3EPA
              United State*
              Environmental Protection
              Agency
          Off ice of
          Solid Waste and
          Emergency Response
DIRECTIVE NUMBER:  944i.oi(8i)
TITLE: Interpretation of the Fossil Fuel Combustion
    Waste Exclusion in §261.4(b)(4)
                APPROVAL DATE:  1-13-8!
                EFFECTIVE DATE:  1-13-81
                ORIGINATING OFFICE:  osw
                El FINAL
                D DRAFT
                 LEVEL OF DRAFT
                   DA — Signed by AA or DAA
                   D B — Signed by Office Director
                   DC — Review & Comment
                REFERENCE (other documents):
  OSWER      OSWER     OSWER
VE   DIRECTIVE    DIRECTIVE   Dl

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PART 261  SUBPART A - GENERAL                                 DOC:  9441.01(81)
    ••


Key Words:     Fossil Fuels, Exclusion

Regulations:  40 CFR 261.4(b)(4)

Subject:      Interpretation of the Fossil Fuel Combustion Waste Exclusion
              in §261.4(b)(4)

Addressee:     Paul Emler, Chairman, Utility Solid Waste Activity Group

Originator:   Gary N. Dietrich Associate Deputy Assistant Administrator for
              Solid Waste

Source Doc:   #9441.01(81)

Date:         1-13-81

Summary:

     Section 261.4(b)(4) excludes the following as nonhazardous waste: "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."

     EPA interpreted the term "primarily " used in the exclusion to mean that
fossil fuel is the predominant fuel in the fuel mix.  Thus EPA interprets the
§261.4(b)(4) exclusion- to include fly ash, bottom ash, boiler slag and flue gas
emission control wastes that are 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.

     §261.6 exempts wastes and sludges used beneficially or legitimately recycled
from hazardous waste regulation.  However, where these wastes are listed as
hazardous,  their storage or transportation prior to use or recycling is subject
to regulation.  §261.6 provides an exemption for the actual burning of hazardous
wastes for  fuel value recovery only.

     The letter further details the limits of §261.4(b)(4).  This exclusion
regards waste 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 well as other associated waste).

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                                                               oo-3
          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                      WASHINGTON. D.C. 20460
                         JAN 13 1981               orr.cEorwATER
                                                   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. Err.ler:

   .  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 5261.4(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.-,iendments  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.,
 Tiore  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,
 SPA 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
 are 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 wastes 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 wastss
 resulting  f-om  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
 wast-e  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,  lie
 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 nore  informed judgement and  possible reconsideration of our
 interisretation  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 environne.it,
 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.

     We 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 wastes.
 If any of these other wastes (e.g./ boiler cleaning solutions,
boiler blowdown, demineralizer 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-

     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 USWAG1 s contact person for this coordinated data collection
 effort.

      In the meantime, and pending completion of this effort,
EPA will interpret 40 CFR §261.4(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  not  limited  to,
          the following wastes:

          (1)  boiler cleaning solutions,
                              «
          (2)  boiler blowdown,

          (3)  demineralizer  regenerant,

          (4)  pyrites, and

          (5)  cooling tower  blowdown.
                         «
     I arr. hopeful that our future research  activities  together
will prove fruitful and that  these  issues  can  be  rapidly  resolved.
I have designated Ms. Penelope Hansen of .-ny staff  as the  E?A
•^int of contact for this effort.   You  ma
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