowtoxicity and volume
                                        Page D —21

-------
                                                                          Table D-4

                                                            Comparison of Waste Streams for Three

                                                                     Industry Categories
o
X
5"
•8
to
to
Industrial Sectors RCRACode Toxlclty Rank* Volume Rank*
Industrial Organic
Chemicals (NEC) K030 1 4
K020 1 4
K018 1 4
K019 1 3
K095 1 4
K096 1 5
K029 1 5
K021 1 6
K016 2 5
K017 2 5
K010 2 4
P016 2 7
K026 2 5
U078 2 0
U080 2 . 4
U209 2 5
U211 2 7
U044 2 6
U043 2 6
U208 2 6
U128 2 6
U228 2 6
U131 2 7
U227 2 8
U077 2 9
U084 2 6
U083 2 7
P023 3 6
U045 3 6
U081 3 6
U082 3 6
K028 3 6
K011 4 1
K009 4 3
Industrial Sectors RCRA Code

Pesticides and
Agricultural K042
Chemicals K043
F002
K034
P059
U036
K036
K041
K097
K031
K035
K032
K040
K037
K033
K038
K099
K039


Petroleum Refining
K050
K048
K049
K051
K052

Toxlclty Rank*


1
2
2
2
2
2
2
3
3
4
4
4
4
6
6
7
7
10



5
6
6
7
7

Volume Rank*


8
5
5
6
7
6
6
5
5
4
5
6
6
7
4
5
4
6



5
3
3
3
5

" Ranking: 1 - high, 10 » tow
                                                                                                                                                            3
                                                                                                                                                           era


                                                                                                                                                            n>

                                                                                                                                                            B-

-------
             Appendix E
WASTE MINIMIZATION CORRESPONDENCE
          AND BRIEFINGS

-------
                                                            Correspondence and Briefings
                                 APPENDIX E

                 Waste Minimization Correspondence and Briefings
Introduction

       This appendix contains examples of correspondence from members of the regulated
community and other panics requesting clarification of specific aspects of the waste
minimization provisions of HSWA. These inquiries were received by the Office of Solid
Waste during 1985 and 1986. Appendix E also contains the OSW's response to specific
inquiries as well as the text of briefing material on waste minimization prepared for the
American Management Association.
                                   Page E—1

-------
Correspondence and Briefings
                                    APPENDIX E

                                   Table of contents

                                                                  Page
          SUBJECT:    Participation in a Waste Exchange Program
          March 1, 1985
          Letter from OSW to Mr. William Stough, Director,
          Great Lakes Regional Waste Exchange	£-5
          SUBJECT:    Waste Minimization Statement on the Uniform
                       Hazardous Waste Manifest
          July 11, 1985
          Letter from OSW to Mr. R.R. Saulsman, Manager
          Energy and Environmental Affairs
          The Boeing Company	E-6
          SUBJECT:    Waste Minimization Certification Requirements
          August 5, 1985
          Letter from OSW to Ms. Faith Gavin Kuhn, Executive Director/Editor
          National Association of Solvent Recyclers	£-7
          SUBJECT:    Waste Minimization Certification Requirements
          September 6, 1985
          Letter from OSW to Mr. Peter Ashbrook, Head
          Hazardous Waste Management
          University of Illinois	£-9
          SUBJECT:    Availability of Grant Funding for Waste Exchanges
          January 17, 1986
          Letter from OSW to Mr. William Sloan, Secretary
          Hazardous Waste Facilities Siting Board
          State of Maryland	E-ll

          SUBJECT:    Definition of Waste Minimization
          February 6, 1986
          Letter from OSW to Mr. Robert Fixter, Assistant
                       Environmental Manager
                Waste, Inc	.£-13
                                      Page E—2

-------
                                                      Correspondence and Briefings
SUBJECT:    Federal Permit Requirements for In-House
             Solvent Recovery Equipment
February 21, 1986
Letter from Mr. George D. Culotta (Vice President—Sales,
Progressive Recoveryjnc.)
toOSW	E-15
SUBJECT:    Federal Permit Requirements for In-House
             Solvent Recovery Equipment
March 13, 1986
Letter from OSW to Mr. George D. Culotta
Vice President—Sales
Progressive Recovery, Inc	E-17
SUBJECT:    Need for Coordinated Approach by EPA Regional
             Offices Regarding Grant Funding for Waste Exchanges
April 2, 1986
Letter from Mr. William Sloane, Secretary (Hazardous Waste
Facilities Siting Board, State of Maryland)
to OSW	E-19
SUBJECT:    Waste Minimization Certification for Small Quantity
             Generators of Hazardous Wastes
April 16, 1986
Letter from OSW to Mr. Jeffrey L. Dauphin
Waste Systems Institute of Michigan, Inc	E-21
SUBJECT:    Fees Assessed on the Generation of Hazardous Waste
May 20, 1986
Letter from OSW to the Honorable Frederick Boucher
U.S. House of Representatives	E-23
SUBJECT:    Memorandum on Briefing Material on Waste
             Minimization for the American Management
             Association Interview from OSW
February 18, 1986	JE-26
                             Page E—3

-------
Correspondence and Briefings
                                         Page E—4

-------
                                                Correspondence and Briefings
                                                                I8CC4 .15
            UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                        WASHINGTON, O.C. 20460
                           MAR i .1985
                                                         office or
                                                SOCIO WASTE-AND eME"GENCY RESPONSE
Mr. Wi11iam Stough
Oi rect or
Great Lakes Regional Waste Exchange
      r rtu n £ a n H  W (•_
3250 Townsend
Grand Rapids.
               N.
              Mlchi gan
                    49505
Dear Mr. Stough
     It was a pleasure to hear from you and learn of your
interest in using waste exchange programs to support the
waste minimization concept of the Resource Conservation and
Recovery Act (RCRA) Reauthorization.

     Where participation in a waste exchange program affects
a generator's efforts to reduce the volume or toxicity of
hazardous waste, such participation may be used to satisfy
Section 3002(b)(l) of RCRA.  Participation in a waste exchange
program could also be used as evidence of compliance with
§3002(b)(2). which requires that the generator s?lect the
method of treatment, storage or disposal which minimizes the
threat to human health and the environment.
     It is
waste will
exchange programs
way
       our hope that each year greater volumes of hazardous
       be recycled,  reclaimed and reused through waste
                Achievement of this goal will go a long
toward meeting the intent of Congress regarding the disposal
of hazardous waste in or on the land.

     We appreciate hearing from you.  If you have further
questions, please let me knew.
                                John H. Skinner
                                Director
                                Office of Solid Waste  (WH-562)
                                 Page E—5

-------
 Correspondence and Briefings
          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                      WASHINGTON. D.C. 20460


                            JU. I I  B85


                                                      OFPIC6 Of
                                              SOLID WASTE* NO EME^GcNC- J-SI
Mr. R. R. Saulsman, Manager
Energy & Environmental Affairs
The Boeing Company
P. O. Box 3707
Seattle, Washington 98124-2207

Dear Mr. Saulsman:

     Thank you for your letter of June 5, 1985,  concerning  the
waste minimization statement which  generators will be required
to sign on the Uniform Hazardous Waste Manifest  (UHWM)  effective
September 1, 1985.

     As you indicated when you originally spoke  to Carolyn  Barley
in May, your concern was that Boeing Company  employees  would be
reluctant to sign this statement because as individuals they do
not have a waste minimization program in place as required  by
the statement.  Our suggestion in response to your concern  was
for the employee signing the statement to include under the
signature line in Item 16 the phrase, "on behalf of  The Boeing
Company."  You indicated in your letter that  this solution  is
satisfactory provided that this phrase can be preprinted on
the form.  Of course, the individual signing  the statement  is
responsible for the veracity of the statement, as is the company.

     We recognize that preprinting this phrase on the form  would
be a more efficient and less time consuming procedure than  re-
quiring Boeing employees to write it in by hand.  Additionally,
the Agency's March 20, 1985, regulations on the  UHWM do not
specifically preclude you from preprinting this  phrase  on the
form.  Therefore, I have no objections to your proposal.

     If you have other questions about the waste minimization
statement or the UHWM system, I suggest that  you again  contact
Carolyn Barley (202-382-2217).
                                Sincerely yours,
                                John H. Skinner
                                   Director
                              Office of Solid Waste
                                Page E—6

-------
              UNITED
                                                 Correspondence and Briefings
                      TES ENVIRONMENTAL PROTECTION t( NCY
                                AUG  5
Ms. Faith Gavin Kubn
Executive Director/Editor
National Association of Solvent Pecyclers
1333 New Hampshire Avenue, N.w.
Suite 1100
Washington, P.C.  20036
Tear
         Kuhn:
     Thank you for your letter of July  19,  1985,  requesting
clarif ication on the types of activities  that, may be  used to
satisfy the waste minimization certification as  required  by the
Hazardous and Solid Kaste Amendments  (PSWA) of  1984.   In  addi-
tion, thank you for the copy of the National Association  of
Solvent Recyclers1 (NASR) latest industry brochure and member-
ship list.
                                                                         i
                                                                         LTt
z

T
•?
•3
                                                                         p
                                                                         3
                                                                        N;
                                                                        CD
     The HSVTA establish as national policy  the  minimization of
hazardous waste.  The legislation requires  waste  minimization
considerations to be addressed  in the Pesource  Conservation and
Recovery Act (PCPA) transport manifests, generator reports, and
permits .

     Senate Report Ho. 284, 98th Congress,  1st  Session  66
(1983), articulates Congress' intent with regard  to the waste
minimization requirements in the HSWA.  As  this legislative
history states, both minimization requirements  for thp  manifest
and biennial report, refer to a  certification  by the generator
that a program is in placo to reduce the volume or quantity and
toxicity of hazardous waste to  the degree determined by the
generator to be economically practicable.   v.'hile  the requirement
to make this certification is mandatory, the  determination  of
what waste minimization practices are economically practicable
are to be made by the generator.  The legislative history makes
clear th*»t Congress' objective  in enacting  the  requirement  for
waste minimization certification is to encourage  generators of
hazardous waste to voluntarily  reduce the quantity and  toxicity
of waste generated.
                                                                         o
                                                                         3
                                                                         UJ •<
                                                                         •a
                                                                        \ -z
                                                                        CO —
                                                                         I «;
                                                                        fo
                                                                         I ^
                                                                        CO I—
                                                                        ui en
CONCURRENCES
SYMBOL k
SURNAME k
OATg k
iVI i - o
E.Eh
.^,.£
6 D ;\
V
I
ivji - 3 b oA
pHansen

IVH-565
Jl^onman
^^/




V'l'Q'gf Page E— 7









                                                           OFFICIAL FILE COPY

-------
Correspondence and Briefings
      As we  previously  discussed, and as the legislative  history
 suggests, generators  that  either recycle wastes on-site  or  send
 choir wastes  off-site  to be recycled are exercising a  form  of
 waste pininizatior  that  ray be user! to satisfy the waste rini-
 pization  certification requirement, and may certify as such on
 the uniforn hazardous  wast*? r>anifpst.

      The  Agency  appreciates r-^FP's concern with the waste rini-
 pization  certification requirement.  If you have any  further
 questions,  pleape let  T"*> know.

                                .Sincerely,
                                John h. Fkirner
                                Pirector
                                Orf'ice of solic' V.:a.ctP  (VH-5^2)
                                Page E—8

-------
                                                   Correspondence and Briefings
                                                                         3 Z
                                                                         01 -
                                                                         M S
Mr.  Peter Ashbrook                                                       - r
Head, Hazardous Waste Management                                        £ J.
University of Illinois                                                   5 5
317  McKinley Hospital                                                    us -
1109 South Lincoln Avenue                                                ^E
Urbana, Illinois  61801                                                  ^-£
                                                                         w £-
Dear Mr. Ashbrooki                                                        §
                                                                          ••
                                                                          o
     Thank you for your  letter of  August 26,  1985,  to Lee Thomas         »-
concerning the availability  of guidance  on  implementation of waste       5
minimization practices at  the  University of Illinois.  I  am sympa-       *g
thetic to the challenge  you  face in managing a large variety of          K>
relatively small quantity  wastes that, in total,  represent a             i
significant quantity.                                                     £
                                                                          •vj
     The Hazardous and Solid Waste Amendments (HSWA) of 1984,             ^
establish as national policy the minimization of  hazardous waste.         3
The  legislation requires waste minimization considerations to be         to
addressed in the Resource  Conservation and  Recovery Act (RCRA)           ®
transport manifests, generator reports,  and permits*                     >-
                                                                          vo
     The Agency has not  developed  guidance  on waste minimization         ^
activities that may be practiced by generators and,  at this time,        *•>•
does not intend to.  Instead,  it is hoped that activities such as         yi
source reduction and recycling will be explored by  individual            £,
generators to reduce the volume or quantity and toxicity  of the         *
hazardous waste generated.                                               ui
                                                                         -2
     Senate Report No. 284,  98th Congress,  1st Session 66 (1983),        £
articulates Congress1 intent with  regard to the waste minimiza-         ^
tion requirements in the HSWA.   As this  legislative history states,      Q
both minimization requirements for the manifest and biennial report      £•
refer to a certification by  the generator that a  program  is in          *•
place to reduce the volume or  quantity and  toxicity of hazardous        M
waste to the degree determined by  the generator to  be economically      ^
practicable.  While the  requirement to make this  certification is        n-
mandatory, the determination of what waste  minimization practices        |
are  economically practicable are to be made solely  by the generator.     £,
                              Page E—9

-------
 Correspondence and Briefings
The legislative history makes clear that Congress1 objective in
enacting the requirement for waste minimization certification is
to encourage generators of hazardous waste to voluntarily reduce
the quantity and tozicity of waste generated.

     As the legislative history suggests and as the Environmental
Protection Agency (EPA) has stated, generators that recycle wastes
on-site, send their wastes off-site to be recycled or participate
in a waste exchange program are exercising a form of waste minimi-
zation that may be used to satisfy the waste minimization certifi-
cation requirement, and may certify as such.

     In addition to the requirements for waste minimization
certification imposed by the BSWA, the Amendments also require
that a "Report to Congress" be submitted by the EPA by October 1,
1986, assessing the feasibility of establishing waste minimiza-
tion regulations.

     The Office "of Solid Waste (OSW) is undertaking extensive
technical studies on waste minimization practices including
source reduction and recycling in support of the "Report to
Congress.  These studies will identify and assess current waste
minimization practices for generators of hazardous waste.  These
activities include: good housekeeping practices, source reduction
strategies and recycling opportunities for generators.  They will
also identify generic and specific problems associated with the
implementation of waste minimization strategies.  In addition, the
studies will assess the potential for further applications of the
identified waste minimization strategies and will evaluate what
steps can be taken to mitigate problems and promote the increased
use of waste minimization.  This information, as well as recommenda-
tions for legislative changes or new regulatory intiatives will be
presented in Report to Congress due October 1, 1986.  In the
interim, OSW will distribute information regarding specific waste
minimization practices identified through our technical support
studies and technology transfer seminars.

     The Agency appreciates your concern with the waste minimization
certification requirement.  If you should have any further questions,
please contact James Berlow, Manager of the Treatment, Recycling,
and Reduction Program at (202) 382-7917.

                              Sincerely,
                              J. Winston Porter
                              Assistant Administrator
                              Page E—10

-------
                                                     Correspondence and Briefings
                         -'AN
r-'r. William Sloan
Secretary
Hazardous Waste Facilities  Siting  Board
State of Maryland
Suite 200
€C West Street
Annapolis, Maryland   P14C1

Hear Mr. Sloan:

     Thank you for your  letter  of  Eecember 19,  1965, to Lee
Thomas inferring the  U.S. Environmental Protection Agency (TI'-A)
of the Resolution passed by the Maryland Hazardous V.'aste Facil-
jtj.es Siting Board (KHV.TSB)  on  October 17,  1905.   The resolution
recon.-ends that the EPA  provide partial funding for industrial
waste exchanges in the U.S.,  specifically the Northeast Industrial
'./aste Exchange (NFIl.'E).

     In response to your request for  funding, I would like to
tell you that Congress has  appropriated funds for the Pesource-
Conservation and Recovery Act  (PCPA)  grant prcgran for FY 198C.
These funds will be available  through the EPA Regional Offices.
The RCKA grant program is used  to  support a variety of State and
Iccal hazardous waste management efforts which focus en innovative
wast«» management activities.   These activities include waste
reduction, waste exchange,  treatment  facility siting, providiro
alternatives to land  disposal,  shared treatment,  and assistance
to small quantity generators.

     However, due to  the uncertainty  associated with the recently
enacted Balanced Budget  and Emergency Deficit Control Act cf 1905
(C-raham-P.udman provisions),  the Agency will not release these FY
1986 funds at this time.  When  we  more clearly understand the
ramifications cf these provisions  and are assured the funds will
not be withdrawn, the Regions will be notifie.d and the funds
released.
                                Page E—11

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     Correspondence and Briefings
     •Tl't  rcrcluticr. alerter!  ^V f>'tf !'i"Vl-^'- v;culij he an ectivity
vhjcb ecu It'  he ccrs 3 .-.•c-rf-i";  fcr  furcinc '_-v the  l~rt- Peciopcl  Offices.
T v.'culc  svjf>~t"st that a proposal be subrittec'  t.e tl'c- aj-rrcprictr
r!T !e^irr,cl offjrt- rr Offices tc le ccnsidcrcc' fc>r furt4ii'.c.   In
trc case of  t.h«=- rTIV'F, vhose servicec exterc1  Veyond ere "PA
"•ecion,  ?  jcir.t rrcpcsftl suhn;itted tc several  P.ecicns request inc
a cccrt-inatrr funcinc rffcrt. ray be possible.

     Waste oxcVar.ces provide an excel ler.t. mecbBr.isr^ for J nforrat icr
transfer arc1 brve the ability  to realize actual increas?es  in  t.be
oae of recyclina as a vf-st.e  naracener.t alternative.  The A.cer.cy
applauds the wcrX dor.e \-y  th.p  MIV'FSL ir adopting this resolution
in addition  to fHe- \«ork currently teinc r«cne  by the individual
waste exchances.  The strides  taV.en Ly waste  exchanges in  recent
ytars have succtroied in rrrlucinc the volurre of hacar^oue was-tes
beina disposed i r, arc1 on t.be land.  I encourage the H!-'VTPP. to
explore  the  possibilities  of cAtairtro r.-rant  funds fror the EFA
i -.-cicnal Cffices.

     If  you  should bavo uf-y  further r-ucstjons,  p-leasc oont?ct
rlair'.«: tby of the Treatrent, Recyclinq, and F.eOucticn rroi.rftr^  at
(202) 3F.2-793C .

                                    Sincerely,
                                       Winston  Porter
                                    Assistant Adninistrator
                               Page E—12

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                  UNITED IS^TES ENVIRONMENTAL .PROTECTION >-•
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                                     Page E—13

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 Correspondence and Briefings
the volume or ouantity  and  toxicity  of  hazardous waste to the
degree determined by  the generator to he  economically practicable,
and that the proposed method  of  treatment,  storage or disposal
is that practicable method  currently available  to the generator
which minimizes present and future threats  to human health and
the environment,  while the reguirement to  make the waste minimi-
zation certification  is mandatory, the  nature of the criteria for
such certification and  the  determination  of compliance with those
criteria are to be made solely by the generator.

     This makes it clear that Congress1 objective for waste
minimization program certification is to  encourage generators
to seek voluntarily ways or programs to reduce  the quantity and
toxicity of generated waste.  The reports further state that
recycling pollutants, contained  in effluents, emissions, wastes,
or other pollution streams  is one, but by no means the only, way
of implementing this national policy of waste minimization.  A
fundamental premise of  RCRA is and continues to be to encourage
the reuse of materials.

     As the legislative history  suggests  and as the Environmental,
Protection Agency (EPA) has stated,  generators  that recycle, .Wfla.taa«,,
on-site or send their waste off-site to be  recycled are engaging
in an activity which nay be considered waate minimization-. '    -^

     The Agency appreciates your concern  with the waste
minimization program definition.  If you  should have any further
Questions, please contact James  R. Berlow,  Manager of the Treat-
ment, Recycling, and Reduction Program at (202) 382-79?"^

                                   Sincerely,


                                     Original signed  fayi
                                     Marcia E. Williams
                                   Marcia Williams
                                   Director
                                   Office of Solid Waate (WB-562)
                                Page E—14

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                                                       Correspondence and Briefings
                                                                   02/21/86
  /Hr.  Jack McGraw
   United States  Environmental
   Protection Agency
   Solid  Waste Division
   401  M  Street SW
   Washington, DC  20460

   Reference! Inhouse Liquid  Solvent
               Recovery Units

   Dear Mr. McGraw:

   O'.r  ccrporation,  Progressive Recovery  is a  leading manufacturer of
   I r, house Liquid Solvent  Recovery Distillation  Equipment.

   D.ring the past  several  months, many  of our potential clients nave
   questii->n»d the use cf  inhouss recover/ units  and if a Federal
   Form it ic required''

   Bused  on my Knowledge  of the existing  Federal  Regulation  40,  part
   261.6, no Federal permit is  required  for inhousc solvent  recovery
   equipment. This  is as  long as the  following conditions  are met:

   "Liattd" spent solvents  'F001 through  F005  in  40 CFR 261.31  and CAC
   2745••*: -31 and •ipen* "Characteristic"  solvents (D001 in 40 CKR
   261.21 and CAC 3745-j:-21> r,usc ba  stored less than 90  days  be-f-ore
   th?y are r o J \ * ti 1 I e-J..  Snail  quantity  hazardous waste gneraiors
   (iesp  than 1.000  Kg ;er  month) are  allowed  up  to ISO days for
   Storaar.

   it^c: e n 11 y, i C'jstcintf C-^cjo^st-rf we  acrjuai.it  ourselves with the
   rftdef in iti sn of  soljd  waste  fir.alnen  in 40 CJ-1? Part 261.1  < 4 ) ,
      .2  . ?61.2  <<.:• ii».
   li.  is  my ur dc r-jtand v r.;  r. h 11 tKe Federal EPA  strongly encourages
   gf?n.rjtor<-, of  spent solvent tc recycle rather  than dispr. s=  of thi'_
   material'

   I would appreciate your  comments  and  opinions  on this matter!

   TKan!<  you.
!020Nortn Mam Str?»t
Columbia. Illinois 62236
(618) 281-7196
                                 Page E— 15

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   Correspondence and Briefings
                   try. Inc.
                                                                         02/21/86
   Sincerely,
   Progressive Recovery
   George 0.  Culotta
   Vice  President-Sales

   cc: PRI-STL
1020 Nortn Main Street
ColumDia. Illinois 62236
(613) 281-7196
                                      Page E—16

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                                                          Correspondence and Briefings
                                        13 1986
     Mr.  Georoo D. Culotta
     vice Pros ident -tales
     Progressive Recovery, Inc.
     1020 'Jorth Main btreet
     Columbia, Illinois  *223f
                                                                              S en
                                                                              f $
                                                                         LTI O
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                                                                         O O
Dear Mr. Culnttat

     Thi*; is  in  r«jsr»ons«3  to  your letter of February  21,  1386,
in whicn you  requited  that  -M  reviow your interpretation  of the
•srrlieabl'' regulations  for  in-hou«o liquid -solvent  recovery units.
In addition,  you as^ed  for  the  environmental Protection  Agency's
position ro<3ar"Hny  recycling of spent solvents by generators.

     The spent solvents tint you described in your  example are
RCrJ>. hazcr^ous w as tt« .  ?"3rJl through "005 are listed  bazarJous
wastes  (4J CFR 261.3)  and 0001  exhibits a hazardous  characteristic
(4'J C?r>  *r.i.21).   A3  a  result,  the "storage, treatnent, and dis-
posal ot tnese and  other  hazardous wastes are regulated  undar
iuntitlo C ot 9CXA.   However, exemptions from ooneral permitting
regulations aro  provi^od  for certain types of tanks,  small quan-
tity jeneratora  and operational units reclaiuing or  recycling
naJMrrious wastes.   In  your  axaruple, no Subtitle C treatrrwnt
pecmt  is raauir-xJ  under  Federal regulations tor  in-houao solvent
recovery aquipnent  as  long  as the wastes raeet the definition of
a rt-cyclan ie  nateri.il,  and  owners or operators of treatment
facilities are in  compliance with 40 CFR 251.6 requirements.

     An  .tart  of  40 CFR 261.5 regulation, operational units are
         :ron perrjitt inrj  requlations when chose operations involve
          of  hazardous  v/aotes.   However, there  is no exemption for
      in  ncvcliru-j  practices conat i tut inq 'disposal.   Additionally,
      torage,  transport an-1  qinar^tion that precedes  this activity
     tf-iulatcl without  nny soeci^l cons iilerat ions  for recycling
      ities.   In  your  spent solvents example  the wastes m»««t the
      ltion of 3  recyclable naterial.  If the in-house nolv«»nt
         oauir>.-.«*;it ire in connlianca with 40 CFR  2C1.6 reauiro-
      ,  no RCRA Subtitle C treatment permit ifl required for the
      iti«rt  ~>f r^cvclin.j th«se "Articular
     certa
     tne s
     are r
     activ
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EPA Form I320
                                                                 OFFICIAL FILE COPY
                                     Page E—17

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 Correspondence and Briefings
          .,,-;>  storage  is subject  to  regulation as  doscribed in
        • i (jus paragraph some general  exemptions from the storage
  '      -j.-is exist.  These exemptions  apply  when the wastes are
     ! 'Accumulated on-site less than  90  days  as stated in the
     . ^  26^.34  requirements, or are accumulated on-site up to
  '" "jays &y smaii quantity hazardous  waste  generators  (less than
  "   xg Per month) as stated in  the  40  CFR 261.5  requirements.
      I also would like to emphasize that the  proposed  rule for
      quantity hazardous waste generators  is  scheduled to be
 promulgated later this month.  Although changes  might  occur in
 the final rule, the proposed rule for small quantity hazardous
 waste generators would exempt generators that store wastes for
 180 days if they do not accumulate more than  6,000 kg  of  hazardous
 wastes during that period.  In addition, the August 1, 1985,  pro-
 posal (50 FR 31304 and 31305) would allow  accumulation -for 270
 days if the waste is being shipped 200 miles or  more for  off-site
 treatment, storage, and disposal.  I would suggest that you also
contact the State authorities of your clients because  States  may
 regulate recyclable materials in a different manner.

     I also am enclosing the. January 4, 1985, final rule  defining
a solid waste (40 FR 14 through 66d), as wall as the August 20,
 1935, technical corrections to this rule (50  FR  33541  through
33544).  These notices provide detailed information on our
rationale in defining a solid waste.  If you  have additional
questions, please contact Matt Strati, Chief, v;aste Identifica-
tion uranch, at (202)475-8551.

     Finally, I would like to point out that  the Hazardous and
Solid Haste Amendments of 1934 establish as national policy the
minimization of hazardous wastes.  It ia £PA's policy  to  encourage
environmentally sound techniques that reduce  the volume or quan-
 tity and toxicicy of hazardous wastes generated.  The  recycling
of spent solvents is one of the most frequently  used practices
 for volume reduction.  We believe that properly  designed  and
operated solvent recovery can proviue effective  reduction in  tho
volu-nes ot solvents requiring disposal as  hazardous wastes.

                                  Sincerely,
                                   Garcia  S.  t.'i
                                   Director
                                   Office  of  Solid Waste (WH-562)

Enclosure
                                Page E—18

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                                                                    Correspondence and Briefings
                                    STATE  OF MARYLAND
 teven P.  Quarles,  Chairman
Charlej R. Baker

Christine U. Ecclei. Ph.D.

Richmond w Hill

Donald A. J action
loren D. Jensen, Ph;
XttlXXXMWXcX
Bunon I.. Mobiey

Suzanne M. PogeU

William M. Sloan, Secretary
                        HAZARDOUS WASTE  FACILITIES  SITING BOARD
                                       April  2, 1986
     J. Winston Porter
     Assistant Administrator
     U.S. ENVIRONMENTAL PROTECTION  AGENCY
     Office of Solid Waste i  Emergency Response
     Washington, DC 20460

     Dear Mr. Porter:

             Thank you  for your  letter advising  the Board  that funding  for  waste
     exchanges could be considered  by  the  Regional  Offices.   The message  has  been
     circulated among exchange  managers.   We appreciated Elaine  Eby's  being present
     at the Third National Conference on  Waste Exchange in Phoenix.

             Since your letter, which  I  received in  late  January, Lewis  Cutler  of
     the Northeast Industrial  Waste  Exchange  has communicated  with Regions  I,  II,
     III and  V,  and  is  prepared  to  submit  an application  as   soon  as  one can  be
     considered.    Mr.-  Cutler  has  also coordinated  his  work with  others,  notably
     Margo  Ferguson  Siekerka  of  the  Industrial  Materials  Exchange  Service.    The
     IMES —  which, incidentally,  is  clearly  the 1985 leader  in business,  with  $7
     million   in  material  or  energy  value  exchanged  —  is  a part  of the  Illinois
     Chamber  of Commerce.   It,  like  the Northeast Industrial Waste  Exchange,  serves
     states in Region V and other federal  regions.

             We  are  finding  it difficult   to  apply without   going  in  different
     directions,  while  the situation with  the exchanges  cries  out  for unity and
     coordination.  We are in  the  process of  forming  a  non-profit association, but
     incorporation  is   still   a  couple  of weeks   off  and  State  acknowledgement
     probably two months.

             I would  like to  suggest, on behalf  of the  NIWE,   the  IMES, and the
     Board, that you  consider a  coordinated  approach at  next  week's  meeting with
     regional  personnel on  Section 8001  funding.   A  reiteration to the regions  of
                  Secretary i Office • 60 Wejt Sireel • Suile :00 • Annapolis, Maryland 2I40I • Pnone (301)
                                         Page E—19

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Correspondence and Briefings
     Mr.  J.  Winston Porter
     April  2,  1986
     Page Two
     the  support  that  you  expressed  in  your  letter  would  also  be  very  much
     appreciated.   Any  of us  would be glad to discuss the situation with you.

             Many  thanks  for  your help.
                                     Secretary

    WMS/csm

    cc:     Lewis  Cutler,  NIWE
            Margo  Siekerka,  IMES
            Ma re i a Williams,  U.S.  EPA/OSW
            Chairman,  Members and  Counsel
                                     Page E—20

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                                                      Correspondence and Briefings
            UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
  '*                     WASHINGTON. D.C. 20460
KJ^

                       ^T f 8 1966


                                                         OFFICE OF
 Mr.  Jeffrey L.  Dauphin                         SOLID WASTE AND EMERGENCY RESPONSE
 Waste  Systems Institute of Michigan, Inc.
 470  Market, S.W.
 Suite  100-A
 Grand  Rapids, MI   49503

 Dear Mr.  Dauphin:

     This letter  responds to your request, dated April  1,  1986,
 for  clarification of the  wa,ste minimization certification
 requirement for small quantity generators of hazardous  waste.

     The  waste  minimization certification requirement was  created
 by  the Hazardous  and Solid Waste Amendments of  1984  (HSWA), signed
 by  the President  on November 8, 1984.  Section  3002(b)  of  HSWA
 requires  that generators  of hazardous waste regulated under Section
 3002(a)(5)  certify, on the Uniform Hazardous Waste Manifest,  that
 they have in place a program to reduce the quantity  and toxicity
 of  the hazardous  waste they generate, to a degree determined  by
 the  generator to  be economically practicable and that the  proposed
 method of, treatment, storage, and disposal is that practicable
 method currently  available which minimizes present and  future
 threats to  human  health and the environment.  This statutory
 provision does  not apply  to generators of less  than  1000  kg per
 month.

     The  HSWA also required EPA to establish standards  for
 generators  of 100-1000 kg per month.  These standards were
 promulgated on  March 24,  1986.  On the same day, EPA proposed
 that the  waste  minimization certification requirement also
 apply  to  100-1000 kg/mo generators.  If the Agency finalizes
 this proposed requirement,  the waste minimization certification
 statement in item 16 of the Uniform Hazardous Waste  Manifest
 will apply  to 100-1000 kg/mo generators just as it applies to
 generators  of greater than 1000 kg/mo.  I have enclosed  copies
 of  both Federal Register  notices, for your information.

     The  certification contained in item 16 of the manifest form
 consists  of two parts, the waste minimization certification and
 the  general certification of accuracy.  Only one signature is
 required.

     The  waste  minimization certification requirements  of  HSWA
 do  not authorize  EPA to "interfere with or to intrude into the
 production  process by requiring standards for waste minimization;
                                 Page E—21

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Correspondence and Briefings
 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 en-forcement perspective,
 the Acjency will be concerned primarily with compliance with the
 certification signatory requirement.   Each generator subject  to
 the waste minimization requirement should make a qood  taith effort
 to minimize the amout 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 (50 FR 28734).  The leqislative history of HSWA
 makes clear that "judgements made by the qenerator  [for the
 purpose of the waste minimization certification] are not subject
 to external regulatory action (S. Rep. No. 284, 98th Cong.  1st
 Sess. 67 (1983)).

      The HSWA, however, reguire the EPA to submit a  report  to
 Conoress, by October 1, 1986, on the feasibility and desirability
 of:  (1) establishinq standards of performance or of takinq
 additional action under the Act (RCRA) to reguire the  generators
 of hazardous waste to reduce the volume or quantity and toxicity
 of the hazardous waste they qenerater  and  (2) establishinq  with
 respect to hazardous wastes required management practices or  other
 requirements to assure such wastes are managed in ways that minimize
 present and future threats to human health and the environment.
 In addition, the report shall include  any recommendations for
 legislative chanqes which EPA determines are desirable and  feasible
 to implement the national policy of minimizinq the generation and
 the land disposal of hazardous waste by encouraging  process
 substitution, materials recovery, properly-conducted recycling
 and reuse, and treatment.

      The Agency supports all environmentally sound strategies
 for reducing the amount of hazardous waste which must  be disposed
 of, including waste exchanges.  The Agency's position  on waste
 exchanges, therefore, remains consistent with  that expressed  in
 John Skinners' March 1, 1985 letter to you.

      I hope that this answers your guestions about the waste
 minimization certification requirement.  Thank you for your
 interest in the hazardous waste program.

                                    Sincerely,
                                    Marcia Williams
                                    Director
                                    Office of  Solid  Waste

  Enclosures
                                Page E—22

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                                                   Correspondence and Briefings
           UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                       WASHINGTON, D.C. 20460
                                                            of
                                               SOLID WASTE AND EMERGENCY RESPONSE

Honorable  Frederick  Boucher
U.S.  House of  Representatives
Washington,  D.C.  20515

Dear  Mr. Boucher:

      Thank you for your  letter  of  April  18,  1986 regarding
your  constituent's concern about  fees  assessed on the generation
of hazardous waste.   There  is currently  no  such fee assessed
under the  Resource Conservation and  Recovery Act (RCRA).
My staff checked  with officials in the State of Virginia,
which is fully authorized to run  its own RCRA program.   The
State indicated that  it,  too, does not impose a fee such as
the one described by  your constituent.

      Your  constituent may be referring to the waste management
tax approved by the  House as part  of its CERCLA reauthorization
bill.  See the  December  10,  1985  Congressional Record,  p. H11666;
see also H.Rep. No.  99-253,  Part  2,  pp.  9-16.   The  proposed
waste management  tax  actually includes two  different taxes: a tax
on hazardous waste received  at  RCRA  Subtitle C facilities,, and a
backup tax on  RCRA generators if  their waste is not received at
a Subtitle C facility within 270 days.   As  explained below, it
appears that your constituent would  not  be  subject  to the first
tax,  i.e., the  tax on RCRA Subtitle  C  facilities.   However, your
constituent may be subject to the  second tax,  i.e., the backup
tax.  We agree  that  such a tax  may serve as  a disincentive for
recycling.  The Administration  did not include a backup tax in
its CERCLA reauthorization proposal.

      Given your description  of  your  constituent's waste,  it
appears that these used solvents are a hazardous waste  under
RCRA;  see  40 CFR  §261.31.  The  solvents  are  then sent to a second
company where  they are stored prior  to recovery.   Presumably the
storage unit would meet the  House  bill's definition of  a "qualified
hazardous waste management unit",  which  is  provided in  proposed
§4675(a)(2) of  the Internal  Revenue  Code of  1954 (IRC).   If so,
the waste would be subject to the  first  tax  at a rate of $4.15
per wet weight  ton.   However, the  second company would  receive a
credit or  refund  for  any tax paid  for  such  waste.   The  credit
for certain qualified solvents  is  outlined  in proposed  §4673(c)
'j£ the IRC.  This credit was specifically designed  to avoid
creating a disincentive for  solvent  recycling.
                             Page E—23

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Correspondence and Briefings
      Your letter states that after cleaning the used solvents,
 the second company returns the recovered solvents to your
 constituent for future use.  Presumably this "cleaning" of the
 wastes is actually reclamation.  If so, then these recovered
 solvents are not wastes.  See 40 CFR §261.3(c)(2 ) .  This issue
 is specifically discussed in the preamble of our January 4, 1985
 revised definition of solid waste (50 Fed.  Reg. 614, 634).
 Since these solvents are not wastes under RCRA, they would not
 be subject to the first tax, which is imposed only on certain
 RCRA hazardous waste.  See proposed IRC §§4671(a)(l) and 4675(a)(l),

      The second company must properly manage the spent solvents
 that were not reclaimed.  Such spent solvents are typically
 blended with oil and then sold as fuel.  Such waste-derived
 fuel is still considered a hazardous waste  under RCRA.  See
 40 CFR $261.2(c)(2).  The fuel may be burned in an industrial
 boiler or furnace, or a RCRA Subtitle C incinerator.  If so,
 then the second company may receive a credit or refund under
 the incineration provision.  See proposed IRC §4673(b).

      As noted above, your constituent may be subject to the
 proposed backup tax.  That tax is imposed on hazardous Waste
 which is not received at a qualified hazardous waste management
 unit within 270 days of its generation.  See proposed IRC
 §4574(a).  Thus, your constituent's potential liability under
 this tax would depend on whether one of the second company's
 RCRA units fits the  House bill's definition of a "qualified
 hazardous waste management unit."  If not,  then your constituent
 would be liable for  the backup tax.  Until  the Treasury Department
 promulgates regulations, the waste would be taxed at the
 disposal rate.

      Let me reiterate that the Administration did not include
 a backup tax on generators in its proposal  to reauthorize CERCLA.
 In designing a waste-end tax, we decided that the tax ought to
 be on the management of the waste, not the  generation.

      Finally, I agree with you that EPA should encourage recycling
 as a means of reducing the amount of hazardous waste requiring
 land disposal.  The  Hazardous and Solid Waste Amendments of 1984
 established as national policy the reduction of hazardous waste.
 In particular, Section 224 of the 1984 RCRA amendments requires
 EPA to submit a report to Congress by October 1, 1986, on the
 desirability and feasibility of establishing waste minimization
 regulations to implement this national policy.   As part of
 this effort, the Agency has identified incentives and disincentives
 currently affecting  the utilization of waste minimization
 practices such as recycling.  The report to Congress will
 discuss possible actions to alleviate some  of the disincentives
 associated with recycling and to promote further use of recycling
 and other waste minimization practices.
                               Page E—24

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                                                   Correspondence and Briefings
     Please let me  know if I can be of any further  assistance

                                    Sincerely,
                                    J. Winston Porter
                                    Assistant Administrator
cc: Robert L. Allen,  Branch  Chief
    Waste Management  Branch
    Hazardous Waste Management  Division
    U.S. EPA, Region  III

    William F. Gilley,  Director
    Division of Solid and  Hazardous
      Waste Management
    Virginia Department of Health
                             Page E—25

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Correspondence and Briefings
 MEMORANDUM
 SUBJECT:    Briefing Material on Waste Minimization for the
            American Management Association Interview

 FROM:       J.  Winston Porter
            Assistant Administrator

 TO:         Russ  Dawson
            Office  of the Administrator


     This  memorandum is  in  response to your request for briefina
 material  on waste  minimization in preparation for the American
 Management Association's interview with the Administrator on
 February  18,  1986.

 Legislative Mandate for  Waste Minimization

     The  Hazardous  and Solid Waste Amendments (HSWA) of 1984,
 establish  as  national policy the reduction of hazardous waste.
 As a result of this legislation, waste minimization considera-
 tions  must be  addressed  in  various areas of the Resource Conser-
 vation and Recovery Act  (RCRA) process.  These areas include:
 (1)  transport  manifests; (2) biennial reports; and (3) on-site
 treatment, storage, and  disposal permits.  In addition, the HSWA
 require the Environmental Protection Agency (EPA) to submit a
 report to  Congress, by October 1, 1986, on the feasibility and
 desirability  of:  (1) establishing standards of performance or of
 taking additional  action under the Act (RCRA) to require the
 generators of  hazardous  waste to reduce the volume or quantity
 and  toxicity  of  the hazardous waste they generate; and (2) estab-
 lishing with  respect to  hazardous waste required manaqement
 practices  or  other  requirements to assure such wastes are manaqed
 in ways that  minimize present and future threats to human health
 and  the environment.  In addition, the report shall include any
 recommendations  for leqislative changes which EPA determines are
 desirable  and feasible to implement the national policy of mini-
 mizing the generation and the land disposal of hazardous waste by
 encouraging process substitution, materials recovery, properly-
 conducted  recycling and  reuse, and treatment.
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                                                   Correspondence and Briefings
Current Activities

     The Office  of  Solid  Waste  (OSW)  is  responsible for implementing
the waste minimization  provisions  outlined  in  the  HSWA.  The waste
minimization  certification  requirement  for  manifests and  on-site
permits became effective  on  September 1,  1985.   This certification
requires that  the generator  certify  that  he has  a  program in place
to reduce the  volume or quantity and  toxicity  of hazardous  waste
to the deqree  determined  by  the generator to  be  economically prac-
ticable and that the proposed method  of  treatment,  storage, and
disposal is that practicable method  currently  available to  the
generator which minimizes present  and future  threats to human
health and the environment.  In the  Codification Rule,  EPA
articulated Congress'  intent with  respect to  this  requirement:

    "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"
(50 FR 28734) .

     Also effective on  September 1,  1985, was  the  requirement
that a generator include  in his biennial  report  the following
information: (1) a  description  of  the efforts  underta
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Correspondence and Briefings
      The  technical  support  document  is divided into two
 components:   (1)  source  reduction;  and (2)  recycling.   The
 source  reduction  study will profile  current and potential waste
 minimization  strategies  for 22 different  product processes
 (e.g./  electroplating, printed circuit board manufacturing,
 vinyl  chloride  production).  The  recycling  study addresses
 "end-of-pipe" or  "end-of-process" wastes  by waste groups
 (solvents, corrosives, metals, halogenated  organics)  and
 profiles  current  and  potential recycling  practices for these
 wastes.   The  recycling study evaluates waste minimization
 activities such as  waste  exchanges  and commercial recycling
 operations.   This document  will be  completed and submitted to
 OSW by  the end  of February.

 Other  Supporting  Activities

      In  addition  to the  activities  supporting the requirements
 and provisions  of the HSWA, OSW is  also involved with  other
 studies  and activities  in the area  of  waste minimization.  The
 Office  of Research  and Development,  Hazardous Waste Environmental
 Research  Laboratory,  is  presently studying  waste minimization
 practices of  the  printed  circuit board industry.  This effort
 includes  on-site  visits  and detailed analysis of manufacturing
 and waste management  practices.

     Tufts University is  currently  conducting a foreign practices
 study which will  profile  current waste minimization efforts in
 Canada,  Japan,  and  western  Europe.   The findings of this effort
 will  be  incorporated  in  the waste minimization RTC.

      Last year, EPA,  with the assistance  of the League of Women
 Voters,  sponsored a conference entitled "Waste Reduction - The
 Untold  Story" at  Woods Hole,  Massachusetts  (see attachment for
 the list  of presenters).  This conference provided the opportunity
 for reoresentatives from  22 large companies to showcase their
 companies' efforts  in waste minimization.  On June 4-6, 1986, EPA,
 with  the  assistance of Tufts University,  will be sponsoring Woods
 Hole  II.  This  year we hope to expand  our program to  include
 waste minimization  efforts  by small  and medium size generators.

 Waste  Minimization  Case  Studies

      In  response  to your  reguest  for several notable  examples
 of waste  minimization, attached are  four  case study summaries
 which  resulted  in substantial waste  reduction and cost savings
 for the  company.  This  information  was provided by a  1985 report
 published by  the  Institute  fo'r Local Self-Rel iance entitled,
 Proven  Profits  from Pollution Prevention  -  Case Studies in
 Resource  Conservation and Waste Reduction.
                              Page E—28

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                                                   Correspondence and Briefings
      In  preparation  of  the  RTC,  OSW has collected and analyzed
over  100 industrial  waste minimization case studies utilizing
268 waste minimization  techniques.   These waste minimization
techniques  include such activities  as  process modifications,
better operating  practices,  product substitution, reformulation,
recycling,  and  treatment.   Also  attached are two summary tables
which characterize the  type  of waste minimization techniques
utilized and the  amount of  waste reduction achieved in the
industrial  waste  minimization case  studies-.

     At  the oresent,  we are  unable  to  provide you with any
specific data on  the  use of  various waste minimization prac-
tices by industry or  the volume  of  hazardous waste which has
been eliminated through implementaion  of waste minimization
practices.  Although  the technical  support document will profile
current  efforts in waste minimization,  our knowledge of waste
minimization has  not  advanced to the stage where we have specific
volume data.

Status of the Land Disposal  Restrictions and its Effect on Waste
Minimization

     On  January 14,  1986, EPA proposed  the framework for a
regulatory  program to implement  the land disposal prohibitions
as mandated by  Congress.  The proposal  also included treatment
standards and the associated effective  dates for two classes of
hazardous wastes: solvent wastes and dioxin-containing wastes.
Public hearings on the  proposed  rule have already been held in
Dallas, Texas; Washington,  D.C.;  and Chicago,  Illinois.  The
public comment period closes on  March  17,  1986.

     Preliminary  observations suggest  that the HSWA, in particular
the waste minimization  certification requirements and the land
disposal restrictions,  will  provide incentives for generators to
reduce the  volume and/or quantity and  toxicity of the hazardous
waste they  generate.  It is  too  early  to determine the exact
effect the  current provisions of HSWA  and the  other requirements
of RCRA will have on  a  generator's  decision to minimize its waste.
However, it seems quite clear that  the  increasinq cost of hazardous
waste manaqement  (i.e., treatment,  disposal,  liability, insurance)
will create increased incentives  for waste minimization.

     I hope that  this information has  been helpful to you.   In
addition, attached is a briefinq  document  which  was  prepared  to
outline OSW's waste minimization program.   If  you should  have  any
further questions, please contact James  Berlow,  Manager of  the
Treatment,  Recycling, and Reduction Program,  at  382-7917  or
Elaine Eby  at 382-7930.
At tachments
                             Page E—29

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Correspondence and Briefings
                CHARACTERIZATION  OF  REPORTED WASTE

                     MINIMIZATION TECHNIQUES



                                             Total Reported

      Type of  Technique                  Cases         Percent


Process Modifications                     113             42
Better Operating  Practices                 27             10
Product Substitution/Reformulation         13              5

SOURCE REDUCTION  (Subtotal)               153             57

RECYCLING                                   83             31

TREATMENT                                   32             12_

                   Total                   268            100
                               Page E—30

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                                                Correspondence and Briefings
         CHARACTERIZATION OF REPORTED WASTE




                REDUCTION EFFICIENCY











Waste Reduction Efficiency         Total Reported




      (Percent)                   Cases       Percent






         >  90                         40          37




         70-90                       18          17




         50-70                       21          19




         <  50                         29          27




                        Total       108         100
                       Page E—31

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                                                                  *»
Correspondence and Briefings                                                   *
PRESENTERS AT THE "SOURCE REDUCTION  -  THE  UNTOLD STORY"  CONFERENCE

                     Woods Hole, Massachusetts
                         June  19-21, 1985
                        Allied Corporation

                         American Cynamid •  ^

                         Amoco Chemicals

                        AT&T Technologies

                     Chevron Chemical  Company

                       Chrysler Corporation

                          Dow Chemicals

            Eastman Chemical Division  -  Eastman Kodak

                  E.I. DuPont de Nemours and Co.

                     Exxon Chemical Americas

                         Hewlett Packard

                               IBM

                        ICI Americas,  Inc.

                                3M

                         Monsanto Company

                 Occidential Chemical  Corporation

                         Olin Corporation

                          PPG  Industries

                          Rohm and  Haas

                         Shell Oil  Company

                          Union Carbide

                  Velsicol Chemical Corporation
                              °age E—32

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