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 SUMMARY
 This  Directive  is  a  latter  from  Gary  N.   Dietrich
 'Deputy  Assistant  Administrator)  to  Paul  Elroler,
 Jr.   \Chairrnan  of  the  Utility Solid  Waste
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{
           UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
  8                    WASHINGTON. D.C. 20460
                          JAN  131981
                                                           orncc of WATER
                                                        AND WASTE MANAGEMENT
Mr.  Paul  Emler, Jr.
Chairman
Utility Solid Waste Activities
  Group
Suite  700
1111 Nineteenth Street, N.W.
Washington,  D.C.  20036

.Dear Mr.  Emler:

     This  is a response to your letter of October 10, 1980 to
Administrator Costle, regarding the .recent Solid Waste Disposal
Act Amendments of 1980 and their relation to the electric utility
industry.  In your letter and its-accompanying document, you
discussed  the specific amendments which address fossil fuel
combustion wastes, and suggested interpretive language which
EPA should adopt in carrying out the mandate of the amendments.
You requested a meeting with our staff to make us more fully
aware  of  the solid waste management practices of the electric
utility industry, and to discuss the effect of the amendments on
the utility solid waste study which EPA is.currently conducting.

    I  appreciated the opportunity to meet with you, in your
capacity as chairman of the Utility Solid Waste Activities
Group  (USWAG), on November 21 to discuss your concerns.  I
am taking  this occasion to share with you the most recent EPA
thinking on the exclusion from our hazardous waste management
regulations of waste generated by the combustion of fossil
fuels, and to confirm certain agreements which were reached
during our meeting.  The language contained in this letter
should provide you and your constituents with an adequate
interpretation of the fossil fuel combustion waste exclusion
in Section 261.4(b)(4) of our regulations.  This letter is
also being circulated to appropriate Agency personnel, such
as our Regional Directors of Enforcement, for their information
and use.  We intend to issue in the Federal Register an official *
Regulations Interpretation Memorandum reflecting "the policies
articulated in this letter.

     In our May 19, 1980 hazardous waste management regulations,
we published an exclusion from Subtitle C regulation for those
fossil fuel combustion wastes which were the subject of then
pending Congressional amendments.  The language of that exclusion
in §261.4(b)(4). of our May 19 regulations is identical to per-
tinent language of. Section 7 of the Solid Waste Disposal Act

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                               -2-


 A.-nendments of 1980  (P.L.  96-482) which was enacted on October 21,
 1980 and which mandates  that  exclusion.  Specifically, the
 exclusion language  of  our regulations provides that the following
 solid wastes are  not hazardous wastes:

      "Fly ash waste, bottom ash waste, slag waste, and
      flue gas emission control waste generated primarily
      from the combustion  of coal or other fossil fuels."

 Residues from the Combustion  of Fuel Mixtures

      The first point which you raise in your letter and your
 "Proposed RIM Language"  is the interpretation of the term
 "primarily"  used  in this  exclusion language.  EPA believes
 that Congress intended the term "primarily" to mean that the
 fossil  fuel  is the  predominant fuel in the fuel mix, i.e.,
 •nore than 50 percent of  the fuel mix.  (See Congressional
 Record,  February  20, 1980, p.  H1103, remarks of Congressman
 Horton  and p.  H1102, remarks  of Congressman Bevill.)  Therefore,
 EPA  is•interpreting the exclusion of §261.4(b)(4) to include
 fly  ash,  bottom ash, boiler slag and flue gas emission control
 wastes  (hereinafter referred  to as "combustion wastes") that
 ara  generated by  the combustion of mixtures of fossil fuels
 and  alternative fuels, provided that fossil fuels make up at
 least 50  percent  of the  fuel  mix.

     This  interpretation  begs  the question of whether the
 exclusion  also extends to combustion v;astes that re'sult from
 the  burning  of mixtures of fossil fuels and hazardous wastes.
 We have  limited data which indicates that spent solvents
 listed  in  §261.31 of our  regulations, certain distillation
 residues  listed in  §261.32, waste oils that may be hazardous
 wastes  by  virtue  of characteristics or the mixture rule, and
 other hazardous wastes are often burned as supplemental fuels—
 sometimes  in proportionally small amounts but sometimes in
 significant  amounts (comprising 10 percent or more of the fuel
 mix  ratio)—particularly  in industrial boilers but sometimes in
 utility boilers.  EPA  is  concerned about the human health and
 environmental  effect of the burning of these hazardous wastes:
 both the effect of  emissions  into the atmosphere and the
 effect of  combustion residuals that would be contained in the
 fly  ash, bottom ash, boiler slag and flue gas emission control
wastes.

     We  intend to address the first of these concerns in our
 future development  of  special  requirements applicable to hazardous
wastes  that  are beneficially  used or legitimately recycled.
 In §261.6  of  our  May 19,  1980  regulations, we currently exempt
 from regulatory coverage  hazardous wastes that are benefically
 used or legitimately recycled, except that, where these wastes
 are  listed as hazardous wastes or sludges,  their  s.torage  or
 transportation prior to use or recycle is subject to our

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                               -3-


 regulations.   We  clearly explained  in  the  preamble  to Part
 261 of our May 19 regulations  that  we  fully  intend  to even-
 tually regulate the  use  and  recycling  of hazardous  wastes and,
 in doing so,  would probably,  in most cases,  develop special
 requirements  that provide adequate  protection  of human health
 and the environment  without  unwarranted discouragement of
 resource conservation.   Consequently,  although the  burning of
 hazardous waste as a fuel (a  beneficial use  assuming that the
 waste  has a positive fuel value)  is not now  subject to our
 regulations (except  as noted  above) it may well be  subject to
 our regulation in the future.

     Our second concern  with combustion of fuel mixtures is the
 one at focus  in this interpretation.   It must  first be noted
 that we do not intend for §261.6  to provide  an exemption from
 regulation for combustion wastes  resulting from the burning of
 hazardous wastes  in  combination with fossil  fuels;  it only
 provides  an exemption for the  actual burning of hazardous wastes
 for recovery  of fuel value.  Thus,  if  these  combustion wastes
 are exempted  from our regulation, such exemption must be
 found  through interpretation of §261.4(b)(4).   Secondly, we
 note that although the pertinent  language  in Section 7 of the
 Solid  Waste Disposal Act  Amendments of 1980  and the related
 legislative history  on this matter  speak of  allowing the burning
 of  alternative fuel  without precisely  defining or delineating
 the types  of  alternative  fuel,  the only examples of alternative
 fuels  used  in the  legislative  history  are  refuse derived fuels.
 Therefore,  a  literal reading of the legislative history might
 enable  us to  interpret the exclusion to include combustion
 wastes  resulting  from the burning of fossil  fuels and other
 fuels,  including  hazardous wastes.  However, since  each of these
 legislative comments was  made  in  the context of refuse derived
 fuels or  other non-hazardous alternate fuels,  we do not believe
 the Congressional  intent  compels  us to make  such an interpretation
 if  we  have  reason  to believe that such combustion wastes are
 hazardous.

     Presently, we have  little data on whether or to what extent
 combustion  wastes are "contaminated" by the  burning of fossil
 fuel/hazardous waste mixtures.   The data we  do have (e.g., burning
 of  waste oils)  suggests that the  hazardous waste could contribute
 toxic heavy metal contaminants to such combustion wastes,  when
 coal is the primary  fuel,  the  amount of resulting contamination
 is  probably in amounts that are not significantly different than
 the metals  that would be  contributed by the  fossil  fuel component
of  the  fuel mixture.  This may not be  the  case with oil and gas,  ,
where huge  volumes of waste are not available  to provide a dilution
effect.  We suspect  that  the other hazardous constituents of  the
hazardous wastes  that typically would  be burned as  a fuel are
either  thermally destroyed or  are emitted  in the flue gas (and
therefore are  part of our first concern as discussed above).   If

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                               -4-


 these data and this presumption are true,  then  combustion  wastas
 resulting from the- burning of coal/hazardous waste  mixtures  should
 not be significantly different in composition than  combustion wastes
 generated by the burning of coal alone.   Because  the  Congress has
 seen fit to exclude the latter wastes  from Subtitle C,  pending more
 study, we feel compelled to provide the  same exclusion  to  the
 former wastes.

      Accordingly, we will interpret the  exclusion of  §261.4(b)(4)
 to include fly ash,  bottom ash,  boiler slag  and flue  gas emission
 control wastes generated in the combustion of coal/hazardous
 waste mixtures provided that coal makes  up more than  50 percent
 of the fuel mixture.

      We offer this interpretation with great reluctance and
 with the clear understanding it is subject to change, if and
 when data indicate that combustion wastes  are significantly
 contaminated by the  burning of hazardous wastes as  fuel.   Me
 also offer this interpretation with the  understanding,  as  dis-
 cussed at our meeting  of November 21,  that the  utility  industry
 will work with us over the next several  months  to improve  our
 data on this matter.   We believe it is essential  that we make
 a  •"'.ore informed judgement and possible reconsideration  of  our
 interpretation of the  exclusion as soon  as possible and before
 completion of our longer-term study of utility  waste  which is
 proceeding.   Accordingly/  we woul.^ like  you  to  provide  to  us
 all  available data on  the following questions by  August 1,  1981:

      1.   What types  of hazardous wastes  are  commonly  burned  as
          fuels in utility boilers?  In what  quantity?   In  what
          ratio to fossil fuels?   How often?   What is  their BTu
          content?

      2.   Does the burning of these wastes  contribute  hazardous
          constituents  (see Appendix VIII of  Part  261  of our
          regulations)  to any of  the combustion  wastes?  If so,
          what constituents,  and  in what  amounts?  How does the
          composition of combustion wastes  change  when hazardous
          wastes  are  burned?

Co-disposal  and  Co-treatment

     The  second  issue  raised in your letter was whether the
exclusion  extends to wastes  produced in  conjunction with the
burning of  fossil fuels which are co-disposed or  co-treated
with  fly  ash,  bottom ash,  boiler slag  and  flue  gas  emission
control wastes.   As  examples of  such wastes,  you  specifically
mention boiler cleaning solutions, boiler  blowdown, demineralizer
regenerant,  pyrites, cooling tower blowdown,  or any "wastes  of
power  plant  origin whose co-treatment  with fly  ash, bottom
ash, slag  and  flue gas emission  control  sludges is  regulated
under  State-or-EPA-sanctioned management or treatment plans."

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                               -5-


      The legislative  history on  this matter clearly indicates
 that the Congress  intended  that  these other wastes be exempted
 from Subtitle C  regulation  provided that they are mixed with
 and co-disposed  or co-treated  with the  combustion wastes and
 further provided that "there is  no evidence of any substantial
 environmental danger  from these  mixtures.."  (See Congressional
 Record,  February 20,  1980,  p.  H  1102, remarks of Congressman
 Bevill;  also  see remarks of Congressman Rahall, Congressional
 Record,  February 20,  1980,  p.  H1104.)

      We have  very  little data  on the composition, character
 and quantity  of  these other associated  wastes (those cited above),
 but the data  we  do have suggest  that they are generated in
 small quantities relative to combustion wastes, at least when
 coal  is  the fuel,  and that  they  primarily contain the sane
 heavy metal contaminants as the  combustion wastes, although
 they  nay  have  a  signficantly different  pH than the combustion
 wastes.   These limited data therefore suggest that, when.these
 other wastes  are mixed with and  co-disposed or co-treated with
 the much  larger  quantities  of  combustion wastes, their composition
 and character  are  "masked"  by  the composition and character of
 the combustion wastes; that is,  they do not significantly
 alter the hazardous character, if any,  of the combustion wastes.

      Given this  information base and given the absence of
 definitive information indicating that  these other wastes do
 pose  a  "substantial danger" to human health or the environment,
 we  believe it  is appropriate,  in the light of Congressional
 intent, to interpret  the §261.4(b)(4) exclusion to include
 other wastes  that  are generated  in conjunction with the burning
 of  fossil fuels and mixed with and co-disposed or co-treated
 with  fly  ash, bottom  ash, boiler slag and flue gas emission
 control wastes.

     *7e offer  this interpretation with  some reluctance because
 it  is made in the absence of definitive information about the
 hazardous properties  of these  other wastes or their mixtures
 with combustion wastes.  We therefore believe it is imperative
 that we proceed  to collect  all available data on this matter
 within the next several months and reconsider this interpre-
 tation when these data are  assessed.  Toward that end and
 consistent with the discussion at our meeting of November 21,
we are asking that you assist  us in collecting these data.
 Specifically,  we ask  that you  collect and submit by August 1,
 1981, any available data on the  following questions:

     1.   What are the "other"  wastes which are commonly mixed
         with and co-disposed  or co-treated with fly ash,
         bottom ash, boiler slag or flue gas emission control
         wastes?  What are  their physical (e.g., sludge or
         liquid)  and chemical  properties?  Are they hazardous
         wastes"in accordance  with Part 261?

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                               -6-


      2.   What are-the co-disposal or  co-treatment methods
          employed?

      3.   How often  are these  wastes generated?   In what
          quantities are they  generated?   Are  they commonly
          treated in any way before being  co-disposed?

      4.   Does the industry  possess any data on  the environ-
          mental effects of  co-disposing of these wastes?
          Groundwater monitoring data?  What are  the results?

      The interpretation on  other  associated wastes provided in
 this  letter  is limited to wastes  that are generated in conjunction
 with  the burning of fossil  fuels.  Ke do  not  intend to exempt
 hazardous wastes that are generated by activities that are not
 directly associated with fossil fuel  combustion, steam genera-
 tion  or  water cooling processes.   Thus, for example, the
 j261.4(b)(4)  exclusion does not cover pesticides or herbicide
 wastes;,  spent solvents,  waste  oils or other wastes that might
 be generated  in construction  or maintenance activities typically
 carried  out at utility and  industrial plants; or any of the
 commercial chemicals listed in §261.33 which  are discarded or
 intended to be discarded and  therefore are hazardous wastes.
 Further,  the  exclusion does not cover any of  the hazardous
 wastes listed in §§261.31 or  261.32 of our regulations.  None
 of these listed wastes were mentioned in  your letter or our
 discussions.

     The interpretation  on  other  wastes is also  limited to
 wastes that traditionally have been and which actually are
mixed with and co-disposed  or  co-treated  with combustion v/astes.
 If any of these other wastes  (e.g., boiler cleaning solutions,
boiler blowdown, deraineralizer regenerant, pyrites and cooling
 tower blowdown)  are  segregated and disposed of or treated
 separately from combustion  wastes  and they are hazardous wastes,
 they are not  covered .by  the exclusion.  In the same vein, the
exclusion does not  cover other wastes where there are no
combustion wastes (or relatively  small amounts of combustion
wastes)  with  which  they might  be  mixed and co-disposed or
co-treated—a situation which  might prevail where natural gas
or oil is the principal  fossil fuel being used.  Therefore,
this interpretation  of the  exclusion  applies  only where coal
 is the primary fuel.   We feel  this is a legitimate- interpretation
of Congressional intent, wherein  the  argument of little potential
environmental hazard,  primarily due to the dilution factor,
is clearly based upon co-disposal  or  co-treatment with the
huge volumes  of wastes generated  during coal  combustion.

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                               -7-

 EPA Utility Waste  Study

      The groups-of questions  raised above bring us to the final
 subject which you  address concerning the study of utility solid
 waste management which EPA  is  conducting.  We agree that the
 study,  as currently being conducted, does not focus on the
 matters discussed  in this letter.  We would, however, like
 to  address  these matters and  include them in our report to
 Congress,  to the extent possible.  To accomplish this, we plan
 to  meet in  the very near future with cur contractor, Arthur D.
 Little, Inc.,  to discuss what  studies may need to be carried
 out in  addition to  their currently planned activities under
 the contract.  The  inputs of your organization could be quite
 useful  in  this effort.  It may be impossible, however, to
 modify  our  present  study to include a detailed investigation
 of  all  of  the  issues discussed above.

      Notwithstanding, we would like to address the matters
 discussed  in  this  letter within a shorter time frame—during
 the next  six  months.  Based on our meeting of November 21,
 it  is my  understanding that the utility industry, working
 closely with  EPA,  is willing to develop data on the questions
 put  forth above.  We agreed that, as a first step, USWAG will
 prepare a study outline designed to obtain these data.  EPA
 staff and industry  representatives designated by your organiza-
 tion will then mutually review the information needs.  The
 data collection effort will then follow.  Finally, data and
 analyses will  be presented to EPA for review.  This will enable
 us  to reconsider the interpretation provided in this letter
 and nake any changes deemed necessary.  Therefore, I would
 appreciate  it  if you would designate a technical representative
 as USWAG1s  contact person for this coordinated data collection
 effort.

     in the meantime, and pending completion of this effort,
EPA will interpret 40 CFR S261.4(b)(4) to mean that the following
solid wastes are not hazardous wastes:

     (a)  Fly ash, bottom ash, boiler slag and flue gas
          emission control wastes resulting from (1) the
          combustion solely of coal, oil, or natural gas,
          (2) the combustion of any mixture of these
          fossil fuels, or (3) the combustion of any
          mixture of coal and other fuels, up to a 50
          percent mixture of such other fuels.

     (b)  Wastes produced in conjunction with the combus-
          tion of fossil fuels, which are necessarily
          associated with the production of energy, and
          which traditionally have been, and which actually
          are, mixed with and co-disposed or co-treated
          with fly ash, bottom ash, boiler slag, or flue
          gas emission control wastes from coal combustion.

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                               -8-
          This  provision  includes,  but  is  net  limited  to,
          the following wastes:

          (1)   boiler cleaning solutions,

          (2)   boiler blowdown,

          (3)   deraineralizer regenerant,

          (4)   pyrites, and

          (5)   cooling tower 'slowdown.
                         *
     I a- hopeful that our future research  activities  together
will prove fruitful and that these  issues  can  be  rapidly resolved.
I have designated Xs. Penelope Kansen of my staff  as the Z?A
p^int of contact for this effort.   You  may  reach  her at  (202)
•755-9206.

                                Sincerely  yours,
                                Gary N.  Dietrich
                    Associate  vsputy Assistant  Ad^inistratoc
                                iior* Sol id Waste

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