REVIEW OF WASHINGTON'S NATIONAL POLLUTANT DISCHARGE ELIMINATION
                   SYSTEM (NPDES) PROGRAM:
              ENVIRONMENTAL PROTECTION AGENCY'S
 RESPONSE TO THE MAY 6, 1991, SIERRA CLUB LEGAL DEFENSE FUND, INC.
PETITION FOR CORRECTIVE ACTION OR WITHDRAWAL OF AUTHORITY OF THE
         NPDES PROGRAM FOR THE STATE OF WASHINGTON
                        January 31, 1992

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United States               Region 10                 Alaska
Environmental Protection         1200 Sixth Avenue            Idaho
Agency                  Seattle WA 981 01             Oregon
                                            Washington
                           JAN 3 1 1992
  Reply To
  Attn Of:   WD-085

  Rebecca Todd
  Sierra Club Legal Defense Fund, Inc.
  216 First  Avenue South,  #330
  Seattle, Washington 98104

  Dear Ms. Todd:

       On January 10, 1992, I transmitted to you the Summary of
  Findings of the Environmental Protection Agency's  (EPA's)
  informal investigation to the May 6, 1991, petition for
  corrective action or withdrawal of authority of the National
  Pollutant  Discharge Elimination System (NPDES) program from the
  state of Washington.  As I indicated in my earlier letter, the
  final report would be released by the end of the month.  A copy
  of the final report is enclosed.  The final report contains
  information regarding the conduct of our review, our findings and
  corrective actions we envision the state taking.

       As I  indicated in my earlier letter, we have found that the
  Washington State Department of Ecology (Ecology) is committed to
  implementing a  quality NPDES program.  While we found some
  problems with the program, EPA is confident the problems can be
  corrected.   We  believe that the most effective means for
  resolving  these problems would be for Ecology and EPA to enter
  into a Corrective Action Plan (CAP) .  As stated earlier, we have
  decided to defer our decision on whether to commence formal
  withdrawal proceedings to allow Ecology time to respond to our
  report by  submitting the CAP by April 30, 1992.

       Please contact me it there are any questions.

                                 Sincerely,
                              / _Dana A. Rasmussen
                             <^j   Regional Administrator
  Enclosure

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                    TABLE OF CONTENTS
SUMMARY OF FINDINGS
ERA'S FINDINGS BASED ON PETITIONERS' ALLEGATIONS
A.    Legal Review (NPDES and Pretreatment)
B.    Settlement Agreements
C.    Permit Program Review
D.    Backlog  of  NPDES  Permits  and  Unpermitted  Discharges  (Includes
      Management/Organizational issues)
E.    Enforcement Review
F.    Inspection Program Review
G.    Pretreatment Program Review
H.    Information Management and Public Participation
APPENDICES:
1-1          Petition for Corrective Action or Withdrawal of Authority of the NPDES
            Program for the State of Washington
I-2          Summation of Public Workshops
I-3          Transmittal Letters for Summary of Findings
ll-C-1       EPA's Final Decision Regarding Washington's Listings Under 304(1),
            March 8, 1991
M-C-2       Preliminary Findings - Washington State NPDES Audit, Permit Quality
            Review
ll-C-3       References for Permit Program Review
ll-C-4       Other Actions Which May Effect Program Scheduling
ll-D-1       State-by-State Summary of Backlogged Permits
ll-D-2       State Performance Compared with Other Authorized States
ll-D-3       Ecology Organizational Chart
ll-G-1       List of Approved Pretreatment Programs
ll-G-2       Example Pretreatment Language

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I. SUMMARY OF FINDINGS

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                        I.  SUMMARY OF FINDINGS
       Section 402(c)(3) of the Clean Water Act (CWA) authorizes the Environmental
 Protection Agency (EPA) to withdraw approval of a state National Pollutant Discharge
 Elimination System (NPDES) program that is not being implemented in accordance
 with federal requirements.  Criteria and procedures for withdrawal of state NPDES
 programs are contained in 40 CFR ss 123.63-123.64. The regulations allow two types
 of withdrawal procedures, voluntary and involuntary. States can voluntarily return
 programs to EPA, or EPA can initiate withdrawal procedures independently or in
 response to an interested party's petition.  In the latter instance, a petitioner must
 allege that the state fails to comply with EPA's requisite criteria.

       The agency may conduct an informal investigation into the petition's allegations
 to determine whether cause exists to commence withdrawal proceedings. Ultimately,
 the Administrator must respond in writing to the petition. The Administrator may deny
 the petition if he finds that cause does not exist to commence formal adjudicatory-type
 withdrawal proceedings. Conversely, he may grant the petition and enter into formal
 withdrawal proceedings.

       On May 6, 1991, the Sierra Club Legal Defense Fund, Inc. (SCLDF), on behalf
 of 11 environmental organizations, submitted a "Petition for Corrective Action or
 Withdrawal of Authority of the NPDES program for the state of Washington"
 (Appendix 1-1).  The petition alleges that the Department of Ecology's (Ecology's)
 NPDES program suffers from a number of inadequacies including: lack of toxics
 regulations; high numbers of expired permits and unpermitted discharges; inadequate
 legal authority to administer the program; permits written with less stringent limitations
 than previous permits; and inadequate funding, enforcement, compliance, inspection,
 and  data control. The petition asks EPA to issue an Order to undertake corrective
 action or to commence withdrawal proceedings.

       On July 3, 1991, the Assistant Administrator for Water, LaJuana S. Wilcher,
 announced her decision to commence the informal investigation. EPA held public
 workshops on August 13 and 14, 1991, to gather more information about issues  raised
 by the petition (see Appendix I-2 for a summary of the workshops). On
 August 20-22, 1991, EPA conducted a three-day on-site audit of Ecology's NPDES
 program.  EPA interviewed Ecology staff and management; reviewed program files;
 and evaluated relevant documents regarding permit development and issuance,
 compliance activities, enforcement, information systems, organization and
 management, and pretreatment.

      The project team, consisting of Regional and Headquarters staff, have prepared
the following recommendations based on the findings contained in the report.
 LaJuana Wilcher and Dana Rasmussen, Regional Administrator, Region 10 have
 reviewed the findings and concur with the recommendations contained in this report.
                                      I. 1

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       EPA concludes that Ecology is committed to implementing a good NPDES
 program.  While significant problems have been noted in some area, EPA believes that
 these problems can be corrected by Ecology.  Therefore, EPA is requiring Ecology to
 address the problems in a Corrective Action Plan (CAP)

       The CAP would incorporate the concerns listed below, the details of which are
 contained in this report, as well as including schedules and milestones for carrying  out
 the plan.  EPA has decided to defer its decision on whether to commence formal
 withdrawal proceedings to allow Ecology time to respond to its report by submitting
 the CAP.

       While we view development of the CAP as primarily involving the state and EPA,
 we ask that Ecology also include representatives of groups interested in the NPDES
 program.  One way of doing this would be to use the newly constituted Permits
 Advisory Committee, assuming that this forum provide adequate opportunity for the
 public to participate or other comparable processes.

       EPA may also use the annual state/EPA Agreement (SEA) process to
 implement and track Ecology's process in  carrying out the CAP, and include
 provisions that ensure effective EPA oversight.  EPA may also condition certain grant
 approvals on Ecology's performance, and  provide other incentives for Ecology to carry
 out the CAP.

       Ecology has already acknowledged many of the problems with its program and
 has begun to address them in its September 19, 1991, "Wastewater Discharge Permit
 Action Plan"  (WDPAP), Report to the House Environmental Affairs Committee. The
 action  plan demonstrates Ecology's willingness to  improve its program.  We also
 considered the appropriate role of the 1991 Puget  Sound Water Quality Management
 Plan (PSWQMP).  Earlier this year, the PSWQMP became the first EPA-approved
 estuary plan under Section 320 of the CWA. The PSWQMP affirmed that problems
 exist in Washington's NPDES program, many of which are mirrored in the petition.
 Consistent with the spirit of the CWA, we recommend that the CAP reaffirm the
 importance of the PSWQMP  and address weaknesses both raised by petitioners and
 contained  in the Plan.

      During its review, EPA identified concerns with the program as well as strengths.
The strengths are listed for informational purposes. The concerns should be
addressed in the CAP.
                                     I. 2

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A.    Legal Review

      Corrective Actions
            Ecology should review its legal authorities and articulate the means used
            to ensure its legal authority remains commensurate with federal legal
            authority for the NPDES and pretreatment programs.

            Ecology should pursue authority to regulate federal facilities in
            Washington.
B.    Settlement Agreements

      Corrective Actions
            Ecology should develop and implement a schedule for issuing the
            remaining dioxin permits and Orders.
C.    Permit Program Review

      Strengths
            Some major industrial permits require the permittees to conduct pollutant
            discharge reduction and elimination studies (pollution prevention).

            All municipal permits contain a provision to maintain adequate capacity
            and begin planning for upgrade when 85% capacity is reached.

            Ecology applies new source performance standards to new incremental
            production beyond EPA technology-based requirements.

            Washington is the first state to establish a sediment management
            standards program.

            Some industrial permits require annual testing for pollutants beyond EPA
            requirements.
      Corrective Actions
            Ecology must ensure that permit provisions are consistent with federal
            regulations regarding development of effluent limitations where there is
            reasonable potential for toxic effects.

            Ecology should develop both an integrated standards-to-permits and
            watershed management approach to permit issuance.
                                      1.3

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      •     Ecology should provide sufficient documentation in the permit record to
            assure that a permitted discharge will assure attainment and maintenance
            of water quality standards (WQS).

      •     Ecology should assure the implementation of whole effluent toxicity
            controls including the use of toxicity identification and toxicity reduction
            evaluations.

      •     Ecology should standardize plans and sampling requirements for various
            types of tests, rather than requiring the permittee to prepare and submit
            individual plans to Ecology for approval.

      •     Ecology should provide increased central oversight of regional office
            priority setting, permits, enforcement,  and information systems, etc.

D.    Permit Backlog and  Unpermitted Discharges

      Strengths

      •     The backlog of expired major permits is about  10%, which is within the
            acceptable national range.

      •     Ecology established its own regulatory strategy for combined sewer
            overflows (CSOs), before the issuance of the national CSO strategy.

      •     Ecology is developing  general or model permits for dairies, storm water,
            and boatyards to regulate several thousand sources currently operating
            without permits.

      •     Ecology has established a risk based  approach to dealing with the
            issuance of minor permits.

      Corrective Actions

      •      Ecology should  commit to and carry out a strategy to ensure unpermitted
            and minor discharges are permitted in a timely fashion.

      •      Ecology should  issue general permits, where appropriate, to increase
            program efficiency, and ensure that individual dischargers covered under
            the general permit are  not required to provide individual public notices.
                                      I. 4

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 E.     Enforcement
       Strengths
       •      Ecology has a comprehensive enforcement policy.
       Corrective Actions
       •      Ecology should establish a central enforcement program office to
             improve enforcement program coordination, for example, in operations,
             management, and priority setting.
       •      Ecology should ensure an effective data management system for tracking
             and processing.
       •      Ecology should incorporate the economic benefit of not complying with
             the law into penalty assessment.
       •      Ecology should not provide unwarranted penalty reductions.
       •      Ecology should consider pursuing regulatory changes that would
             discourage lengthy appeals of Ecology's penalty assessment.
 F.     Inspections
       Strengths
       •      Ecology exceeded its targeted percentage of unannounced inspections.
       Corrective Actions
       •      Ecology should provide improved tracking of the status of inspections
             and reporting of inspection information.
      •      Ecology should increase central oversight and coordination of the
             inspection program.
G.     Pretreatment
      Strengths
      •      In its implementation of the pretreatment program, Ecology provides
             additional regulation of significant industrial users and publicly owned
            treatment works (POTWs).
                                      1.5

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      Corrective Actions

      •     Ecology should provide central oversight and coordination of the
            pretreatment program, including improved data entry and tracking
            systems.

      •     Ecology should improve compliance tracking, monitoring, inspections,
            and enforcement in non-delegated POTWs and improve categorical
            permits to categorical users.

      •     Ecology should increase attention to non-delegated programs and
            require additional specified local programs to develop programs within
            one year, plus ensure full implementation of local programs within
            six months.

G.    Information Management and Public Participation

      Corrective Actions

      •      Ecology should develop an adequate information management system,
            especially for response to public requests for information.

      •      Ecology should continue to improve its public participation activities.
                                     1.6

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II.  ERA'S FINDINGS BASED ON PETITIONERS' ALLEGATIONS

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                            A.  LEGAL REVIEW

ALLEGATION: AS REQUIRED BY THE MEMORANDUM OF AGREEMENT (MOA),
ECOLOGY HAS NOT DEVELOPED AND MAINTAINED LEGAL AUTHORITY AND
RESOURCES TO CARRY OUT ALL ASPECTS OF THE NPDES PROGRAM.

Method of Investigation

      The sources of information for this portion of the review are:  (1) the
Washington statute, regulations, and MOA; (2) discussions with the Water  Quality
Programs (WQP) staff:  Gary Bailey  (Regulatory Unit head), Jim Krull (Point Source
Section chief); (3) discussions with Assistant Attorney General's office staff: Chuck
Lean; and (4) petitioner and public comment materials.

      To evaluate the above allegation, EPA's review focused on two major areas:
adequacy of legal authority and adequacy of resources available to implement
Ecology's NPDES program. EPA conducted a preliminary review of Washington's
NPDES legal authority, which included state statutes and regulations, as well as the
MOA with EPA. EPA also reviewed Ecology's capability and schedule for assuming
responsibility for federal facilities permitting.  In addition, EPA investigated whether the
alleged  underfunding of Ecology is an action that limits state authorities, in violation of
federal requirements. In EPA's review of this allegation, the audit team reviewed:  (1)
funding of Ecology's NPDES program; (2) fee regulations; and (3) Ecology's current
workload modeling, planning, and allocation.

Findings

      Background

      EPA regulations set forth the process for authorizing and revising a  state
NPDES  program.  States must submit a program description, Attorney General's
Statement, MOA, and other documentation such as statutes and regulations.  If a
proposed revision is substantial, EPA provides for public notification and comment and
possibly a hearing.  Program revisions become effective upon EPA  approval.

      EPA initially approved Ecology's NPDES authority on November 9, 1973. [In
addition, on August 15,  1979, the Energy Facility Site Evaluation Council (EFSEC)
received authorization to perform NPDES activities with regard to certain energy
facilities. The petition to withdraw Washington's NPDES program is specific with
regard to the operation of the program by Ecology.  In this evaluation,  EPA has not
conducted any review of the operation of the state's NPDES program by EFSEC.]

      Washington's NPDES program was revised to include pretreatment authority on
September 30, 1986, and general permit authority on September 26, 1989.
                                    LA. 1

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       The most recent revised NPDES EPA/Ecology MOA, effective January 9, 1990,
 states that Ecology will administer the NPDES program in accordance with Section 402
 of the CWA, applicable state authority, requirements of 40 CFR Parts 122-125 and any
 other applicable federal regulations, and the annual state 106 program plan.  One of
 Ecology's responsibilities under the MOA is to develop and maintain, to the maximum
 extent possible, legal authority (including state regulations) and resources required to
 carry out all aspects of the NPDES program.

       Merit of Allegation

       1.    Adequacy of Legal Authority

       Authorization of a state NPDES program means that a state is empowered by
 EPA to implement the federal program requirements under state laws and regulations.
 During the authorization process, EPA determines whether state authorities are
 equivalent to federal requirements.  One method states can use to achieve this
 equivalency is to incorporate into their laws by reference the federal regulations, either
 through a given date or prospectively. Alternatively,  states may adopt authorities
 equivalent to the federal requirements.

       Once authorized, states must ensure that their authorities to operate the
 program remain current with federal requirements  [40 CFR 123.62(e)].  States can
 achieve this in one of two ways:  (1) revise the state  statute and/or regulations as
 necessary each time the federal program is updated (this can include incorporation by
 references of federal regulations by the state as of a certain date), or (2) prospectively
 incorporate future federal requirements into state law by reference.  Prospective
 incorporation means that any future changes in federal law, would automatically be
 incorporated into Washington law. In addition, the state would  have to document to
 EPA through an Attorney General's  Statement that it has this authority and intends to
 utilize prospective incorporation by reference as a  means of retaining equivalent
 current authority.

       Congress has amended the CWA several times since the Washington NPDES
 program was authorized in 1973.  These amendments include, for example, changes
to the technology-based levels of control and compliance dates. While Washington
has revised its statute and regulations since the original NPDES program authorization,
not all of the latest changes appear to be reflected in Washington law or NPDES
permits.

      As noted in the MOA,  Ecology has not been delegated authority under the
NPDES program to permit and enforce against federal facilities.  Ecology agreed to
study the feasibility of seeking delegation over federal facilities activities in FY90, but
has yet to do so.
                                     I. A. 2

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       2.     Adequacy of Resources Available to Implement Ecology's NPDES
             Program

       Ecology has two major tools for resource planning:  a time management system
 for permit workloads, and a biennial program planning workload model which its
 headquarters and field  offices use.  The first planning tool,  Ecology's time management
 system, is relatively sophisticated and uses standard industrial classification (SIC)
 codes. However, Ecology staff acknowledge that this system is not yet being
 effectively used. Time  card information is to be used to improve the model and link
 time to fee categories for internal accounting purposes.

       Periodic assessment of full-time equivalent  (FTE) staff needs occurs through the
 workload model in biennial planning exercises, according to Ecology staff.  The
 biennial plans are then  fine-tuned with available budget monies once the amounts are
 known.  Program plans are to be developed yearly as part of the SEA.  Ecology is
 working on improvements to the workload model, including:  (1) modify the coding
 structure to accurately  track permit program expenditures at a level suitable for
 management control and evaluation, and (2) conduct training sessions on filling out
 time sheets for tracking.

       At the time of the audit in August 1991, workload priorities were set according to
 the Efficiency Commission recommendations, and most of these were aimed at
 rebuilding the "foundation" of the permitting program to support the technical aspects.
 Ecology staff believe that the Efficiency Commission plan is moving the program
 toward greater program oversight and efficiency.  Ecology  reports quarterly to the
 Efficiency Commission  on progress in implementation of Efficiency Commission
 recommendations. The bottom line on the Efficiency Commission recommendations,
 however, is that implementation costs for much of these  improvement's will come out
 of existing budgets.

       Washington law  allows Ecology to fully recover all eligible costs of the permit
 program.  Costs for compliance monitoring also may be  recovered under the fee
 system.  Enforcement costs are borne out of state's general fund (where permit costs
 were formerly borne).  The Washington statute was recently amended to change the
 municipal fee cap from  $.05 to $.15 per residential equivalent. Ecology has indicated
 that it will define the purpose and function of the discharge permit fees using an
 advisory committee and communicate this to all interested  parties.  Regulations will be
 revised to provide for an application fee and recover program costs.  Ecology will
 include late charges and revisions to the municipal fee cap in the revised fee regulation
 and assess the need for improved collection procedures. In addition, Ecology will
 continue to assess fees on the current basis but evaluate variable fee concepts.

      While fees go to  a dedicated state account, the legislature must actually
 appropriate the money  received from permit fees that is authorized for Ecology's
 permit program. In the past, the permit program was funded entirely from the state's
general fund.  At present, fees are intended to largely fund the existing program, but
do not anticipate growth in the program.

                                     II. A. 3

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       The state's budget process was underway at the time of EPA's audit. The
 legislature subsequently authorized funding of approximately $1.6 million for Efficiency
 Commission recommendations during the 1991-93 biennium.  Even if fully
 appropriated, this would lead to only partial implementation of the Efficiency
 Commission recommendations. On September 19, 1991, Ecology presented its
 Wastewater Discharge Permit Action Plan which establishes priorities for program
 implementation to best utilize the appropriated monies.

       Ecology admittedly is not fully funded by the legislature to fulfill either its existing
 workload and/or implementation of all of the Efficiency Commission's
 recommendations, forcing Ecology's management to make hard decisions on which
 functions to fund and perform.  The question of funding of environmental programs is
 a very difficult one.  EPA is unaware of any federal or state environmental program that
 is fully funded to allow the program to accomplish all of its responsibilities. Therefore,
 all state and federal environmental programs must face hard fiscal realities and
 exercise discretion in determining which functions can be funded and performed.  All
 program managers are facing the challenge of focusing scarce resources in areas
 where there is the greatest potential for environmental protection.

       In addition, Ecology's ability to process and effectively handle NPDES legal
 matters is directly correlated to the ability of the Attorney General's office to provide
 support to Ecology.  Recently, Ecology issued a significant number of major,
 controversial permits, many of which have been appealed. Responding to these
 appeals has resulted in a major resource drain on the Attorney General's office and the
 water programs.

       Currently, one division in the Attorney General's office represents all of Ecology;
 this division has 16 attorneys.  Within the division there are two sections: (1)  Water;
 including NPDES, water rights, and Shoreline Management Act issues,  and (2) Oil
 spills, resource recovery, hazardous waste, toxics, and solid waste issues.  Ecology
 staff indicated their need for five NPDES attorneys for the water program.

      Washington has and will continue to make difficult resource decisions for both
 Ecology and the Attorney General's office in  an attempt to implement its NPDES
 program in an effective manner. This is not to say that Ecology's processes for permit
 program workload estimation and allocation cannot be improved, nor that Ecology
 should not finalize its revised fee regulations.  In addition, EPA encourages the actions
 by Ecology and others to seek additional funding from the legislature.  The means of
funding a state's NPDES permit program, including collection of permit fees, is not
federally regulated.  Approved state programs, however, must remain adequately
funded. Ecology is acting to ensure that the program remains adequately funded. We
support Ecology's efforts to obtain additional funds to implement the Efficiency
Commission's recommendations.
                                     I. A. 4

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Corrective Actions
1.     Adequacy of Legal Authority
      o     Ecology should review its legal authorities and articulate the means used
            to ensure its legal authority remains commensurate with federal legal
            authority for the NPDES and pretreatment programs.
      o     Ecology should pursue authority to regulate federal facilities under the
            NPDES program.
2.     Adequacy of Resources Available to Implement Ecology's NPDES Program
      o     None required.
                                    II. A. 5

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      B. SETTLEMENT AGREEMENTS (Four separate allegations)

Method of Investigation

      EPA's audit team reviewed Ecology, EPA Region 10, and EPA Washington
Operations Office (WOO) files and interviewed petitioner and Ecology attorneys, and
EPA Water Division employees.  EPA also reviewed relevant court documents
submitted with the petition and those documents that were filed after the petition was
received.

ALLEGATION: ECOLOGY'S PROPOSED SETTLEMENT AGREEMENTS AND
ADMINISTRATIVE ORDERS FAIL TO COMPLY WITH PUBLIC PARTICIPATION
REQUIREMENTS OF 40 CFR PART 123 BY COMPLICATING CITIZEN INVOLVEMENT
AND THE ABILITY TO OBTAIN INFORMATION.

Findings

      Background

      During 1988-89,  Ecology re-issued NPDES permits for many pulp and aluminum
mills. In 1990, many of these facilities appealed the permits, toxic monitoring, and
other provisions. Ecology chose to pursue settlements with these facilities rather than
engage in time-consuming litigation.

      On February 7, 1991, Ecology entered into a Settlement Agreement with the
Northwest Pulp & Paper Association (NWPPA), the Puget Sound Water Quality
Authority (Authority), and the Tulalip Tribes.  Ecology agreed to modify the permits by
removing the following  special permit monitoring  conditions to Administrative Orders:
Acute Biomonitoring Study, Chronic Biomonitoring Study, Paniculate Monitoring,
Dilution  Ratio Study/Dilution Zone Definition, and Protocols.  Ecology planned to
simultaneously issue the Orders with modified permits.

      Ecology also agreed in another document entitled "Stipulation and Agreed Order
of Dismissal" to notify the public and hold public hearings concerning the proposed
permit modifications. At the conclusion of the hearing, Ecology would decide whether
to withdraw its concurrence to the settlements.

      Ecology held four public  hearings during early April 1991 and accepted written
comments. In a March 29, 1991, news release, Ecology extended the comment
deadline to May 1 and added a fifth hearing in Seattle.  Ecology acknowledged in the
news release the reason for the extended deadline and additional hearing:  it had not
disseminated adequate information to the public in time for a thorough review; it had
included an erroneous telephone number in the fact sheet; and, it had failed to make
available the legal documents.  Ecology produced the complete packet of information
(including legal documents) on April 2. It held hearings on April 1, 2, 3, and 4.
                                   I. B. 1

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       Ecology is now executing an Amended Settlement Agreement with NWPPA, the
Authority, and the Tulalip Tribes, but has yet to issue the modified permits or Orders.
The Amended Agreement addresses issues raised after the original Settlement
Agreement. Among other things, it shortens the time period for the permittees to
begin biomonitoring, makes the sampling protocols more representative, and provides
for a chronic biomonitoring study.  Ecology plans to issue the Orders and modified
permits once the Pollution Control Hearing Board (PCHB) dismisses the pending
appeals. The  unsigned final Orders contain monitoring provisions relating to Acute
Biomonitoring  Study, Recent Information,  Sediment Monitoring, Dilution Ratio
Study/Dilution Zone Definition, and Protocols. Ecology has issued one Order and
modified permit to the Simpson-Tacoma Kraft Company.

       As noted in David Ragsdale's (EPA, WOO) letter to Ecology dated
March 21, 1991,  Ecology will forward the modified permits (and Orders) to EPA for
review under 40 CFR 123.43.

       Merit of Allegation

       The petitioners allege that Ecology's proposed Settlement Agreements and
Administrative  Orders fail to comply with public participation requirements of
40 CFR Part 123. State NPDES permit programs must have legal  authority to
implement minimum public participation provisions.  40 CFR ss123.25(a)(28)-(33).
Additionally, states administering NPDES programs  must provide for public
participation by allowing citizens the right to intervene in enforcement actions, or to
public notice and provide at least 30 days for public comment on any proposed
settlement of an enforcement action.  40 CFR ss123.27(d)(1),  123.27(d)(2)(ii).
Although EPA  regulations do not dictate the minimum public participation requirements
for Settlement  Agreements  or permit appeals, public notice would  be required for any
permit modifications resulting from these actions.

       The petitioners have not submitted any specific information  supporting the
allegation that  Ecology's proposed Settlement Agreements and Administrative Orders
were subject to or violated the Part 123 public participation requirements.  Ecology
appears to have generally complied with public participation requirements for the
proposed permit modifications by notifying the public of the proposed settlements,
preparing fact  sheets, holding public hearings, and collecting information.
40 CFRss123.25(a)(28)-(33);
      On the other hand, Ecology did not appear to provide citizens in Tacoma,
Everett, Vancouver, or Pasco sufficient time to review the complex documents in
preparation for the hearings.  We also note that Ecology has not presented to the
public the Amended Settlement Agreement or all of the final Administrative Orders.
This is evident from the petitioner's allegations, many of which have been addressed in
the final documents.
                                     I. B. 2

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       Ecology's proposed Orders and Settlement Agreement contain certain
 monitoring provisions originally contained in the reissued permits. However, we
 observe that Ecology did not expressly insulate these provisions from citizen suits.
 The CWA citizen suit provision allows a citizen to commence a civil action against an
 alleged violator of:

       (A)    an effluent standard or limitation or (B) an Order issued by the
             Administrator or a state with respect to such a standard or limitation. . .

             The district courts shall have jurisdiction. . . to enforce such an effluent
             standard or limitation, or such an Order, or to Order the Administrator to
             perform such act or duty. .  .

 42 USC 1365(a) (emphasis added).  "Effluent standard or limitation" includes an
 NPDES permit or condition.

       The proposed settlements do not  expressly violate NPDES public participation
 requirements related to permit reissuance or modification in accordance with the
 proposed settlements. Ecology, as an authorized state can exercise its discretion to
 settle administrative appeals of permits; there are no specific regulatory provisions on
 this issue relevant to authorized states.

       However, we note that certain aspects of the proposed settlements could make
 public participation more difficult.  We caution Ecology not to repeat past mistakes in
 future actions.  We note that Ecology allowed little time for interested citizens to collect
 and digest the complex settlement materials before the early April hearings.  Once
 Ecology decided to solicit  public input, it should have provided the complex information
 in a more organized and timely fashion.  We also note, however, that Ecology
 addressed many of the public participation problems raised in SCLDF Attorney
 Rebecca Todd's March 28, 1991, letter to Christine Gregoire.

       Second, we query whether citizens will be hindered in their ability to obtain
 monitoring results under the Orders. We understand that Ecology will maintain each
 facility's monitoring information in the same file as Discharge Monitoring Reports
 (DMRs) to ensure public access.  We underscore that Ecology must make this
 information easily accessible to the public. We note that Section 308 of the CWA
 mandates that effluent data related to applicable effluent limitations, toxic, pretreatment,
 or new source performance standards must be made available to the public.

       We note that the operative withdrawal regulations contained in 40 CFR  Part 123
 contain no citizen suit requirements, other than to require states to allow citizens to
 intervene in enforcement actions.  While  Ecology has not precluded citizen suits under
 Section 505 of the CWA, it has imposed  a potential legal hurdle. Citizens must
 demonstrate that the Order and Amended Settlement Agreement monitoring provisions
were issued "with respect to all effluent standards or limitations" [see
33 USC s1365(a)].  Neither document  contains such language nor expressly
incorporates the modified permits.

                                     II. B. 3

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      We recommend that Ecology consider modification of its Orders and Settlement
Agreements to ensure that they are issued "with respect to effluent standards or
limitations" contained in the permits and expressly incorporate the permits. This
complies with our requirement that:

      All permit conditions [including monitoring] shall be incorporated either
      expressly or by reference.  If incorporated by reference, a specific citation to the
      applicable regulations or requirements must be given in the permit.

Id. ats122.43(c).

Corrective Action

o     None required.
                                    II. B. 4

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ALLEGATION: THE CONTENT OF ECOLOGY'S PROPOSED SETTLEMENT
AGREEMENTS AND ADMINISTRATIVE ORDERS MAKE IT IMPOSSIBLE FOR ECOLOGY
TO PERFORM ITS MANDATORY DUTIES WITH REGARD TO THE DELEGATED NPDES
PROGRAM.

Findings

      Background

      The petitioners have not cited any particular provisions in 40 CFR Part 123.
However, EPA has evaluated the alleged deficiencies of the Settlement Agreements
and Administrative Orders based on the criteria set forth in 40 CFR s123.63(a)(2)(i)
and (ii):

      Where the operation of the state program fails to comply with the requirements
      of this part, including: (!) Failure to exercise control over activities required to be
      regulated under this part, including failure to issue permits;  (ii) Repeated
      issuance of permits which do not conform to the requirements of this part.

      Merit of Allegation

      The petitioners allege that the Settlement Agreements:

             [1] preclude opening the permit based on oyster larvae bioassay data,
             despite expected mortality; [2] do not require chronic bioassays until
             15 months after issuance of the permit;  [3] provide that sediment
             monitoring plans  are to be submitted in 15 months for Ecology approval,
            with no timeframe for such approval, and that monitoring must be
            completed within  12 months.  A reduced sediment monitoring plan can
            be approved under several easily met exceptions; and [4] contain no
            provisions that Ecology will timely approve study plans, promulgate
            whole effluent  toxicity standards, reopen permits or take other regulatory
            action if the data  so warrant, or enforce properly the permit conditions.

      1.     Opening the Permit

      Ecology did not waive its right to reopen the permit based upon oyster larvae
bioassay data. The amended Settlement Agreement states:

            It is understood that the Department, not withstanding its participation in
            the marine biomonitoring precision study, retains any ability it has by law
            to respond to any  evidence of toxicity caused by the Permittee's
            effluent, even if this evidence is obtained prior to, or during, or as a result
            of the study (emphasis added).
                                    I.B. 5

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       However, we note that this provision is included in only the Amended
 Agreement's Chronic Biomonitoring Study section.

       We note that an earlier version of the proposed Order, consistent with
 Petitioner's allegations, limited Ecology's ability to reopen the permit based on oyster
 larvae bioassay data. In that case, Ecology might have violated Part 123 if it had
 limited its ability to include an effluent limit for whole effluent toxicity in the permit
 despite its later determination that a discharge caused or reasonably could cause or
 contribute to an in-stream  excursion above a narrative criterion.  See 40 CFR
 123.44(d)(1)(v).  We recommend that, for clarity's sake, Ecology include reopener
 language that applies to all monitoring provisions, rather than limit it to the Amended
 Agreement's chronic biomonitoring study provision.

       2.     Delayed Chronic Bioassavs

       The Amended Agreement delays the permittees obligations to conduct chronic
 bioassays for nine months from permit issuance.  The nine month delay does not
 violate any requirements of the CWA.

       3.     Delayed Sediment Monitoring Plans

       The most recent Administrative Order requires the permittee to submit a
 sediment monitoring plan to  Ecology within nine months of the permit and to begin
 sampling within 12 months after Ecology's approval, but sets no deadline for Ecology's
 approval. The nine month delay does not violate any requirements of the CWA.
 Additionally, federal regulations do not expressly require permittees to monitor
 sediments, and we commend Ecology for exceeding minimum federal requirements.

       4.     No Provisions Regarding Plan Approval. Toxicity Standards Approval, or
             Regulatory or Enforcement Action

      The Amended Agreement and Order do not require Ecology to approve study
 plans within  a specified period of time. Nor do the documents contain language
 specifically relating to toxicity standards approval or regulatory or enforcement action.
 The Amended Agreement contains the general statement quoted above that preserves
 Ecology's right to "respond to any evidence of toxicity caused by the Permittee's
 effluent."  The modified permit provisions contain standard enforcement language in
 the event that the permittee fails to comply with permit terms and conditions.

      We reiterate our caution  expressed above concerning eventual inclusion of
 effluent limits for whole effluent toxicity in  the permits. If Ecology is aware of
 information indicating that the permittees' discharges cause or have the reasonable
 potential to cause or contribute to an instream excursion above the narrative standard,
 Ecology must expeditiously proceed to include toxicity effluent limits in the permits
 pursuant to 40 CFR s 122.44(d)(1)(ii).  We also note that Ecology has independent
 authority under RCW 90.48.120 to take enforcement action for violation of the state
water pollution control statute.

                                    II. B. 6

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      We are concerned that at the time of this report Ecology has yet to issue all of
the modified permits and Orders. We recommend that Ecology adopt a schedule for
prompt issuing of the remaining permits and Orders.

Corrective Action

o     Ecology should develop and implement a schedule for issuing the remaining
      dioxin permits and Orders.
                                    I.B. 7

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ALLEGATION: ECOLOGY'S PROPOSED SETTLEMENT AGREEMENTS AND
ADMINISTRATIVE ORDERS REGARDING THE THIRTEEN DISCHARGERS AND
NORTHWEST PULP AND PAPER ASSOCIATION MEMBERS CONSTITUTE ACTIONS BY
THE WASHINGTON STATE COURTS OR LEGISLATURE THAT LIMIT THE AUTHORITY
NECESSARY TO CARRY OUT THE NPDES PROGRAM.

Findings

     We do not understand how the proposed Settlement Agreements constitute
anything other than administrative action to date. See above discussion.

Corrective Action

o    None required.
                              II. B. 8

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ALLEGATION: THE THURSTON COUNTY SUPERIOR COURT DECISION INVALIDATING
THE NARRATIVE WATER QUALITY STANDARD AND ENJOINING PERMIT LIMITS FOR
2,3,7,8-TCDD CONSTITUTES AN ACTION BY WASHINGTON STATE COURTS LIMITING
THE AUTHORITY NECESSARY TO CARRY OUT THE NPDES PROGRAM.

Findings

       Background

       Three pulp mills challenged Ecology's authority to regulate discharge of
2,3,7,8-TCDD (dioxin) in Thurston County Superior Court.  The court held that Ecology
could not include dioxin standards in the mills' NPDES permits because  it had failed to
promulgate numeric dioxin standards through rulemaking and the narrative standards
were unconstitutionally vague. Simpson Tacoma Kraft Co. v. Department of Ecology.
Civ. Nos. 90-2-00398-9, 00399-7, 00400-4 (Thurston Cty. Sup. Ct. December 12, 1990).
Meanwhile, the three mills are appealing their dioxin permit conditions before the
PCHB.

       Ecology appealed the Thurston County case to the Washington  Supreme
Court. The court granted  the mills' motion for a stay pending appeal, with certain
conditions. The Commissioner ruled that if the pulp mills successfully challenged the
numeric and narrative WQS, then the compliance deadlines in the permits:

       shall be determined at the time this appeal terminates in consideration of this
       Order and the practical consequences to the parties in reliance on this Order,
       but in any event, such deadlines  shall not exceed three years from the
       termination of this appeal.

       Ruling Granting Motion for a Stay Pending Appeal at pp. 6-7, Simpson Tacoma
       Kraft Co. v. Department of Ecology. Civ. No. 57949-1 (June 6, 1991).

       Further, if any of the mills appeal  their NPDES permits, the conditions in the
permits relating to the control of dioxin are stayed during the pendency of the appeal.

       Merit of Allegation

      We find that Ecology is vigorously defending its dioxin limits before both the
PCHB and the Washington State Supreme Court.  Additionally, we understand that
Ecology plans to oppose the mills' requests for stays on dioxin permit conditions
before  the PCHB. Conversely, we would be concerned  if Ecology failed to take the
necessary legal steps to protect existing standards or, should it lose the legal  battles, if
Ecology failed to  expeditiously follow the court's direction to properly issue dioxin
standards.
                                    II. B. 9

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      We also observe that there is nothing to preclude an identical delay should a
permittee appeal federal standards in federal district court. However, we recognize
that Ecology has chosen not to promulgate WQS based on human health criteria, and
is relying on federal establishment of such standards.  In the November 19, 1991,
Federal Register, EPA published proposed WQS for toxic pollutants. EPA's target date
for promulgating these standards is February 19, 1992.

Corrective Action

o     None required.
                                   I. B. 10

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                     C.  PERMIT PROGRAM REVIEW

ALLEGATION: ECOLOGY FAILED TO PROMULGATE INDIVIDUAL CONTROL
STRATEGIES (ICS) FOR 2,3,7,8-TCDD FOR WASHINGTON STATE SUFFICIENT TO
ACHIEVE THE APPLICABLE WATER QUALITY STANDARDS AS REQUIRED BY 33 U.S.C.
SECTION 1314(1).

Method of Investigation

      To evaluate this allegation, EPA reviewed the administrative records for
development and promulgation of ICSs for those sources identified by the state in its
304(1) listing. Specifically, EPA focused on ICS development for control of
2,3,7,8-TCDD.

Findings

      Background

      [Much of this section was excerpted from EPA's March 8, 1991 final decision
regarding the state's listing under 304(1).  See Appendix ll-C-1 for the full decision.]

      Section 304(1) of the CWA, as amended by the Water Quality Act of 1987,
requires every state to develop lists of impaired waters, identify certain point sources
and amounts of pollutants causing toxic impact, and develop individual control
strategies for each identified point source. The deadline for submitting the lists of
waters, point sources, amounts of pollutants, and the ICSs by each state to  EPA was
February 4, 1989. The state of Washington initially submitted its lists of point sources
and ICSs on March  16, 1989.  On June 9, 1989, the state added a  number of
waterbodies and sources to the list.

      Not later than 120 days after the deadline for submitting the  lists and ICSs to
EPA.  The EPA was to approve or disapprove the list and ICSs.  If a state failed to
submit a list or control strategy, or if EPA did not approve the list or control strategy,
then EPA, in cooperation with the state and after opportunity for public comment, must
develop the lists and control strategies.

      EPA Region 10 issued a decision on June 9, 1989, that approved in part and
disapproved in part the state of Washington's submissions under 304(1).  The three
lists of impaired waterbodies and the list of sources were approved as submitted. The
ICSs, except for one, were not approved as submitted.  The state,  in close
consultation with EPA, worked to develop ICSs for the listed point sources.

      On March 8, 1991, EPA made a final decision on the Washington's 304(1)  listing
of waters and point sources requiring ICSs to retain  10 point sources on the
Section 304(1)(1)(C)  list that were originally proposed on June 9, 1989, and proposed
to add one more point source to the list.  In addition, EPA conditionally approved eight

                                    II. C. 1

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ICSs, and established them as ICSs on March 8, 1991, subject to two requirements:
that the ICSs be revised to include a compliance date set for three years from the
establishment of the ICS (i.e., three years from March 8, 1991); and that the ICSs be
issued as final NPDES permits by June 4, 1991.  The current status of the facilities
listed on the paragraph (C) list are as follows:

      Facility. Receiving Water. NPDES No.                    ICS Established

      Weyerhaeuser Co., Longview                          3/8/91
      Columbia River
      WA-000012-4

      James River II, Camas                                3/8/91
      Columbia River
      WA-000025-6

      Boise Cascade, Wallula                               3/8/91
      Columbia River
      WA-000369-7

      Longview Fibre, Longview                             3/8/91
      Columbia River
      WA-000007-8

      Weyerhaeuser Co., Cosmopolis                         3/8/91
      Inner Grays Harbor
      WA-000080-9

      ITT Rayonier, Hoquiam                                3/8/91
      Inner Grays Harbor
     WA-000307-7

     Weyerhaeuser Co., Everett                            3/8/91
     Port  Gardner
     WA-000300-0

     Simpson Tacoma Paper Co., Tacoma                    3/8/91
     Outer Commencement Bay
     WA-000085-0

     Reynolds Metals Co., Longview                         10/15/90
     Longview Ditches
     WA-000008-6
                                   I.C. 2

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      Weyerhaeuser Wood Products Div.                 previous permit expired
      Longview Ditches                                9/16/91, no ICS
      WA-003918-7 (minor)                             established

In its March 8, 1991, decision, EPA also proposed to add the following  point source to
the paragraph (C) list, and solicited comment on its proposal:

      Facility. Receiving Water. NPDES No.                     ICS Established

      ITT Rayonier Inc., Port Angeles                          7/3/91
      Port Angeles Harbor
      WA-000079-5

      In summary, ICSs were established on March 8, 1991, for all sources listed on
the 304(I)(1)(C) list as a result of 2,3,7,8-TCDD discharge.  Limits for 2,3,7,8-TCDD
contained in the ICSs were based on the levels necessary to meet WQS.

      In the one case where an ICS has not yet been issued (Weyerhaeuser Wood
Products Div.), the pollutants of concern are metals.  As stated in the March 8, 1991,
decision, EPA is continuing to work with the state to establish an ICS for this facility.

      Merit of Allegation

      Although establishment of ICSs was delayed beyond the original
February 4, 1989, deadline set forth in the implementing regulations for the CWA, EPA
concludes that ICSs were established for 2,3,7,8-TCDD, as required by Section
304(l)(1)(D)oftheCWA.

Corrective Action

o     None.
                                    II. C. 3

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ALLEGATION:  THE STATE HAS FAILED TO DEVELOP WATER QUALITY-BASED
EFFLUENT LIMITS AND ADEQUATE TOXICS CONTROLS FOR PERMITS

Method of Investigation

      The primary purpose of this investigation was to determine whether
Washington's implementation of water quality-based effluent limits and toxics controls,
through NPDES permits, meets the requirements of federal law. A secondary objective
was to determine whether Washington's NPDES permits met Ecology's stated policies
and guidance that, in some cases, exceed the scope of federal law.

      The focal point of this investigation was the evaluation of a sample of Ecology's
permits. A standardized review process, called a Permit Quality Review (PQR), was
conducted by EPA Headquarters and Region 10 personnel. The scope of a PQR
covers both technical and administrative aspects of the NPDES permitting program.
Preliminary PQR results can be found in Appendix ll-C-2.  EPA focused specifically on
the derivation of permit limits to insure that Ecology took water quality and toxics
control into consideration.

      EPA's approach to investigate this allegation  was to identify federal law,
regulations, and guidelines governing implementation of the NPDES permit  program;
review Washington law, policies, and WQS; review Ecology's implementation of action
items identified in the 1988 State Toxics Program  Review conducted by EPA; and
evaluate a sample of permits, primarily for compliance with federal law and  regulations,
and secondarily, for consistency with Ecology policy.

      A list of references used in the preparation of the Permit Program Review
section of this report are found in Appendix ll-C-3.

Washington Law. Policies, and Water Quality Standards on Implementation of the
NPDES Program

      For the permit program portion of the petition review, the following federal laws,
regulations, and policies were used as a basis for evaluating Ecology's program:

      •      CWA, as amended

            40 CFR Parts 122, 123, 124, 125, 130

      •      Development of Water Quality-Based Permit Limitations  for Toxic
            Pollutants; National Policy, 49 Federal Register 9016, 1984

      •      Whole Effluent Toxicity Basic Permitting Principles and Enforcement
            Strategy, from Rebecca Hanmer, Acting Assistant Administrator, Office of
            Water, to  Regional Administrators, January 25, 1989
                                   II. C. 4

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      •     U.S. EPA. 1991. Technical Support Document for Water Quality-Based
            Toxics Control, Office of Water, EPA/505/2-90-001, March 1991

      •     U.S. EPA. 1991. Guidance for Water Quality-Based Decisions: The TMDL
            Process

      •     U.S. EPA. 1987. Permit Writers' Guide to Water Quality-Based Permitting
            for Toxic Pollutants, EPA 440/4-87-005.

      EPA reviewed a significant amount of background information on Ecology's
permit program, including Washington's WQS, water quality planning process,
biomonitoring policy, sediment management standards, Permit Writers' manual, and
the PSWQMP.  In addition, EPA reviewed Ecology's implementation of action items
identified in the 1988 State Toxics Program Review conducted by EPA. With the
exception of the WQS, all of these policy initiatives are outside the scope of federal
law, and therefore beyond the scope of the petition review.  However, this information
is presented because it forms the basis for Ecology's permit limits and conditions,
which are the main focus of this investigation.

      Washington's Water Quality Standards

      WQS form the basis for water quality-based permit limits.  Washington's
standards are currently in the process of a triennial review. As of December 1991,
passage of the complete revision package was delayed by legislative intervention over
one aspect of the revisions - the wetland WQS. At the earliest, the revised standards
will be adopted in May, 1992. Because the WQS are subject to their own review
process (the triennial review), their adequacy was not investigated in this report.

      EPA commented on the January 1991 draft  of the proposed revisions to
Washington's WQS. After final state adoption, the  standards will be submitted to EPA
for review.   Ecology's proposed amendments to the WQS, and their current status,
include:

      •     Updating Washington's antidegradation policy - The antidegradation
            policy statement is being amended to be consistent with the  federal
            antidegradation policy.  Development of an implementation plan is
            planned for this year.
                                     I.C. 5

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Adopting numerical limits for additional toxic substances - Ecology has
decided to formally adopt only those aquatic life criteria currently adopted
as National Criteria. Consequently, only an additional four criteria for
toxic substances (salt water ammonia, fresh and salt water arsenic, fresh
and salt water selenium, and fresh water chloride) are being added to the
standards. Quality Criteria for Water, 1986 (Gold Book) information on
toxic substances currently expressed as lowest observable effect levels
(LOELs) will be applied on a case-by-case  basis.

Washington has not,  however, proposed additional numeric  criteria to
protect for human health. These numeric criteria were supposed to be
established by all states to interpret the narrative criterion. Because
several states, including Washington, have  not acted to promulgate
human health criteria, EPA has developed a rulemaking that proposes to
adopt numeric human health criteria for these states.  This proposed
rulemaking, the National Toxics Rule, was published in the Federal
Register on November  19, 1991.  Once a final rule is established (target
date:  February 19, 1992), the criteria will serve the same purpose  as if
Washington had adopted them through state regulation - they will
become part of their WQS.

Ecology currently uses its narrative criterion as  a basis for regulating
chemicals to protect for human health.

Adding conditions for designating mixing zones - The new mixing zone
standard will be Washington's first codification of mixing zone guidelines.
Sizing of mixing zones was previously based on guidance contained in
Criteria for Sewage Works Design (1983).  The  new regulation will
address many issues that were not considered  in previous guidance,
including conditions relating to size limitations, the overlap of mixing
zones, the relation  of the mixing zone to acute water quality  criteria, and
storm water discharges.

Clarifying the use of toxicity testing and biological assessments to  protect
aquatic biota - Some clarifying language will be added to the regulation to
reinforce the use of biomonitoring in permits.

Adopting wetlands water quality criteria - These criteria are currently at
issue. There is a possibility that they will be included in the  current
triennial review.

Adopting a human health risk level of 1:1.000.000 for setting limits on
carcinogens in water - This is included in the ongoing triennial review.

Clarifying how the standards apply to nonpoint sources of pollution -
Some clarifying language will be added.

                         II.  C. 6

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      •     Reclassifying specific water bodies - This has been included in this
            triennial review.

      Water Quality Planning

      In accordance with the water quality planning and reporting provisions of
Section 305(b) of the CWA,  Ecology has submitted biennial reports that summarize the
status of water quality in Washington.  The 1990 305(b) report also contains a list of
water quality limited segments, which are those waterbodies that do not meet or are
not expected to meet WQS even after imposition of technology-based controls. Action
required on these segments may include imposition of best management practices
(BMPs), development and implementation of basin management plans, or development
of TMDLs and implementation of wasteload and load allocations (WLA/LA).

      Ecology and EPA were sued by the Northwest Environmental Advocates and
the Northwest Environmental Defense Center for failure to properly implement the
TMDL requirements of CWA Section 303(d). The plaintiffs charged that Ecology failed
to establish permit limits adequate to protect water quality,  and that EPA has not taken
action in the face of Ecology's inaction.

      The TMDL lawsuit affects Ecology's NPDES program because water
quality-based permits follow naturally from TMDL analyses. TMDLs, which are the sum
of the wasteload (point source) and load (nonpoint source  and background)
allocations, are derived from a scientific analysis of the "carrying capacity" of the
waterbody.  In the absence of TMDLs, permits on water quality limited segments are
not developed on a waterbody "carrying capacity" approach; rather, they are limited to
a single discharger's impact on the immediate area of the discharge. This type of
analysis may underestimate the overall combined effects of multiple dischargers on a
waterbody, especially when the pollutants of concern are bioaccumulated.

      Ecology submitted a description of its proposed TMDL process to EPA
describing the steps it will take to develop water quality-based controls for water
quality limited segments. The process involves  problem identification, project
prioritization, determination of the loading capacity, allocation of the point source
wasteloads and nonpoint source loads, public participation, adoption of the TMDL and
WLA/LA into the state water quality management plan, and follow-up monitoring to
insure that the TMDL is protective of water quality. Implementation of the TMDL,
through permits and best management practices, should result in attainment of WQS.

      EPA approved the TMDL process paper  submitted by Ecology, with the
knowledge  that the process  will continue to evolve as it is implemented.
Implementation of this proposed process would address many of the concerns
expressed in the TMDL lawsuit.
                                    II. C. 7

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       Biomonitoring Policy

       The state's interim biomonitoring policy, dated June 1988, provides guidance to
 Ecology staff in developing biomonitoring and toxicity control requirements for NPDES
 permits. The policy "requires dischargers to use biological testing to assess the
 toxicity of their wastewater discharges and the effect upon receiving waters and
 sediments as a condition for using public waters for disposal of wastewater."  The
 policy includes information on types and frequency of testing, a timeframe for phasing
 biomonitoring requirements into all Washington discharge permits, and procedures for
 addressing discharges that exhibit toxicity.

       Ecology's general approach is to require all permittees to conduct whole effluent
 toxicity testing, and require receiving water and sediment toxicity data as appropriate.
 If test results indicate the presence of toxicity, the permittee must investigate the cause
 and take steps to reduce the  toxicity. Toxicity must be reduced to the point that WQS
 are met. Critical to this analysis is the application of mixing zone standards. Based on
 the dilution available in the designated mixing zone, water-quality based limits  for
 toxicity may then  be included in the permit.

       EPA is concerned that Ecology's interim biomonitoring policy does not  go far
 enough in  instituting toxicity limits where there is a "reasonable potential to cause,  or
 contribute to an excursion above any state WQS." [40  CFR s 122.44(d)(1)(i)]  While
 EPA intended to give state permitting agencies some discretion in making this
 determination, EPA believes that  Ecology should establish toxicity limits in permits  in
 certain instances. Such instances, further described in 40 CFR s122.44(d),  include:
 (1) when an analysis of chemical-specific effluent data indicates potential violations of
 WQS after appropriate dilution assumptions; and (2) when whole effluent toxicity tests
 show potential violations of WQS at a critical percent dilution. In these cases, Ecology
 should promptly ensure that permits include chemical-specific or whole effluent toxicity
 limits.  If limits on  toxics are not instituted, EPA will consider exercising its authority to
 object to state permits. See 40 CFR s 123.44.

       Sediment Management Standards

       Ecology has taken the  precedential step of adopting statewide Sediment
 Management Standards (WAC 173-204) for source control and cleanup activities.
These standards were submitted  to EPA for review and approval under CWA
Section 303 (c). Because Ecology's sediment standards are more stringent than any
existing federal guidelines for  WQS or sediment management, EPA commends
Ecology's efforts as an important step in  protecting sediment from biological and
chemical contamination.  Ecology is currently including sediment sampling in  NPDES
permits to evaluate the impact of  the discharge on the sediment.
                                     II. C. 8

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       Permit Writers' Manual

       One of the elements identified in the 1987 PSWQMP was the development of a
 Permit Writer's Manual to ensure consistency and quality in permit writing.  Major
 objectives of the manual are: to define a philosophy of permitting and the role of the
 permit writer; to define the minimum standards for permit writing; to ensure statewide
 consistency in permitting, especially for Best Professional Judgment (BPJ) permits;
 and, to serve as a continually updated resource for experienced permit writers.

       Ecology began the manual in 1987 and planned to complete it by
 June 30, 1988, but the schedule has greatly lagged. Ecology distributed a draft
 manual for public comment on July 14, 1989. Significant revisions to the draft manual,
 specifically regarding water quality based permitting, were distributed in spring 1991.
 Existing portions of the manual are currently being used by Ecology permit writers, but
 completion of some chapters remains behind schedule.

       EPA had many comments on the  draft manual,  particularly with respect to the
 chapter on water quality-based permitting.  Ecology's latest draft of the chapter on
 water quality-based permitting clarifies and corrects many aspects of the program, and
 generally conforms with federal guidance contained in the Technical Support
 Document for Water Quality-Based Toxics Control (EPA/505/2-90-001). However,
 implementation of these requirements is  still at issue, as described in the above section
 on the biomonrtoring policy.

       EPA also commented on the current lack of definition of "all known, available,
 and reasonable technology" (AKART). AKART is a provision of Washington law that
 refers to the state's determination of some level of technology-based treatment.  This
 level of treatment is often used to calculate permit limits. For example, for some
 industrial permittees, Ecology determines that AKART is equivalent to EPA's best
 available technology. In other cases, Ecology may determine a different AKART.  For
 municipal  permittees, Ecology generally defines AKART as secondary treatment.
 AKART is  currently invoked in many NPDES permits to control leachate and storm
 water.  Ecology needs to formalize the procedures by  which AKART is determined.

       Puget Sound Water Quality Management Plant, 1987; Puget Sound Water
       Quality Management Plan, 1991; Issue Paper on Industrial and Municipal
       Discharges, 1986

      The Authority's 1986 issue paper on industrial and municipal discharges
 identified weaknesses in  Ecology's permitting program, many of which are mentioned
 in the petition. The Authority further addressed these weaknesses in the 1987
 PSWQMP, and defined a program goal and strategy to correct them.  As stated, the
 program goal was "to achieve comprehensive improvement in the control of toxic
 pollutants discharged into Puget Sound by industrial and municipal dischargers,
reducing and eventually eliminating harm from toxic contaminants entering or
accumulating in the Sound." To achieve this goal, the Authority identified 26 program

                                    II. C. 9

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 elements aimed at correcting problems in the permitting program, and set target dates
 for implementation.  The program elements covered issues relating to WQS, permits,
 compliance assurance, enforcement, pretreatment, technical assistance, and public
 involvement.  Program elements related to this review include:

       P-1.  Adopt  EPA Water Quality Criteria
       P-2.  Standards for Classifying Sediments Having Adverse Effects
       P-3.  Water Column and Sediment Mixing Zone Criteria
       P-5.  Permit Writers Manual, Permit Quality Control, and Internal Technical
            Assistance for Permit Writers
       P-6.  Toxicant Effluent Limits in  Permits
       P-7.  Paniculate Effluent Limits and Solids Handling
       P-8.  Monitoring Requirements in Permits
       P-10. Explanation of Relaxed and Increased Limits in  Permits
       P-19. Training for Inspectors and Permit Writers

       The 1991 PSWQMP updated Ecology's progress toward achieving the program
 goals. Areas of significant improvement noted since 1987 included:

            toxic limits in permits
            development of a draft permit writer's manual to standardize permit
            writing
            development of a draft mixing zone WQS
            self monitoring, including sediment monitoring and biomonitoring
            increased penalties
            improved laboratory data from Ecology's Manchester laboratory
            updated municipal operator certification test includes pretreatment
            permit fact sheets for major industrial permits and some others
            increases in funding

 Additionally, the PSWQMP indicated that areas still needing improvement included:

            enforcement program
            adoption of felony provisions for serious violations
            number of thorough inspections
            development of a system to detect unpermitted discharges
            independent verification of self monitoring results
            resources

      The 1991 PSWQMP was approved by EPA as a Comprehensive Conservation
and Management  Plan (CCMP) under the National Estuary Program, as authorized
under Section 320 of the CWA. Section 320 requires each estuary program to review
federal assistance programs and development projects for consistency with the CCMP.
By approving the CCMP, EPA strongly supports the plan's recommendations, although
CCMPs are not regulatory in nature.
                                    I. C. 10

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       Review Ecology's Implementation of Action Items Identified in the 1988
       State Toxics Program Review Conducted by EPA

       In response to the heightened emphasis on toxics control following passage of
the Water Quality Act of 1987, EPA Headquarters directed its regional offices to
conduct reviews of state toxics control programs.  Region 10 conducted its review of
Washington's toxics control program in early 1988. The review covered all aspects of
the program, including state authority and legal mechanisms for toxics control, WQS,
identification of waters in need of toxics control, exposure assessment and wasteload
allocation procedures, and effluent characterization and permitting. Following the
review, EPA provided a list of action items to Ecology. These items were proposed to
be scheduled through the 1989 SEA workplan and the state's Clean Water Strategy.

       The five major action items, and Ecology's current status in responding to them,
are:

       •      Document the mechanism for translating the narrative criterion for
             controlling toxics into numeric NPDES permit limits. Address both human
             health and aquatic life concerns. - This mechanism is documented in the
             Permit Writer's Manual, which is still in draft form.  The chapter
             addressing was recently revised and undergoing review. Human health
             concerns have not been fully addressed.

       •      Revise the state's dilution zone policy. - This revision is  being
             incorporated into the state's WQS in the current triennial review.

       •      Incorporate human health considerations into the permitting process. -
             Human health concerns have not been fully addressed. Promulgation of
             EPA's proposed National Toxics Regulations will effectively result in
             adoption of human health criteria for Washington. (It should be noted
             that EPA is developing guidance on integrating human health concerns
             into permits.  EPA's Technical Support Document for Water Quality-
             Based Controls contains some guidance on considering
             bioconcentrations and human health factors in permits.)

      •      Develop procedures for deriving water quality-based permit limits. - These
             procedures are contained in the Permit Writer's Manual, which is
             currently under review.

      •      Document the procedures for implementing the antidearadation
            provisions. - These implementation procedures will be developed during
             FY92.

      Other action items were also identified in the 1988 review of the state toxics
control program.  Ecology has also made progress in addressing these items.
                                    II. C. 11

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      Other completed action items include:

            Develop sediment quality criteria
            Develop 304(1) lists
            Continue with waterbody system
            Define TMDL procedures
            Ensure biomonitoring, ambient monitoring in permits

      Incompleted action items include:

      •     Complete overall toxics control strategy
      •     Develop ICS for 304(1) short list sources
      •     Develop agreement among state agencies regarding use/control of
            herbicides and pesticides adjacent to surface waters
      •     Develop state-wide monitoring strategy that combines state and NPDES
            information
      •     Develop chlorine and ammonia strategies
      •     Plan for coordination of comprehensive ambient monitoring with NPDES
            permit issuance
      •     Develop standard approach to toxicity reduction evaluations.

Findings

      Selection of Permits for Review

      EPA routinely reviews all draft major NPDES permits prior to reissuance.  Major
non-municipal dischargers are defined by EPA via a ranking system which weighs such
factors as potential for release of toxic pollutants, effluent volume, receiving water flow,
public health impacts, site specific water quality factors, and proximity to near coastal
waters.  Major municipal dischargers are defined as those that discharge over one
million gallons per day.  All other dischargers are classified as minor dischargers.

      EPA reviewed 19 of Ecology's recently issued major and minor NPDES permits
to determine the merits of the allegation that Ecology does not include adequate toxic
controls in permits.  To assess the pervasiveness of the issue throughout the
permitting program, EPA selected permits from all four regional offices, the urban bay
action teams (UBAT), Industrial Section (IS),  and headquarters office (salmon net pen).
Criteria used to  select permits for review included:

            recent reissuance;
            major and minor permits;
            limited available dilution;
            receiving water designated as a water quality limited segment under
            303(d);
            infiltration/inflow problem;
            written by different regional offices/groups;

                                    II. C. 12

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            pretreatment programs;
            mentioned by petitioners as "of specific interest;"
            ICS;
            Superfund site;
            BPJ/AKART used where no effluent guidelines exist;
            new source  (no previous permit); and
            representative industries.

      EPA also narrowed the universe of Washington permits to those issued or
reissued within the past two years.  Major and minor permits from each regional office
were assessed according to variables listed above. For example, the Tacoma #1
sewage treatment plant permit was selected because it is a major permit from the
Southwestern Regional Office, discharged to a water quality limited segment, and was
also requested by the petitioners.

      EPA selected the industrial permits to represent all Ecology groups that write
industrial permits: the IS, the regional offices, the UBATs, and the headquarters office.
The major Washington industries (oil refineries, pulp and paper, aluminum smelters)
are all represented, as well as some other industries (drydocks, net pens, chemical
manufacturing, metals recycling). Some permits (e.g., Sonoco,  Intalco, Longview
Fibre, Texaco) were included at the request of the petitioners; others  (Ponderay, Sea
Farm) were included due to public comment during the public workshops.  Longview
Fibre represents an ICS under 304(1).  Ponderay is a new source. Atochem,
J.M. Martinac, and General Metals are all discharging to a Superfund site -
Commencement Bay Nearshore/Tideflats - were written by the UBAT. General Metals
is a BPJ/AKART permit. It should be noted that this is not necessarily a representative
sampling of the universe of Ecology permits. Rather, EPA selected these permits
because they are some of the most technical permits written by Ecology.

      The permits selected for review are shown in Table 1.
                                    I. C. 13

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  Table 1. Selection of Permits for Petition Review
INDUSTRIALS
NPDES No.
WA-000295-0
WA-000007-8
WA-000294-1
WA-004526-8
WA-000088-4
WA-000028-1
WA-000311-5
WA-004028-2
WA-004034-7
WA-004041-0
MUNICIPALS
WA-004465-2
WA-002041-9
WA-003708-7
WA-002110-5
WA-002262^
WA-002252-7
WA-002112-1
WA-004029-1
WA-002261-6
Name
Intalco Aluminum
Longvlew Fibre
Texaco, Anacortes
Ponderay Newsprint
Sonoco
Kalama Chemical
Atochem
J.M. Martinac
General Metals
Sea Farm

Pullman
Richland
Tacoma #1
Chehalis
Federal Way
Vashon
Golden dale
Thurston Co. Pub Wks
Cotville
Waterbodv ID#

26-WRIA-99
02-03-03
26-62-05
05-10-05
26-01-01

WA-1 0-0020
05-10-01
WA-1 9-0010

WA-34-1020
WA-CR-1030
WA-1 0-0010
WA-23-1020
04-09-08
25-01-00
14-30-01


Location
Strait of Georgia
Columbia R.
Fidalgo Bay
Pend Oreille R.
White R.
Columbia R, RM 74
Commencement Bay
Commencement Bay
Hylebos Waterway


S. Fork Palouse R.
Yakima R.
Puyallup R.
Chehalis R.
Dumas Bay, PS
Puget Sound
Little KlickitatR.

Cotville R.
Issue
Date
1/9/91
5/10/91
9/1/89
10/25/89
10/5/90
12/14/90
2/26/91
1/30/91
5/7/90
4/27/90

7/6/90
7/1/90
6/27/90
12/10/90
6/1/90
6/29/90
6/30/89
3/29/90
4/30/90
Writer
Industrial
Industrial
Industrial
ERO
Industrial
SWRO
UBAT
UBAT
UBAT
SWRO

ERO
CRO
SWRO
SWRO
NWRO
NWRO
CRO
SWRO
ERO
I. C. 14

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      Summary of Findings

      The findings cited in this section constitute "raw data" gleaned from EPA's
August 1991 review of Ecology's files, and apply to those permits that were evaluated
as part of the petition investigation. Because the file review was conducted as part of
a PQR, and because we wanted to make some general comparisons between the 19
permits, these findings are grouped according  to the components of the permit files:
general program comments, permit limits, permit conditions and monitoring
requirements, fact sheets, application forms, public notice,  and response to comments.
EPA's WOO, which reviews all of Ecology's major permits,  reviewed this data for
accuracy. Based on this sample of Ecology permits, EPA reached general
conclusions on the overall implementation of Ecology's NPDES program. Areas where
corrective actions are necessary are noted in a later section.

      1.    General - program

      •      Ecology's permit files are generally complete, with permit applications,
            existing permits, previous permits, correspondence,  and technical
            information pertaining to development of permits.  All permits reviewed
            were well organized in that they included a table of contents and a
            summary of scheduled activities and/or report submittals, such as
            conducting dilution zone studies or submitting discharge monitoring
            reports.

      •      Ecology's public notice of permits sometimes exceeds federal
            requirements.  Ecology typically notifies the public of its receipt of the
            permit application with the intent of using this notice to develop a mailing
            list of interested parties. Later, when a permit has been drafted, Ecology
            solicits public comment on the content of the draft permit.

      •      Ecology has conducted several training sessions on water quality-based
            permitting for Ecology permit writers, and has encouraged staff's use of
            the permit writer's manual.

      •      Ecology has instituted use of a computerized "permit shell," which
            provides a consistent format and  framework for writing a permit. Ecology
            has also developed computerized spreadsheets and programs for
            assessing the impact on water quality.

      •      Ecology lacks a centralized location for permit files, which limits
            availability to EPA and the public.  Each regional office maintains permit
            files within its  own jurisdiction, except for those facilities covered by the
            IS.  To review a permit, one must know the region it is located in, and
            then request that the regional office deliver the permit to a central area
            for review.

                                    II. C. 15

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•      Ecology lacks a central permit review to insure consistency in permits
       between regions or conformance to guidance in the Permit Writer's
       Manual.

       As part of its oversight role, EPA reviews all of Ecology's major permits
       when they are proposed for issuance or reissuance. Through comments
       on draft permits, EPA often plays a significant role in enhancing
       consistency in Ecology's permits.  Minor permits, however, are not
       reviewed by EPA.

•      Ecology lacks a permit tracking coordinator to track the status of permits
       under development and to keep the public informed on the status of
       particular permits of interest.

•      Mailing lists are not well-coordinated  between similar permits, either on a
       basin format or between regions.

•      Many of the permits reviewed did not identify the receiving water
       according to the waterbody identification system, which is used to  identify
       water quality limited segments.  Consequently, it was not evident when
       permits were being issued on water quality limited  segments. The
       identification system used in older permits, the waterway segment
       number, is not readily translated to waterbody identification numbers.

2.     Permit Limits

•      EPA did not document backsliding in the permits reviewed.  EPA
       reviewed permits for compliance with the anti-backsliding provisions
       found in Section 402(o) of the Water  Quality Act of 1987 and the
       implementing regulations found in 40 CFR 122.44(1). Reissued  permits
      that contained increased limits complied with anti-backsliding regulations
      found in 40 CFR 122.44(1) and 122.62.

•     Some technology-based permits and fact sheets did not clearly
      demonstrate that the  discharge would not cause violations of WQS.

•     For technology-based permits where limits were increased in accordance
      with effluent guidelines, Ecology has not adequately documented that
      WQS will be met, even with the increased discharge.  This type of
      assurance is necessary to comply with the antidegradation provisions of
      the CWA and state WQS.
                              II. C. 16

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•     One industrial permit with tiered limits did not contain provisions to
      "ratchet back down" if production decreased within the permit term.
      Ecology cites its permit condition to maintain adequate removal
      efficiencies as a deterrent to excessive discharge.

•     For water quality limited segments, permit limits did not reflect application
      of TMDLs based on a segment's loading capacity.

3.    Permit Conditions and  Monitoring Requirements

•     In the permits reviewed, designated mixing zones complied with the
      state's Criteria for Sewage Works Design guidelines, or with the
      proposed mixing zone  standard.  In our review, we did not document any
      change in mixing zones that violated federal anti-backsliding
      requirements.

•     Ecology typically includes acute and chronic toxicity testing requirements
      in permits, as outlined in Ecology's interim biomonitoring policy. Permits
      affected by recent settlements of permit appeals will establish toxicity
      testing via Administrative Order.

•     Special studies have been included  in Ecology permits to gather
      information aimed at insuring compliance with WQS.  These studies
      include:

      o     dilution zone evaluation - to determine actual dilution instream,  to
            insure compliance with acute water quality criteria at the edge of
            the zone of initial dilution, and to insure compliance with chronic
            water quality criteria at the edge  of the mixing zone.

      o     chemical analysis of the influent and effluent - to adequately
            characterize the influent and effluent of the facility for conventional,
            nonconventional, and priority pollutants, plus other pollutants of
            concern, and determine removal rates within the treatment facility.

      o     baseline sediment monitoring - to determine baseline conditions in
            the sediment around an outfall.

      o     acute and chronic sediment biomonitoring - to determine sediment
            biotoxicity.

      o     chemical testing of sediment - to determine compliance with
            sediment quality standards.
                              II. C. 17

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o     benthic macroinvertebrate abundance - to determine ecological
       health of the sediment infauna.

o     particulate testing - protocol not yet developed, but may be a
       powerful tool in measuring toxic constituents in wastewater and in
       predicting ultimate behavior in the sediments.

The provision in municipal permits to maintain adequate capacity alerts
Ecology to upcoming treatment plant upgrades.  Ecology can organize
this information to more effectively implement the state revolving fund
program.

Municipal permits contain appropriate  sludge testing requirements and
reopener language consistent with EPA's interim sludge guidelines.

NPDES permits for cities with approved local pretreatment programs
contain pretreatment implementation requirements, such as influent,
effluent, and sludge sampling for toxic heavy metals and cyanide.
Additionally, two of the major municipal permits reviewed required the
treatment plants to sample for priority  pollutants and to identify other
organic toxicants.

Some major industrial permits require the permittee to conduct pollutant
discharge reduction/elimination studies (pollution prevention).

Some permits require monitoring for "pollutants of concern."  Identifying
"pollutants of concern" is a good step toward insuring control of other
toxic pollutants not appearing on the permit application.  Coordination of
the "pollutants of concern" list with the Superfund "priority chemicals" list
helps assure control over chemicals implicated in historical discharges,
and insures that ongoing  dischargers do not contribute to sediment
contamination.

Except for the limits in the technology-based acute salmonid  bioassay,
Ecology has not incorporated whole effluent toxicity limits into permits.
Where toxicity is found at levels of concern, permits do not expressly
require toxicity identification and reduction evaluations.  Rather, Ecology's
conditions are weak by simply requiring that permittees take steps
necessary to reduce toxicity, without any designated timeframe for
compliance with standards.  In contrast, federal regulations
[40 CFR 122.44(d)]  require that once toxicity is found at levels of
concern, toxicity limits be imposed that would be protective of WQS.
                         I. C. 18

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•      Ecology permits do not immediately impose chemical specific limits into
       permits when there is a "reasonable potential" as defined in
       40 CFR 122.44(d).  As part of Ecology's required dilution zone study, the
       permittee must compare effluent concentrations of pollutants at the
       available dilution to WQS. If any of these parameters show potential to
       exceed WQS, Ecology currently requires a plan to be submitted, much
       like the conditions for whole effluent toxicity testing.

4.     Fact Sheets

•      EPA notes that of the permits reviewed,  Ecology's fact sheets have
       improved since the last issuance. Some, but not all, of the fact sheets
       reviewed analyzed the discharge and its impact on water quality.  Fact
       sheets contain the information regarding the data used (application
       information, tentatively identified compounds (TIC data under the
       Comprehensive Environmental Response and Compensation Liability Act,
       other reports) and the assumptions used (dilution, acute and chronic
       water quality criteria) to make this determination.

•      Most municipal permit fact sheets that EPA reviewed discussed the
       derivation of effluent limits. Ecology calculated mass limits in one of two
       ways:  by multiplying the influent design  load by 0.15  (85% removal), or
       by multiplying the design flow and the effluent concentration limit, and
       using a conversion factor to yield Ib/day. Ecology used the more
       stringent of the numbers as limits.

•      Most industrial fact sheets showed Ecology's basis for calculating effluent
       guidelines-based limits, by specifying the production rate and the
       guideline used. For some permits, actual calculations were shown as an
       appendix to the fact sheet.

•      Public commenters have expressed difficulty in interpreting and
       understanding the technical information contained in fact sheets.

•      For some permits, the water quality analysis used only the acute water
       quality criteria. Ecology needs to also use the chronic water quality
       criteria and the human health criteria to evaluate the potential that a
       discharge will violate WQS.

•      Ecology sometimes identifies pollutants of concern in permits. These are
       identified as those found at levels exceeding one-half of the acute water
       quality criteria. This is not an adequate screen because some pollutants
       (e.g., arsenic, antimony) have chronic or human health effects at very low
       concentrations. Chronic and human health criteria should also be used
       in this screening step.
                               I. C. 19

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•      None of the municipal permits reviewed contained chemical-specific limits
       based on WQS, with the exception of ammonia. Most municipal fact
       sheets reviewed explained that there was no need for chemical specific
       limits, but presented no analytical data to support such a statement.

•      AKART permits vary in quality. It is unclear as to the criteria Ecology
       uses to determine AKART for a particular facility's discharge.

       Permits require AKART for leachate, but AKART for leachate is undefined.
       Ecology has not yet defined AKART for storm water.

5.     Application Forms

•      Ecology correctly uses NPDES application forms 1, 2C, Standard
       Form A, and Short Form A. EPA found the most recent application
       form(s) for each facility in each file.

•      Applications for most facilities reviewed were submitted approximately
       six months prior to permit expiration in compliance with federal
       regulations. However, EPA found one facility that submitted an
       application form after the expiration date  of the  previous permit (the
       receipt of the application was sent to public notice).

•      None of the files reviewed indicated any notification to permittees
       regarding the need to submit  an application.  The fact that most facilities'
       applications were submitted six months before expiration indicates that
       no reminder was necessary.

6.     Public Notice

•      Every file reviewed documented public notice, which usually included the
       newspaper clipping (original or copy)  and an affidavit of publication.

•      Permittees are responsible for providing public notice, and must send
       proof to Ecology.  Some files  contained letters from Ecology to the
       permittee when proof of public notice was late.

•      Most of the industrial files reviewed included extensive mailing lists for
       public notice.  None of the municipal files reviewed included mailing lists.

•      Instead of announcing the "opportunity to request  public hearing," most
       newspaper notices stated that the Director "may hold  a public hearing if
      there is significant interest." In two cases, a date for a public hearing was
      announced in the  public notice for the draft permit. In one case, three
      public notices were  issued:  receipt of application,  draft permit, and
      revised draft.

                              II. C. 20

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       •      State regulations address public notice requirements for site specific as
             well as general permits.  Current interpretation of state regulations
             requires that each permittee covered under a general permit would need
             to be public noticed separately. This results in delays in permit issuance,
             and reduces the benefits of using general permit authority.

       7.     Response to Comments

       •      Of the permits reviewed, the formal Responses to Comments were
             generally thoughtful and responsive to questions. It appears that
             Ecology addressed all comments received, and the response format
             clearly showed when  changes were made to permits in response to a
             certain comment.  EPA could not confirm allegations that Ecology
             disregarded public comments.

             Permit changes resulting from public  comments  usually involved permit
             conditions, like the scheduling of specific studies and monitoring
             requirements. Although it is true that, in most cases, Ecology did not
             change permit limits in response to comments, Ecology used its
             professional judgment in developing permit limits.

       Merit of Allegation

       The petitioners charge that Ecology has been ineffective in instituting
 appropriate toxics controls in permits. To support  their claim, they have cited
 instances of alleged backsliding, both in  regard to  permit limits and to mixing zone
 delineation. Based on EPA's review of Ecology's permits, EPA does not find that
 backsliding has occurred in violation of 40 CFR 122.44(1).

       Allegations regarding weakened limits were  generally directed toward industrial
 facilities that projected increased production during the life of their permits. Because
 EPA's technology-based effluent limitations allows for increased discharge with
 increased production, reissued permits for these facilities contained higher limits.  Such
 increased discharge  is allowable as long as the increased discharge will not violate
 WQS.

       For these technology-based  permits, Ecology has taken a more stringent
 approach than EPA regarding use of effluent guidelines for additional production.
 Ecology's philosophy is that as a facility expands production,  it should also expand  its
treatment system to include new technology. Ecology's policy is to require that the
incremental production be held to New Source Performance Standards (NSPS), even
though the facilities in question are  not new sources. This results  in lower limits than
EPA might require. Ecology's approach  has been  upheld by the PCHB.
                                     I. C. 21

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      Of the permits reviewed, some industrial permits with increased limits contained
tiered limits based on incremental increases in production. In addition, they also
contained a clause requiring increased production to occur for three consecutive
months before the new tiered limits were applicable. This insures that overproduction
in one month would not trigger the higher limits, but that sustained production would.

      A commenter at one of EPA's public workshops on the petition noted that
parameters that were limited in the expired permit were omitted from the new permit.
The commenter cited this as backsliding. Federal regulations allow deletion of
parameters if they are not specifically part of the promulgated effluent guidelines and
are not  present in the effluent at levels that would have reasonable potential to cause
exceedences of WQS. Therefore, deletion of these parameters is not considered
backsliding. In this case, however, the omitted limits were parameters covered in  the
effluent  guidelines.  This means that these parameters  should have been limited, even
if they were typically found at in the effluent at levels below water quality criteria.

      With regard to "backsliding" on size of mixing zones designated mixing zones in
permits reviewed complied with the state's Criteria for Sewage Works Design
guidelines or with the proposed mixing zone standard. In our review, we did not
document any change in mixing zones that violated federal requirements.  EPA's
guidance on mixing zones, contained in the Technical Support Document for Water
Quality-Based Toxics Control, fully supports the concept of mixing zones.  Ecology's
interpretation of its  mixing zone policy, as contained in its proposed standard, complies
with federal guidance.

      Although EPA did not find merit in the allegations regarding backsliding, EPA is
concerned about the timing and effectiveness of other  aspects of the implementation
of the water quality-based permit program.  While Ecology has made significant
progress in toxics control, EPA still has the following major areas of concern with
regard to toxics control in permits:

      •      Limits must be imposed when there is reasonable potential to violate
            WQS.

            Ecology's interpretation of the "reasonable potential" provisions of
            40 CFR 122.44(d) is too lax, and may be  inconsistent with the federal
            requirements.  Where there is  a reasonable potential to cause or
            contribute to a violation of WQS, permit limits must be expeditiously
            imposed that are protective of the standards.

            EPA and Ecology have  different approaches to findings of unacceptable
            toxicity.  Ecology requires the  permittee to submit  a plan for reducing
            toxicity to acceptable levels, carry out the plan, and reassess toxicity
            impacts before a limit is applied.  EPA requires that upon finding
            unacceptable toxicity as defined  in 40 CFR §122.44(d), a limit  should
            immediately be imposed.  EPA recommends that Ecology set an

                                    II. C. 22

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appropriate timeframe through an enforcement mechanism (e.g.,
Administrative Order) for identifying the cause of the toxicity and working
on a solution. While the end result may ultimately be the same, EPA
believes that  significant delays may result from Ecology's approach. EPA
will continue to work with Ecology on whole effluent toxicity limit
implementation.

Prior to issuing a permit, Ecology must determine that a discharge in
compliance with the permit will not cause violations of WQS.

Ecology must determine the impact of the discharge on the water column
(to meet both acute and chronic aquatic life criteria, and human health
criteria) and the  sediments (to meet sediment quality criteria). In
particular, Ecology needs to ensure that permitting actions take into
account the total pollutant loading from all point and nonpoint sources.
For most dischargers, Ecology does individual discharge analyses using
application data, TIC data, and other available data, uses assumptions or
estimates about  dilution, and compares the results to acute, and
sometimes chronic, aquatic life criteria. Ecology then  requires the
permittee to conduct dilution studies to verify Ecology's assumptions in
its determination that the discharge would not violate WQS.  EPA
disagrees with this approach.  First, when Ecology issues a permit, it
certifies that the  discharge will not violate WQS.  It is incumbent upon
Ecology, prior to issuing an NPDES permit, to make the determination
that a discharge in compliance with a permit will  not cause violations of
WQS.  Second, in cases of multiple dischargers  and multiple pollutants,
Ecology must consider cumulative effects of all dischargers to a
waterbody. Establishing loading capacities, and determining TMDLs,
wasteload allocations, and load allocations would greatly enhance permit
issuance in water quality limited segments.

With the new sediment standards, Ecology has an even more complex
role in  NPDES permitting to ensure that the discharge will not violate
sediment standards.  Ecology should consider establishing monitoring
requirements in NPDES permits to identify discharge "footprints," and
then develop appropriate action plans.  In the future, Ecology should link
the effects of the discharge to the ultimate disposition  in the sediment.  It
can use conservative assumptions to model the  effects and to provide
technical assurance that sediment standards will be met. Coordination
with the sediment management unit will enhance this effort.

Ecology requires permittees to submit individual  plans for several types of
standard tests, which results in unacceptable delays in gathering data
and implementing appropriate pollution controls.
                        II. C. 23

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            Ecology requires most major permittees to conduct dilution zone testing,
            sediment monitoring, storm water testing, and so forth.  Ecology requires
            that the permittee submit a plan for testing, receive Ecology approval,
            conduct the testing, and presumably then Ecology will decide on what, if
            any, course of action to take. This lengthy process considerably delays
            implementation of adequate water quality-based controls.  Ecology incurs
            an enormous workload from reviewing these plans for adequacy and
            consistency.  Ecology could streamline the process by assuming up-front
            work of initially developing basic plans and sampling requirements,
            outlining the protocols and frequency,  and placing these requirements in
            permits.  Permittees could commence  sampling sooner, and Ecology
            could act upon the results in a more timely fashion.

            In addition, Ecology should develop a  Puget Sound-wide sediment
            sampling program to insure that data collected by individual permittees
            fits  into a larger picture of the health of the Sound. Ecology should input
            the data into an overall sediment database.

      •     Ecology does not adequately address  antidegradation requirements in
            permits with increased discharges.

            Permits need to clearly state whether increased limits are included in the
            permits, the rationale for including them, and a rigorous water quality
            determination to insure that water quality is not degraded.  All of the
            elements of the antidegradation policy  should be included  in this
            determination.

            Industrial permits with tiered limits should also be ratcheted down when
            production decreases during the life of the permit.  This would meet the
            antidegradation provisions of the CWA.

      EPA's recommendations for improving Ecology's permit program are broader
than individually addressing the concerns contained above. In making these
recommendations, EPA looked beyond the boundaries that currently define the
permitting program, and included cross-media and cross-programmatic issues.

      In making  recommendations, EPA recognizes that, in response to the Efficiency
Commission report and the PSWQMP, Ecology has  existing commitments for
improvement.  EPA has briefly  described these in Appendix ll-C-4.

      •      Address EPA's specific areas of concern regarding permit quality, as
            described above.

      •      Create central review and coordination of permits

            As water quality issues become more complex, central permit review and

                                   II. C. 24

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coordination becomes imperative.  Central review would help in focusing
resources on permitting priorities and provide needed quality control.
Prioritizing permit issuance by watershed would lead to a more
environmentally-based approach to watershed management, and would
naturally include implementation of TMDLs. Ecology should consider
integrating such an approach into permit management.

Coordination between all eight work units and three programs that write
NPDES permits - four regional offices, two UBAT [under the Toxics
Cleanup Program (TCP)], Central Programs (IS) and the headquarters
WQP - would be vital to insure consistent quality in Ecology permits.
However, it is unclear how each group establishes its workload, and
whether active coordination exists between groups to solve mutual
problems.  For example, EPA understood that, the IS is responsible for
aluminum smelter, oil refinery, and pulp and paper permits to insure
consistency for the major industries. However, the Eastern Regional
Office wrote the  Ponderay Newsprint, Inland Empire Paper, and
Kaiser-Trentwood (aluminum) permits. EPA found no formal coordination
with the IS on appropriate permit conditions.

An example of differing agendas is evident in the permitting of facilities
discharging to Commencement Bay.  The IS is ostensibly responsible for
the major and minor aluminum, refinery, and paper industry permits, and
these are permitted, by industrial category, as they expire.  The UBAT is
responsible for major and minor permits discharging to the priority
waterways outlined in the Superfund Record of Decision (ROD).  Its
permit scheduling is based on source control schedules outlined in the
ROD and updated through the annual cooperative agreement with EPA.
The Southwest Regional Office Water Quality Section is responsible for
the municipalities and industries, major and minor, outside of the IS, that
discharge to the non-priority waterways and to the bulk of
Commencement Bay. Their schedule is dictated by permit expiration.
Storm water permits, are on a completely different schedule dictated in
part by development of federal regulations, and the group responsible for
writing them has yet to be determined. For one water quality limited
segment, there are three to four different groups responsible for permit
writing, with no overall coordination to insure consistency between
permits. The watershed or  basin approach with centralized review may
be most appropriate for this situation.

Centralized permit review would include program planning, priority
setting, cross program coordination, and semi-annual or annual review of
all permitting groups to insure consistent quality and inclusion of
necessary water quality-based controls in permits.
                        I. C. 25

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Create Integrated Standards-to-Permits Planning Process (as part of
Central Review and Coordination function)

The Efficiency Commission recognized that cross-program integration is
critical to running an effective water quality-based toxics control program.
Waterbodies are not isolated environments, but are affected by various
activities within their watersheds, such as municipal, industrial,
agricultural, and silvicultural activities, and diffuse, storm water flows.  In
addition, a wider range of pollutants needs to be considered
(e.g., metals, organics, pesticides, sediment loads,  and bacteria).

Ecology should develop a planning process that links WQP activities with
the EILS group, regional offices, and the TCP.  This process should be
used to plan in advance of permit issuance, prioritize water quality limited
areas for permitting, and insure implementation of water quality-based
controls in permits and nonpoint source control plans.

Consider centralization of NPDES permit writing

With eight units responsible for permit writing, critical permit writing
expertise is spread too thin.  Expertise in permit writing takes some time
to acquire. Differing viewpoints and levels of experience  in various offices
may result in conflicting approaches to similar issues.  Although our
review did not reveal glaring errors  between regional approaches to
permit writing, EPA recommends that Ecology consider consolidating
permit writing within a smaller band of highly experienced people who
consult on a regular basis.

Centralization of the permit managers would help reduce duplication of
expertise throughout the agency. Because  permits have become much
more technical, it would be more efficient to have a highly-trained group
of permit managers whose job description focuses on  issuing and
maintaining legally-defensible permits.  Resources in the regional offices
could be freed up for more hands-on inspection, enforcement,  and
"environmental  presence" work. To assist the centralized group of permit
managers, a technical service group could be charged with reviewing all
the plans and studies that are required in recently issued permits. Not
only would this approach insure consistent treatment of permittees, it
would also be  more efficient for data evaluation and compilation.
Individual permit managers can be apprised of the results to assist them
in decisions regarding particular permittees.
                         I. C. 26

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             EPA acknowledges that centralization of permit writers would, however,
             pose many difficult problems for Ecology.  Physically moving staff
             members from the field offices would be disruptive for the individuals and
             expensive to the agency.  Ecology may want to evaluate the possibility of
             shifting the lines of accountability/supervision from the field office to a
             central location. As vacancies occur, Ecology could evaluate the
             possibility of moving the position to the central office.

Corrective Actions

o     Ecology must ensure that permit provisions are consistent with federal
      regulations regarding development of effluent limitations where there is
      reasonable potential for toxic effects.

o     Ecology should  develop both an integrated  standards-to-permits and watershed
      management approach to permit issuance.

o     Ecology should  provide sufficient documentation in the permit record to assure
      that a permitted  discharge will assure attainment and maintenance of WQS.

o     Ecology should  assure the  implementation of whole effluent toxicity controls,
      including the use of toxicity identification and toxicity reduction evaluations.

o     Ecology should  standardize plans and sampling requirements for various types
      of tests, rather than requiring the permittee to prepare and submit individual
      plans to Ecology for approval.

o     Ecology should  provide increased central oversight of regional priority setting
      and permit quality.
                                     II. C. 27

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D.  BACKLOG QF NPDES PERMITS AND UNPERMITTED DISCHARGES


ALLEGATION:  THE LARGE NUMBER OF UNPERMITTED DISCHARGERS AND
EXPIRED PERMITS REVEALS A FAILURE TO ISSUE NPDES PERMITS AND EXERCISE
CONTROL OVER REGULATED ACTIVITIES, AND, AS REQUIRED BY THE
MEMORANDUM OF AGREEMENT, ECOLOGY HAS NOT ISSUED, REISSUED, OR
MODIFIED IN A TIMELY MANNER ALL NPDES PERMITS.

Method of Investigation

      EPA's review focused on three major areas:  (1) quantifying the number of
backlogged (expired) permits; (2) reviewing Ecology's progress in bringing currently
unpermitted dischargers under regulatory control; and (3) researching the
management, organizational, planning, and human resource issues that may contribute
to this alleged failure in permitting.  The sources of information for this portion of the
review are: (1) interviews of Ecology personnel; (2) Ecology and EPA file information;
and, (3) petitioner and public comment materials.

      To determine the actual extent of the backlog in Washington, EPA reviewed data
in EPA's  permit compliance system (PCS) regarding numbers of expired NPDES
permits in Washington. Using the national PCS data, EPA compared the number of
backlogged permits in Washington to comparable numbers for the other delegated
states. EPA, in interviews with Ecology personnel, sought to determine how Ecology
sets priorities for permit issuance.

      Because it is inherently infeasible to track actual numbers of unpermitted
dischargers,  EPA relied primarily on interviews with Ecology personnel regarding
numbers of unpermitted dischargers and Ecology's  policy for discovering and
controlling them. EPA does not have national guidance for dealing with unpermitted
dischargers.

Findings

      Background

      1.     Backlog of Expired Permits

      Ecology's WQP manages approximately 900  NPDES and 390 non-NPDES state
permits, for a total of 1290 permits. NPDES permits include individual permits for
industries and municipalities, and a general permit for upland finfish facilities.
Non-NPDES permits fall into two major categories:  (1) discharges to groundwater;
and (2) discharges from industrial users (IDs) into POTWs. EPA's review focused only
on NPDES permits.
                                   II. D. 1

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       Because Ecology has not assumed federal facilities permitting authority or
 permitting on Indian lands, EPA issues NPDES permits to the federal facilities and
 facilities on Indian lands in Washington. EPA did not review the backlog for these
 categories of permits.

       Ecology categorizes NPDES permits into majors, significant minors, and minor
 permits.  This distinction is primarily for purposes of prioritization and effective focus of
 resources. Major industrial permits are designated through a rating system, based on
 potential environmental impact.  Significant minors are those permits that did not rate
 as major, but are distinguished from the rest of the minors based upon factors such as
 public health concern, toxics, and compliance problems.  Of Ecology's 900 NPDES
 permits, 93 are rated as major (six are federal facilities and Indian facilities issued by
 EPA), and 161 are "significant" minors.

       Ecology first directs its resources at major permits and then toward significant
 minors, in accordance with EPA policy. While the goal is to eliminate the backlog of
 expired NPDES permits, as a practical matter, EPA understands that a minimal level of
 expired permits is to be expected  (although discouraged).  By focusing on these two
 categories of permits, Ecology and EPA are assured that dischargers with the most
 significant environmental impact are evaluated on a regular basis.

       Backlogged expired permits remain in effect.  Washington law, similar to the
 Federal Administrative Procedure Act and 40 CFR s 122.6, provides for continued
 effectiveness of expired permits  if the discharger submits a timely and complete  permit
 application but Ecology fails to reissue the permit through no fault of the discharger.
 [The NPDES regulations at 40 CFR §122.6(d) allow, but do not require, authorized
 NPDES states to  have a similar provision.] In the case where a facility is discharging
 under an expired minor permit, all provisions of the expired permit remain in effect,
 including provisions requiring the facility to maintain compliance with the permit and to
 continue to submit monitoring information. In addition, enforcement mechanisms are
 still available with regard to expired, administratively-continued permits. At any time,
 EPA or an authorized state may reissue expired permits as resources allow.

       2.     Unpermitted Discharges

       Ecology staff have estimated in a report that there are over 20,000 dischargers
without either NPDES or state permits. However, this figure is misleading because it
includes unqualified non-NPDES state permits for discharges to groundwater and
indirect discharges to POTWs. Many of the unpermitted discharges subject to NPDES
requirements are  storm water discharges, for which federal regulations were recently
published.  Ecology plans to permit these and other large categories of dischargers
through general or model permits.  Several thousand discharge sources will then be
covered under general or model permits, now under development, for feedlots,
boatyards, and storm water.  Ecology recently completed a model permit for upland
finfish facilities.
                                     II. D. 2

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       General permits are usually developed for types of industries or dischargers
where the discharge is similar in quality from one source to the next.  Although permit
conditions are by definition less site-specific than for individual permits, general permits
provide a suitable regulatory framework and expectation for compliance for a large
number of similar dischargers. Approximately 1300 commercial dairies and 500-600
boatyards, throughout the state would be covered under proposed state general
permits.

       Ecology's storm water program recently released a storm water management
manual for public comment.  This manual, developed in response to the 1991
PSWQMP, sets minimum technical requirements for storm water control.  It contains
extensive technical information on best management practices that may be appropriate
in implementing storm water management plans through general permits.

       Ecology has taken a strong stand on controlling CSOs. Ecology's 1987 CSO
regulation (WAC 173-245) requires, "All CSO sites shall achieve and at least maintain
the greatest reasonable reduction," defined as control of each CSO such that an
average of one untreated discharge may occur per year. All municipalities are
required to submit CSO reduction plans and incorporate them into their respective
general sewer plans.  We note that Ecology established its own strategy before
issuance of the National CSO Strategy.  EPA has concurred on Ecology's strategy.

       3.     Management. Organization. Planning, and Human Resource Issues

       Much of the petition and several public comments expressed concern about the
management and organization of Ecology's NPDES functions. Ecology's
organizational structure has often been the focal point for allegations regarding
inefficiencies in issuing permits, lapsed schedules for outputs  (notably the permit
writers' manual) and lack of coordination. Since these were recurring themes during
the public workshops, EPA spent a significant portion of its time during the August
audit discussing these issues with Ecology management and  staff.

       Ecology's organizational chart is contained in Appendix ll-D-2.  Organizational
units relevant to this discussion include:  the Headquarters Point Source Section,  the
IS, Environmental Investigations and Lab Services (EILS), the regional office WOP and
the UBATs.

      •     Role of the Headquarters Point Source Section.  The Point Source
            Section is responsible for NPDES program development. Three units
            operate in the Point Source Section:  (1) CSOs,  storm water and
            municipal unit, (2) fee unit, and (3) regulatory unit.  The  regulatory unit
            provides general NPDES guidance (including permit writers' and
            inspectors' manuals), develops regulations, writes general permits, and
            provides pretreatment coordination. At the time of the audit in August
            1991, the regulatory unit staff included two environmental specialists, two
            engineers, and one person  responsible for training  permit writers.
                                     I. D. 3

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       •      Role of the Industrial Section. The IS manages permits statewide for
             three specific industrial categories:  pulp and paper, oil refineries, and
             aluminum smelters. In addition to NPDES permitting, these same permit
             managers are responsible for cross-program work for these industries,
             including Resource Conservation Recovery Act (RCRA) and air
             compliance. The IS reports to the Director of Ecology through the
             Central Programs Office.

       •      Role of the Environmental Investigation and Lab Services Program.  EILS
             is responsible for scientific support and lab work in association with
             permitting and TMDL issues. EILS is housed in the Central Programs
             Office.

       •      Role of the Regional Office Water Quality Program. Regional offices are
             responsible for permit management for those facilities that are not
             covered by the IS.

       •      Role of the Urban Bay Action Team.  The UBATs were originally created
             to focus resources on cleaning up specific urban bays. UBATs are run
             by "matrix management."  Their role is to work  on  permitting,  inspection,
             and compliance across all media for those sources of pollutants within
             designated urban bay areas. They have been  particularly successful in
             storm water pollution abatement. UBATs themselves face a number of
             competing priorities.  With Superfund, RCRA, air, and water
             responsibilities, UBATs set their own priorities regarding NPDES permit
             issuance.

       Merit of Allegation

       1.     Backlog of Expired Permits

       Backlog figures for Washington, as of September 30,  1991, are listed in the
table below. The table compares the backlog rate (percentage) of NPDES permits for
Washington to other states with NPDES permitting authority. However, Washington's
figures are not directly comparable those of other authorized states because many
other states issue permits for federal facilities. See Appendix ll-D-1 for a state-by-state
summary.
                                     I. D. 4

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                               Percent Expired
                  WA1    States'   EPA3    WA Ranking*
 Majors
 Municipal         11     18        10    16/39
 Industrial          15     26        11    17/39

 Minors

 Municipal         71     25        28    38/39
 Industrial          84     36        53    39/39

      [Note: As of October 31, 1991, Washington's backlog was reduced to a total of
 nine major permits out of a total of 93 (five out of 48 industrial and four out of 45
 municipal) and 592 minor permits.]

      See Appendix ll-D-2 for State Performance Compared with Other Authorized
 States.

      In the 1990 MOA, Ecology agreed to reissue all expiring NPDES permits on or
 before the date of expiration; however, the MOA also indicates that if reissuance is not
 possible before expiration, EPA and Ecology will agree on priorities for reissuance. In
 the federal fiscal year 1991, Ecology agreed to reissue 21 major industrial and six
 major municipal permits, and 66 minor permits. Ecology issued 18 out of the 21
 industrial permits,  four of the six municipal permits, and 28 minor NPDES permits in
 FY91.

      These data indicate that Ecology has a comparatively low backlog of expired
 major NPDES permits. None of the major industrial permits representing the main
 industrial categories in Washington (pulp and paper, oil refineries, and aluminum
 smelters) is backlogged.  However, Ecology has a comparatively significant backlog of
 minor permits.
      1   Percent for Washington  NPDES permits  (state- and EPA-
issued.)

      2   Average for permits in  all 39  NPDES states  (state- and
EPA-issued.)

      3   Average for permits in  12 states and  6 Territories where
EPA  is primary  authority.

      4   Ranking represents the  relative level of expired permit
numbers among the 39  authorized states; a  lower  number  is better.

                                   II. D. 5

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       Ecology is not focusing resources on eliminating the minor permit backlog.  The
 State contends that managing the current workload of major and significant minor
 permits, including permit issuance, compliance monitoring, and review of the special
 study requirements, consumes all of Ecology's available permitting resources.

       Although Ecology has a backlog of permits, the number of backlogged major
 permits, representing the dischargers with the greatest environmental significance,
 does not support the allegation that Ecology has failed to exercise control over
 regulated activities.  Ecology's percentage of backlogged majors is about ten percent.
 EPA is more concerned about the large number of expired minor permits and other
 unpermitted dischargers.  Ecology's intended use of general and model permits, along
 with selective enforcement, would assist in alleviating this backlog.  Ecology needs to
 develop a strategy for significantly reducing the minor permit backlog and develop  a
 plan for identifying unpermitted discharges.  Ecology should provide  EPA with this
 information along with schedules and milestones and implement the strategy. EPA will
 monitor Ecology's progress toward permit issuance commitments through the SEA
 process.

       2.    Unpermitted Discharges

       Discovery and permitting of unpermitted discharges, other than those described
 above, has been a relatively low Ecology priority; therefore, many unpermitted
 discharges currently exist.  Ecology does not have a standard procedure or aggressive
 program for identifying of unpermitted discharges.  According to staff, Ecology
 identifies unpermitted dischargers largely through field inspections, reconnaissance
 sampling for TMDLs, citizen complaints, and UBAT surveys. Once identified, these
 discharges are handled case-by-case, based upon their environmental significance. In
 some instances, Ecology inspectors have been successful, during  on-site visits  in
 convincing facilities to cease these minor discharges.  Based on their experience in
 these informal discoveries of unpermitted discharges, state staff  believe that few
 individual discharges of any real environmental significance remain undetected.

       EPA tracks the number of unpermitted dischargers that submit applications  but
 have never been issued a permit. In Washington, there are 39 such facilities
 (excluding federal and Tribal facilities).

       Storm water discharges account for a large percentage of unpermitted
 dischargers. Ecology is currently determining how to organizationally implement the
 storm water program and is deciding programmatic issues, such as use of group
 applications. A general storm water permit, that will implement technical information
contained in the storm water manual is under development. Ecology indicates that the
general permit will be the main vehicle for storm water control. Site-specific storm
water controls  already exist in some industrial permits. A model permit for storm water
discharges from wood treaters is also under development. Ecology plans to conduct
                                     II. D. 6

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public outreach activities regarding storm water, and is preparing fact sheets and flyers
for public distribution. Based on these positive steps toward control of storm water,
EPA believes that Ecology is committed to implementing the storm water program,
which would thereby substantially the number of unpermitted discharges.

      Ecology faces a large number of unpermitted dischargers.  However, many of
these may be covered under Ecology's pending general permits for storm water,
dairies, and boatyards, issued upland finfish general permit, and Ecology's model
permits for apple packers and storm water from woodtreaters.  Ecology should
develop and implement a strategy to discover, evaluate and permit currently
unpermitted dischargers, as identified in the PSWQMP.

      3.     Management. Organization. Planning, and Human Resource Issues

      With regard to management and organization, the petitioners alleged that
insufficient Ecology headquarters oversight results in a lack of consistency and
accountability in the state's NPDES program.  EPA found that Headquarters WQP has
a five-day review period for all permits. However, this review period is provided
primarily for calculation and recovery of permit costs and does not include technical
reviews for consistency.

      Ecology's NPDES permits program is not centrally managed. Managing NPDES
permits falls to eight different permitting groups representing the four regional offices
[Northwest Regional Office - Redmond, Southwest Regional Office - Tumwater, Central
Regional Office - Yakima,  and Eastern Regional Office - Spokane), two UBATs
(contained in the Northwest Regional  Office and Southwest Regional Office, under the
TCP), the IS,  and the Headquarters office.  Each office keeps its own permit records
and files. These various permitting groups report to the Director of Ecology through
different chains of command.  Therefore, there is no focal point for permit review,
enforcement, or oversight. Quality assurance and control are intended to be achieved
solely from informal peer review within the permitting groups and occasional
discretionary  Headquarters review. The lack of a system to ensure communication
and information sharing in technical approaches and policy matters results in an
inconsistent permit program lacking overall  managerial accountability.

      The path of signature authority reveals problems inherent in the underlying
review process.  Ecology's NPDES permits are signed by different permitting groups.
IS permits are routed to the IS Supervisor for signature. Permits issued from regional
offices, except the UBAT permits, bear the Water Quality Section Supervisor's
signature. UBAT permits have the TCP Supervisor's signature.
                                    II. D. 7

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       Regional offices occasionally contact Headquarters for assistance regarding
 permitting issues. However, these requests sometimes occur after the permit has
 been issued and the permittee is contesting the permit. There is an ad-hoc
 Headquarters group that provides technical assistance upon request. In the Puget
 Sound area, UBATs review permits for urban bays. Work is intended to be
 apportioned between the regional offices and UBATs.  However, WQP staff mentioned
 that they were unclear as to how this occurs or how priorities are set between them.

       Organizationally, the WQP Manager is directly responsible for implementing the
 NPDES program. UBAT leaders, however, report to the TCP Manager without any
 formal coordination with the WQP.  The IS reports  to the Central Programs Manager.
 Therefore, a sizable number of major permits are issued without formal coordination
 with the WQP Manager.

       Ecology's lack of strategic planning emerged as a major issue in the Efficiency
 Commission  Report. Ecology recognizes the need for more effective strategic
 planning. State staff indicate there is an acknowledged lack of up-front policy, which is
 recognized as a necessary program planning prerequisite among Ecology managers.
 The perception is that the system sets some clear  programmatic priorities but is
 perhaps not effectively accounting for unexpected  outlier events, such as legal
 challenges and unexpected legislative interventions.

       Ecology's management and the Efficiency Commission report indicated that the
 real issue for Ecology is whether the priority judgment calls are correctly made. State
 staff believe the answer to this issue is to increase  efficiency through implementation of
 the Efficiency Commission recommendations, to seek enhanced funding, and to make
 defensible priority calls, perhaps by increasing public involvement in the strategic
 planning process.

      The Efficiency Commission Report did not address organizational efficiency
 because Ecology had recently reorganized. In discussions with Ecology management
 during the review, Ecology stated that the definition of roles, responsibilities, and
 functions is more important to examine than organizational structure. The  Point
 Source Section Chief indicated he has been asked to define these roles to ensure
 effective tracking and consistency.  Ecology staff indicated that the Department intends
 to increase Headquarters oversight of regional  offices, especially on several common
 themes such  as enforcement and inspection targets. In addition to the  acknowledged
 need to define roles, the permit program faces cross-agency  challenges to work
 effectively with other agenda-setting agencies, such as the Authority.

      Human resource issues, including retention  of experienced permit managers,
are problematic for Ecology.  Ecology considers staff training to be of utmost
importance.  Training for permit writers is a continuing process.  Ecology has
developed and conducted successful training courses in conjunction with its
development of the Permit Writers'  Manual.  The training program for permits
personnel is currently being improved. Ecology requires a training plan as part of
each employee's yearly performance evaluation process. Employees are notified of

                                    II. D. 8

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in-house and outside training as information becomes available. The position of
"trainer" exists in the Point Source Section, but was not yet filled at the time of this
report. This position develops training opportunities for all NPDES components of
Ecology and is currently being reformulated.  EPA sponsored training for permit writers
has always been well-attended by Ecology staff.

      The Efficiency Commission called for permits manager training including
rotations, investigation experience, formal training, and so forth. Ecology is developing
a preliminary strategy. Training costs were formerly targeted at 1% of employee
salary. Now, however, the focus is on meeting training needs,  and not a salary
percentage. Ecology management indicated that training will be somewhat
standardized by position and placed in its overall workload model.  The goal is
quarterly training for staff.  In October 1991, Ecology anticipated scheduling inspector
safety and water quality-based permitting training.

      EPA believes that the WQP should conduct annual evaluations of the various
permitting units (regional office/UBAT/IS) to assure consistency and help anticipate
and correct problems. Other recommendations for improved organization in the
enforcement and pretreatment programs are discussed in the following sections.

Corrective Actions

o     Ecology should commit to and carry out a strategy to ensure unpermitted and
      minor discharges are permitted in a timely fashion.

o     Ecology should issue general permits, where appropriate, to increase program
      efficiency, and ensure that individual dischargers covered under the general
      permit are not required to provide individual public notices.
                                     I. D. 9

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                       E.  ENFORCEMENT REVIEW

ALLEGATION:  THE STATE HAS FAILED TO TAKE ADEQUATE AND TIMELY
ENFORCEMENT ACTIONS, TO SEEK AND COLLECT ADEQUATE PENALTIES, AND TO
ACT ON VIOLATIONS OF PERMITS.

Method of Investigation

      EPA in its oversight role routinely evaluates Ecology's enforcement program to
determine whether Ecology takes timely and appropriate enforcement action. In
response to the petition, to determine whether Ecology has failed to adequately assess
and collect penalties in enforcement actions, EPA reviewed Ecology's enforcement
policies, Ecology's implementation of those policies, and compared Ecology's
implementation with EPA's regulatory standard.  During this investigation, EPA
interviewed key Ecology staff and management and conducted an independent review
of Ecology's compliance and enforcement files.

      The files that were reviewed during this audit of Ecology's enforcement program
are listed below.  This list includes those files specifically identified by the petitioners.
      Facility Name

      Kaiser Aluminum


      Kalama Chemicals

      Longview Fibre

      Pendleton Woolen Mills

      Simpson, Tacoma Kraft

      Scott Paper

      City of Tacoma


      Texaco  USA

      US Oil & Refining

      City of Vancouver
Permit No.

WA-000087-6
WA-000093-1

WA-000028-1

WA-000007-8

WA-000023-0

WA-000085-0

WA-000062-1

WA-003708-7
WA-003721-4

WA-000294-1

WA-000178-3

WA-002345-0
WA-002436-8
      Weyerhaeuser, Cosmopolis     WA-000080-9
                                    I. E. 1

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      Weyerhaeuser, Longview        WA-000012-4

 Findings

      EPA Oversight of Ecology's Program

      EPA's regulatory standard for penalty amounts is as follows: Ecology's
 judgments or settlement against violators cannot result  in penalty amounts that EPA
 believes to be substantially inadequate in comparison to those which EPA would
 require  under similar facts. The merits of the allegation were evaluated on this basis.

      Ecology exercises its enforcement discretion in deciding the best use of staff
 time, violations to pursue, and the manner in which to pursue them.  To insure that
 Ecology is fulfilling its obligations as the primary permitting and enforcement authority,
 EPA oversees Ecology's performance. Should Ecology fail to carry out its obligations,
 EPA, after proper notification, may independently initiate a federal action. Citizens may
 institute a citizen suit against EPA, the state, or the permittee pursuant to
 Section 505(a) of the CWA. Through  the WOO, EPA maintains a close working
 relationship with Ecology. The partnership benefits both agencies since information
 concerning state program functions is readily available to  EPA.

      Ecology's Enforcement Manual

      An effective enforcement program should have a clear process for reviewing
 information submitted by the regulated community and a standard decision path for
 instances of non-compliance. To accomplish this, Ecology has developed its
 Enforcement Manual: Guidance and Procedures (July 1990).  Based on a review of
 this document, EPA concludes that, on a programmatic level,  Ecology's enforcement
 decision path for initiation, tracking, and reviewing compliance is adequate.

      Ecology's Penalty Policy

      Ecology's penalty policy sets forth a matrix relationship of severity of violation to
 proposed penalty amount. The Enforcement Manual establishes a four-step penalty
escalation process. Program-specific guidance establishes criteria to categorize
violations into three basic groups:

      •      critical violations that involve an actual or imminent threat to public health
            or the environment;

            serious  violations that involve a potential threat to public health or
            impacts on significant surface or ground water resources; and
                                     I. E. 2

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       •      general violations such as illegal discharges which do not significantly
             threaten water quality, public health, or aquatic resources; effluent
             violations which marginally exceed permit limitations; or other minor
             permit violations.  Repetition or continuation of violations  will generally
             warrant an escalated enforcement response.  Of all the violations that
             Ecology responds to, most permit violations fall within this third category.

       Ecology's penalty policy sets forth mandatory minimum penalties based on the
 severity of the violations.  A critical violation, categorized as Class I,  is  a discharge or
 permit violation, oil spill, or other material spill creating actual or imminent threat to
 public health or the environment. A repetition or continuation of serious violations or
 non-compliance with a formal action is also classified as a critical violation. The
 minimum penalty for a critical violation is $2,000. A serious violation, categorized as
 Class II, is a discharge or permit violation, oil spill, or other national spill "with potential
 to impact public health or impact surface or ground water  resources."  The minimum
 penalty for a Class II violation is $1,000. A General  Class III violation is "any violation
 which does not create an actual or imminent threat to public health to  or to surface or
 ground water resource." The minimum penalty for a general violation is $1,000. EPA
 finds that Ecology's policies are clearly and concisely set forth in guidance and are
 generally adhered to by the regional offices.

       However, except for penalty amounts, noncomplying facilities incur no further
 economic liability for remaining out of compliance.  EPA is concerned that Ecology's
 penalty policy only determines minimum penalties based on the severity of the violation
 and does not routinely seek to  recover costs related to the economic benefit to the
 company gained from non-compliance. For example, a company may continuously or
 sporadically be  out of compliance for parameter X.  To fully correct the situation, the
 facility may have to make a capital investment of $1 million. The facility may choose
 not to make the capital investment, and continue to be  out of compliance, because the
 penalty amount for each instance of non-compliance is nominal.  EPA  contends that
 the economic benefit of non-compliance (i.e., the $1 million) should be factored into
 the assessed penalty amount.  EPA has established procedures to calculate the
 economic benefit, and this should be integrated into Ecology's enforcement manual.

      Ecology's Mitigation Policy

      Many Ecology penalty actions originally assessed are reduced either through
 negotiations or through mitigation. For the period between 1985 and 1990, 21% of
 Ecology's total  assessed penalties were mitigated at various stages. Most of these
 reductions were pursuant to Ecology's mitigation policy. (Source:  Enforcement
Trends:  April-June 1991)

      Ecology has a broad mitigation policy, which in many cases results in penalty
reduction.  Mitigation, described in the policy as "innovative settlement," is only
available in cases where the respondent has filed for an application for relief.  In
practice, however, penalties are apparently mitigated even if the application for relief
was  denied.  In fact, the form letter the IS uses  to deny applications for relief also

                                      II. E. 3

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extends an opportunity to the permittee to mitigate the penalty.  Consequently, the
collected penalty is often lower than the proposed amount because Ecology mitigates
penalties for many different reasons.

      EPA finds that the innovative settlement policy encourages implementation of
pollution prevention and other initiatives.  However,  EPA is concerned that Ecology
may be implementing the mitigation policy without adequate rationale. Ecology may
look to the mitigation policy as a way to quickly settle cases.  In addition, in its
evaluation of penalty amounts, EPA noted that Ecology does not have standard
penalty worksheet which is included in the record and shows how the penalty figure
was determined.

      Ecology should limit unwarranted penalty reductions.  Mitigation of the penalty
should occur in the absence of new information and should not be used as a means
to quickly settle a case.

      Ecology's  Enforcement Tracking and Information Retrieval System

      With regard to enforcement tracking and information retrievals, EPA found that
existing Ecology data systems are inadequate.  An effective enforcement program
should have a clear process for reviewing information and tracking the status of
enforcement actions.

      Ecology lacks (and did not expect  to have in the near future) a central data
system capable of storing and retrieving compliance information (e.g., facility level
information, compliance schedules,  and enforcement history).  Each staff member from
various field offices manually tracks the permit or Order requirements. Ecology should
use a computerized data base as a source inventory/enforcement tracking system.

      Ecology has a Central Enforcement unit used by programs in all media. This
enforcement section uses an enforcement action informational data system  (run on a
personal computer) on which it stores information associated with enforcement actions
(such as penalties and Administrative Orders). The enforcement section publishes a
trends report on a quarterly basis. However, information necessary to update the data
base is not required to be provided to the enforcement section by the various field
offices.  Meaningful information retrievals  can only occur if the field offices have
provided the most current enforcement information. This does not always happen.

      Without a mandatory central enforcement data system that is fully supported by
management, Ecology is presently unable to rapidly and effectively respond to public
or internal inquiries for information. This inability, coupled with manual enforcement
tracking, frustrates requests for statewide information.  The requester must acquire and
piece together responses from each field  office.

      Due to Ecology's inability to determine statewide compliance activity, EPA's
WOO provides a list of permittees in Significant Non-Compliance (SNC) to the state
and warns Ecology that EPA may take action in 30  days if the state fails to do so.

                                    II. E. 4

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Without the assistance of WOO, Ecology would not have the ability to view statewide
non-compliance, nor would it be able to fulfill its reporting obligation to EPA under
40 CFRs 123.45.

       Pollution Control Hearings Board

       A permittee has two opportunities to administratively appeal a penalty action.
First, an application for relief can be filed directly with Ecology; however, the applicant
must provide new information about the case.  The second alternative is for the
permittee to appeal directly to an independent  PCHB. The PCHB is an autonomous
body which hears appeals of permit conditions and administrative enforcement actions.

       EPA's review of the files did not uncover significant reductions of penalties by
the PCHB. However, the PCHB significantly impacts the time involved in deciding or
settling cases.  The PCHB could enhance public participation in settlement negotiation
processes by providing interested parties timely access to information on cases before
the Board.                                                        v

       EPA found that an appeal to the PCHB greatly delays finalizing penalty actions.
The PCHB takes between nine months and one year to reach a decision on a case.  In
addition, the appeals system creates somewhat of an incentive to appeal either with
Ecology or to the PCHB. When a permittee appeals an action to the Board, permit
conditions are stayed indefinitely pending a decision by the Board. The permittee
incurs  no cost either in time or money, and the PCHB may not hear a case for a year
after the appeal is filed.

       In general, because the PCHB is a separate entity, it does neither provides nor
is required to provide, adequate access to information, notice to interested parties  on
the status of appeals, or records of decisions for final cases.  Interested parties may
intervene once  an action is appealed to the PCHB. However, intervenors often
experience difficulty in obtaining information about the case once it has been appealed
to the Board. Many of the files reviewed lacked any information on the status of a
case once it reached the PCHB.

      Administrative Order Activity

      In general, Ecology issues many  more Administrative Penalth Orders (APO) than
Administrative Orders. Ecology seeks monetary penalties through use of APO.
Ecology uses Administrative Orders to seek compliance in those instances that may be
considered "routine non-compliance," such  as a permittee's failure to notify of a late
report.   State judicial actions are used in only those instances of more egregious
non-compliance.
                                     I.E. 5

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      Staffing

      In FY93, Ecology anticipates that it will increase its number of water compliance
 positions. Ecology currently plans to add four enforcement positions in the  Puget
 Sound area and one each in the Spokane and Yakima Regional Offices.  These
 positions are a step in the right direction but their effectiveness is questionable without
 an enforcement coordinating office.

      Example Review:  Longview Fibre

      EPA reviewed 15 compliance files in response to the petition. The type of
 information that EPA looked for and the basis for EPA's conclusions, is exemplified in
 the following case study for Longview Fibre.

      The petitioners, in comments submitted September 15, 1991, voiced concerns
 regarding the enforcement status of the Longview Fibre Company, Longview,
 Washington (WA-000007-8) NPDES permit.  The audit team evaluated the validity of
 these allegations. Petitioners observe that under federal law, Longview Fibre was
 statutorily liable for civil penalties of $5.3 million, but Ecology assessed and collected
 only $50,000.

      EPA has established criteria for non-compliance reporting in the NPDES
 program at 40 CFR  Part 123. This rule specifies criteria for determining significant
 violations, and include criteria related to the magnitude and duration of the violation.
 The magnitude and  frequency of application of both of these criteria to the Longview
 Fibre case would not qualify Longview Fibre in the Significant Non-Complier category.
 Its 5% to 9% violations of total suspended solids fall well below the 40% magnitude
 criteria set forth in the regulations. The sporadic nature of the violations  also did not
 occur for a significant duration under the criteria. Accordingly, Longview Fibre
 Company would not be included EPA's statutorily-mandated Quarterly
 Non-Compliance Report. Accordingly, Ecology's levied penalty was not substantially
 inadequate in comparison to amounts that EPA would require under similar facts.

      In the review  of the DMRs submitted by the company to Ecology,  the company
 provided an explanation for each instance of non-compliance and proposed a CAP.

      The Audit Team concludes that Ecology did not violate federal regulations in its
 enforcement response to violations occurring at Longview Fibre Company.

      Merit of Allegation

      The petitioners allege that Washington has failed to take adequate and  timely
enforcement actions. EPA found that Ecology takes enforcement actions against
violators in a manner consistent with its enforcement policy.  It is true that Ecology has
broad discretion for  implementing its enforcement policy.  However, EPA notes that
when EPA has recommended action through a Federal Notice of Violation, Ecology
                                     I.E. 6

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 has appropriately followed up with a state enforcement action.  Therefore, EPA finds
 that Ecology takes enforcement actions consistent with the discretion allowed within a
 delegated NPDES program.

      The petitioners allege that Ecology has failed to seek and collect adequate
 penalties. In comparing Ecology's penalty assessments to EPA's regulatory standard
 regarding calculating initial penalty amounts, EPA finds weaknesses in Ecology's
 enforcement program. First, Ecology does not adequately document how initial
 penalties are calculated, using a standardized worksheet. This makes it difficult to
 determine whether Ecology treats violators equally. Second, and more importantly,
 Ecology's penalty amounts do not include the economic benefit of non-compliance,
 which EPA would include in calculating penalty amounts.  EPA will work with the state
 in incorporating this policy into the state enforcement manual, and implementing it
 within the context of Ecology's enforcement program.

       EPA also found that Ecology mitigates penalties from the initial assessments,
 sometimes without adequate documentation or additional information to justify
 mitigation.  EPA is concerned that Ecology not reduce penalty amounts simply as a
 means to quickly settle an enforcement case.

       EPA found that Ecology clearly lacks a data management system capable of
 tracking the status of enforcement actions and for use in basic information retrieval.
 Without a central  enforcement data system, Ecology is unable to effectively respond to
 public or internal  inquiries for information.  In addition, Ecology cannot be sure that it
 is treating violators equitably.

      Even though Ecology has documented an adequate enforcement decision path
 in its  Enforcement Manual, it is the inconsistent implementation of the decision path
 that weakens Ecology's program. Ecology's field offices independently interpret
 enforcement policies.  While there is continuity in managing facilities  (an individual in
 the field office  is responsible for tracking  a particular facility), there is no central
 management,  coordination, or oversight of compliance activities.  This may result in
 inconsistencies between field office enforcement personnel on what type, and how
 severe, an action  to take.

      In cases of repeat violations for the facilities reviewed, EPA uncovered little to no
 evidence of escalation of enforcement response. "Escalation" refers to increased
 penalty amounts and/or judicial review over administrative enforcement.

      With regard to the adequacy of file information,  EPA found that Ecology
 maintains adequate enforcement files.  EPA conducted file reviews at the Southwest
 Regional Office and the IS.  Enforcement recommendations came from the
 inspector/compliance officer and were very thorough.  Violations were
well-documented. The files contain facts, history, the rationale for the penalty, and  a
discussion of any proposed mitigation. The one drawback was that Ecology did not
have standardized worksheets for penalty calculation.
                                     I. E. 7

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       To insure consistent and appropriate penalty assessment, adequate tracking,
 and program direction, Ecology needs to develop a central enforcement process
 which would provide priority setting, case oversight, staffing and day-to-day
 coordination of enforcement activities.

       Ecology should develop an oversight policy to carry out enforcement (and
 permit) quality reviews of the field offices.  Ecology's WQP must routinely oversee the
 field offices to attain the goal of a single Ecology enforcement program, uniformly
 implemented in each of the field offices. Ecology should develop a management
 system to determine the appropriate enforcement  response and to track the status  of
 enforcement actions.

       Ecology should expeditiously develop a data control system, similar to EPA's
 PCS.  The system need not be elaborate, but should be able  to store an information
 base of facility level  data such as; name, location,  permit number, discharge limits, and
 compliance  dates. Maintenance of the information base should be assigned to an
 identified organizational unit in Ecology.  Maintenance of a source inventory, such as
 EPA's PCS, would greatly improve response time for public requests and aid Ecology
 staff and management in their enforcement efforts.

       Ecology should include the economic benefit of non-compliance when
 assessing penalties.  EPA has guidance available on how to incorporate this into
 penalty calculations.

 Corrective Actions

 o      Ecology should establish a central enforcement process to improve
       enforcement program coordination in operations, management, and priority
       setting.

 o      Ecology should ensure an effective data management system for tracking and
       processing.

o      Ecology should incorporate the economic benefit of not complying with the law
       into penalty assessments.

o      Ecology should not provide unwarranted penalty reductions.

o      Ecology should consider pursuing regulatory changes that would discourage
      lengthy appeals of Ecology's penalty assessment.
                                     I.E. 8

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                  F.  INSPECTION PROGRAM REVIEW

ALLEGATION:  THE LACK OF REGULAR FREQUENT INSPECTIONS AND THE
COMPLETE LACK OF UNANNOUNCED INSPECTIONS IS A FAILURE TO INSPECT OR
MONITOR REGULATED ACTIVITIES THAT REQUIRES WITHDRAWAL OF AUTHORITY.

Method of Investigation

      EPA reviewed Ecology's commitments, guidance, and policies relevant to the
NPDES inspection program, and interviewed Ecology personnel involved with the
NPDES inspection program.  EPA reviewed the following documents: the SEA,
NPDES Compliance Assurance Agreement (CAA), Ecology's WQP Guidance, and the
PSWQMP.  EPA compared the guidance contained in these documents to the actual
level of inspection activity as a measure of inspection programs adequacy. EPA
evaluated the period from June 1, 1989, through July 1, 1991, which encompassed the
last two state fiscal years.

      EPA determined the level of inspection activity from reports submitted to EPA by
Ecology and entered into EPA's PCS.  Information entered into PCS regarding
inspections includes the date of inspection, type of facility (e.g., municipal, industrial, or
federal), NPDES number, type of inspection (compliance or sampling), and inspector
(state, federal, or joint).

      EPA obtained a PCS report showing all compliance inspections conducted
during the review period. EPA reviewed final inspection reports for all major
dischargers and a representative number of minor inspection reports. To address the
specific allegation in the petition regarding unannounced inspections, EPA attempted
to determine from the reports if prior notice of the inspection had been provided to the
discharger.

Findings

      Background

      The following documents address the state's NPDES inspection program.

      1.     Compliance Assurance Agreement

      The NPDES CAA between EPA and Ecology was updated in March 1988 and is
usually appended to the SEA. The CAA delineates responsibilities and cooperative
efforts that Ecology and EPA will undertake to assure NPDES permit  compliance.
This agreement states, "inspections will be conducted to establish a regulatory
presence, document compliance, provide a check on reliability of self-monitoring data,
and locate violators and nonfilers."  The agreement also states that Ecology is
expected  to conduct as many inspections as is practical and cost-effective to
accomplish the above goals.


                                   II. F. 1

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       In the CAA, Ecology agreed to conduct annual Class I (Compliance Evaluation
 Inspection) or  Class II (Compliance Sampling Inspection) inspections of all major
 dischargers. For minor dischargers, Ecology agreed to attempt to provide the same
 level of inspection, as resources allow.  If Ecology anticipates inspection numbers may
 fall short of SEA commitments during the fiscal year, Ecology will meet with EPA-WOO
 and determine how this commitment will be met.  EPA offers its assistance to conduct
 inspections through the CAA, as EPA resources allow.

       Through the CAA,  EPA indicates its intent to accompany Ecology on
 approximately 10 percent of the major facilities inspected each  year. EPA's purpose
 for "oversight" inspections is to evaluate and critique Ecology's compliance inspection
 efforts.

       2.    Memorandum of Agreement

       The MOA between EPA and Ecology was updated in January 1990.  It
 establishes the policies, responsibilities, and procedures pursuant to 40 CFR Part 123,
 in which Ecology will administer and  EPA will oversee the NPDES program. Section IV
 of the MOA deals with enforcement, including compliance inspections.  Ecology agrees
 to maintain a vigorous enforcement program, as defined in the  CAA signed in
 June 1986 and any subsequent amendments. The MOA recites numerous provisions
• with regard to the conduct of compliance inspections, including Ecology's agreement
 to inspect all major permitted facilities every year.

       3.    Puget Sound Water Quality  Management Plan. 1991

       The PSWQMP provides guidance and recommendations for certain
 environmental activities in the Puget Sound area.  Plan element P-14 encourages
 Ecology to conduct a "significant number" of unannounced Class I and II inspections.
 The goals for frequency of inspections are identified in the plan as follows:

 Type of  Permit     Number of Inspections per Year per Permit

                        Class I    Class II
 Major                    2         1
 Significant Minor            1         0.5
 State and minor NPDES     1         0.1

       The 1991 PSWQMP also recommends that Ecology establish an inspection
 information tracking system by June 30, 1991, which Ecology has not completed. To
 provide reports regarding numbers and types of inspections (including unannounced
 inspections), inspection results, number and type of violations discovered, actions
 initiated in  response to violations, laboratory data, and inspection turnaround time.
 Turnaround time is the time between conducting an inspection  and  completion of the
 final inspection report. The Authority was also interested in tracking facilities whose
 personnel denied access to inspectors.
                                     I. F. 2

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      4.    State Policy

      In the MOA, Ecology agrees to follow the policies, principles and procedures in
its Enforcement Manual. Ecology's policy for conducting unannounced Class I
inspections was adopted into its Enforcement Manual in June 1988. That policy states
that a "significant number" of Class I inspections will be conducted without prior notice
to the discharger.  Significant number is defined as at least 10% of the inspections of
both NPDES and state waste discharge permittees.  The policy does not address
Class II inspections. There are no EPA regulations regarding unannounced state
inspections, although EPA, as a matter of policy, discourages advance notice of
inspections to permittees, except when necessary.

      5.    State/EPA Agreement

      The FY90 and FY91 SEA contain commitments pertaining to NPDES inspection
activity, but do not specifically address  unannounced inspections. EPA tracks
completed inspections as they are submitted by Ecology through  review of the reports
and entry into PCS. EPA typically shares information regarding the status of major
inspection completion (according to EPA tracking) with Ecology prior to the end the
fiscal year.

      The SEA states that responsibility for conducting NPDES inspections is
organizationally divided between Ecology's WOP and Central Program. Inspections
conducted by the WQP are typically done by staff in one of the four regional offices.
The IS is responsible for 29 major dischargers throughout the state, including pulp
mills, oil refineries,  and aluminum smelters. Some NPDES inspections are also
conducted by the UBAT within the TCP. Complex sampling inspections are conducted
by the EILS Program for both Water Quality and Central Programs.

      Merit of Allegation

      1.    Data on Inspections

      A summary of the PCS  printout for NPDES inspections indicates that Ecology
conducted a total of 531 NPDES compliance inspections during the two-year review
period.  EPA accompanied Ecology on  some of these inspections, and did not
independently conduct inspections for any of these facilities.  Major dischargers (there
are 87 state regulated "majors" in Washington) accounted for 250 of the 531
inspections.  EPA reviewed 274 inspection reports, including  all 250 of the major
discharger reports, to determine the number of unannounced inspections. The chart
below summarizes the review.
                                     I. F. 3

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         Announced   Unannounced    Unknown5       Total

 Majors      37           38              175          250
 Minors       5            7                12           24
 Total       42           45              187          274

      In interviews with Ecology inspectors, EPA found wide variation in the frequency
 of conducting unannounced inspections.  Inspectors responded across the range of
 "almost all" to "very seldom." A few inspectors routinely identify unannounced
 inspections in their reports.  However, the inspection forms do  not require an indication
 of whether the permittee received prior notice of the inspection. During the public
 workshops and in a written comment received by EPA, industry representatives
 reported that Ecology had conducted unannounced inspections at their facilities.

      The IS attempts to conduct at least one annual Class II inspection and quarterly
 Class I inspection on all regulated dischargers.  However, this level of inspection
 activity may be reduced due to the workload of reviewing permit required reports. A
 large percentage of unannounced inspections were conducted by the IS.  The  IS
 maintains its own tracking system for the status of permits and inspections of
 regulated dischargers. Ecology provides printouts of this tracking on a monthly basis
 to Ecology's WQP and EPA.

      Fifteen of the 87 state-regulated major dischargers in Washington did  not
 receive a compliance inspection during FY90.  Most of these facilities were municipal
 dischargers. One major industry  and one municipality were not visited in FY91.
 Approximately 50% of the industrial dischargers (primarily those regulated  through the
 IS) received multiple inspections in both years.

      The documented level of inspection activity fell short of commitments in  the CAA
 and the SEA because not all major dischargers received an annual compliance
 inspection. Ecology and EPA's WOO expressly agreed to avoid repeating the  1990
 shortfall in FY91. This effort succeeded, with two exceptions attributable to a tracking
 error and laboratory capacity, respectively. In the first case, Ecology records indicated
 that a compliance inspection had  been completed, when a municipal operation and
 maintenance inspection had actually been completed. The other inspection  (of an
 industry) was delayed from June into July (FY92) due to the state laboratory analytical
 capacity.  In the latter case,  Ecology should have scheduled the analysis earlier with
 the laboratory.
        If the inspection report  did  not provide any clear
indication as to whether  prior notice has been given,  the
inspection was  assigned the  "unknown" status.
                                      F. 4

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      The frequency of inspections accomplished also falls short of recommendations
set forth in the PSWQMP.  Although Ecology's inspection of major industrial
dischargers was close to the PSWQMP's goal, major municipal facilities were seldom
inspected more than once per year.

      EPA accompanied Ecology staff on 18 oversight inspections during FY90 and
FY91.  Recommendations for improving inspection practices are typically discussed
between staff immediately after a site visit. EPA found that Ecology staff adequately
evaluated the facilities and the discharger's self-monitoring program during the
inspection.  Additionally, EPA and Ecology jointly conducted several multi-media
inspections of industrial dischargers and Ecology accompanied EPA on inspections of
several  federally-regulated NPDES dischargers.

      2.    Scope. Reporting, and Tracking of Inspections

      The main purpose of an inspection is to evaluate compliance with
self-monitoring, reporting, and recordkeeping requirements of the permit and to verify
that the conditions at a facility are as reported by the permittee.  The format, scope,
and detail of inspection reports written by the IS and regional office staff varied
dramatically from one inspector to the next.  Some reports consisted of only the
required EPA form and barely satisfied the main purpose of conducting compliance
inspections. In contrast, other reports included detailed narrative descriptions of the
facility,  graphs showing recent  monitoring data, diagrams of treatment processes, and
descriptions of regulatory compliance activities.

      The scope of inspection reports prepared by EILS generally exceeded an
evaluation of facility status and the permittee's self-monitoring program. Most often the
inspection included whole effluent toxicity monitoring and ambient receiving water
sampling.  However, EILS typically takes over one year from the time of inspection to
complete a final report. That amount of time diminishes the opportunity for a timely
enforcement response to any detected non-compliance. This audit did not evaluate
whether timely completion  of inspection  reports was a problem at any of the other
Ecology offices.  Completion of sampling inspection reports is often delayed while the
inspector waits for  sample analyses results.  In these cases, the inspectors are asked
to complete the EPA form to indicate that an inspection was conducted and later
transmit the entire report when completed.

      Ecology tracks inspection commitments through monthly reports submitted by
the WQP planning unit to the program manager.  The report is generated from
information submitted [either written or through the Washington  Discharge Information
System  (WDIS)] from the regions, IS and EILS. The inspection reports and
recommendations regarding inspection findings are not transmitted to any centralized
location for review. A quarterly report is submitted to EPA through  the WOO indicating
the status of SEA inspection commitments; EPA itself generates these reports for
Ecology. However, as mentioned above, EPA credits inspections accomplished
through receipt of the actual inspection report.
                                     II. F. 5

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       Ecology's review of inspection reports and accompanying staff
 recommendations is completely decentralized and presently a function of supervisors
 in the field offices. Some of the report forms included a supervisor's signature,
 indicating that they had received and reviewed the report. The offices evaluated during
 this audit each had their own internal review and routing procedures directing
 inspection reports through the unit and/or section supervisor. The Southwest
 Regional Office recently implemented standardized procedures for inspection report
 writing, inspection routing, and timeframes for completion of inspection reports.

       During this audit review period, Ecology and EPA heavily emphasized toxicity
 testing and water quality-based permitting for a large number of expiring major permits.
 Since Ecology's permit writers are also inspectors in many cases, the impact of  this
 decision was that Ecology accomplished fewer inspections than planned. Ecology and
 EPA agree that "major" dischargers represent the most environmentally significant
 point sources of pollution in the state, and therefore  permits and inspections of minor
 dischargers will receive a lower priority in the event of resource shortages.  Given the
 significance of dischargers designated as majors, annual inspections of major
 dischargers is a priority that neither EPA nor Ecology can afford to forego.

       In FY91, Ecology substantially complied with its requirements for inspections of
 major facilities contained in the MOA, CAA, and SEA, in that all but two major
 dischargers received an annual compliance inspection. These two exceptions are
 attributable to a tracking error and inadequate laboratory capacity. In addition,
 Ecology conducted  a limited number of compliance inspections of minor facilities
 throughout the review period.

       EPA recommends that Ecology improve its tracking of the status of inspection
 commitments throughout the year.  Ecology should compare state and federal tracking
 records during each fiscal year,  possibly on a quarterly basis, to eliminate end-of-year
 shortfalls due to recordkeeping errors.  Ecology should evaluate inspection
 accomplishments  several months before the end of each fiscal year and request, if
 necessary, EPA assistance in meeting major inspection commitments.  Ecology  and
 EPA should determine in advance which agency will  take appropriate enforcement
 action if an EPA inspection discovers non-compliance.

      A large percentage of inspection reports did not indicate whether the permittee
 received advance  notice of the site visit  (184 "unknown" from above chart).  It was
 therefore impossible to determine from the reports the number of unannounced
 inspections conducted. Ecology evidently achieves considerably more than the WQP
 policy target of 10% unannounced inspections and likely also conducted many more
than the 45 observed during this audit.  Based  on these findings, EPA suggests that
 Ecology simply indicate on the inspection form whether the inspection was announced
or unannounced.

      Finally, Ecology should assume responsibility  for data entry and report
generation related to inspection activities.
                                     I. F. 6

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      Other recommendations are provided to improve Ecology's inspection program:
(1) streamline EILS report writing so that final reports are completed relatively soon
after inspections; (2) provide inspection report writing training; and (3) verify that all
offices conducting NPDES inspections have a method for documenting supervisory
review of inspection reports. One mechanism to provide for this increased
accountability would be to establish a position in the WOP with authority for all
enforcement, compliance monitoring, and inspection activities.  In addition, Ecology
headquarters should occasionally conduct program quality reviews of inspections,
report writing, and follow-up activities at the offices conducting inspections.  EPA
believes that establishment of such a position and conduct of such reviews would
allow more consistent implementation of Ecology's inspection program in the state.

Corrective Actions

o     Ecology should provide improved tracking of the status of inspections and
      reporting of inspection information.

o     Ecology should increase central oversight and coordination of the inspection
      program.
                                      I. F. 7

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                 G. PRETREATMENT PROGRAM REVIEW

ALLEGATION: (No specific allegation)

Method of Investigation

      Deficiencies in Ecology Pretreatment Program were not specifically cited in the
petition.  However, because Ecology's pretreatment program is a key component of its
NPDES program,  EPA conducted a general assessment of Pretreatment Program
implementation as part of the petition review.  In its oversight capacity, EPA Region 10
is currently conducting a detailed, comprehensive assessment of Ecology's
Pretreatment Program.

      Although not addressed in the petition, two specific concerns regarding the
pretreatment program were raised during the public workshops:

      1)     Lack of adequate enforcement by the city of Tacoma against an IU
             alleged to be consistently out of compliance.

      2)     A significant penalty reduction by Seattle METRO against an IU in
             non-compliance.

      The commenter suggested that Ecology was not conducting adequate oversight
and follow-up. EPA investigated each of these allegations which are discussed in
further detail in the Oversight of Local Programs section of this report.

      EPA's assessment included discussions with state staff, review of municipal files
for the delegated POTWs (including a review of pretreatment annual reports and
oversight inspection reports for the delegated POTWs), and a review of files on
industrial users located in non-delegated POTWs.  The majority of industries and
delegated POTWs are located in Western Washington. Consequently, EPA conducted
on-site reviews in Ecology's Northwest Regional Office and Southwest Regional Office,
respectively.

      Subjects covered by this review include:

            Authority of Local Pretreatment Programs
            Oversight of Local Programs
            Control of IDs
            Legal Authority,  Procedures, Staffing
            Issues Raised During Public Meetings
                                    II. G. 1

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Findings

      Background

      EPA approved Washington's pretreatment program on September 30, 1986.
The program is administered by Ecology. Each of Ecology's regional offices have staff
responsible for program implementation.  Ecology maintains a central pretreatment
coordinator in its Olympia Headquarters office.  There are eight federally approved
local pretreatment programs.

      The main responsibility for regulating IDs rests with the delegated POTW
programs. Statewide, a very large percentage of Ills discharge to these POTWS.
Ecology is responsible for ensuring that these POTWs adequately implement their
respective programs.  Appendix ll-G-1 contains the list of approved programs.

      Responsibility for applying and enforcing pretreatment standards and
requirements for lUs located in the other non-delegated POTWs rests with  Ecology.
The state has authority to issue permits to these IDs, conduct compliance  monitoring
and inspections, and undertake enforcement actions against non-complying I Us.
Authority to regulate I Us located in non-delegated POTWs is allowed under EPA
General Pretreatment Regulations,  at 40 CFR 403.10(e)

      1.    Authority of Local Pretreatment Programs

      The state must have authority and procedures to identify and require the
development of local programs, to provide technical and legal assistance to POTWS,
and to require implementation of the approved local programs through NPDES
permits. 40 CFR 403.10(f)(2)

      •     There are presently eight delegated POTW programs.  At least three
            additional pretreatment programs  may be added.  Ecology, via its NPDES
            permits, requested that these three POTWs conduct industrial surveys
           and evaluate and improve their respective sewer use ordinances (SUOs).
           These tasks have been  completed and Ecology should move forward to
           require development of these programs.  An additional city has
           volunteered to develop a program (Federal Way) and the Northwest
           Regional Office is working with it.

      •     Ecology has developed comprehensive pretreatment implementation
           language for delegated POTW NPDES permits.  All of the delegated
           POTWs have such language in the permit or in an Administrative Order.
           (Spokane was issued an Order with the pretreatment conditions.  Its
           permit is being renewed and the conditions will be placed into the
           permit.)  In addition, special pretreatment language is contained in
           NPDES permits for the non-delegated POTWS.  Appendix ll-G-2 contains
           example of the pretreatment implementation language.
                                   II. G. 2

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      •     Ecology provides technical guidance and assistance to POTWs, has
            developed a statewide newsletter, and has conducted statewide
            workshops. The state Pretreatment Coordinator had routinely kept
            abreast of EPA guidance and policies.

      •     Ecology has additional rules governing regulation of IDs and
            requirements for POTWs beyond EPA's general pretreatment regulations.
            For example, Ecology does not allow hazardous waste to be discharged
            with domestic sewage, unless the discharger has been issued a state
            discharge permit or a permit from a delegated POTW.

      2.     Oversight of Local Programs

      A significant program function of Ecology's pretreatment program is to ensure
that delegated POTWs implement adequate pretreatment programs. This evaluation
consists of the review of annual pretreatment reports submitted by the cities, as well as
pretreatment compliance inspections (PCIs) and audits of the local programs.  Audits
are comprehensive evaluations of a local program, while  PCI are less
resource-intensive and focus on a POTW's compliance monitoring and enforcement
activities.

      Ecology must conduct an annual on-site evaluation of each local program.
Ecology prepares reports and forwards them to the POTWs with findings and
recommendations.  If Ecology's evaluation indicates that the POTW is not adequately
implementing its program, then it may take appropriate enforcement action.

      •     Ecology routinely meets its annual commitment to conduct a PCI or audit
            each year.  (The only exception is Anacortes.  Ecology wants to drop the
            city from the program and is awaiting EPA concurrence; therefore a PCI
            was not conducted for FY91.)

      •     For PCIs and audits, comprehensive checklists are used and reports are
            generally well written, forwarded to the POTW in a timely manner, and
            cover most of the important findings.  (There were a few cases in the
            Northwest Regional Office where inspection reports this past year were
            excessively late.) For the most part, the files indicate that cities were
            making steady progress in implementation during the first few years to
            the point that most are now implementing adequate programs.

      •     Ecology's POTW files were essentially complete.  Although annual
            evaluations/summaries are not conducted or prepared, a review of the
            files indicated that most cities complied with EPA's general pretreatment
            regulations.
                                    I. G. 3

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Ecology issued an Order to Tacoma (No. DE 88-SIIO), which was
appealed and later settled in a Stipulated Agreement. The file review
indicated that the city has made progress to improve its program, but it
has been slow. The city of Richland appears to be another program that
is lagging behind.

Ecology lacks a policy or benchmark regarding the components of an
adequate program.  Ecology does not complete an annual summary on
the adequacy of all local pretreatment programs.  For example, how does
Ecology determine what is timely and appropriate enforcement by a
POTW against non-complying industrial users?

Regional pretreatment staff at Ecology are presently evaluating local
programs to assure compliance with EPA's new pretreatment
amendments, although this review is off to a late start. Most of the
PCI/audit reports did not provide a deadline for submittal  of all changes
to the POTW programs to comply with EPA's new pretreatment
regulation amendments.

Ecology has been slow to make a final decision on whether three
additional POTWs may be required  to develop a full pretreatment
program.

Although audit/PCI audit reports generally cover major findings, they do
not routinely require response dates and/or dates for requiring
deficiencies to be corrected or dates for submittal of program
modifications.  Some POTWs submit responses and program
modifications.  Additionally, where POTWs submitted revisions to their
program to address findings in Ecology's evaluations, it was not apparent
that Ecology routinely reviewed these changes to determine adequacy.

This results in Ecology's inability to  track the POTWs' progress during the
year to address any shortcomings or to conduct timely reviews of
program modifications. The state tries to follow-up during the next
inspection and there is some general discussion in the next year's report.
However, from a review of the files we are uncertain whether the POTWs
addressed all of the shortcoming (s).

Ecology had agreed with EPA to gather specific pretreatment information
and to enter it into EPA's Pretreatment Performance Evaluation Tracking
System - (or to provide the information to EPA to enter into EPA's  PCS).
Entry of this information would help generate a report on the "health" of
the local programs, but has yet to occur. This shortcoming is probably a
result of Ecology's pretreatment program coordinator lacking direct
responsibility over regional office pretreatment program activities.
                        I. G. 4

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Ecology should direct more attention during audits and PCIs to
evaluating IU violations and the timeliness and appropriateness of
enforcement actions. POTWs identify IDs in SNC and often issue Notice
of Violations (NOVs). Escalation to Administrative Orders and fines and
penalties does not occur for chronic violators (except in Seattle METRO'S
case). Additionally,  inspectors do not conduct industrial user inspections
with city staff during the audit and PCIs.

Regarding the allegation raised at a public workshop of Seattle METRO'S
reduction of an  initial fine of $64,000 to $10,000 for Surftech, EPA
determined, based on discussions with the Northwest Regional Office
and Seattle METRO, that METRO reduced the fine due to limitations on
METRO'S ability to collect fines above the maximum allowed by
resolution.  After further review of the alleged violations and meetings with
the company, METRO determined that there were two violations and it
levied its maximum fine  per violation of $5000. Ecology was aware of this
and considered the  action by METRO appropriate.

Regarding the allegation that Tacoma has inadequately enforced against
a chronic violator (Washington Uniform Services), Ecology conducted an
assessment for EPA. The state concluded, from a historical perspective,
that Tacoma had not conducted timely and appropriate enforcement
against this company. However, this appears to have been due to the
city's lack of a well-defined enforcement program.  As mentioned earlier
in this section of the report, Ecology issued an Administrative Order to
Tacoma for failure to implement all elements of its program. A Stipulated
Agreement was signed with the city in May 1989.  Since then the city has
made progress  by developing an enforcement response plan and
modifying the SUO to include enforcement remedies.

Since 1989, Tacoma: issued two NOVs to Washington Uniform (October
and November 1989), listed in the local newspaper the company's status
as a significant violator,  required the company to cease discharging any
wastewater related to printer and shop towels washing operations,
required the submittal of an engineering report for a pretreatment system,
and increased its sampling and inspection frequencies at the facility.

Ecology recognizes  that there is room for improvement in Tacoma's
enforcement program. EPA will be monitoring the city's general
enforcement efforts and specifically its compliance activities with regard
to Washington Uniform.

As mentioned above, Ecology should take a more active role in
evaluating a local POTW's enforcement efforts.  When it is determined
that timely and appropriate enforcement action is not taken, the state
should require the POTW  to take the necessary steps and/or should
seek appropriate action against the POTW and the non-complying facility.

                        II. G. 5

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      3.     Control of lUs

      Ecology regulates IDs in non-delegated pretreatment cities.  Under state rules,
Ecology utilizes a permit program to regulate IDs.  The pretreatment regulations at
40 CFR 403.10(e) allow delegated pretreatment states to implement federal POTW
requirements.

      .     Ecology historically has not undertaken an active role in regulating I Us of
            non-delegated  POTWs.  For example, companies submitted permit
            applications with  no permit issued, permits were issued and allowed to
            expire, or effective permits did not contain adequate requirements. Over
            the last few years, EPA  Region 10 voiced concern regarding the lack of
            regulation of I Us  in non-delegated POTWs covered by EPA categorical
            pretreatment standards.

            During the last  two years EPA has assisted Ecology in identifying the lists
            of categorical users. Ecology has also required some of the
            non-delegated  POTWs to conduct industrial surveys to determine
            whether any significant lUs were located in their cities. As a result, there
            has been increased effort  in  the Northwest Regional Office and
            Southwest Regional Office to issue/reissue state permits  to categorical
            users. Ecology issues permits to other non-categorical users if their
            discharges cause problems to POTWs or to classes of users (fish
            processors or food processors) with the potential to cause problems.  (If
            any discharger applies for a  non-NPDES state permit  and one is not
            issued within 60 days, the company is deemed to have a permit under
            state law).

      •     In the Northwest  Regional Office there are ten categorical users: six
            permits have been issued  and four drafted.  In the Southwest Regional
            Office there are an estimated nine categorical users with effective permits
            issued to six of the facilities.

      •     EPA conducted a cursory  review of state  permits issued to categorical
            users in  non-delegated POTWS.  The permits contain limits, require
            self-monitoring  and reporting, and contain special conditions where
            appropriate. Ecology has not yet upgraded the permit form to comply
            with recent amendments to EPA's pretreatment regulations but is
            preparing a revised version.  Ecology prepares fact sheets explaining the
            requirements contained  in the permits.

      •     Ecology does not clearly evaluate whether limits in the individual permits
            issued to categorical users will protect the POTW, and not cause pass
            through or sludge contamination.
                                     I. G. 6

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      •     Ecology rarely tracks compliance of permits issued to categorical users.
            In addition, very little compliance monitoring has occurred in the
            Northwest Regional Office and Southwest Regional Office.  Ecology has
            relied solely on self-monitoring from the dischargers.  EPA regulations at
            40 CFR 403.10(e) require compliance monitoring and inspections.  The
            files documented inspections of the IDs and limited sampling.  Other
            delegated states and EPA regional offices have had similar problems in
            this area.

      •     The state has not developed an overall strategy for regulating Significant
            Industrial Users (SlUs) in non-delegated POTWS.  For the most part,
            Ecology has not taken enforcement action against categorical  users that
            fail to comply with permit limits, special conditions, or reporting
            requirements. There is no method of determining the compliance rate of
            SlUs.

      •     The state has not formally implemented recent EPA amendments to
            pretreatment regulations pertaining to SlUs. This is not unusual since
            many other  states are struggling with similar resource problems and
            other competing priorities.

      4.    Legal Authority. Procedures. Staffing

      General pretreatment regulations require states applying for pretreatment
program authority to have sufficient legal authority, procedures, and resources to
implement EPA's pretreatment program.  EPA approved Ecology's request for
program authority on September 30,  1986.  Depending upon the outcome of
Washington's own review of  its legal authorities, the Ecology's pretreatment program
authority may need to be  updated.

      •     Ecology has not formally reviewed its program procedures and legal
            authority to determine conformance with EPA's recent pretreatment
            amendments as related to oversight of the delegated POTWs and
            regulation of I Us in non-delegated programs.

      •     Ecology's pretreatment coordinator position has recently been filled.  EPA
            views this position as important for providing valuable services such as
            training for staff and POTWS.  The previous Ecology coordinator also
            developed a state pretreatment newsletter and conducted meetings with
            POTWs and Ecology Regional staff.

            Critical functions of the coordinator position should include: developing
            state policy,  guidance, and strategies; playing a role in the annual
            planning process for pretreatment implementation commitments; and
            overseeing regional office staff.
                                     II. G. 7

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            Lack of such activities have resulted in inconsistent implementation within
            the various field offices, along with a lack of accountability.

      •     The following breakdown of staffing levels is based on interviews with the
            former pretreatment coordinator:

            Headquarter: 1 FTE (pretreatment coordinator-vacant)
            Southwest Regional Office: 2 FTEs
            Northwest Regional Office: 1.9 FTEs (one full time, others part time)
            Central Regional Office: 0.5 FTE
            Eastern Regional Office: 0.5 FTE

            Staffing levels for oversight of local programs appears adequate: six
            FTEs for fewer than 10 delegated programs.  However, in order for
            Ecology to manage the pretreatment program in the non-delegated
            POTWS, it should increase the level of staff resources.

      •     Although staff in the Northwest Regional Office and Southwest Regional
            Office are fairly knowledgeable about the program, the staff in the other
            two regional offices perform only minimal pretreatment activities and have
            less expertise.

      Summary of Findings

      As mentioned above, no allegations were made specific to pretreatment.
Although Ecology's pretreatment program is currently in various stages of
implementation, it is making progress overall.

      •     Ecology oversight of local programs is adequate. As suggested in the
            report, some improvements could  be made.  Compliance inspections and
            audits are conducted annually, and reports are forwarded to each POTW
            with recommendations for improvement whenever appropriate.

      •     Staff interviewed in the Northwest Regional Office and Southwest
            Regional Office are very  knowledgeable about program requirements,
            work with their POTWs, and provide technical assistance and training to
            pretreatment staff at the  local level.

      .     From a review of the files and reports, most POTWs are implementing
            EPA's basic pretreatment requirements found in 40 CFR 403.  Where a
            POTW falls behind in implementation,  Ecology has taken some form of
            action. POTWs have been informed of EPA's new pretreatment
            regulations and are in  the process of making changes.

      •     There has been limited improvement in issuing permits to categorical
            users in non-delegated POTWs.
                                    I. G. 8

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      •      Lack of a Central Pretreatment Coordinator and limits placed on the
             position has hampered the direction of the program and consistent
             statewide implementation.  In addition, there is a lack of adequate staff to
             permit and regulate lUs in non-delegated POTWs. 40 CFR s403.10(f)(3)
             requires adequate staffing and funding.

      •      There is inadequate compliance tracking, monitoring, and inspections,
             and enforcement of IDs in non-delegated POTWs. Although Ecology
             issues permits to categorical users, the permits may not be fully
             adequate and may not assure that the discharge from these industrial
             facilities will not cause pass-through, POTW interference,  or sludge
             contamination.

      •      There is a lack of pretreatment data tracking and entry as required by the
             CAA and  MOA.

      •      Ecology should require additional local programs (targeted) to develop
             programs within 1 year. In addition, Ecology should improve local
             program oversight for existing programs.

      •      Ecology should complete issuance of permits to categorical users and
             develop a plan to issue permits to other SlUs  in non-delegated POTWs.

      •      Ecology should increase staffing levels to insure proper regulation of
             users in non-delegated POTWs.

      •      Ecology should implement revisions to EPA's  general pretreatment
             regulations on Ills in non-delegated POTWS.

      •      Ecology should ensure full implementation of Tacoma's and Richland's
             program within six months.

      •      Ecology should insure that limits in permits issued to categorical users in
             non-delegated POTWs will prevent pass through, interference, and sludge
             contamination.

Corrective Actions

o     Ecology should provide central oversight and coordination of the pretreatment
      program including improved data entry and tracking  systems.

o     Ecology should improve compliance tracking, monitoring, inspections, and
      enforcement in non-delegated POTWs and improve categorical permits to users.

o     Ecology should increase attention to non-delegated programs and require
      additional specified local programs to develop programs within one year, plus
      ensure full implementation of local programs within six months.

                                    II. G. 9

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   H.  INFORMATION MANAGEMENT AND PUBLIC PARTICIPATION

ALLEGATIONS: THE WASTEWATER DISCHARGE INFORMATION SYSTEM IS
CURRENTLY IN PHASE I DESPITE THE SEA REQUIRING COMPLETION OF PHASE IV
BY APRIL 31, 1991.  ROUTINE REQUESTS FOR INFORMATION ARE OFTEN
UNFULFILLED DUE TO POOR DATA MANAGEMENT OR THE COMPLETE LACK OF
DATA.  THESE [ARE] FAILURES TO COMPLY WITH PUBLIC PARTICIPATION
REQUIREMENTS.  [A]S REQUIRED BY THE MEMORANDUM OF AGREEMENT,
ECOLOGY HAS NOT MAINTAINED AN ADEQUATE PUBLIC FILE.

Method of Investigation

      The first of these assertions to the alleged inadequacy of the WDIS and the
alleged failure of Ecology to respond to routine requests for information.  The second
assertion, while related to information management, more specifically relates to the
alleged failure of Ecology to provide information to allow the public to participate in the
NPDES permit process.

      The scope of the review with regard to Ecology's WDIS system included:

      •     studying  current and planned WDIS systems -- capabilities, deficiencies,
            and capacity to provide data elements to EPA;

      •     determining current Ecology procedures for responding to public
            requests  for information; and

      •     analyzing the  planned information management system to determine
            improvements to Ecology's capacity to respond to public requests for
            information.

      This review with regard to Ecology's WDIS system was accomplished through:

      •     document reviews, including the SEA, MOA, Efficiency Commission
            Report, independent consultant studies, Ecology's WDIS project definition
            and plans, and applicable state and federal statutes and regulations; and

      •     interviews with Ecology management and staff in the Planning and
            Evaluation Section of the WQP, the Public Information and Education
            Office,  and Ecology's Public Disclosure Officer (PDO).

      The scope of review with regard to the second allegation regarding public
participation consisted of reviewing Ecology's existing public participation systems and
processes. The sources of information for this portion of the review were:

      .      interviews with Ecology personnel; and


                                  II. H. 1

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      •     petitioner and public comment materials.

 Findings

      Background

      1.    Washington Discharge Information System

      The state of Washington has a public disclosure law which is implemented by
 Ecology implements. The Washington State Open Government Act (RCW 42.17) and
 Public Records Regulation (WAC 173-03) requires that formal requests for information
 be handled in a timely manner.  Ecology's PDO, located in the Office of Financial,
 Personnel, and Support Services, acts as the single point of contact between Ecology
 and the general public for requests for information.  Each program  and regional office
 supports a Public Records Coordinator (PRO) who works with Headquarters' PDO to
 ensure that requests are answered in a timely fashion.  Ecology staff are instructed to
 refer any requests for information from the public to their program/region's PRO. The
 PRC in turn notifies the PDO upon receipt of any request for public records. The PDO
 logs requests, tracks them, and maintains files on all requests. The PDO personally
 trains all program/regional PRC, as well as all new Ecology employees, in department
 policies and procedures.

      In meetings with the petitioners and in workshops held with the general public in
 four Washington cities, individuals related personal accounts of failed attempts to
 receive permit information from Ecology's WQP.

      The provision of information to the public by the WQP is, of course, entirely
 dependent on the availability of permit information to the responding official. If this
 information is not  managed or available, Ecology cannot provide the information to the
 public upon request.  Permits are managed in Ecology's four regional offices and the
 IS at Headquarters; therefore,  permit information is scattered throughout the state.
 Ecology  has attempted to manage permit information centrally through the creation of
 an information management system,  WDIS. WDIS was originally developed in 1984
 due to Ecology's dissatisfaction with  EPA's PCS.

      2.    Public Participation

      As mentioned earlier, Ecology follows a state public disclosure law in its
 implementation of the NPDES permit program. In addition, Ecology must follow federal
 regulations regarding public participation, such as found in 40 CFR s 124.10.  The
 petitioners alleged that it was difficult for the public to be placed on a permits mailing
 list. The NPDES regulations at 40 CFR §124.10(c)(ix) require authorized NPDES states
to maintain such a mailing list.   The WQP at one time had  such a list, but it was lost
 due to computer problems. The regional offices are helping rebuild the list and
 Ecology management indicated during the audit that the problem had been rectified.
                                     I. H. 2

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Summary of Findings

1.     Washington Discharge Information System

•     Ecology recognizes deficiencies with the current information management
      system and is planning and designing a new WDIS to correct these
      deficiencies.  The new system will contain fields for all permit data
      elements required by EPA and the CWA; these include information on
      facilities, inspections, compliance, and enforcement for both "major" and
      "minor" dischargers.  The new WDIS will eventually be able to upload
      information to EPA's PCS.  Ecology considered all of the required PCS
      data elements before designing the  new system to insure capacity to
      upload data electronically.  The development of the new system is being
      planned and overseen by a "Users Committee" and a "Management
      Committee."  Committee membership is comprised of Ecology
      management and staff from each regional office, the  IS, Headquarters
      WQP,  Headquarters'  Information Management Division, and outside
      computer information consultants.

•     The current WDIS system is not adequately managing data entry for
      Ecology's NPDES permits.  There are tremendous gaps in permit
      information in the system due to inadequate data entry by the regional
      offices. Ecology officials estimate that it would take one individual per
      regional office three months to one year to fill existing gaps in permit
      data.  In addition, the current WDIS  system does not generate
      standardized reports. The  NPDES program is unlike many of Ecology's
      other programs in that standard reports are not readily available for the
      public. The regional offices are not  linked electronically to Headquarters;
      therefore,  the regional offices must send their permit  data through the
      mail on floppy disks.  Perhaps even more importantly, regional  offices
      cannot directly query the system for information requested.  This
      condition, of course, limits the regional office's PRC ability to respond to
      public information requests or to be used as a management tool.

•     While the new WDIS may in fact serve Ecology's purposes, for  FY92,
      Ecology has dedicated only 1.15 FTE for development and
      implementation of WDIS. The WDIS project manager estimates that full
      implementation of WDIS will occur no sooner than the Spring of 1994.  In
      addition to the delay in implementation of a functioning data system,  it
      appears through discussions  with various Ecology personnel that
      organizational problems contributed to problems with the past system
      and may continue with the new WDIS. These potential  problems include
      questions  regarding the regional offices' commitment to data entry due to
      lack of direct line accountability of the regions to Headquarters' WDIS
      managers. In addition, there  appears to be a lack of consensus among
      the various users on the  priorities for developing the  new WDIS.
      Competing interests among the program's various user sections is

                              II.  H. 3

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       hindering system design and implementation. As development of the
       new system is such an enormous task, it is planned in three stages.
       Although these stages have not yet been defined, they will likely be:
       facility and permit information, inspections, and compliance and
       enforcement.  Each stage of development is estimated to take one year
       to complete.  Therefore, the order of development is an important issue
       to the various sections of the WQP.  Finally, some stakeholders with an
       interest in Ecology's information management system, including citizen
       groups, Ecology's Public Information Office, Ecology's PDO and EPA, are
       not involved in WDIS design.

.      Ecology's current WDIS is incapable of uploading information into PCS,
       EPA's national database.  EPA, therefore, supports a contractor who
       manually enters Ecology's permit data into PCS.

2.     Public Participation

•      Ecology indicated a willingness to assemble a process description on
       how draft permits are prepared and distribute this to the public, with
       meetings for environmental groups and industries to explain the process.
       Allegations surfaced during the audit that Ecology negotiates permits with
       permittees prior to public notice.  Ecology staff indicate that this is the
       public's misperception and the reality is that technical assistance to
       permittees and information gathering must take place before the permit is
       drafted and noticed. Federal regulations do not prohibit correspondence
       between permittees and the permitting agency before initiation of public
       notice of the draft permit as well as other times in the permitting process.

•      During the  audit, Ecology staff indicated that they believed the state
       responds adequately to written public requests for information,  but
       acknowledged it needs to improve its delivery system for phone inquiries.
       In August, Ecology indicated it was considering developing an outreach
       system for notifying the public of appeals, settlements, modifications, as
       well as new requirements, regulations, and guidance.

•      Ecology's ability to respond to and provide the public an opportunity for
       participation and involvement is impacted by its information management
       system. Its failure to effectively and timely respond to the public on
       information requests leads to public perception problems.  For  example,
      there is no standard operating procedure in Headquarters to respond to
       public complaints. The problems with the existing and future WDIS
      system discussed above continue to create problems for  Ecology staff to
       respond to public information  requests.

•      With regard to public notice procedures for the NPDES permit program,
       Ecology appears to have its own  policies and procedures.  Regional
      office have discretion in selecting the major newspapers used for formal

                              II. H. 4

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             public notices.  In general, for many permits, two public notices are
             given: (1) to announce receipt of an application to discharge, and to
             develop a list of people interested in the permit; and (2) to public notice
             the draft permit. Permittees must publish and pay for legal notices, which
             has sometimes resulted in delays in permit issuance.  In some cases, the
             regional offices have paid for public notices.  The state is considering
             potential changes to this system of public notice.

      •      State law requires a charge of $.20/page for information given to anyone.
             The policy is to require up-front payment before sending information.
             Certain members of the public expressed concern at the public
             workshops and in written comments that these policies limited the ability
             of members of the public to effectively participate in the process.

      Merit of Allegation

      1.     Washington Discharge Information System

      Based on this review,  EPA finds that the development of new WDIS is behind
the schedule laid out in the FY91 SEA. The FY92 SEA contains language that Ecology
will "[cjontinue development and implementation of WDIS" with no dates attached. In
addition, data is  poorly managed by Ecology at present; there are numerous gaps in
the current WDIS including the inability of the regional offices to directly input or query
WDIS, and the inability to upload to PCS from WDIS.  Finally, this poor data
management prevents Ecology from effectively responding to public requests for
information. Ecology should undertake immediate action to timely and effectively
manage its permit information.

      The Efficiency Commission Report addressed deficiencies in WDIS.  Ecology's
response to the Efficiency Commission Report makes only limited recommendations to
address these deficiencies, including reevaluating WDIS use by February 28, 1992, and
implementing a WDIS strategic plan by April 30, 1993.

      Ecology's September 1991 Action Plan did not contain any specific provisions
for WDIS.

      EPA strongly recommends immediate implementation of the PCS at  Ecology;
Ecology could then manage permit information to the degree necessary to respond to
public requests for information almost immediately.  Although it is not Ecology's
preferred tool for managing permit information, PCS is available and should meet a
majority of the state's needs. Ecology has taken a long period of time to develop and
implement an alternative system. Twenty-four of the 39 states with authorized NPDES
programs manage  permit information via PCS; and, another seven currently interface
with the system.  EPA is willing to explore providing Ecology with necessary technical
assistance to implement PCS in  Washington, including training and installation.
                                     I. H. 5

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      If Ecology does not use PCS, it should proceed expeditiously to develop and
implement the proposed WDIS currently being designed by Ecology which appears to
address most, if not all, of the present shortcomings of the current WDIS system.
Ecology estimates however, that the system will be fully operational no earlier than the
Spring of  1994, and that date was termed "optimistic" by one Ecology official. Should
Ecology decide to pursue development of WDIS concurrently, or at a later date, the
following are highly recommended:

      •     increased stakeholder involvement, particularly private citizens and
            Ecology's Office of Information and Education and

      •     increased design resources, specifically additional           computer
            programmer FTEs.

      Regardless of which system is used to manage permit information, PCS or
WDIS, Ecology regional office data entry is critically important. Ecology should
address both the  issues of sustained training for regional office permit support staff,
and Headquarters oversight and accountability systems to insure continued regional
office data entry.

      2.    Public  Participation

      EPA agrees that various aspects of Ecology's public participation and
involvement process are constrained by various process considerations. However, in
almost all  cases, current Ecology procedures appear technically to conform to
minimum NPDES  requirements for state programs.

      In addition, Ecology has various activities planned or underway to address
these deficiencies or problem areas, as articulated in the September 1991 Action Plan,
which should address many of the concerns expressed by the public.  EPA believes
implementation of these activities should resolve any existing concerns in the public
participation of information; however, Ecology plans to address concerns articulated
below about the information management system itself. These include:

      •      Ecology has indicated its intent to improve public involvement by
            clarifying and achieving consistency and efficiency  in the public
            involvement process, including pursuing necessary changes to state
            regulations.

      •      Ecology has indicated that it will establish an advisory committee
            comprised of representatives of key  interest groups to help guide
            program decisions. Initially, the advisory group will assist in the
            evaluation of the permit fee system.  Other topics will include: monitoring
            strategies, public participation, permit prioritization  systems, efficiency
            measures, and alternative strategies.
                                     I. H. 6

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      •      Ecology is planning semi-annual regional public workshops to solicit
             public input and educate the public on the permits program.

      •      Ecology is planning to establish public Point of Contacts (one per
             regional office), as well as a toll free "800" number and contacts in each
             regional office so citizens can obtain information.  Ecology is also
             considering a menu-driven system to direct calls.  Headquarters would
             presumably field general questions, regional offices would handle specific
             facilities, and so forth.

      •      Ecology will develop and distribute public information documents
             describing public participation and access to information sources.

      •      The WQP will conduct informational surveys and obtain input from
             permittees on permit priorities, strategic planning,  and alternative
             strategies.

      •      Ecology is apparently looking into changing the fee for page copies.
             Also, it plans to increase access to public information, taking out
             newspaper display adds, and so forth.

Corrective Actions

1.     Information Management

      o      Ecology should develop an adequate information management system,
             especially for response to public requests for information.

2.     Public Participation

      o      Ecology should continue to improve  its public participation activities.
                                      I. H. 7

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III. APPENDICES

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                         Appendix 1-1
                           BEFORE THE
          UNITED STATES ENVIRONMENTAL  PROTECTION  AGENCY
     In Re:    Petition  for Corrective  Action or Withdrawal  of
               Authority of the National  Pollutant Discharge
               Elimination System  for the State of Washington
                         American Oceans  Campaign,  Columbia  River
                         United, Inc.,  Friends  of the  Earth,
                         Greenpeace,  The  Mountaineers,  National
                         Audubon Society,  Inc.,  National  Toxics
                         Campaign,  Puget  Sound  Alliance,  Sierra
                         Club, Washington Environmental Council,
                         Inc., Washington Toxics Coalition
                                              Petitioners.
 PETITION FOR CORRECTIVE ACTION OR WITHDRAWAL OF AUTHORITY OF THE
  NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM PERMIT PROGRAM
                    FOR THE STATE OF  WASHINGTON
May 6, 1991                        VICTOR M.  SHER
                                   TODD D.  TRUE
                                   REBECCA E.  TODD
                                   Sierra Club Legal Defense
                                         Fund,  Inc.
                                   216 First Ave. S., Suite 330
                                   Seattle, WA 98104
                                    (206)  343-7340

                                   Attorneys for Petitioners

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                           INTRODUCTION

      "Great  blunders are often made, like large ropes, of a

multitude  of fibers."1  Such is the case with the Washington

State National  Pollutant Discharge Elimination System  (NPDES)

permit program, which currently suffers from inadequacies in

every important component of the program.  Indeed, the string of

failures that is the Washington NPDES program has formed a

tightening noose that threatens to strangle the water quality of

the  State.

      The many chronic problems plaguing the NPDES program include

the  large  number of expired permits and unpermitted dischargers,

the  lack of  toxics regulation, historic and current underfunding,

inadequate enforcement and inspection activities, and the lack of

proper data  management and organization.  Furthermore, despite

awareness  for many years of these incapacitating problems, there

is little  if any improvement within the NPDES permit program.

      In order to untangle the problems in the Washington NPDES

program, pursuant to 40 C.F.R. § 123.64(b), the American Oceans

Campaign, Columbia River United, Inc., Friends of the Earth,

Greenpeace,  The Mountaineers, National Audubon Society, Inc.,

National Toxics Campaign Fund, Puget Sound Alliance, Sierra Club,

Washington Environmental Council, Inc., and Washington Toxics

Coalition hereby petition the Administrator of the United States

Environmental Protection Agency  (EPA) to i^sue an order
     1  Victor Hugo,  Les Miserables.  Charles E. Wilbour,
translator.

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commencing proceedings under 33 U.S.C.  § 1342(c)  and 40 C.F.R.  §
123.64:
     (1)  to compel corrective action to be taken by the State  of
          Washington Department of Ecology (WDOE)  within a
          reasonable time not to exceed 90 days,  and if not
          taken, to withdraw approval of the State of Washington
          National Pollutant Discharge Elimination System permit
          program; and
     (2)  to suspend all federal program grant funds available  to
          the State of Washington related to the  Washington NPDES
          program, including but not limited to funds under 33
          U.S.C. § 1~256; and
     (3)  to require all persons within the State of Washington
          discharging any pollutant to the navigable waters of
          the State of Washington to apply to the EPA for an
          NPDES permit within 180 days of EPA's withdrawal of
          Washington's NPDES permit program authority;
     (4)  to determine that discharges of pollutants in
          Washington State are interfering with the attainment or
          maintenance of water quality, and establish or require
          WDOE to establish effluent limitations  for point
          sources that can be expected to contribute to the
          attainment or maintenance of water quality pursuant to
          33  U.S.C.  §§ 1312 and 1318.     »
     (5)   to  grant petitioners their reasonable costs including
          attorneys'  fees incurred in the preparation and

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           prosecution of this petition.



      Petitioners  request immediate issuance of the above order to



 remedy the failure  of the State of Washington NPDES permit



 program to comply with the requirements of the Clean Water Act



 and its implementing regulations as explained more fully below.



                                I.



                      STATEMENT OF INTEREST



      The American Oceans Campaign (AOC) is a non-profit



 organization dedicated to restoring and conserving our nation's



 marine resources.   AOC was incorporated in 1987 under the laws of



 the State of California, and because AOC has very recently become



 a membership organization, an "accurate membership count is not



 possible at this  time.  Activities that AOC is pursuing in



 Washington with regard to water quality include the creation of a



 National Coastal  Caucus to provide citizen input during the Clean



 Water Act reauthorization, designation of the Olympic Coast and



 Northern Puget Sound as National Marine Sanctuaries, opposition



 to  offshore oil and gas development, and initiation of oil spill



 prevention measures.  The interests of AOC and its members have



 been,  are being,  and unless the relief prayed herein is granted,



 will  be  adversely affected by the failure of WDOE to restrict the



 discharge of pollutants as required by the Clean Water Act and



 implementing regulations.




      Columbia River United, Inc. (CRU) is « non-profit



 corporation organized in 1989, under the laws of the State of



Washington.  With over 380 members, its principal place of

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business is Bingen,  Washington.  The members of CRU live, own



property,  or recreate in the vicinity of the waters of the



Columbia River.   CRU works toward  comprehensive, basin-wide



strategies to protect the water  quality of the Columbia River and



the  health of all life dependent on it.  The interests of CRU and



its  members have been,  are being,  and unless the relief prayed



herein is granted,  will be adversely affected by the failure of



WDOE to restrict the discharge of  pollutants as required by the



Clean Water Act  and implementing regulations.



      Friends of  the Earth (FOE)  is a charitable organization



organized in Washington D.C.  in  1974.  Headquartered in Seattle,



the  Northwest Regional office represents the states of



Washington,  Oregon,  and Idaho.   FOE has worked on water issues in



the  State of Washington since 1970.  FOE has commented on several



Washington State/EPA Agreements  concerning the delegated NPDES



program and also has filed notices of violations of NPDES permits



in Washington State.   FOE has approximately 1,000 members in the



state  of Washington,  many of whom  live in the Puget Sound area or



along  other water bodies in the  state.  Members make use of the



aesthetic,  recreational,  and natural resource values of the



waters  of  the state  of Washington.  The interests of FOE and its



members  have been, are  being, and  unless the relief prayed herein



is granted,  will  be  adversely affected by the failure of WDOE to



restrict the discharge  of pollutants as required by the Clean



Water Act  and implementing regulations.



     Greenpeace U.S.A.  and its sister organization Greenpeace

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 Action  (Greenpeace) have a combined Washington State



 supporteirship of at least 85,000 people, many of whom fish, swim,



 and  otherwise make recreational use of State waters.  Greenpeace



 has  taken an active role over the last decade to preserve and



 protect  the quality of Washington State waters.  These activities



 have included an analysis of WDOE•s NPDES permit program,



 published as "License to Pollute" in 1985; comments on NPDES



 permits  for various industrial facilities; comments opposing



 legislation not adequately protective of water quality and



 supporting protective legislation; and identification of



 pollution prevention measures to reduce water pollution in



 Washington State.  The interests of Greenpeace- and its members



 have been, are being, and unless the relief prayed herein is



 granted, will be adversely affected by the failure of WDOE to



 restrict the discharge of pollutants as required by the Clean



 Water Act and implementing regulations.



      The Mountaineers is a non-profit corporation founded in 1906



 and  incorporated in 1913 in Washington.  With over 12,000



 members, headquarters are in Seattle with branch offices in



 Bellingham, Everett, Tacoma, and Olympia.  The purpose of the



 Mountaineers is to explore and study the mountains, forests, and



 watercourses of the Northwest, and to encourage their




 preservation and protection.  The Mountaineers has active canoe,



 kayak, and sailing clubs, and publishes roar^y books regarding




water resources in the Northwest.  In addition, the Mountaineers



has commented on various Federal and State water quality

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programs.   The  interests of the Mountaineers and its members have



been,  are  being,  and  unless the relief prayed herein is granted,



will be  adversely affected by the failure of WDOE to restrict the



discharge  of  pollutants as required by the Clean Water Act and



implementing  regulations.



     National Audubon Society, Inc. (Audubon) is a non-profit



environmental organization incorporated in 1905 in New York.



Audubon  has approximately 500,000 members nationwide, and



approximately 16,000  members in 25 chapters across Washington



State.   Audubon actively works on preserving and protecting water



quality  in Washington State.  The recent oil spill prevention



bill,  Audubonrs wetlands protection campaign WETNET, the creation



of the Puget  Sound Water Quality Authority, and passage of 1-97



all owe  at least  partial success to Audubon's direct involvement.



The interests of  Audubon and its members have been, are being,



and unless the  relief prayed herein is granted, will be adversely



affected by the failure of WDOE to restrict the discharge of



pollutants as required by the Clean Water Act and implementing



regulations.



     The National Toxics Campaign  (NTC) is a non-profit



organization  working  to develop and implement solutions to  the



toxics crisis.  NTC is grassroots based, encompassing a network



of over  1,500 community, state, and regional groups  and over



100,000  individual members.  Incorporated ip Delaware in  1987,



NTC's national  office is in Boston, Massachusetts.   NTC's office



in Washington State is in Seattle and has over 60 local or  state

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 groups  on the  mailing list.  NTC has produced several


 publications on water quality, has worked to target industrial


 dischargers into Puget Sound, and maintains the Citizen's


 Environmental  Testing Laboratory to provide high quality low cost


 water testing  for concerned citizens.  The interests of NTC and


 its  members have been, are being, and unless the relief prayed


 herein  is granted, will be adversely affected by the failure of
                                               •

 WDOE to restrict the discharge of pollutants as required by the


 Clean Water Act and implementing regulations.


     Puget Sound Alliance (the Alliance) is a non-profit


 organization founded in Washington State in 1984 by more than 50


 Washington environmental groups and businesses for the


 preservation and enhancement of Puget Sound.  Protecting water


 quality and enforcing the Clean Water Act are primary goals of


 the  1,100 member group.  Major activities have included a


 citizens'  wetlands monitoring program called "Wetlands Watch,"


 and  the Puget  Soundkeeper Program consisting of regular Puget


 Sound pollution patrols and citizen monitoring, as well as public


 education about Puget Sound water quality issues.  The interests


 of the  Alliance and its members have been, are being, and unless


 the  relief prayed herein is granted, will be adversely affected


 by the  failure of WDOE to restrict the discharge of pollutants as


 required  by the Clean Water Act and implementing regulations.


     The  Sierra Club,  Inc. is a non-profit%corporation organized


under the  laws of the State of California, with its principal


place of business in San Francisco and other offices throughout

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 the  nation.   The Sierra Club is  a  conservation organization with



 more than 629^000 members nationwide,  including more than 15,000



 in the  State of Washington.   The Sierra  Club is dedicated to



 protecting natural resources,  including  the waters of the state



 and  all that depend on them.   Members  of the Sierra Club live,



 own  property,  or recreate in the vicinity of waters of the State



 of Washington.   The quality  of the waters of Washington State



 affects the health, economic,  recreational, aesthetic,



 scientific,  and conservation interests of the Sierra Club and its



 members.   The interests of the Sierra  Club and its members have



 been, are being,  and unless  the  relief prayed herein is granted,



 will be adversely affected by the  failure of WDOE to -restrict the



 discharge of pollutants as required by the Clean Water Act and



 implementing regulations.



      Washington Environmental Council, Inc.  (WEC), is a non-



 profit  corporation whose purpose is to advocate pollution



 prevention in Washington State.  WEC was founded in 1968 in the



 State of. Washington and has  its  principal place of business in



 Seattle.   WEC is  a statewide citizens' environmental organization



 composed  of  95  affiliated organizations  and  1200 individual



 members.   Members of the WEC use the waters  of the state for



 fishing,  boating,  swimming,  recreation,  and  other uses.  WEC  has




 been involved in  most issues relating  to water pollution control



 and prevention  in the state,  including the%formation  of the WDOE



 and the enactment of the Washington State Clean Water Act, the




State Environmental Protection Act, and  the  Model Toxics Control

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Act, among others.  The interests of the Washington Environmental



Council  and  its members have been, are being, and unless the



relief prayed herein is granted, will be adversely affected by



the  failure  of WDOE to restrict the discharge of pollutants as



required by  the Clean Water Act and implementing regulations.



     Washington Toxics Coalition (WTC) is a non-profit



environmental organization founded in 1981 in the State of



Washington.  With approximately 35 member groups and over 1,200



individual members, WTC works statewide to reduce reliance on



toxic chemicals.  WTC is involved in the protection of water



quality  and  addresses issues such as groundwater protection and



pesticide reform as well as the use of industrial toxics and



household hazardous products.  WTC routinely reviews and comments



on proposed  regulations, legislation, and programs in these



areas.   The  interests of the Washington Toxics Coalition and its



members  have been, are being, and unless the relief prayed herein



is granted,  will be adversely affected by the failure of WDOE to



restrict the discharge of pollutants as required by the Clean



Water Act and implementing regulations.




                               II.



                  LEGAL  AND FACTUAL  BACKGROUND



A.   The Legal Basis of Washington's NPDES Permit Program.



     Section 402(b) of the Clean Water Act, 33 U.S.C. § 1342(b)



(the Act),  authorizes the Administrator of the EPA to delegate




authority to any state to administer its own NPDES permit  program



for discharges of pollutants into navigable waters within  its






                                10

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 jurisdiction unless the Administrator determines that the state

 program lacks certain specified  features.  See. 33 U.S.C. §

 1342(b)(1)  through (9).   Section 304(i) of the Act requires EPA

 to  establish standards and  guidelines for the delegation of this

 permit authority to individual states.  33 U.S.C. § 1314(i).

 These agency standards and  guidelines are set forth in 40 C.F.R.

 Part  123.

      Pursuant to these authorities, on or around November 9,

 1973,  the  Environmental Protection Agency and Washington State

 signed the Memorandum of Agreement  (MOA) by which EPA approved

 Washington's NPDES permit program and delegated authority to the

 State to operate- the program  in  accordance with the requirements

 of  the Clean Water Act.   The  Memorandum of Agreement, most

 recently updated on August  15, 1989, provides in pertinent part

 that:

      Ecology will administer  the NPDES program in accordance with
      section 402 of the Federal  Clean Water Act[,]...applicable
      State  legal authority, the  requirements of 40 CFR Parts 122-
      125 and any other applicable Federal regulations, and the
    .  a-nnual State 106 program plan.  Ecology has the primary
      responsibility to establish State NPDES program priorities
     which  are consistent with national NPDES goals and
      obj ectives.

Memorandum  of Agreement Between  the Washington Department of

Ecology  and the  United States Environmental Protection Agency

Region 10,  dated.August 15.. 1989.- at 1, attached hereto  as

Exhibit A.   The  MOA also contains specific mandates for  the
                                           I
operation of the NPDES program,  including that WDOE will:

     Develop and maintain,  to the maximum extent possible,  the
     legal  authority (including  State regulations) and the
     resources required  to  carry out all aspects of the  NPDES

                                11

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      program.

      Process  in  a  timely manner and propose to issue, reissue, or
      modify all  NPDES permits.

      Comprehensively evaluate and assess compliance with
      schedules,  effluent limitations and other conditions in
      permits....

      Maintain a  vigorous enforcement program by taking timely and
      appropriate actions in accordance with the CWA....

      Maintain an adequate public file at the appropriate regional
      or central  office....

 MOA at 2..

      On an annual  basis WDOE and EPA enter into the State/EPA

 Agreement (SEA), which renews and confirms the initial delegation

 of  authority  contained in the Memorandum of Agreement.  The SEA

 for Fiscal tfear  1991 requires that WDOE implement the Efficiency

 Commission recommendations regarding permit issuance and permit

 fees;  develop and  implement a public involvement strategy for the

 NPDES  program; and complete all four phases of the Wastewater

 Discharge Information System (WDIS) by April 30, 1991.  The SEA

 also notes that  an unusual number of NPDES permit appeals are

 anticipated,  adding to WDOE's workload.  See. Washington State

 and Environmental  Protection Agency Agreement: Fiscal Year 1991,

 dated July 1990, at WQ-37 through WQ-52, pertinent pages attached

 hereto as  Exhibit  B.

     The legal authority of the Washington State Department  of

Ecology to operate the water pollution control permit program  is
                                12

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set forth in RCW 90.48.260 and WAC 173-06-010.2  The permit

program is administered by WDOE according to the terms of WAC

173-220.

B.   The Failure of Washington's NPDES Permit Program.

     Despite being one of the first delegated programs in the

country, the Washington State NPDES permit program is  rife with

inadequacies, confusion, and failures.  For years the  Washington

Department of Ecology has been unable or unwilling to  carry  out

even a minimally adequate pollution discharge permit program.

The failings of the program are pervasive; adversely affected

components of the NPDES permit program include (1)  permitting

existing dischargers and regulating toxics; (2)  funding;  (3)

enforcement and inspection; and (4) data management and

organization.  In addition, despite WDOE's awareness for many

years of the incapacitating problems with the NPDES program,
     2 RCW 90.48.260 provides:

          [t]he department of ecology is hereby designated as the
     State Water Pollution Control Agency for all purposes of the
     federal clean water act as it exists on February 4, 1987,
     and is hereby authorized to participate fully in the
     programs of the act as well as to take all action necessary
     to secure to the state the benefits and to meet the
     requirements of that act....The powers granted herein
     include, among others...the following:
          (1)  Complete authority to establish and administer a
     comprehensive state point source waste discharge or
     pollution discharge elimination permit program which will
     enable the department to qualify for full participation in
     any national waste discharge or pollution discharge
     elimination permit system and will allow the department to
     be the sole agency issuing permits required by such national
     system operating in the state of Washington....
                                13

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 improvement within the program is still not discernible.



     The problems with Washington's NPDES permit program are not



 new.  Over the past half-decade, a number of reports have



 documented fundamental failings in the program and have called




 for  significant reforms.



     In 1985, Greenpeace compared existing and reissued permits



 for  16 major  industrial dischargers, which was published as



 "License to Pollute:  The National Pollutant Discharge



 Elimination System in Washington State" (License to Pollute).



 License to Pollute documented that 87.5% of the reissued permits



 had  been weakened in one pollutant category or more, and 50% had



 been weakened in three pollutant categories or more.  A clear



 majority of the comparable permit categories were weaker in the



 renewed permit.  "License to Pollute:  The National Pollutant



 Discharge Elimination System in Washington State" prepared by



 James Puckett, Ralph Dodds, and Lisa Crosby, dated May 21, 1985



 at 25, pertinent pages attached hereto as Exhibit C.  License to



 Pollute also  documented inadequate enforcement of permit limits



 and minimal public participation in the NPDES program due to



 deficiencies  in the public notification process.  License to



 Pollute at 27, 25.




     EPA itself has expressed concern with the number of



unpermitted water pollution dischargers in Washington State.   In



response to concerns regarding the FY 86 Washington SEA, Regional



Administrator Ernesta B. Barnes stated that:  "[w]e regard  the




elimination of the NPDES permit backlog as a top  priority,  since






                                14

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permits are the foundation of water pollution control."  Letter

dated June 10, 1985, to Mr. David E. Ortman, Friends of the

Earth, from Regional Administrator Ernesta B. Barnes at 1,

attached hereto as Exhibit D.

     In May 1986, the Puget Sound Water Quality Authority Issue

Paper entitled Industrial and Municipal Discharges found

weaknesses in all components of the Washington National Pollutant

Discharge Elimination System program:

•    There is no systematic program to detect unpermitted
     discharges....

•    Discharge permits typically include limits on only a few
     contaminants, generally the conventional pollutants;-very
     few permits include limits on toxicants.

•    ...Renewed permits have sometimes included less stringent
     effluent limits than the expired permits....

•    Twenty-four percent of major permits and 53 percent of minor
     permits are expired, circumventing the review and upgrade
     that is intended by the five-year term of the permit; the
     backlog is not being reduced....

•    State ambient water quality standards include specific
     standards for only six parameters—all conventional
     pollutants—despite the existence of EPA guidelines for
     other pollutants....

•    Agency resources are insufficient:  Ecology cites a 1985
     workload analysis showing it has resources to carry out only
     24 percent of needed water quality enforcement
     activities....

•     Inspections are generally scheduled in advance, raising
     questions about the validity of the inspection.  There is
     very little independent verification by Ecology or EPA of
     self-monitoring reports.

•     Despite the development of Ecology's npre stringent
     enforcement policy in February 1985, 41 percent of major
     dischargers statewide were in significant noncompliance at
     some time during July through December 1985.  Many of these
     noncomplying dischargers were not subject to administrative
     orders or civil penalties....

                                15

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Industrial and Municipal Discharges. Puget Sound Water Quality



Authority Issue Paper, May 1986 at vi-vii, pertinent pages



attached hereto as Exhibit E.



     The Puget Sound Water Quality Authority issued the 1987



Puqet Sound Water Quality Management Plan confirming the



deficiencies in the NPDES program, and proposed an Action Plan to



address municipal and industrial discharges of pollutants, among



other Puget Sound water quality problems.  The major features of



the proposed Action Plan for the NPDES program included:  the



adoption of criteria for toxics, sediments, and the definition of



dilution zones; incorporation of comprehensive monitoring and



appropriate toxics limits within NPDES permits; increased



enforcement and inspection; increased funding to cover permit



related costs; increased public participation and education;



increased discovery of unpermitted discharges; the use of



certified labs; implementation of pretreatment requirements; and



the increased remediation of contaminated sites.  See. 1987 Puget



Sound Water Quality Management Plan. January 1987, at xi, 5-31



through 5-49, pertinent pages attached hereto as Exhibit  F.



     The 1991 Puget Sound Management Plan adopted on November 21,



1990 (1991 Plan), affirms many of the problems in the NPDES



program identified in earlier Plans.  For example, the  1991  Plan



concludes that the majority of permits still do not adequately



limit toxic discharges; monitoring is stil^L weak; most  types of



inspections remain infrequent and all are announced;  there  is




still no effective program to detect unpermitted dischargers;






                                16

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self-monitoring  continues to be unverified; and funding remains

below program  needs.  See.  1991 Puget Sound Management Plan at

207-241, pertinent pages attached hereto as Exhibit G.

     The ongoing failings of the WDOE NPDES program were most

recently revealed by the Washington State Commission on

Efficiency  and Accountability  in Government, which published the

Department  of  Ecology Wastewater Discharge Permit Study in

December 1990  (Efficiency Commission Report).  The Efficiency

Commission  Report echoes on a  statewide basis the earlier

concerns and findings of the Puget Sound Water Quality Authority,

Greenpeace, and  Region  10 EPA.  Specifically, the Efficiency

Commission  Report concluded that:

•    At present,  approximately 1,050 dischargers are under permit
     with approximately two-thirds (664) out-of-date.  Staff are
     unable to keep up  with renewals of existing permits and
     issue  new permits.  The universe of unpermitted dischargers
     is estimated to be approximately 10,000.  With present
     resources,  it is unclear  when or if the permit program will
     ever catch  up.

•    Revenue from current fees falls short of existing program
     expenditures and well  short of program needs....

•    [There is currently] a serious backlog of unissued or
     expired permits....

•    Growth and  change  [in  WDOE] have been superimposed on a
     permit program that has been historically understaffed....

•    [There is currently] an inadequate compliance program...

•     [There is currently] turmoil in the program and...it  [is]
     difficult to find  solid data to analyze	

•     [C]urrent service  will continue to be ^inadequate to meet the
     state's water quality  mandates....

•     Lacking -technical  support, permits are  issued with
     inadequate  technical content or are not issued  at all....


                                17

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 •    There  is no uniform records management system to support the
     maintenance and acquisition of permit material.

 Department  of Ecology, Wastewater Discharge Permit Study, Final

 Report, December 1990, at 1-6, 51, pertinent pages attached

 hereto as Exhibit H.

     Two recent developments in Washington State also make it

 impossible  for WDOE to perform its mandatory duties with regard

 to  the delegated NPDES program.  First, in a lawsuit brought by

 three pulp  and paper mills against WDOE, the Superior Court of

 Washington  ruled that Washington's narrative water quality

 standard was unconstitutionally vague as applied to the

 regulation  of the priority pollutant 2,3,7,8 tetrachlorodibenzo-

 p-dioxin  (2,3,7,8-TCDD) .  Moreover, the court enjoined WDOE from

 enforcing the numeric standard for 2,3,7,8-TCDD until WDOE has

 completed proper rulemaking for 2,3,7,8-TCDD.  See. Simpson

 Tacoma Kraft Co. et al. v. Department of Ecolocrv. Thurston County

 Cause Nos.  90-2-00398-9, 90-2-00399-7,  90-2-00400-4, Memorandum

 Opinion dated December 12, 1990, at 6,  attached hereto as Exhibit

 I.  Although the case is on appeal, WDOE and the mills have

 interpreted this ruling to preclude regulation of 2,3.7,8-TCDD in

NPDES permits for the period of time it takes for either

rulemaking to occur or to reach a different ruling on appeal—

neither likely to be concluded within the period cf time in which

the permits are scheduled to be reissued for dischargers of
                                           »
2,3,7,8-TCDD.

     Second, the WDOE has recently entered into proposed

settlement agreements with thirteen major wastewater dischargers

                                18

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 and  the Northwest Pulp and Paper Association on behalf of all of



 its  members regarding their NPDES permits.  The settlement



 agreements (1)  attempt to preclude citizen  suits by removing



 permit conditions into separate Administrative Orders; (2)



 preclude reopening the permit based on  oyster larvae bioassay



 data,  despite expected mortality; (3) do  not require chronic



 bioassays until 15 months after issuance  of the permit;  (4)



 provide that sediment monitoring plans  are  to be submitted in 15



 months for WDOE approval, with no timeframe for such approval,



 and  that monitoring must be completed within 12 months.  A



 reduced sediment monitoring plan can be approved under several



 easily met exceptions; and (5)  contain  no provisions that WDOE



 will timely approve study plans,  promulgate whole effluent



 toxicity standards,  reopen permits or take  other regulatory



 action if the data so warrant,  or enforce properly the permit



 conditions.   Under urging of environmental  organizations to



 reject the proposed settlement agreements,  on May 6, 1991, the



 non-industry parties to the proposed settlement agreements agreed



 to renegotiate  the oyster larvae bioassay,  time delay, and



 sampling  components  of the agreements.  It  is unclear what,  if



 any,  effect  such limited renegotiation  will have.



     In sum,  the Washington State NPDES permit program suffers



 from chronic  and ongoing inadequacies in  every important aspect



of the program.   These failures include th^ high numbers of



unpermitted dischargers and expired permits, lack of toxics



regulation, the  weakening of permit conditions,  inadequate





                                19

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 funding,  enforcement, compliance, and inspection, and the

 disarray  of  important data.  Some of these failings have been

 documented since at least 1985 and significant improvement does

 not appear likely within the foreseeable future without EPA

 involvement.

                               III.

  GROUNDS FOR WITHDRAWING APPROVAL OF WASHINGTON'S NPDES  PROGRAM

 A.    Statutory  Basis for Withdrawal of Authority=

      Section 402(c)(3) of the Clean Water Act, 33 U.S.C. §

 1342(c)(3) provides that:

          Whenever the Administrator determines after public
          hearing that a State is not administering a program
          approved under this section in accordance with the
          requirements of this section, he shall  so notify the
          State and, if appropriate corrective action is not
          taken within a reasonable time, not to  exceed ninety
          days, the Administrator shall withdraw  approval of such
          program.  The Administrator shall not withdraw approval
          of any such program unless he shall first have notified
          the State, and made public, in writing, the reasons for
          such  withdrawal.

      The  regulations implementing this section of the Clean Water

Act  provide  a number of specific situations in which the

Administrator is authorized to withdraw approval  of a State NPDES

permit program.  Any one of these conditions constitutes a

separate  and  independent basis for requiring corrective action  or

withdrawal of the State's authority to administer the NPDES

permit program.  Such situations include when  (1) the state  fails

to promulgate necessary new authority; (2) the state legislature

or a court strikes down or limits necessary state authority  to

administer the program; (3) the state fails "to exercise control
                                20

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 over activities required to be regulated  under  [the permit

 program],  including the failure to issue  permits";  (4) the state

 repeatedly issues permits that do  not  conform to the  requirements

 of the Act; (4) the state permit program- fails  to meet the public

 participation requirements of the  Act;  (5)  the  state  fails "to

 act on violations of permits or other  program requirements";  (6)

 the state fails "to seek adequate  enforcement penalties or to

 collect administrative fines when  imposed";  (7) the state fails

 to inspect and monitor activities  subject to regulation;  (8) the

 state's NPDES program does not comply  with the  terms  of the

 Memorandum of Agreement between that state and  EPA; or (9) "the

 State fails to develop an adequate regulatory program for

 developing water-quality based effluent limits  in NPDES permits."

 See 40 C.F.R § 123.63.

      As explained below, the State of  Washington's NPDES permit

 program fails to meet the requirements of the Clean Water Act and

 its implementing regulations for continuation of the  state • s

 authority  to administer the permit program.

 B.    Washington State's NPDES Permit Program Fails to Meet the
      Recruirements of the Law.

      Washington State's NPDES permit program fails to meet the

 requirements of the Clean Water Act and its implementing

 regulations in at least the following  ways,  any one  of which

would  require  corrective action or withdrawal of the  State's
                                           I
authority  to administer the permit program.  In combination,

these  failings demonstrate conclusively the need for  immediate

and significant corrective action,  and if not undertaken,

                                21

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withdrawal of program authority:



     (a)  WDOE failed to promulgate Individual  Control  Strategies



          (ICSs)  for 2,3,7,8-TCDD for Washington State  sufficient



          to achieve the applicable water quality standards as



          required by 33 U.S.C.  § 1314(1).   Columbia  River United



          and the Sierra Club were compelled to bring suit to



          force the promulgation  of ICSs  in  Washington  State.



          The failure of the State to promulgate or enact



          necessary new authorities is a  circumstance warranting



          withdrawal of the NPDES program approval.



     (b)  The Thurston County Superior Court decision



          invalidating the narrative water quality standard and



          enjoining permit limits for 2,3,7,8-TCDD; the proposed



          Settlement Agreements and Administrative Orders



          regarding the thirteen  dischargers and NWPPA  members;



          and the historic and ongoing under funding of  the WDOE



          are each actions by the Washington State courts  or



          legislature that limit  the authority  necessary to carry



          out the NPDES program and thus  require withdrawal of



          authority.




     (c)   The large number of unpermitted dischargers and  expired



          permits in Washington State reveals a failure to issue



          NPDES permits and exercise control over regulated



          activities that requires withdrawal of authority-




     (d)   The proposed Settlement Agreements and Administrative




          Orders  complicate citizen involvement and  the ability






                               22

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     to get information,  the Wastewater Discharge



     Information System is currently in Phase I despite the



     SEA requiring completion of Phase IV by April 30,  1991,



     and routine requests for information are often



     unfulfilled due to poor data management or the complete



     lack of data.  These failures to comply with public



     participation requirements require that the EPA



     withdraw program approval.



(e)  The State's failures to take adequate and timely



     enforcement actions and to seek and collect adequate



     penalties are failures to act on violations of permits



     or other program requirements that require withdrawal



     of authority.



(f)  The lack of regular frequent inspection and the



     complete lack of unannounced inspections is a failure



     to inspect or monitor regulated activities that



     requires withdrawal of authority.



(g)  As required by the Memorandum of Agreement, WDOE has



     not developed and maintained legal authority and



     resources to carry out all aspects of NPDES program;



     issued,  reissued,  or modified in a timely manner all



     NPDES permits; comprehensively assessed compliance with



     permit conditions; taken timely and appropriate



     enforcement actions; or maintained an adequate public



     file, all of which requires EPA to- withdraw approval



     for the NPDES program.






                           23

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      (h)  As discussed above, the failure of WDOE to promulgate



          adequate ICSs reveals a failure to develop water



          quality based effluent limits that requires withdrawal




          of program approval.








      In  sum, for at least the last seven years the State of



 Washington's NPDES permit program has suffered from chronic and



 uncorrected inadequacies in every important aspect of the



 program,  including permitting existing dischargers and regulating



 toxics,  funding, enforcement and inspection, data management and



 organization, and the improvement of program scope and



 capabilities.  There is no evidence that these serious defects



 will  be  corrected by the State.  Accordingly, as required by



 section  402(c) of the Clean Water Act, after determining that the



 State is not administering the program properly, the EPA must



 compel corrective action to be taken by WDOE within 90 days.  If



 corrective action is not so taken,  EPA must withdraw the State's



 authority to administer the NPDES permit program and must resume



 administration of that program itself.




                            CONCLUSION



     Washington's NPDES permit program seriously and



 substantially fails to comply with the requirements for a



delegated state program pursuant to the Clean Water Act and  its



 implementing regulations.  On behalf of the» organizations



 identified above, we petition you to immediately compel



corrective action of the WDOE, and, if such action is not






                                24

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undertaken within  90 days, to withdraw your delegation of

authority to the State of Washington to operate an NPDES permit

program under  § 402 of the Clean Water Act.
DATED:  This  6th day of May, 1991.
                                   Respectfully submitted,
                                   VICTOR M. SHER
                                   TODD D. TRUE
                                   REBECCA E. TODD
                                   Sierra Club Legal Defense
                                        Fund, Inc.
                                   216 First Ave. S., Suite 330
                                   Seattle, WA 98104
                                   (206) 343-7340

                                   Attorneys for Petitioners

cc:

     William K. Reilly, Administrator EPA
     Dana Rasmussen, Region X Administrator
     Marian Atkinson, Region X Hearings Officer
     Christine Gregoire, Director; Department of Ecology
     Carol Jolly, Assistant Director Water and Shorelands
     Michael Llewellyn, Department of Ecology
     Nancy McKay, Executive Director, Puget Sound Water Quality
          Authority
     Kenneth Eikenberry, Attorney General
     Booth Gardner, Governor
                                25

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                               Appendix 1-2


                 SUMMATION OF PUBLIC WORKSHOPS
      The Environmental Protection Agency held initial meetings with the petitioners and
Ecology to discuss the allegations and EPA's proposed approach for reviewing the state's
NPDES program.   During its meeting with the  petitioners, EPA was asked to solicit
additional input to the allegations from a variety of citizens around the state.  In order to
gather that input, EPA held four informal public workshops in; Port Angeles and Spokane
on August 13, 1991, and Seattle and Vancouver on August 14, 1991. The workshops
were attended by  approximately 40 individuals in Spokane; 19 in Port Angeles, 19 in
Vancouver, and 60 in Seattle. Attendees represented environmental groups, industry, and
state and local agencies.  EPA received both oral and written comments which were
incorporated into the administrative record.  Additionally, the workshop process included
a written comment period until August 31 during which EPA received over 25 comment
letters from individuals, environmental groups, and industries. The comment period  was
informally extended to September 30 as  result of numerous requests. Each of the
proceedings were also tape recorded and the recordings were added to the administrative
record. The following is a listing of some of the issues raised at the workshops:

      •      Many expressed concern over the large number of unpermitted and expired
            permits reported in the Efficiency Commission Report and asked that  EPA
            evaluate the significance of the types of dischargers in these categories.

      •      The review team  was  asked to  evaluate the  number of compliance
            inspections  conducted  by  the  state  and  determine the  number of
            unannounced inspections.   Many were  critical of  Ecology's  lack of
            unannounced inspections, however, one individual representing his  own
            company stated that Ecology had conducted unannounced inspections at
            his facility.

      •      Ecology was criticized for not adopting health based criteria.

      •      EPA was asked to  evaluate Ecology's penalty  policy and determine if
            penalties had been inappropriately reduced through negotiations.

      •      Individuals at all four workshops expressed  concern over Ecology's public
            participation process associated with  NPDES permit  issuance.  Others
            expressed frustration over not being able to receive information regarding
            specific permits and stated that  Ecology  is  generally unresponsive to
            informational requests.

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 Many were concerned that if the program was withdrawn from Ecology,
 EPA would lack the resources to effectively run the program. Some believed
 that Ecology  should correct  identified  problems  and  carry  on with
 implementing the program.

 It was stated that Ecology should implement the recommendations contained
 in the Puget Sound Water Quality Management Plan and that federal and
 state actions should be consistent with that plan.

 Many commenters requested that interested citizens be able to participate
 with EPA and Ecology in the development of a Corrective Action Plan. Some
 doubted that  an  adequate plan  could  be developed without citizen
 involvement.

 It was stated  that Ecology was allowing too  many open-ended deadlines
 in its permits and that there were too many delays in requiring whole effluent
 toxicity testing.

 EPA was asked to describe its performance in  issuing NPDES permits in the
 other two non-delegated states.  EPA was  also  criticized for having  a
 backlog of NPDES  permits.

 Ecology was criticized for not fully recovering the cost of issuing  permits
 through its permit fee system.

 It was stated that EPA should use the Efficiency Commission Report, the
 Puget Sound Water  Quality Management Plan and License to  Pollute
 (Greenpeace 1985) in its evaluation of Ecology's Program.

 Many questioned the status of Ecology's Permit Writer's Manual and stated
that development/publication of the manual was far behind schedule.

Some attendees were concerned over the  cost efficiency of Ecology's
program.

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                           Appendix 1-3
   United States               Reaion 10
   Environmental Protection         , |QO Sixth Avenue             Idaho
                        Seattle WA 98101             Oregon
           .	Washington
£EPA
                              JAN 1 0 1992
     Reply To
     Attn Of:  WD-085

     Rebecca Todd
     Sierra Club Legal Defense Fund, Inc.
     216 First Avenue South, Suite 330
     Seattle, Washington 98104

     Dear Ms. Todd:

          Please find enclosed a copy of the Summary of Findings of
     our informal investigation to the May 6, 1991, petition for
     corrective action or withdrawal of authority of the National
     Pollutant Discharge Elimination System  (NPDES) program for the
     state of Washington.  The report is currently undergoing final
     Environmental Protection Agency (EPA) review and is expected to
     be released by the end of the month.  While the entire audit has
     taken longer than anticipated, I believe it is a thorough and
     objective investigation of Washington's NPDES program.

          EPA's regulations allow the Agency to initiate an informal
     investigation of the allegations contained in the petition.  EPA
     would then determine if cause exists to commence formal
     withdrawal proceedings.  On July 3, 1991, the Assistant
     Administrator for Water, LaJuana S. Wilcher, announced her
     decision to commence the informal investigation.

          On August,  20-22, 1991, EPA conducted a three-day on-site
     audit of Ecology's NPDES program.   EPA interviewed Ecology staff
     and management;  reviewed program files; and evaluated relevant
     documents regarding permit development and issuance, compliance
     activities,  enforcement, information systems, organization and
     management,  and  pretreatment.

          The audit team, consisting of EPA Headquarters staff and
     staff from our Regional Office, have concluded that Ecology is
     committed to implementing a quality NPDES program.  The audit
     team found some  problems with the program, but are confident that
     these problems can be corrected.  We believe that the most
     effective means  for resolving these problems would be for Ecology
     and EPA to enter into an agreement that addresses the corrective
     actions listed in the report.  Therefore, we have decided to
     defer our decision on whether to commence formal withdrawal
     proceedings  to allow Ecology time to respond to our report by
     submitting a Corrective Action Plan (CAP).

          We are  requiring Ecology to submit a CAP to us by
     April 30,  1992.   We recommend that the CAP be subject to a public
     participation process.  As a suggestion, Ecology might consider
     using the existing Permit Advisory Committee as a forum for

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preparing the CAP or other comparable processes.  Additionally,
the CAP must contain specific actions, milestones, and final
dates for the corrective actions to take place.  EPA is prepared
to work closely with Ecology to develop and implement the CAP.

     Again, we intend to release the final report by the end of
the month.  Please contact me if you have any questions.

                              Sincerely,
                              Dana A.  Rasmussen
                              Regional Administrator
Enclosures

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   United States               Region 10                 Alaska
   Environmental Protection         1200 Sixth Avenue            Idaho
   Agency                  Seattle WA 98101             Oregon
   	         Washington
&EPA
                                JAN 1 0 1882
     Reply To
     Attn Of:  WD-085

     Christine Gregoire, Director
     Washington Department of Ecology
     M/S PV-ll
     Olympia, Washington 98504

     Dear Ms. Gregoire:

          Please find enclosed a copy of the Summary of Findings of
     our informal investigation to the May 6,  1991,  petition for
     corrective action or withdrawal of authority of the National
     Pollutant Discharge Elimination System (NPDES)  program for the
     state of Washington.  The report is currently undergoing final
     Environmental Protection Agency (EPA)  review and is expected to
     be released by the end of the month.   While the entire audit has
     taken longer than anticipated, I believe it is a thorough and
     objective investigation of Washington's NPDES program.

          EPA's regulations allow the Agency to initiate an informal
     investigation of the allegations contained in the petition.  EPA
     would then determine if cause exists to commence formal
     withdrawal proceedings.  On July 3, 1991,  the Assistant
     Administrator for Water, LaJuana S. Wilcher, announced her
     decision to commence the informal investigation.

          On August,  20-22, 1991, EPA conducted a three-day on-site
     audit of Ecology's NPDES program.   EPA interviewed Ecology staff
     and management;  reviewed program files; and evaluated relevant
     documents regarding permit development and issuance, compliance
     activities,  enforcement, information systems, organization and
     management,  and  pretreatment.

          The audit team, consisting of EPA Headquarters staff and
     staff from our Regional Office, have concluded that Ecology is
     committed to implementing a quality NPDES program.  The audit
     team found some  problems with the program, but are confident that
     these problems can be corrected.  We believe that the most
     effective means  for resolving these .problems would be for Ecology
     and EPA to enter into an agreement that addresses the corrective
     actions listed in the report.   Therefore,  we have decided to
     defer our decision on whether to commence formal withdrawal
     proceedings  to allow Ecology time to respond to our report by
     submitting a Corrective Action Plan (CAP).

          We are  requiring Ecology to submit a CAP to us by
     April  30,  1992.   We recommend that the CAP be subject to a public
     participation process.   As a suggestion,  Ecology might consider
     using  the existing Permit Advisory Committee as a forum for

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preparing the CAP or other comparable processes.  Additionally,
the CAP must contain specific actions, milestones, and final
dates for the corrective actions to take place.  EPA is prepared
to work closely with Ecology to develop and implement the CAP.

     Again, we intend to release the final report by the end of
the month.  Please contact me if you have any questions.

                              Sincerely,
                              Dana A.  Rasmussen
                              Regional Administrator
Enclosures

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   Un-ted States               Reg          --        Alaska
   Environmental Protection         1200 Sixth Avenue            Idaho
   A9ency                  Seattle WA 98101             Oregon
                                               Washington

f/EPA
                                    M*.3  3 1991
     Reply To
     Attn Of:    WD-139
     Christine Gregoire, Director
     Washington Department of Ecology
     Mail  Stop PV-ll
     Olympia,  Washington 98504

     Dear  Ms.  Gregoire,

           I  have enclosed the Environmental Protection Agency's  (EPA)
     notice  of final decisions for the state of Washington's lists
     developed and submitted to EPA under section 304(1) of the  Clean
     Water Act.   In addition to issuing final decisions on the listing
     actions EPA proposed on June 9, 1989, I am proposing to add one
     waterbody to the lists of impaired waterbodies, including the
     section 304(1)(1)(B) list (the "short" list), and one source to
     the section 304(1)(1)(C) list.

           I  am also conditionally approving individual control
     strategies (ICSs)  for eight facilities.  The specific conditions
     on which  they are approved are outlined in the notice.

           Our  actions are summarized below:

           List                     Action

           304(1)(1)(A)(i)          Approve the final list as submitted
                                    by the state on March 16, 1989.

           304(1)(1)(A)(ii)          Approve the final list as submitted
                                    by the state on March 16, 1989.
                                    Propose to add Port Angeles Harbor.

           304(1)(1)(B)              List six waterbodies and propose to
                                    add Port Angeles Harbor.  Delete
                                    six waterbodies from the list
                                    presented by EPA for public comment
                                    on June 9, 1989.

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     304(l)(l)(C)             List 10 sources and propose to add
                              ITT Rayonier Co. in Port Angeles.
                              Delete all sources associated with
                              the six waterbodies deleted from
                              the 304(1)(1)(B) list.

     304(1)(1)(D)             Conditionally approve individual
                              control strategies for eight pulp
                              and paper mills.

     As you are aware, all sources on the final section
304(1)(1)(C)  list require individual control strategies.  My
staff will continue working closely with your Department to
finalize permits.

     As a result of EPA's proposed addition to the waterbody and
source lists, EPA will begin a 30-day public comment period only
on the proposed additions.  All other listing decisions are final
Agency actions.   The public comment period on the proposed
additions will end on April 15, 1991.

     We appreciate the efforts of the state in developing these
lists.  If you have any questions concerning this notice, please
call me or have your staff contact Judith Leckrone of the Office
of Water Planning, Water Quality Section,  at (206)  553-6911.


                                   Sincerely,
                                   Dana A. Rasmussen
                                   Regional Administrator
Enclosure

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               U.S.  ENVIRONMENTAL PROTECTION AGENCY
                            REGION 10
                        1200 SIXTH AVENUE
                    SEATTLE, WASHINGTON 98101


I.   NOTICE OF THE UNITED STATES ENVIRONMENTAL PROTECTION
     AGENCY'S DECISIONS ON THE LISTING OF WATERS, POINT SOURCES
     AND POLLUTANTS FOR THE STATE OF WASHINGTON UNDER SECTION
     304(1) OF THE CLEAN WATER ACT AS AMENDED BY THE WATER
     QUALITY ACT OF 1987

II.  DESCRIPTION OF SECTION 304(1) REQUIREMENTS:

     Section 304(1) of the Clean Water Act  (the Act) as amended
by the Water Quality Act of 1987 required every state to develop
lists of impaired waters, identify certain point sources and
amounts of pollutants causing toxic impact, and develop
individual control strategies for each identified point source.

     Section 304(1) required the state to submit four lists.  The
first list must include waters which, after application of the
technology-based requirements of section 301(b)(2) of the Act,
cannot reasonably be expected to attain or maintain certain state
numeric water quality standards  (those developed in accordance
with section 303(c)(2)(B) of the Act) for the toxic pollutants
listed under section 307(a) of the Act.  (Paragraph (A)(i) of
section 304(1) required this list.)

     The second list must include all waters which, after
application of the technology-based requirements of section
301(b)(2) of the Act, cannot reasonably be  expected to attain or
maintain water quality standards for any conventional,
nonconventional or toxic pollutant due to any point or nonpoint
source of pollution; this list must also include waters
classified for uses not meeting the fishable or swimmable goals
of the Act.  (Paragraph  (A)(ii) of section  304(1) required this
list.)

     The third list must include waters not meeting numeric or
narrative water quality standards for the toxic pollutants  listed
under section 307(a) of the Act due entirely or substantially to
discharges from point sources.   (Paragraph  (B)  of section 304(1)
required this list, which is often referred to  as the  "short"
list.)

     The fourth list is a list of point sources preventing  or
impairing water quality by discharging the  section  307(a)
pollutants into listed waters.  This list of point  sources  must
include the amount of the 307(a) toxic pollutant which the  point
source discharges into the water.  Pursuant to  EPA  regulations,
the state must develop and submit an individual control  strategy
for each point discharging to a water on the paragraph (B)  list.
The individual control strategy must be a draft or  final National

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Pollutant Discharge Elimination System (NPDES) permit. (40 CFR
123.46(c)) The individual control strategy must be designed to
ensure that applicable water quality standards are achieved no
later than three years after the establishment of the individual
control strategy.

     The deadline for submitting the lists of waters, point
sources, amounts of pollutants and the individual control
strategies by each state to the United States Environmental
Protection Agency (U.S. EPA) was February 4, 1989.  The state of
Washington initially submitted its lists of point sources and
control strategies to U.S. EPA, Region 10, on March 16, 1989.  On
June 9, 1989 the state added a number of waterbodies and sources
to the list.

     Not later than 120 days after the deadline for submitting
the lists and individual control strategies to the U.S. EPA, the
U.S. EPA was to approve or disapprove the lists and control
strategies.  If a state failed to submit a list or control
strategy, or the U.S. EPA did not approve a list or control
strategy, the U.S. EPA, in cooperation with the state and after
opportunity for public comment, must develop the lists and
control strategies.

     The U.S. EPA, Region 10, issued a decision on June 9, 1989,
that approved in part, and disapproved in part, the state of
Washington's submissions under section 304(1).  The three lists
of impaired waterbodies and the list of sources were approved as
submitted.  The individual control strategies for all but one of
the sources were disapproved because they either did not consist
of a draft or final NPDES permit, or because they consisted of an
NPDES permit lacking any documentation that the pollutant(s)
impairing the waterbody were adequately controlled.

     Notice of the U.S. EPA, Region 10, decisions regarding
Washington's section 304(1) lists was published in local
Washington newspapers on June 26, 1989.  This initiated the
120-day public comment period during which the public could
comment on the U.S.  EPA's actions and could petition to add
waters or sources to Washington's lists.  The public comment
period ended on October 24, 1989.

     After the end of the comment period Washington, in close
consultation with EPA, worked to develop individual control
strategies for the listed point sources.  In August and
September, 1990 Washington submitted to EPA draft permits as
individual control strategies for some of the listed point
sources.   The state solicited public comments on these draft
permits through October of 1990.  Since the submission of the
draft permits,  the state has worked cooperatively with the  EPA
toward the goal of issuing the final permits by June 4, 1991.

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     However, on December 11, 1990 the Superior Court of the
State of Washington for Thurston County decided that the state's
use of its narrative water quality criterion to list three paper
mills under section 304(1) and to propose permits for them was
constitutionally invalid under the state constitution.  Simpson
Tacoma Kraft Company v. Department of Ecology. Nos. 90-2-00398-9
(Sup. Ct. County of Thurston, Dec. 11, 1990) . Thus the court
invalidated the listing and enjoined the state of Washington from
using the narrative criterion to develop final permit limits for
three mills—for the moment prohibiting the state from imposing
water quality-based limitations.

     Since the opinion was filed, the U.S. EPA has consulted with
the state of Washington, including its Attorney General]s office
and the Department of Ecology., to seek the state's opinion of
what impact the Superior Court's decision will have on the
state's and on EPA's authority to issue final permits.  In
addition, the U.S. EPA has discussed whether the state will seek
appellate review of the decision.

     After careful consideration, EPA decided to proceed with
today's decisions both to list certain waterbodies and sources
and to approve several individual control strategies.  EPA's
reasoning for both of these decisions is set out below.

     EPA decided to proceed with the listing decision because
both the content of the decision and the public participation
procedures for them would have been the same whether the state or
EPA had listed the waters, making the state court's invalidation
of the listing decision irrelevant.  At this point it would serve
no purpose, excepting delay, to provide a new notice of proposed
decisions as though the state had never submitted the lists.
EPA's regulations regarding notice and comment under section
304(1) (40 CFR 130.10(d)(10)), as well as the underlying finding
in the listing decisions  is the same whether the state submitted
the lists or not.  Therefore, the U.S. EPA  has concluded that the
approval process for each of the waters and point  sources  on the
Washington section 304(1) lists is the constructive equivalent  of
a U.S. EPA listing.

     The U.S. EPA decided to conditionally  approve the draft
permits as individual control strategies  despite the  court's
injunction because the U.S. EPA continues to  believe  that
Washington can issue the  permits by the U.S.  EPA's deadline of
June, 1991.  The State has appealed the decision of  the  Superior
Court, and will request that the  injunction be  lifted.
Furthermore, there are other possible options,  including adoption
of a numeric water quality criterion, that  the  state could
exercise to ensure that adequate permits  are issued.   Therefore,
EPA believes that the state will make every effort to issue

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the permits by June, 1991.  Until the U.S. EPA is convinced
otherwise, we plan to continue to allow the state to retain  its
normal permitting authority.

     There remains the questions of the appropriate water quality
standard to use in the face of the Simpson Tacoma  v- Department
of Ecology decision.  The U.S. EPA's interpretation of the court
opinion is that the court did not invalidate the narrative water
quality criterion itself, it simply invalidated its application
in this case.  Washington's narrative water quality standard
prohibits levels of toxic pollutants  which "may adversely affect
characteristic water uses, cause acute or chronic conditions to
the aquatic biota, or adversely affect public health."  The
Washington Administrative Code (WAG 173-201—047(3) specifically
states that acceptable levels of toxic substances not
specifically assigned a numeric criteria in Washington's
standards "shall be determined in consideration of U.S. EPA's
Water Quality Criteria for Water. 1986, and as revised, and  other
relevant information as appropriate."  EPA approved this
narrative water quality standard pursuant to section 303 of  the
Clean Water Act.  Therefore, the U.S. EPA believes that it is
appropriate to continue to rely on Washington's adopted and
approved narrative water quality criterion as a basis for listing
and implementation of individual control strategies in
Washington.

III. U.S. EPA18 FINAL DECISIONS WITH RESPECT TO LISTS OF WATERS,
     POINT SOURCES, AND POLLUTANTS:

The Section 304(1)(1)(A)(i) List

     The U.S. EPA previously approved the state of Washington's
list of waters required by section 304(1)(1)(A)(i) of the Act.
The U.S. EPA's final decision is to reaffirm the state of
Washington's listing of these 63 waterbodies as submitted on
March 16, 1989.

The section 304(1)(11(A)(ii) List

     The U.S. EPA reaffirms the state of Washington's March  16,
1989 submission of its section 304(1)(1)(A)(ii) list of 208
waterbodies because the listed waterbodies meet the established
criteria.

     The U.S. EPA is adding the following waterbody to the list
required by paragraph (A)(ii):

     Port Angeles Harbor  (WA-18-0020).  The basis for this
     decision is that all waters included on the list required by
     section 304(1)(l) (B) qualify for inclusion on the section
     304(1)(A)(ii) list and Port Angeles Harbor is being added
     today to the Section 304(1)(1)(B) list. (See below.)

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The  Section  3O4(l)(l)fBi
     The  U.S.  EPA has made a final decision to retain the
 following vaterbodies on  the paragraph  (B) list:
Waterbodv Name
Columbia River
Columbia River
Port Gardner/Everett  Harbor
Inner Grays Harbor
Longview Ditches

Outer Commencement  Bay
WA. Waterbodv
ID NO.

WA-CR-1010
WA-CR-1025
WA-07-0010
WA-22-0030
WA-25-5010

WA-10-0010
   Pollutant
   2378-TCDD
   2378-TCDD
   2378-TCDD
   2378-TCDD
   Cd,  Cn,  Cu,  Pb,
   Zn
   2378-TCDD
     The  U.S.  EPA has made a final decision to delete the
 following waterbodies from the paragraph  (B) list.
 City Waterway
 Duwamish Waterway  &  River
 Inner Bellingham Bay
 Inner Commencement Bay
 Lake Union
 Sinclair Inlet
WA-10-0030
WA-09-1010
WA-01-0050
WA-10-0020
WA-08-9340
WA-15-0040
     The U.S.  EPA  is proposing to add the following waterbody to
the paragraph  (B)  list due to exceedances of the applicable
standard for 2378-TCDD, and is soliciting comment on this
proposal.  See Section V. of this notice for additional
information.
Port Angeles Harbor
WA-18-0020
The Section 304 mm (C) List

     The U.S. EPA has made a final decision to retain  the
following point sources on the paragraph  (C) list:

Industrial, Municipal and Federal Dischargers
Name. Location, and NPDES NO.

Boise Cascade, Wallulla
Columbia River
WA-000369-7

ITT Rayonier Inc, Hoquiam
Inner Grays Harbor
WA-000307-7
     Pollutant(s) and Amount

     2378-TCDD  360 ppq  effluent
                 56 ppq  pulp
                 70 ppq  sludge
     2378-TCDD
23 ppq  effluent
47 ppq  sludge

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James River II, Camas
Columbia River
WA-000025-6

Longview Fibre, Longview
Columbia River
WA-000007-8

Reynolds Metals Co., Longview
Longview Ditches
WA-000008-6

Simpson Tacoma Paper Co., Tacoma
Outer Commencement Bay
WA-000085-0

Weyerhaeuser Co., Longview
Columbia River
WA-000012-4

Weyerhaeuser Co., Everett
Port Gardner
WA-000300-0

Weyerhaeuser Co., Cosmopolis
Inner Grays Harbor
WA-000080-9

Weyerhaeuser Wood Products Div.
Longview Ditches
WA-003918-7
     The D.S. EPA is proposing to
to the paragraph (C) list, and is
proposal.  See Section V. of this
information.
 2378-TCDD   12 ppq  sludge
             12 ppq  pulp
 2378-TCDD   60 ppq  sludge
            4.8 ppq  pulp
 Cyanide    270 ug/1 effluent
 2378-TCDD
 2378-TCDD
 2378-TCDD
 2378-TCDD
 Copper
 Lead
 Mercury
 Zinc
39 ppq  sludge
12 ppq  pulp
 10 ppq  effluent
 25 ppq  sludge
7.7 ppq  pulp

 33 ppq  effluent
5.2 ppq  pulp


9.7 ppq  effluent
 12 ppq  sludge


 1.5 Ib/day
 1.5 Ib/day
 .04 Ib/day
 6.1 Ib/day
add the following point source
soliciting comment on this
notice for additional
Industrial. Municipal and Federal Discharqers
Name. Location, and NPDES NO.

ITT Rayonier Inc, Port Angeles
Port Angeles Harbor
WA-0000795
 Pollutant and Amount
 2378-TCDD
  22 ppq effluent
  47 ppq sludge

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     The  U.S.  EPA has  made  a  final decision to delete the
following point  sources  from  the paragraph (C) list:

Industrial. Municipal  and Federal Dischargers
Name. Location
and Receiving
Bellingham  Sewage Treatment Plant
Inner Bellingham Bay

Bremerton Sewage Treatment Plant
Sinclair Inlet

Georgia Pacific, Bellingham
Inner Bellingham Bay

Paine Field Industrial  Sources
Port Gardner /Everett  Harbor

Port Orchard/KCSD No. 5  WWTP
Sinclair Inlet

Puget Sound Naval Shipyard
Sinclair Inlet

Renton Sewage Treatment Plant
Elliott Bay

Scott Paper Co . , Everett
Port Gardner /Everett  Harbor

United Marine Shipbuilding Inc., Seattle
Lake Union
     NPDES NO.
     (If applicable)

     WA-002374-4
     WA-002928-9
     WA-000109-1
     WA-002034-6
     WA-000206-2
     WA-002958-1
     WA-000062-1
     WA-003086-4
Storm drains  (SD1. Combined Sewer Overflows  (CSO) and Receiving
Waterbodv
Metro and City of Seattle
  Combined Sewer Overflows
Everett CSO  (EO11)
Lake Union
Pt Gardner/Everett Harbor
The storm drains  (SDs) and combined sewer overflows  (CSOs)  listed
below discharge into the Duwamish Waterways or River
(M=Metro; S=City of Seattle)

(S) 16th Avenue SW CSO/SD (104)
(M) Brandon CSO (W041)
(M) Chelan CSO (W036)
(M) Diagonal Way CSO (111)
(S) Duwamish SD

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 (S)  Fox Avenue S. CSO/SD  (116)
 (M)  Hanford  1 CSO  (W031)
 (M)  Hanford  2 CSO  (W032)
 (S)  Isaacson CSO  (156)
 (M)  Lander CSO (W030)
 (M)  Michigan CSO  (W039)
 (S)  S. Hinds CSO  (107)
 (S)  S. Nevada SD
 (S)  Slip 4,  Sanitary Sewer  Emerg.
      and Lift Station  Emergency
      Overflow/ Storm Drain (117)
 (S)  SW Hanford CSO/SD  (162)
 (S)  SW Florida CSO/SD  (106)
 (S)  SW Lander CSO/SD  (105)
 (S)  SW Spokane CSO  (163)

 Boeing Commercial Airplane,
  North Field
 Marine Power and Equipment          WA-003089-9
 Meltec - A Division of
  Young Corporation
 Mono Industrial Roofing Co.
 Pacific Wire Works Inc.
 Port of Seattle, Terminal 5
 Portac Inc.  log sort yard
 Seafab Metal Corp.
 Seattle Iron & Metals
 Todd Pacific Shipyards              WA-000261-5
 Wyckoff Company

 The  storm drains listed below discharge into
 Inner Commencement Bay

 BC-124, 12 inch pipe, Blair Waterway
 BC-125, (5 pipes), Blair Waterway
 BN-103, Lincoln Avenue  Drain,  (north)
 BS-135, Lincoln Avenue  Drain,  (south)
 BW-130, Blair West Drain
 HY-028, Morningside Ditch
 HY-043, 10"  PVC Pipe
 HK-052, Kaiser Ditch
 HY-054, East Channel Ditch
 HY-063, 18"  steel pipe
 HY-065, 6" and 18" pipes

 B & L Enterprises Landfill
 Cascade Timber Co. #1 log sort  yard
 Cascade Timber Co. #2 log sort  yard
 Louisiana Pacific Corp. log sort yard
Murray Pacific #1 log sort  yard
Murray Pacific #2 log sort  yard
 Pennwalt Corp.  (Now called  ATOCHEM)

                                 8

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Tacoma Boatbuilding (HY-36)
Wasser Winter  log  sort  yard
Weyerhaeuser log sort yard
3009 Taylor Way log sort  yard


IV.  INDIVIDUAL CONTROL STRATEGIES

     As discussed  above,  because the U.S. EPA disapproved the
individual control strategies (ICSs) submitted by the state of
Washington in  May  1989, the  U.S. EPA was to develop the control
strategies in  cooperation with the  state.  Because the state has
developed draft permits for  each facility on the Section
304(l)(l)(C) list  which will ensure that water quality standards
are met within three years,  the U.S. EPA is conditionally
approving the  ICSs for  the following facilities.  Today's
approval constitutes establishment  of each of these ICSs.

     Approval  of each ICS is based  on the following conditions,
which if not met could  result in the U.S. EPA withdrawing
approval.

1)   The ICS must  be revised to include a compliance date set for
three years from the establishment  of the ICS, i.e. three years
from today's date.

2)   The ICS must  be issued  as a final NPDES permit by
June 4, 1991.

Name and Location  of Facility      NPDES NO.      Pollutant(s)

Boise Cascade, Wallulla            WA-000369-7    2378-TCDD
ITT Rayonier Kraft Mill,  Hoquiam    WA-000307-7    2378-TCDD
James River II, Camas               WA-000025-6    2378-TCDD
Longview Fibre, Longview            WA-000007-8    2378-TCDD
Simpson Tacoma Kraft Mill, Tacoma   WA-000085-0    2378-TCDD
Weyerhaeuser Kraft Mill,  Longview   WA-000012-4    2378-TCDD
Weyerhaeuser Kraft Mill,  Everett    WA-000300-0    2378-TCDD
Weyerhaeuser Kraft Mill,            WA-000080-9    2378-TCDD
Cosmopolis

     The U.S. EPA  will  continue to  work with the State of
Washington on completing  the individual control strategies for
the remainder of the facilities listed on the section
304(1)(1)(C)  list  and will provide  notice as appropriate.


V.   PUBLIC COMMENT  AND REQUESTS FOR FUTURE HEARING:

     Where the U.S.  EPA is making final decisions on the  listing
of waterbodies and  sources,  no further public comment or  requests
for hearing are solicited.   However, public comments are  being

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solicited on the U.S. EPA's proposals to add the Port Angeles
Harbor to the paragraph (B) list and the ITT Rayonier Kraft mill
to the paragraph (C) list.  All persons who believe the proposed
additions to the lists are inappropriate must raise all issues
and submit all available arguments by April 15, 1991, to the U.S.
EPA, Region 10, WD-139, 1200 Sixth Avenue, Seattle, Washington,
98101, addressed to the attention of Dana Rasmussen, Regional
Administrator.

     Any person may make a request to the Regional Administrator
for a public hearing to consider these proposed listing
additions.  Such requests should be made in writing prior to the
above date, and should state the nature of the issues proposed to
be raised in the hearing.  A public hearing may be held after at
least 30 days public notice whenever the Regional Administrator
finds that response to this notice indicates significant public
interest.
VI.  PETITIONS TO ADD WATERS AND DISCHARGERS:

     Because a 120-day public comment period, including an
opportunity to petition to add waters and sources to the lists,
has already occurred, the U.S. EPA is not accepting further
petitions to add to the lists.


VII. U.S. EPA'S RESPONSE TO COMMENTS:

     The Regional Administrator has considered all petitions and
comments received after the June 26, 1989, notice and has
provided a written response to these comments and petitions.
This response to comments and petitions is available to the
public, and can be obtained by contacting the person named at the
end of this notice.

     Following the close of the comment period on the proposal to
add a waterbody and a source to the section 304(1) lists, and
after a public hearing, if such a hearing is held, the Regional
Administrator will issue a supplemental response to comments.
This supplemental response to comments will address only the
comments received on today's proposed additions to the section
304(1)  lists.

VIII.  ADDITIONAL INFORMATION ABOUT THE U.S. EPA'S DECISIONS UNDER
      SECTION 304(1):

     The administrative record containing the U.S. EPA's
documentation on its decisions is on file and may be inspected at
the U.S. EPA, Region 10, office between the hours of 9:00 a.m.
and 4:00 p.m.,  Monday through Friday, except holidays.  To make
arrangements to examine the administrative record, contact the

                                10

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person named at the end of this notice.

     For additional information about section 304(1), see the
final regulations under section 304(1) published in the Federal
Register of June 2, 1989  (54 Fed Reg 23868), and U.S. EPA's
publication Final Guidance for Implementation of Requirements
Under Section 304 m of the Clean Water Act as Amended (March
1988).

     Copies of these documents and of section 304(1) of the CWA
may be obtained by writing or calling the U.S. EPA contact person
below.

                         Judith Leckrone
                         Office of Water Planning, WD-139
                         U.S. EPA, Region 10
                         1200 Sixth Avenue
                         Seattle, Washington 98101
                         Telephone (206) 553-6911
Dana Rasmussen
Regional Administrator
                            Date
                                11

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                          Appendix II-C-2


                        DRAFT

                      PRELIMINARY FINDINGS
                  WASHINGTON STATE NPDES AUDIT
                      PERMIT QUALITY  REVIEW


DATE:      August 20-2.2,  1991

LOCATION:  Olympia,  WA

PARTICIPANTS:   OWEC Permits  Div:   Mary Ann Stumbaugh
                                  Pat  Bradley
               EPA Region 10:      Amber Wong

PERMIT PILES REVIEWED:    Industrials;        Municipals;
                         Texaco Anacortes    Federal Way Water &
                         Sonoco                  Sewer District
                         Kalama Chemical     City of Richland
                         Atochem             City of Chehalis
                         Intalco  Aluminum    City of Pullman
                         Ponderay Newsprint


BACKGROUND

•    All permits reviewed had a table of contents and a summary
    of scheduled activities and/or report submittals (such as
    conducting chemical analysis of effluent or submitting DMRs.
    Organization of information  within each permit varied some
    from  permit to  permit.  All  permits contained sections on
    special conditions  and  general conditions; some permits were
    further subdivided  into effluent limitations and monitoring
    requirements, reporting requirements, other requirements,
    and protocols and QA/QC methods.   (Specific titles and
    contents  of permit  sections  also varied.)

    According to staff,  DOE uses a computerized "permit shell,"
    providing a framework for  writing  a permit.

    Permits are written by  six different Regional (within the
    State)  offices:  Industrial permitting office, Union Bay
    action  team (UBAT),  northwest regional office (NWO),
    southwest regional  (SWO),  northeast regional (NEO), and
    southeast regional  (SEO).  The industrial permitting office
    writes  the permits  for  the major industries in the State:
    aluminum  smelters,  refineries, pulp & paper facilities.  The
    UBAT  office writes  permits for facilities that discharge
    into  Union Bay.  The other four offices duties are divided
    geographically.  There  is  apparently no formal assignment or
    tracking  system  to  account for specific permits.  (For
    example,  a discharge from  an aluminum smelter to Union Bay
    would probably by written  by UBAT, but in some cases maybe
    by  the  IO.)

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APPLICATION FORMS
     DOE uses NPDES application forms 1,  2C,  A,  and short form A.
     The most recent application form(s)  for each facility was
     found in each file.

     Applications for most facilities reviewed were submitted
     approximately six months prior to permit expiration.  One
     facility (Kalama Chemical) submitted an application form
     after the expiration date of the previous permit (the
     application was public noticed).

     None of the files reviewed indicated any notification to
     permittees regarding the need to submit an application.
     (i.e. a reminder that the permit will expire in — months.)


PUBLIC NOTICE

     Every file reviewed had documentation of public notice,
     including the newspaper clipping (original  or xerox) and an
     affidavit of publication.  (One file had only a typed copy
     of the newspaper notice.)

     Permittees are responsible for providing public notice,  and
     must send proof to DOE.  Some files  contained letters from
     DOE to the permittee when proof of public notice was late.

     Most of the industrial files reviewed included extensive
     mailing lists for public notice.  None of the municipal
     files reviewed included mailing lists.

     Instead of announcing the "opportunity to request public
     hearing," most newspaper notices stated that the Director
     "may hold a public hearing if there  is significant.
     interest."  In two cases (Intalco and Texaco),  a date for a
     public hearing was announced in the  public  notice for the
     draft permit.   In one case (Kalama),  three  public notices
     were issued:  receipt of application,  draft  permit,  and
     revised draft.

•     Most files reviewed contained summary response to comments.
     These generally provided the explanation of any changes  from
     the draft to final permit.

     Some files contained requests for public documents;  these
     requests (on a standard DOE form)  apparently must go to  the
     State office that wrote the permit (10,  UBAT,  SWO,  NWO,  SEO,
     NEO)  when requesting permit information.

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TECHNOLOGY-BASED PERMIT REQUIREMENTS

     DOE uses "AKART"  (All Known and Reasonable Technology) to
     develop technology-based limits in industrial permits.
     There is no written description of criteria for calculating
     AKART, but in the industrial permits reviewed, it was
     similar to BPJ.  In most cases, the term AKART was used to
     justify setting BCT limits equal to BPT limits.

•    Most industrial fact sheets showed the basis for calculating
     effluent guidelines-based limits, specifying the production
     rate and guideline used.  Actual calculations were not
     shown.

     When production was increased, the industrial permit fact
     sheets reviewed showed that new (less stringent)  limits were
     proportioned by using BAT/BPT effluent guidelines for the
     old production rate and using new source guidelines (NSPS)
     for the increased amount, resulting in more stringent limits
     than required by the guidelines.

     Most of the municipal permit fact sheets included a
     discussion on the derivation of BOD and TSS limits.  The
     mass limits were apparently calculated by multiplying the
     Influent Design Flow by 0.15 (85% removal); not all of the
     fact sheets showed the actual calculations for BOD and TSS.
     There were cases where the mass limits increased with permit
     reissuance and cases where the limits decreased,  based on
     increases or decreases in the treatment plant capacity.


BACKSLIDING

     Most cases of apparent "backsliding" were explained (in the
     corresponding fact sheets)  by increased production rates at
     industrial facilities, as described above.

     There was one permit (Atochem)  where limits for lead and for
     nickel were removed from the reissued permit.  The fact
     sheet gave three reasons for these less stringent permit
     conditions:  1)  the metals have not been introduced into the
     wastewaters since 1985,  2)  standard analytical methods
     cannot reliably determine the concentration of these metals
     at  the levels typically seen,  and 3) measured concentrations
     of  lead and nickel in the facility's effluents are typically
     well  below both acute and chronic marine toxicity criteria.
     It  is not clear from the fact sheet if the guideline (within
     415.63)  applicable to the facility calls for limits on
     nickel  and lead.   There is no discussion in the fact sheet
     about antidegradation or the 402(o)  backsliding exceptions.

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WATER QUALITY-BASED PERMIT REQUIREMENTS

     No permits reviewed had any whole effluent toxicity limits.
     All permits had WET monitoring requirements, but with no
     trigger or requirement to conduct a TIE/TRE, and no time
     frame for compliance.  Some permits required additional
     pollutant analyses which varied from permit to permit.

     None of the municipal permits reviewed contained chemical
     specific limits based on WQS (with the exception of
     ammonia).  Most municipal fact sheets contained a statement
     explaining that there was no need for chemical specific
     limits, but no analytical data were present to support such
     a statement.  A typical explanation appeared to be: "Since
     the discharge is primarily domestic effluent with only minor
     industrial input, it is believed the only pollutants with
     potential for violating receiving water toxicity standards
     would be chlorine and ammonia during summer low flow season.
     Dechlorination is already required.  Given average
     temperature of 19.1 C and pH of 7.6, it is anticipated that
     the ammonia discharge will be below levels causing acute or
     chronic toxicity.  It is believed that discharges in
     compliance with technology based limits will not result in
     degradation of water quality standards or impair any of the
     designated beneficial uses.  However, since there is no data
     to verify this assumption, monitoring for ammonia nitrogen
     in the effluent as well as monitoring for whole effluent
     toxicity is required in this permit and additional
     monitoring may be required as part of Ecology's waste load
     allocation study of the Chehalis River."


POLLUTION PREVENTION

     One permit reviewed (Atochem) contained requirements for a
     "Discharge Reduction/Elimination Study," to determine the
     feasibility,  including costs and benefits, of reducing and
     eliminate discharges or contaminant loadings in discharges.
     (In this particular case,  the study required is for "phase
     II" of a study completed by the permittee in 1988.)

     All permits reviewed contained requirements to report and
     implement "spill plans" and "treatment system operating
     plans."


BOILERPLATE

     Each permit reviewed had the same "General Conditions"
     section.   The conditions include a reference to 40 CFR
     122.41,  but some of these boilerplate conditions are stated
     explicitly in the permit while others are not (and can be

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     considered to be incorporated by reference).   Duty to apply,
     duty to mitigate, property rights, duty to provide
     information, signatory requirements, and upset are not
     explicitly stated in the general conditions.
FACT SHEETS
     Most fact sheets reviewed showed the basis for each WQ or
     technology-based limit, but have no comparison of the water
     quality-based limit and the technology-based limit for each
     pollutant to show that the more stringent limit is being
     used.

     None of the fact sheets contained any data indicating that
     an evaluation of the potential to exceed water quality
     standards was done.

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                              Appendix ll-C-3

References used in preparation of section on Permit Program Review:
Federal Law. Regulations, and Guidelines
1.    Clean Water Act, as amended by Water Quality Act of 1987.
2.    Code of Federal Regulations, 40 CFR 122, 123, 124, 125, 130.
3.    Development of Water Quality-Based Permit Limitations for Toxic Pollutants;
      National Policy, 49 Federal Register 9016, 1984
4.    Whole Effluent Toxicity Basic Permitting Principles and Enforcement Strategy,
      from Rebecca  Hanmer, Acting Assistant Administrator, Office of Water, to
      Regional Administrators, January 25, 1989
5.    U.S. EPA. 1991. Technical Support Document for Water Quality-based Toxics
      Control, Office of Water, EPA/505/2-90-001, March 1991
6.    U.S. EPA. 1991. Guidance for Water Quality-based Decisions: The TMDL
      Process
7.    U.S. EPA. 1986. Quality Criteria for Water. (Gold  Book)
8.    National Toxics Regulation, November 19, 1991 Federal Register
Water Quality Standards:
1.    Chapter 173-201 WAC, Water Quality Standards  for Surface Waters of the State
      of Washington
2.    FOCUS, Washington's Surface Water Quality Standards, Proposed Revisions
      and Public Hearing Notice, January 1991 draft, and June 5, 1991 draft.
3.    Letter from Sally Marquis, EPA Water Quality Standards Coordinator, to  Mark
      Hicks, Ecology, date, accepting revisions to water quality standards for 1991
      triennial review.
4.    Criteria for Sewage Works Design, Washington Department of Ecology,  1983.

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 Water Quality Planning:
 1.    Washington 1990 305 (b) report
 2.    Washington's TMDL process paper, 1991
 Biomonitoring Guidance:
 1.    Interim Policy and Guidelines for Biomonitoring and Toxicity Control of Point
      Source Discharges, Washington Department of Ecology, June 1988.
 2.    Draft Biomonitoring Guidance for Department of Ecology Permit Writers, July 20,
      1990.
 Sediment Management Standards:
 1.    WAC 173-204
 Permit Writers' Manual:
 1.    Draft Permit Writers' Manual, July 14, 1989.
 2.    Revised Chapter 4 of Permit Writers' Manual, undated.
 Puaet Sound Water Quality Authority:
 1.    Puget Sound Water Quality Authority, 1986. Issue Paper on Municipal and
      Industrial Discharges.
 2.    Puget Sound Water Quality Authority. 1987. Puget Sound Water Quality
      Management Plan.
 3.    Puget Sound Water Quality Authority. 1991. Puget Sound Water Quality
      Management Plan, aka CCMP.
 State Toxics Program Review:
 1.    Letter from Robert Burd, EPA Water Division Director, to Carol Jolly, Ecology
      Manager of Water Quality Program, regarding findings of State Toxics Program
      Review, June 30, 1988.
2.    State-EPA Agreement, 1989
3.    Washington Environment 2010. 1990. Toward 2010: An Environmental Action
      Agenda," State of Washington, Olympia, WA

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TMDL Lawsuit-

1.     Northwest Environmental Advocates and Northwest Environmental Defense
      Center vs. William Reilly, Administrator of the United States Environmental
      Protection Agency, and Christine Gregoire, Director of the State of Washington
      Department of Ecology, Case No. C91-427R, (TMDL Lawsuit).


Petition Materials:

1.     Sierra Club Legal Defense Fund, Inc., Comments Regarding Petition for
      Corrective Action or Withdrawal of Authority of the National Pollutant Discharge
      Elimination System Permit Program for the State of Washington, September 15,
      1991.

2.     Other materials, as submitted.  See administrative record.

Additional Materials:

1.     Washington State Commission for Efficiency and Accountability in Government.
      1990. Department of Ecology Wastewater Discharge Permit Study, December
      1990.

2.     Department of Ecology, Wastewater Discharge Permit Action Plan, Report to the
      House Environmental Affairs Committee, September 19, 1991.

3.     State of Washington Legislative Budget Committee. 1986. "Special Study of
      Wastewater and Water Quality Projects (Department of Ecology),  Report No. 86-
      3, Januarys,  1986.

4.     Greenpeace.  1985. "License to Pollute: The National Pollutant Discharge
      Elimination System in Washington State," Seattle, WA.

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                              Appendix ll-C-4

               Other Actions That May Affect Program Scheduling

            reviews have culminated in other recommended changes to Ecology's
 NPDES program, including: the PSWQMP(s) and the Efficiency Report, the State
 Toxics Program Review conducted in 1988, and the annual SEAs.  Other actions that
 may affect the progress of implementing water quality-based controls in Washington
 are: the ongoing TMDL lawsuit, filed by the Northwest Environmental Advocates and
 the Northwest Environmental Defense Center; the challenges to the Columbia River
 TMDL; and challenges to Washington permits containing water quality based limits and
 biological  monitoring. These are discussed in more detail below.

             Puget Sound Water Quality Management Plan, 1991

      The Authority concludes that Ecology has already addressed many of the
 recommendations in the PSWQMP. Implementation of certain program elements has
 fallen behind schedule, but in general, most of the program elements are fully in
 progress.  The current status of plan implementation is found in the 1991 PSWQMP.

      EPA concludes that Ecology has made significant progress in addressing these
 program elements. The PSWQMP contains additional recommendations on issues
 that, when implemented, should address many of the petitioners concerns regarding
 NPDES permit quality.  We strongly recommend that Ecology continue to incorporate
 the plan elements into the NPDES program according to the plan schedule.

      •     Efficiency Report, 1990

      In response to the recommendations and proposed schedule contained in the
 Efficiency Commission Report,  Ecology has counter-proposed a draft implementation
 plan (Spring 1991), which extends many of the target dates. The Efficiency Report
 recommendations that respond to the petition and Ecology's proposed schedule are
outlined below.

      A.5    Cross-program effort - Ecology will develop framework for cross program
            coordination  by January 31, 1992.

            EPA supports this effort, as outlined above.

      B.5    Planning for Technology - This section of the  Efficiency Report contends
           that the water quality program does not have a systematic plan for
           integrating new requirements into permits, and requires development of
           these procedures by June 30,1991.

           The Efficiency Commission recognizes that by imposing the new permit
           conditions required by the PSWQMP, permittees will need some start up
           time to prepare to meet these conditions. The general public also needs
           to know of the impact of these conditions.  Legitimate  concerns have

-------
             been raised about the need to disseminate policy and background
             information to permit writers on these conditions  prior to including them
             in permits. However, these technology transfer activities should not delay
             implementation of these requirements.  The timelines for development
             and implementation, as contained in the plan, should be as short as
             possible.  Again, the bottom line is that Ecology is authorized to require
             any monitoring  necessary to insure compliance with WQS.

       C.2   Structure - The  Efficiency Commission recognizes some change in
             organizational structure, a team approach, and permit management along
             the lines of the  industrial section.  While this may solve some of the short
             term problems with technology transfer, it may not get to the heart of the
             inefficiency problem.

       C.5   Support for Permit Managers - EPA concludes that permit writers should
             be encouraged to follow this guidance, particularly with  regard to BPJ
             and water quality based permits. Training of new permit writers should
             continue as per Ecology's plan.

             Ecology current policies, guidelines, and procedures should be compiled
             as a companion document to the permit writer's manual.  Superseded
             material should  be kept in another file for reference.

             A critical component of Ecology's policy manual would be a clear
             statement of the role of AKART in determining permit limitations.
             Specifically, Ecology should clarify the AKART policy and document
             procedures for  determining AKART. For example, Ecology needs to
             clearly identify the technologies selected for consideration, the criteria for
             determining which technology is selected as AKART, and the economic
             analysis (if any) that Ecology applies.  Ecology may build upon the
             criteria EPA uses in its BAT determinations, as referenced in the effluent
             guidelines.

             EPA Headquarters and Region 10 will continue to provide and encourage
             permit writing training.

      C.6    Relationship with Permittees - Ecology should provide technical
             assistance to permittees regarding permit conditions. However, this effort
             should not be allowed to delay implementation of conditions in  permits.

      •      State Toxics Program Review, 1988

      The five major action items contained in this EPA review have been or are being
addressed. Remaining  action items should be developed as resources allow.

      •     TMDL Lawsuit

-------
      A lawsuit has been filed by the Northwest Environmental Advocates and the
Northwest Environmental Defense Center against the EPA and Ecology for failing to
develop TMDLs for Washington's water quality limited segments. Both EPA and
Ecology are defendants in the suit because, although the CWA clearly places
responsibility for TMDL development and implementation on the states, EPA must
promulgate these controls when a state fails to do so. Settlement discussions are
ongoing.

      The settlement for this lawsuit may affect the timeframes recommended in the
PSWQMP and Efficiency Report or planned by Ecology for implementing water
quality-based  controls.

      .     State/EPA Agreements

      SEAs outline the state's workplan for the year. Priorities in the SEA may be
adjusted as program needs change. To build a comprehensive water quality program,
better coordination between the planning elements is necessary. For example,  good
water quality-based permits will follow from good watershed management.  Ecology
needs to coordinate efforts between programs, including: water quality monitoring
(EILS); TMDL development (EILS); and permitting (Water Quality Program). All  of
these components need to be recognized as part of the solution to water quality
problems.

      •     Challenges to the Columbia River TMDL and Challenges to Ecology
            Permits Over Monitoring Requirements

      The impact of these actions on the implementation of water quality-based
controls cannot yet be determined.  However, mandated court schedules may affect
Ecology's currently planned schedules to implement the program elements in the
PSWQMP and the  Efficiency Report.

-------
                       Appendix II-D-1

                                                          SFP 23 mi
S&.
 Ti
  §       UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

^/                 WASHINGTON, D.C. 20460
                                                SEP  I 9 1991
                                                       OFFICE OF
 Naki  Stevens                                           WATER
 Campaign for  Puget Sound
 600 University Ave.,  Suite 2400
 Seattle,  WA  98111

 Dear  Ms.  Stevens

       As  you requested,  I an enclosing the  permit  backlog report
 we retrieve from our  computer system,  the  Permit  Compliance
 System.  While my file is not complete on these  reports, the  three
 I have enclosed (March,  May,  and September of 1991)  will give  you
 an idea  of changes that have occurred in permit issuance and
 expiration over the past several months.   As you  will see,
 Washington State is doing better than the  national  average of
 approved States for reissuance of major permits,  but not as  well
 for reissuance of minor permits.

       If  you have any  questions on these reports,  please call me
 at (202)  260-9296.

                                     Sincerely,
                                     Sheila E.  Frace,  Chief
                                     Industrial Permitting Section

-------
                        NPDES STATE MAJOR BACKLOG
Region  State
Municipal Expired Percent
 Majors
         Non-
       Municipal Expired Percent
        Majors
CT
RI
VT
NJ
NY
VI
DE
MD
PA
VA
WV
AL
GA
KY
MS
NC
SC
TN
IL
IN
MI
MN
OH
WI
64
18
28
133
236
2
14
44
246
56
39
108
114
60
50
130
79
85
177
107
91
50
160
82
28
6
2
81
58
0
2
11
44
12
1
18
0
4
2
10
13
12
16
24
4
4
24
27
44%
33%
7%
61%
25%
0%
14%
25%
18%
21%
3%
17%
0%
7%
4%
8%
16%
14%
9%
22%
4%
8%
15%
33%
68
13
5
142
137
4
18
49
158
64
65
101
62
65
39
93
87
58
94
84
95
28
128
54
56
5
0
88
58
3
1
12
46
23
19
8
0
14
0
16
34
16
15
21
7
4
18
8
82%
38%
0%
62%
42%
75%
6%
24%
29%
36%
29%
8%
0%
22%
0%
17%
39%
28%
16%
25%
7%
14%
14%
15%
        AR
   62
15%
  43
          5%
  10
IA
KS
MO
NE
CO
MT
ND
UT
WY
CA
HI
NV
OR
WA
74
39
75
41
69
~ 26
16
28
16
155
11
6
34
45
17
10
13
18
12
2
0
2
0
27
3
4
12
5
23%
26%
17%
44%
17%
8%
0%
7%
0%
17%
27%
67%
35%
11%
31
15
47
26
48
19
9
15
14
95
17
3
25
48
7
1
6
12
14
4
0
1
1
38
7
1
2
5
23%
7%
13%
46%
29%
21%
0%
7%
7%
40%
41%
33%
8%
,- 10%
      TOTALS   2870
           537
19%
2166
573
26%
PCS:  September 10, 1991

-------
                 NPDES STATE MINOR BACKLOG
 ion State Municipal Expired Percent Municipal Expired Percent
           Minors                      Minors
10
CT
RI
VT
NJ
NY
VI
DE
MD
PA
VA
WV
AL
GA
KY
MS
NC
SC
TN
IL
IN
MI
MN
OH
WI
24
1
59
92
318
10
3
156
569
600
188
170
343
175
271
210
179
169
588
299
302
511
632
491
20
1
6
36
36
4
2
74
225
141
27
42
0
1
6
22
34
12
80
155
190
"55
267
171
83%
100%
10%
39%
11%
40%
67%
47%
40%
24%
14%
25%
0%
1%
2%
10%
19%
7%
14%
52%
63%
11%
42%
35%
626
113
49
1107
1056
39
64
811
3468
1757
3638
1458
603
2398
1063
2681
813
1283
1721
1289
1067
461
3361
459
509
60
10
585
209
11
42
333
1344
756
2872
178
0
87
138
221
206
101
663
638
332
121
2082
278
81%
53%
20%
53%
20%
28%
66%
41%
39%
43%
79%
12%
0%
4%
13%
8%
25%
8%
39%
49%
31%
26%
62%
61%
      AR
268
8
TOTALS  9621     2402

September 10, 1991
3%
                                     498
65
13%
IA
KS
MO
NE
CO
MT
ND
UT
WY
CA
HI
NV
OR
WA
645
409
510
324
_ 194
61
264
36
68
103
4
8
173
194
103
253
64
68
19
4
0
1
0
48
1
3
87
136
16%
62%
13%
21%
10%
7%
0%
3%
0%
47%
25%
38%
50%
70%
891
713
1755
621
342
146
121
75
776
1191
48
50
700
539
222
519
281
248
55
20
3
2
5
611
25
23
330
452
25%
73%
16%
40%
16%
14%
2%
3%
1%
51%
52%
46%
47%
84%
                               25%
                         39851
                       14637
                         37%

-------
      Region     state
      7
    10
              AR
PCS: MAY 14.1991
Municipal   Expired   Percent   ^on-Municipa,   Expired    Percent
CT
VT
Rl
NY
NJ
VI
PA
WV
MD
VA
DE
• NC
TN
AL
KY
MS
SC
GA
Wl
Ml
OH
IL
IN
MN
63
28
18
236
135
2
246
39
43
56
14
132
84
105
60
48
79
107
82
91
159
177
105
50
32
1
10
58
72
0
53
1
9
7
1
9
15
18
5
2
13
8
25
9
19
16
27
10
51%
4%
56%
25%
53%
0%
22%
3%
21%
13%
7%
7%
18%
17%
8%
4%
16%
7%
30%
10%
12%
9%
26%
20%
75
5
13
137
146
4
158
65
50
64
18
92
58
102
65
40
87
62
55
96
129
94
84
28
64
0
7
61
78
2
45
22
9
22
2
12
16
3
12
1
35
2
4
9
18
20
22
4
85%
0%
54%
45%
53%
50%
28%
34%
18%
34%
11%
13%
28%
3%
18%
3%
40%
3%
7%
9%
14%
21%
26%
14%
                            62
                                             10%
                        2858
                                  552
                                            19%
                                                             44
                                                          2186
                                             569
                                                                                5%
NE
KS
MO
IA
MT
NO
WY
CO
UT
CA
HI
NV
WA
OR
42
39
75
74
26
16
16
69
28
155
11
6
45
35
18
6
11
13
0
0
1
15
2
29
5
4.
4
18
43%
15%
15%
18%
0%
0%
6%
22%
7%
19%
45%
67%
9%
51%
27
16
48
31
19
9
15
48
15
95
17
3
47
25
9
0
7
1
3
0
2
11
2
38
8
0
14
2
33%
0%
15%
3%
16%
0%
13%
23%
13%
40%
47%
0%
30%
8%
                                                                              26%

-------
Region     State
Municipal   Expired    Percent   Non-Municipal   Expired    Percent
 Minors                          Minors
CT
VT
Rl
NY
NJ
VI
PA
WV
MO
VA
DE
NC
TN
AL
KY
MS
sc
GA
Wl
Ml
OH
IL
IN
MN
24
59
1
313
93
10
531
188
156
600
3
207
151
185
176
271
177
350
485
300
634
584
301
510
20
3
1
40
34
5
209
30
70
126
2
14
12
65
1
3
22
2
176
189
218
63
137
73
83%
5%
100%
13%
37%
50%
39%
16%
45%
21%
67%
7%
8%
35%
1%
1%
12%
1%
36%
63%
34%
11%
46%
14°/b
626
49
109
1029
1100
40
3452
3883
845
1756
63
2695
1298
1410
2398
1061
790
603
455
1035
3348
1711
1233
442
499
7
56
205
544
12
1300
3013
293
663
42
197
119
126
93
89
186
18
258
342
2039
600
630
111
80%
14%
51%
20%
49%
30%
38%
78%
35%
38%
67%
70*
9%
9%
4%
8%
24%
3%
57%
33%
61%
35%
49%
25%
 10
           AR
      265
                       9544
 3%
              2337
24%
491
                                                         39900
67
                                                14309.
14%
NE
KS
MO
IA
MT
NO
WY
UT
CO
CA
HI
NV
WA
OR
321
408
504
642
61
264
67
36
190
101
4
8
192
172
68
266
89
99
1
0
0
2
22
49
1
4
132
80
21%
65%
18%
15%
2%
0%
0%
6%
12%
49%
25%
50%
69%
47%
613
696
1752
893
147
120
772
78
343
1161
45
43
559
706
234
477
403
205
11
1
8
2
50
577
21
22
449
340
38%
69%
23%
23%
7%
1%
1%
3%
15%
50%
47%
51%
80%
48%
                    36%
       PCS: MAY 14, 1991

-------
  Region
State Municipal Expired Percent Non-Municipal Expired Percent

CT
VT
Rt
NY
NJ
VI
PA
WV
MD
VA
OE
NC
TN
AL
KY
MS
SC
GA
Wl
Ml
OH
IL
IN
MN
Majors
64
28
18
236
143
2
245
39
42
59
14
132
84
104
60
48
79
107
82
91
159
177
105
50
Majors
30
1
10
57
68
0
51
1
8
8
1
8
16
22
4
2
12
0
24
9
15
18
27
12
47%
4%
56%
24%
48%
0%
21%
3%
19%
14%
7%
6%
19%
21%
7%
4%
15%
0%
29%
10%-
9%
10%
26%
24%
75
5
13
137
149
4
158
65
50
65
18
92
58
102
65
40
87
62
55
97
129
94
84
28
64
0
7
53
74
2
44
20
7
22
2
14
15
3
12
0
36
0
3
10
17
23
22
3
85%
0%
54%
39%
50%
50%
28%
31%
14%
34%
11%
15%
26%
3%
18%
0%
41%
0%
5%
10%
13%
24%
26%
11%
            AR
62
10%
                                                      44
                   2%
   10
NE
KS
MO
IA
MT
NO
WY
CO
UT
CA
HI
NV
WA
OR
42
39
75
74
26
16
16
70
28
155
11
6
45
35
18
9
12
11
0
0
0
18
2
29
2
2
5
17
43%
23%
16%
15%
0%
0%
0%
26%
7%
19%
18%
33%
11%
49%
27
16
48
31
19
9
15
48
15
96
17
3
47
25
7
0
9
1
2
0
2
9
2
43
8
0
16
2
26%
0%
19%
3%
11%
0%
13%
19%
13%
45%
47%
0%
34%
8%
                      2868
       535
19%
2192
555
25%
PCS: MARCH 12.1991

-------
AR
       Municipal    Expired   Percent   Non-Municipal   Expired   Percent

        Minors                           Minors
CT
VT
Rl
NY
NJ
VI
PA
WV
MD
VA
DE
NC
TN
AL
KY
MS
SC
GA
Wl
i
IL
IN
MN
24
62
1
312
97
10
528
253
155
601
3
211
149
185
217
276
177
348
485
299
634
584
301
510
20
25
1
44
34
5
205
91
67
122
2
14
15
54
5
5
21
0
168
186
184
59
141
70
83%
40%
100%
14%
35%
50%
39%
36%
43%
20%
67%
7%
10%
29%
2%
2%
12%
0%
35%
62%
29%
10%
47%
14%
622
54
109
1014
1095
38
3416
3888
863
1759
63
2792
1338
1398
2371
1048
800
603
454
1032
3348
1710
1277
437
498
30
51
208
513
10
1286
2986
297
623
40
222
144
110
94
52
175
0
246
338
2011
525
628
117
80%
56%
47%
21%
47%
26%
38%
77%
34%
35%
63%
8%
11%
8%
4%
5%
22%
0%
54%
33%
60%
31%
49%
27%
               265
10
4%
           9658
I
'CS: MARCH 12.1991
                     2358
                                  24%
486
                      39924
69
                      14147
14%
NE
KS
MO
IA
MT
NO
WY
UT
CO
CA
HI
NV
WA
OR
320
408
506
640
61
264
68
36
190
101
4
8
193
172
68
246
104
101
1
0
0
1
23
49
1
3
133
80
21%
60%
21%
16%
2%
0%
0%
3%
12%
49%
25%
38%
69%
47%
612
696
1762
892
147
119
780
76
341
1147
45
40
559
693
229
449
403
182
7
3
1
2
54
581
21
22
446
474
37%
65%
23%
20%
5%
3%
0%
3%
16%
51%
47%
55%
80%
68%
                   35%

-------
                             Appendix ll-D-2

      State Performance Compared with Other Authorized States

      The state asked EPA to compare its performance against that of other
authorized states; EPA agreed to conduct the comparison where there was readily
available information.  The comparison on permit backlog numbers is contained in the
report. The following preliminary information comparing Washington with other
authorized states is from EPA's national database on the NPDES permit program,
PCS. Not all of the 39 authorized states reported all items; therefore, these numbers
are not necessarily representative.  In addition, the data are numerical and the
comparison does not take into account the universe of facilities in each state.  Data
from a PCS run on January 17, 1992, representing data from the first quarter of fiscal
year 1992 (October through December 1991) unless otherwise noted.

Count of Reportable Non-Compliance for Compliance Schedule Violations in
Fiscal Yearl 991

                        Average For
Washington        States      Washington Ranking

      56           101             14/39

Number of Administrative Orders Issued by State

                        Average For
Washington        States      Washington Ranking
      15            7              6/39

Number of Administrative Orders Issued by State

                        Average For
Washington       States      Washington Ranking

      37            2              1/39

Number of Permits Issued with Whole Effluent Toxicity Limits or Monitoring
Requirements in Fiscal Year 1991 (Majors and Minors)

                        Average For
Washington       States      Washington Ranking

      25           105             21/39

Number of Pretreatment Audits and PCIs in  Fiscal Year 1991

                        Average For
Washington       States      Washington Ranking

      26           173             25/39

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                    Appendix II-D-3
                          WATER QUALITY PROGRAM
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                         Appendix ll-G-1

          APPROVED PRETREATMENT PROGRAMS IN WASHINGTON
Anacortes
Everett
Lynnwood
Richland
Seattle METRO
Spokane
Tacoma
Vancouver

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                            Appendix II*G-2
            PRETREATMENT LANGUAGE IN  NPDES PERMITS
SB.    PRETREATMENT

      A.     Pretreatment
            1.    The  Permittee  shall  implement the  Industrial Pretreatment
                 Program in accordance with the legal authorities, policies,
                 procedures,   and  financial  provisions  described  in  the
                 Permittee's  pretreatment  program submittal,  dated September
                 1987;   any  approved   revisions  thereto;  and  the  General
                 Pretreatment Regulations  (40 CFR Part  403   including  rule
                 revisions  of October  17,  1988,  and July  24, 1990).   At a
                 minimum, the following pretreatment implementation activities
                 shall  be undertaken by the  Permittee:

                 a.     Enforce categorical pretreatment standards promulgated
                        pursuant to Section 307(b)  and  (c)  of the Federal Clean
                        Water  Act  (hereinafter, the Act), prohibited discharge
                        standards  as   set   forth   in   40  CFR  403.5,  local
                        limitations   specified  in  Section  13.03.04026  of
                        Ordinance 13.03, or  state standards, which ever are most
                        stringent  or   apply   at   the   time  of  issuance  or
                        modification  of  a  local  industrial  waste  discharge
                        permit.  Locally derived limitations shall be defined as
                        pretreatment standards under Section 307(d) of the Act
                        and  shall not  be  limited  to  categorical  industrial
                        facilities.

                 b.     Issue   industrial   waste   discharge  permits  to   all
                        significant  industrial  users  in   a   timely  manner.
                        Industrial  waste   discharge  permits   shall  contain
                        limitations, sampling protocols, compliance schedules as
                        appropriate,  reporting requirements,  and appropriate
                        standard conditions.  The Permittee shall coordinate  the
                        permitting process with Ecology regarding any industrial
                        facility  which   may  possess a  state  waste discharge
                        permit.   Once  issued,  an   industrial  waste discharge
                        permit will take precedence over a state .issued waste
                        discharge permit.

                 c.     Maintain and update,  as necessary, records identifvina

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            the  nature,  character,  ana  volume   or   poi.xutants
            contributed by industrial users to the  POTW.   Records
            shall be maintained for at least  a three-year period.

      d.    Perform  inspections,   surveillance,  and   monitoring
            activities  on industrial  users   to  determine  and/or
            confirm   compliance  with   applicable   pretreatment
            standards.  Frequency of regular local monitoring of an
            industrial  user's   wastewaters   shall  normally   be
            commensurate with the character and volume of the wastes
            but shall not  be less than two (2) times per year.

      e.    Enforce and obtain  remedies for  noncompliance  by  any
            industrial users  with applicable pretreatment standards
            and requirements.

2.    The  Permittee  shall   develop  and  submit  to  Ecology  for
      approval, within nine months of the effective  date of formal
      approval of  its pretreatment program,  an Accidental Spill
      Prevention Program  to reduce and prevent  spills  and  slug
      discharges of pollutants by industrial  users.   The Permittee
      can require similar plans from  significant  local industries
      through its local discharge permits and use these plans as a
      basis for its program.   The program,  as approved by Ecology,
      shall include a  schedule for implementation, and shall become
      an enforceable part  of these permit conditions.

3.    Whenever it has been determined, on the basis  of information
      provided  to   Ecology,  that   any  waste  source  contributes
      pollutants to the Permittee•s  treatment  works in violation of
      Subsection (b),  (c), or (d) of Section 307 of the Act, and the
      Permittee has not taken adequate  corrective action, Ecology
      shall notify  the Permittee of  this determination.  Failure by
      the Permittee to commence an  appropriate enforcement action
      within 30 days of this  notification may result in appropriate
      enforcement action by  Ecology against the  source and/or  the
      Permittee.

4.    Pretreatment  Report

      The Permittee shall  provide to Ecology  an annual report that
      briefly describes its program activities during the previous
      twelve months. Ecology may modify this reporting requirement
      without  formal  public  notice  to  require  less  frequent
      reporting if  it is determined that the data  in the report does
      not substantially change from year to year.  This report shall
      be submitted  no later than July 1 of each year to:

      Washington State Department  of  Ecology,  Eastern  Regional
      Office,  North 4601 Monroe Street,  Spokane,  WA  99205-1295.

      The report shall include the following information:

      a.    An industrial  survey update.

      b.    Results of  wastewater sampling at the  treatment plant as
            specified in Subsection B below.   The Permittee shall
            calculate removal rates  for  each pollutant  and evaluate
            the  adequacy  of  the  existing  local   limitations  in
            Section 13.03.04026 of Ordinance  13.03 in prevention of
            treatment  plant interference, pass through of pollutants
            that could affect receiving  water quality, and eludae
            contamination.

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             c.     Status  of  program  implementation, including:

                   1.    Any  substantial modifications to the pretreatment
                        program  as   originally  approved  by  Ecology,
                        including staffing and  funding  levels.

                   2.    Any  interference, upset,  or  permit  violations
                        experienced   at   the  POTW  that  are  directly
                        attributable to wastes  from industrial users.

                   3.    Listing  of  industrial  users  inspected  and/or
                        monitored, and a  summary of the results.

                   4.    Listing  of   industrial   users  scheduled  for
                        inspection and/or monitoring for the next year,
                        and  expected frequencies.

                   5.    Listing  of   industrial   users   notified   of
                        promulgated  pretreatment  standards and/or local
                        standards as required in 40 CFR  403.8(f)(2)(iii).
                        Indicate  which industrial users are on compliance
                        schedules and the final date of  compliance for
                        each.

                   6.    Listing  of  industrial  users  issued  industrial
                        waste  discharge permits.

                   7.    Planned  changes  in the  pretreatment  program
                        implementation plan.  (See subsection A.6.below).

             d.     Status  of  enforcement activities, including:

                   1.    Listing of industrial users that failed to submit
                        baseline  monitoring  reports or  any other reports
                        required   under   40  CFR  403.12   and  in  the
                        Permittee's  pretreatment program.

                   2.    Listing of industrial users that were  at any time
                        during the reporting period  not  complying with
                        federal,  state,  or  local pretreatment standards
                        or   with   applicable compliance   schedules  for
                        achieving those  standards,  and the duration  of
                        such noncompliance.

                   3.    Summary  of   enforcement   activities  and  other
                        corrective  actions  taken  or  planned  against
                        noncomplying industrial  users.   The Permittee
                        shall   provide   public  notice  of   significant
                        violators as outlined in 40 CFR 403.8(f)(2)(vii).

      5.     The Permittee shall notify Ecology  at  least 60 days prior  to
             any  major proposed change  in its  existing sludge disposal
             practices.

      6.     The Permittee shall request and  obtain approval from  Ecology
             prior  to  implementing any significant changes to the  local
             pretreatment  program  as  approved.


B.    Monitoring Requirements

      1.     The Permittee shall monitor its influent,  effluent, and sludge
             and report concentrations of  the following parameters in its

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      annual report.   The influent  and effluent samples shall be
      taken at three  (3)  month intervals and consist of a 24-hour
      composite unless otherwise specified below.  Sludge samples
      shall be taken at three (3)  month intervals and consist  of  a
      grab sample reported on a dry  weight  basis.

      antimony
      arsenic
      barium
      beryllium
      cadmium
      chromium (hexavalent)
      chromium
      copper
      cyanide (grab)
      iron
      lead
      manganese
      mercury
      nickel
      selenium
      silver
      thallium
      zinc
      oils  (hexane soluble  or equivalent,  grab,   influent,   and
      effluent only)
      phenoIs (grab)

      Unless otherwise indicated, concentrations refer to the  total*
      amount of  the  constituent  present in  all phases, whether
      solid,  suspended,  or  dissolved,  elemental  or  combined
      including  all  oxidation  states.   Where  constituents  are
      commonly measured  as  other  than  total,  the  phase  is so
      indicated.

      *  The final effluent  shall   also be  analyzed  for   total
      recoverable metals.

2.    The Permittee shall conduct an inventory  of the  111 organic
      priority pollutants identified in Appendix B of  40 CFR Part
      403 as amended,  using U.S. EPA approved analytical procedures
      and  shall  also identify and quantify  additional organic
      compounds which occur in the influent,  effluent,  and sludge.
      This monitoring shall be done two times at  six month intervals
      during the first year of the permit,  and once per year after
      that, for a total of six times during the five-year period of
      the permit, and shall consist  of the following:

      a.     The influent and  effluent shall be sampled and analyzed
            for the priority pollutants.  The  sampling shall be done
            during a day when industrial discharges are occurring at
            normal to maximum levels.  Samples for  the analysis of
            acid and base/neutral extractable compounds  shall be 24-
            hour composites.   Samples for the analysis of volatile
            organic compounds shall be collected using grab sampling
            techniques at equal intervals for the total  of five grab
            samples per day.

            A single analysis for volatile pollutants  (Method 624)
            may be run for each monitoring day by compositing equal
            volumes of each grab sample directly in  the  GC purge and
            trap apparatus in the laboratory, with no less than 1  ml
            of  each grab  included in the composite.    '"

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            Wastewater  samples  must  be handled,  prepared,   and
            analyzed  by GC/MS  in  accordance  with  the  U.S.   EPA
            Methods 624 and 625 (October 26, 1984).

      b.    The  sludge  shall be  sampled  and  analyzed  for   the
            priority pollutants.  A sludge sample shall be collected
            concurrent with a wastewater sample and may be taken as
            a single grab of residual sludge.

            Sampling and analysis shall conform to  U.S. EPA Methods
            624 and 625 unless the Permittee requests an alternate
            method and it has been approved by Ecology.

      c.    Sample  collection,  preservation,   and storage shall
            conform   to   approved   U.S.    EPA   procedures   and
            requirements.

      d.    In addition  to the priority pollutants,  a  reasonable
            attempt shall be made to identify and quantify the ten
            most abundant  substances of  each  fraction  (excluding
            priority   pollutants   and   unsubstituted   aliphatic
            compounds) shown to be present by peaks on the total ion
            plots  (reconstructed  gas chromatogram)  more  than ten
            times higher than  the  adjacent background noise which
            produces an  identifiable spectra,  and more  than  five
            scans wide.   Identification shall  be  attempted by  a
            laboratory whose computer data processing programs are
            capable of  comparing  the  sample  mass spectrum  to a
            computerized  library  of  mass  spectra,  with  visual
            confirmation by an experienced analyst. Quantification
            may  be  an  order  of  magnitude   estimate  based  on
            comparison with an internal standard.

3.    The Permittee shall include a summary  of  the findings in the
      annual  pretreatment  report.    As  sufficient   data becomes
      available,  the Permittee shall evaluate,  in consultation with
      Ecology, what impacts organic pollutants may have  in terms of
      causing interference or pass through.  Ecology may modify this
      permit to incorporate additional requirements relating to the
      establishment and  enforcement  of local  limits  for organic
      pollutants  of  concern.  In  order to  develop  these organic
      local limits. Ecology will provide environmental criteria or
      limits  for  the  various  organic  compounds.    Any  permit
      modification  is  subject  to  formal due  process  procedures
      pursuant to state and federal law and  regulation.

4.    Upon a determination that an organic pollutant is present that
      causes interference or passes through the POTW  at  levels that
      exceed  the  environmental  criteria,  the  Permittee   shall
      r>Qr ab 1 i Rh 1 nra 1  limi1-B ^Q i-oon < r-ori h"  -to  rru .' m  c

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