ADMINISTRATOR'S DECISION ON THE PROPOSED DICKERSON
   WASTEWATER TREATMENT PLANT GRANT APPLICATION
                 RUSSELL E. TRAIN
                   Administrator'
       U.S. ENVIRONMENTAL  PROTECTION AGENCY
              WASHINGTON,  D.C.  20460

                  August 20,  1976

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   ADMINISTRATOR'S DECISION  ON  THE PROPOSED  DICKERSON
      WASTEWATER TREATMENT PLANT  GRANT APPLICATION
INTRODUCTION

    On March  19,  1976, the  State  of Maryland  transmitted
to the Environmental Protection  Agency a construction grant
application  for an advanced  wastewater treatment  (AWT)
facility  proposed for construction by Montgomery  County in
the vicinity  of Dickerson,  Maryland.  The proposed  facility
would have  a  wastewater  treatment capacity of  60  million
gallons  per  day (mgd) and  would   have a capital  cost of
about $273  million to build.   In  early April,  EPA issued a
preliminary  draft National  Environmental Policy  Act (NEPA)
review of  the  proposed project  which raised  several con-
cerns about  the -or eject.   Perhaps foremost among  these were
concerns  with respect to  the  high construction and  operating
costs, and  uncertainty about  possible drinking water and
water quality impacts.   These  concerns were  sufficient to
raise serious questions  as  to  the appropriateness of
proceeding  with that grant  application.

    The  State of Maryland,  Montgomery County  and  the
Washington  Suburban  Sanitary  Commission (WSSC) were pro-
vided copies  of the  preliminary  draft NEPA statement and
asked to  comment upon it.   The  following month the  State
provided  its  response.   The  response document  addressed
many of  the  same issues  raised  in the preliminary draft
NEPA statement, but  it also  raised additional  issues, and
on the basis  of its  analysis,  reached different  conclusions.

    .Because  of the complex,  controversial nature of the
issues surrounding the proposed  treatment plant,  I appointed
a senior  Executive Review Panel*  within the  Agency to
analyze  and  assess all major  issues relating  to  the March
grant application.   I asked  the  Panel to prepare a discussion
and options  paper for me and  to  recommend a  specific course
of action.   The Panel has done that.
*Paul  A.  Hrands, Deputy  Assistant Administrator for Planning
 and  Evaluation; John  T.  Rhett, Deputy Assistant Administrator
 for  Water  Programs Operations; and Daniel  J.  Snyder III,
 Regional  Administrator,  Region III.

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    In  addition,  to help  insure that I had maximum infor-
mation  and  a  wide spectrum  of  views available  to  me prior
to making  a decision,  I held  a five-hour public  meeting on
August  11,  1976 to discuss  these issues.

MY DECISION -

    After  extensive review of  the available  information,
consultation  with public  officials, and reflection upon
the views  provided at  the  public meeting,  1  have decided  to
return  the-March  19, 1976  Dickerson AWT grant  application  .
to the  State  of Maryland  and  the Washington  Suburban
Sanitary Commission and thereby suspend further  processing
o f i t.       --                                               .  ."

BASIS FOR  THE 'DECISION

    Though  there  are several  important  issues  associated
with-this  grant application,  my decision  is  based primarily
upon  two factors:   (1)  plant  capacity, given projected  ..,
sewage  flows; and   (2)  cost-effectiveness  considerations..^.

    Projected flow  requirements.  A review of  population-
project io ns~ and sewage  flow requirements was undertaken,  as.
is the  case with  the processing of all  construction grant
applications.   The .Executive Panel's estimate of treatment
capacity needs for  Montgomery County indicate  .that about  35
ragd capacity  beyond the'76.6  mgd allocation  to the Blue
Plains  treatment  plant  will he needed by the year 2000.
This  flow  estimate  is  substantially lower  than the 60 mgd
estimate contained  in  the  grant application  and  is based
upon  our review of more recent population  projections
prepared by various local  and  regional  planning  entities^..
In fact, the  population projection selected  as most appr-o-
priate  by  the Panel lies  roughly in the middle of a range
of'available  projections.   It is consistent  with numexo.us
projections indicating  a  substantially  reduced rate of
population  growth for  the  entire metropolitan  area.

    A 60 mgd  capacity  plant.,  such as that  proposed in  the
March grant application,  could be justified  only if its
capacity is allocated  to  serve existing and  projected
regional needs, not just  Montgomery County needs.  Since  no
other jurisdictions have  formally requested  permanent
sewage  treatment  capacity,  and no commitments  of cap-ac.ity ;
to other jurisdictions  accompany thi.s application, I d.q_ not
see the justification  for a 60 mgd plant.               -  ^ .

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    COSE -effectiveness .   Standard E ij A cost-effectiveness
analysis  procedures call  for development  of  comparable
alternatives which meet  the  wastewater  treatment needs of
communities  applying  for  construction grants.   An analysis
is  to  be  performed to  determine which waste  management
system  will  result in  the  minimum total  resources, ovef~
time,  to  meet Federal,  State and local  requirements.
Non-monetary factors  are  to  be accounted  for descriptively
in  the  analysis to determine their impact and  significance.
If  the  cost  of the selected  alternative  is significantly
greater  than other options,  the grant applicant must  either,
select  a  less -expensive  alternative or  demonstrate that .  .,_
there  are overriding  adverse environmental and social
impacts  associated with  the  less costly  alternatives.

    The  design for the  Dickerson plant  incorporated  in  t he
March  application calls  for  n capital expenditure of-about-
$273 'million 'to — c ons tr uc t  the facility.   Associated  operation
and maintenance cost  would be about $108  million over  the
project  life. " The high  cost of the project  stems from  two..
factors:   (l)'the need  to  provide a high  level of treatment
to  m in im-tze"  -potent ial  health risks to drinking water
supplies; and (2) the  substantial operating  costs associated""
with  the  treatment plant  and conveyance  facilities.     .  -  .

   ' The  cost-effectiveness review compared the designed  -
plant  at  the -Dickerson site  with two  possible  alternative
60  mgd  treatment plants  — a modified version  of the
proposed  plant, which  would  result in a  somewhat lower-
quality  effluent at  the  Dickerson site,  and.a  plant  in  the-
vicinity  of  Piscataway  (Prince Georges  County), which
would  discharge into  the  Potomac River  estuary below  water.-_
supply  intakes. " This  comparison indicates that, on  a
20-year  present worth  basis, the two  alternatives would-be-.
abou-t  $44 million and  $145 million less  costly, respectively,
than  the  -plant in the  grant  application.   These added  costs  -
-would  a:ppear especially  burdensome to the citizens in  the
metropolitan area in  view of the fact that WSSC currently
estimate-s that sewage  rates  are already  expected to  double.  ~
"betwe-en  now  and 1984.        .                             3. - ---

    In  discussions with  state and county officials,  as  well
as  po-'t'-e nt-i'a-11 y i-npacted  citizens, it  has been repeatedly---
stated  that  the possible  Piscataway alternative is ".politi-.
cally"  un tc ce pt ab-le .   I  recognize that  cost  comparisons    -•_
must  be  based upon potentially viable alternatives.   At-the-.
same  time,  however, 'the  fact that our analysis shows  that
at  least  two potential  alternatives are  substantially  less
costly  than  the proposed  facility necessitates that  the
grant  applicant explore  other more c os t- e f.f ec t ive plant
designs,  alternative  approaches to treating  wastewate-r
and/or  other treatment  plant sites.

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 OTHER IHPORTANT  FACTORS

     Several additional  issues have been raised in the
 review of this grant  application:  health considerations
 with respect  to  drinking water supplies;  land treatment of ~
 sewage; land  use  implications; meeting  sewage treatment
 needs on a regional  basis; potential  costs of construction
 delay; augmentation  of  drinking  water  supplies; and  others.
 The August 6,  1976  Executive Panel Report addresses  most  of
 these issues.  I  want to discuss  three  of them:  health"
 considerations with  respect of drinking water supplies, the
 land treatment of sewage, and resolution of treatment '
 capacity needs on a  regional basis.                        :

     Health considerations and drinking  water supplies .
 The March grant  -ipplication calls  for  wastewater effl'uen't
 discharge about  20  miles above the Washington, D.C.  drinking
 water intakes  an.l about 8 miJes  above  the proposed  drinking
 water intakes  for Leesburg, Virginia.   Because of the
 possibility" that  small  quantities  of  organic contaminants,
 trace metals  and  viruses could be  found in the proposed"
 plant's effluent, such  a discharge would tend to decrease"'- •
 the margin of  safety associated  with  the metropolitan   ~   '
 area's drinking  water supplies.   The  scientific unknowns
 make  it impossible  to quantify this decrease; however,  OUT"
 conclusion at  this  time  is that  the  risks to the drinking
 water supplies would be minimal.

     In many areas of the country,  no  alternatives exist for
 communities to discharge above another  community's  drinking
 water supply  intakes.  However,  to my  knowledge, few      :
 communities with other  choices have  Chosen to discharge ~ "
 wastewater effluents above their  own  water supply intakes..'
 EPA'S Cincinnati research laboratory  and Water Supply   ~   "  '
 Office have concluded that because of  the unknowns  associated
 with a situation such as this, "the best alternative wo'ul'd
 be to discharge.all  sewage below the  water intakes."  As
 actions are.cpnsidered  toward meeting  the long-term sewage
 treatment needs  in  the  metropolitan  area, it  is imperative  "
 that great care  be  taken to minimize  any health .risks  " "   ' " "
 associated with  impacts on drinking  water supplies.   "~   -------

     Land treatment  of sewage.  Much data and information
 indicate that  we  should proceed  expeditiously with  the
 development of land  treatment facilities as a means  of"     ~
 providing additional sewage  treatment  capacity where suclf
_an.approach" is economically and  environmentally sound.
 Numerous citizen  comments at  the  August llth  public  Tiee'ting7  '
 also.made this  point.

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     Regardless  of  the overal]  approach selected  by t lie
 jurisdictions  in  the Washington metropolitan  area to
 provide for  the  long-terra  regional sewage  treatment n-e-ed-s-,-
 the  development  and  utilization of land  treatment facilities
 should be examined  without delay.   Land  application employs
 natural processes  to provide  waste treatment  and  holds  the
 potential of  saving  millions  of dollars  in  both capital  and
 annual operating  costs.  Additional benefits  can  be deriv"e"d
 from the sale  of  forage crops  and  from the  preservation  of
 open space areas  in  urban  corridors.  Years of testing,"
 demonstration,  and  experience  across  the  United  States "and"*
 in  several forejLgn  countries  support  the  feasibility of""'
 land treatment  in  appropriate  situations.               .    ".

     More specifically, preliminary surveys  indicate that
 a  1.5 - 5.5  mgd land treatment system would  be feasible  on
~Fe"d"er*aT~ sfu r pi us' land currently available  at  the  Bel t sv il 1-e—;—
 Agricultural  Research Station.  In addition,  the  Montgomery
 County ten-year  water and  sewer plan  suggests that  a la.n'd
 treatment system  at  Seneca could provide  up  to 15 mgd  of
 treatme-nt capacity.   Finally,  it should  be  noted  that  EPA
 grant- monies  are  available for the acquisition of land  to.
 be  used in. a. .1 and  treatment  system.                   '.'''.'

      As alternatives to resolution of the  area's  sew.ige"
 .treatment needs are  considered, I  strongly  urge the Leaders
 of  each.of t-he  jurisdictions,  singularly  and  jointly,  to
 investigate  the  advantages of  land treatment  and  to move"
 aggressively,  where  appropriate, toward  implementing  land
 treatment systems  in the metropolitan area.

      Meeting  Sewage  treatment  capacity needs  on a regional
 basis.  At .several  points  in  the August  llth  public mee'ting,
 the  question, was  raised by State and  local  officials as  to
 EPA's commitment  to  encouraging the resolutio.n of tha.
 metr o-pol i tan  are.a's  treatment  capacity needs  on a regional
 basis.  I want  to  state emphatically  that there has been no
 waivering on  our  part with respect  to this  question.   The
 very complex  nature of  sewage  treatment  requirements  in  the"
 D.C. metropolitan  areamandates that  these  long-term    ''..',.
 requirements  be assessed and  resolved on a  regional b.'a'.si's , I
 si nee. economic ally efficient  and environmentally ad equafte  "
 long-term  treatment  capacity  cannot be achieved witho'uV a
 coopera-tive  regional approach. It  also requires that
 treatment capacity commitments on the part  of each  j ur.is-
 dic.tion be. specified and agreed upon  before EPA can commit
 funds, .for construction  of  a  plant.

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    I strongly  encourage  the  regional leadership  to  initiate
the effective  planning required  to provide  for  additional-.
regional  sewage treatment needs  as soon as  possible.   The
technical  and  professional  resources of the  Washington    : .-.
metropolitan  area are  among  the  finest  in  the  country.-
If they are  utilized in  an  integrated manner,  I  am sure .an
appropriate  long-term  plan  can  be developed  expeditiously. .

    Monetary  resources are  available to support  such  a
regional  facilities planning  effort.  EPA  grant  funding ~of  .
75% of  project  costs is  available through  the  state  priority
system  for  facilities  planning.   The ongoing  Section. 208';::.
program"  provides a source  of expertise and  Federal  funds  as-
we 11 as a  vehicle for  effective  regional planning.    ..:  : : - -

    In  view  of  the strong need  for an effective  regional
solution  to  the metropolitan  area's sewage  treatment  needs,
and the availability of  funds to help provide  for it,"-I-am.
instructing  EPA's Mid-Atlantic  Regional Office  to give  -
very se r io us ~c ons id er a t io n  to the deferral,  of  any substantial
treatment  capacity related  grants to the Washington metro---•
politan area  jurisdictions  until an adequate  long-term-  :~ -. " ~
regional  sewage treatment plan  is developed.          . : :~ :  -

"GUIDANCE"  TO  THE APPLICANT
    Both  the  Executive  Review Panel and  the  public officials
with whom  I have discussed  this issue  have  stated that  if:
the decision  is to terminate  further consideration of the"..
March  grant application,  then some EPA "guidance" should  be
provided  indicating how the  applicant  should  proceed to   ~
meet  its  future sewage  treatment needs.
    There are,~of course,  certain risks  inherent in such.-
a course  of action.   In  view of the apparent  commitment, a t-
least  at  .this time, of  state and local  political leadership
to  the  Dickerson plan,  I have to assume  that  specific--'
alternative proposals  put  forward by  EPA  would be subjected
to  critical analysis.   I am also aware  that  in as contro-
versial  a situation as  the  planning of  a  major sewage-.
treatment facility for  a metropolitan  area,  there is     - - :
seldom,  if  ever, a solution which commends  itself to •-.--_.:--
universal approval.   To  offer specific  alternatives isv:. £.  .-;
therefore to invite shifting the burden  of j us t if ica--.tio.n-to ;•
the Federal government  rather than  to  keep  it in the ::;-ri:
appropriateJregional,  state, and local  hands.

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    While  necessarily the municipal waste  treatment
program requires shared  responsibilities,  the  statutory
plan requires  that the  fundamental planning  decisions as  to"
location,  capacity, etc., must be made by  the  appropriate  -
local authorities subject  to  Federal review.   I  believe
strongly  that  the integrity  of this process  should be   "  ' "•
preserved  and  that the  Federal government  should not
arrogate  to  itself state  and  local responsibilities.  At
the same  time,  in view  of  the  extensive  history  of this
particular  issue, as well  as  ray recognition  of  the desir-
ability of  working together  toward its solution, I believe"
it appropriate  that EPA  present "guidance"  if  not express""
specific  alternatives.                                    .   •--

    Keeping  in  mind the  three  important  factors  noted in
the previous  section —  i.e.,  health considerations with
respect to  drinking water  supplies, the  need  to  move
ahead with  the  land treatment  of sewage, and  the necessity
to proceed  with capacity  planning on a regional  basis —•  as~
well as the. sewage flow projections and  cos t-e f f ec t iv e nes s
criteria.,.I  see  the applicant's adoption of  any  of the     ~ "
following  three courses  of  action as being  acceptable from
EPA's point  of  view:

    1.  A modified version  of  the. present  Dickerson gr-a-n-t	
      .  application which:

        -  has  specific  regional flow commitments for at
           least 90% of  the  20-year 60 mgd  plant  design
           capacity,

        -  represents a  reasonable cost-effective solution
           to  the need  for  additional regional  treatment
        ...  c apac i ty , and

        -  adequately safeguards the metropolitan area's
           drinking water  supplies.

    2.  Anew application  for a 60 mgd capacity  plant at
     .   another  location or a smaller capacity modular""'
  .    .  plant  (range of  30-35 mgd) at Dickerson  or  at. •'••
        another  location.   Review of alternative site-s"--
   ..  .  should.include,  among others, consideration  of'-  ""
        ."down-coun ty"  sites in Montgomery  County wi th - -  -•" ~_ -
        outflows below  the  water intakes,  and  sites  in  the'
        vicinity of Piscataway.  This course  of  action  "
        would  involve  a concentrated facilities  planning
        process  followed  by 9-24 months  for the  development
        of  plans and specifications.  Such an application
        must:

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                             -8-

        - be  accompanied by regional  flow commitments  for
          at  least  90% of the 20-year  plant design capacity,

        - be  a  reasonably cost-effective solution  to
          additional  regional treatment capacity needs,  and-.

        - adequately  safeguard  the  metropolitan area's
          drinking  water supplies.                        -  • . ~

        Applications  for small  treatment plants (including
        land  treatment facilities)  in  areas impacted  by
        se wer mo ra to r ia , in conjunction with the d ev elopment-
        of a  long-term regional  facilities plan.   Small
        treatment  plants (which  are already planned)  not -  - :
        yet  under  construction  are  eligible for EPA  75%
        grant  funds,  as is land  acquisition for land
        treatment  facilities.   These  (1 to 5 mgd)  plants,-
        or land  treatment variations  of them, would  provide- -
        Montgomery  County with  adequate treatment  capacity
        until  1 9 8"8.   Assessment  of  this course of  action
        should  recognize that:                            - - .

        - construction of the  1-5  mgd  plants would provide
          adequate  capacity and  time  (until 1988)  to      -
          develop  a sound long-term regional solution;

        - this  would  provide  an  excellent -opportunity1  to
          move  forward with a  substantial  land treatment
          pr og ram;  and

        - Federal  facilities  planning  and  Section  203  grant
          monies  are  available  to'help provide for tiis
          planning.

        As with  the first two  alternatives, this course  of
        action  must consider  the cost-effectiveness  criteria
        and  potential impac.ts on drinking  water supplies.
SUMMARY
    I am  terminating further  consideration of  the  March 19,
1976 construction grant application and am returning  it to
the State^-bf  Maryland and  the  Washington Suburban  Sanitary
Commission.   My  decision  is based  primarily  upon  concerns
related  to  projected sewage  flow requirements  and  cost-effec-
tiveness  analysis.

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    I have  outlined three  alternative courses  of  action
which seem  appropriate  from  EPA's point of  view.   These
alternatives  should provide  adequate "guidance"  to help
insure  a  more expeditious  resolution to the  long-term
treatment capacity problem.

    And,  finally, I cannot  emphasize too  strongly the  need
for all the j ur i sd ic a t io ns  in  the metropolitan area  to
work together, to develop and  implement  an  effective  regional
plan, to provide for additional  treatment  capacity needs,
and to  investigate thoroughly  the possibilities  of utilizing -
land treatment of sewage.   I  want to assure the  officials
and citizens  of the local  jurisdictions that the  EPA will
be more than  willing  to  contribute on a cooperative  basis
our expertise and resources  to  help bring  about  an expeditious
resolution  to the metropolitan  area's sewage treatment
needs.
   - I -am  sensitive  to  the  fact that  the  planning for
additional  sewage  treatment facilities  for  Montgomery
County  (which we all agree will be needed)  has extended
over  a  prolonged period  of time.   The  extended duration may
be attributed in part  to- the  many political  jurisdictions-
involved  and  the many  unusual  complexities  -involved.  Of
key importance to  the  current  reassessment  has been  the
radically reduced  population  growth  projections for  the
National  Capital area  in  general  and  the  Montgomery  County
area  specifically.  These  reduced growth  projections,
involving the formation  of significantly  fewer households,
must  result in substantially  reduced  estimates of future
sewage  capacity needs.   Unfortunately,  these new projections;
Locally generated,  became  available  only  toward the  close
of 1975.

    While 1 am aware of  the disadvantages  some will-s-e-e—i-n-
any form  of delay,  the  responsible administration of  this
program,  involving  the  expenditure of  many  millions  of
public  dollars, would  in  ray opinion  make  failure to  recon-  : •
sider  the present  Dickerson proposal  irresponsible.   In  --•-
ad d i t io n, -in  v ie-w  of the  significantly  reduced sewage fTow  •
projections,  sufficient  time  exists  to  accomplish the - - -"
regional  planning  urged  by this decision.   Thus, whiter-some
further delay is inevitable,  it is delay  which we can
afford  and  which will,  if  properly utilized, be in  the
p ublie  in ter es t .

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