oEPA
              United SIMM
              Environmental Protection
              Agency
           Off ice of
           Solid Waste and
           Emergency Response
DIRECTIVE NUMBER: 9441.18(85)

TITLE: Determination of Primary SIC Code for a Facility



APPROVAL DATE:  5-21-85

EFFECTIVE DATE:  5-21-85

ORIGINATING OFFICE:  office of solid waste

Q FINAL

D DRAFT

 LEVEL OF DRAFT

   DA — Signed by AA or DAA
   D B — Signed by Office Director
   D C — Review & Comment

REFERENCE (other documents):
  OSWER     OSWER      OSWER
VE   DIRECTIVE   DIRECTIVE   Dl

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261  SUBPART A - GENERAL
                                                DOC:  9441.18(85)
Key Words:    Exclusions, Pickle Liquor

Regulations:
Subject:

Addressee:

Originator:

Source Doc:

Date:

Summary:
Determination of Primary SIC Code for a Facility

Michael J. Sanderson, Chief, RCRA Branch, Region VII

Matthew Strauss, Chief, Waste Identification Branch

#9441%18(85)

5-21-85
     The memo lists the types of operations and SIC codes for those operations
that qualify for the lime-stabilized waste pickle liquor sludge (LSWPLS)
exclusion for iron and steel industries.  A facility that is primarily engaged
in the manufacturing or processing of steel qualifies for the lime-stabilized
waste pickle liquor sludge exclusion.

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                                                              9441.18  (85) -

                           MAY 2 I  1985
MEMORANDUM

SUBJECT:  Lime Stabilized Waste Pickle Liquor Sludge
          from SIC Code No. 331 and 332

PROMi     Matthew Straus, Chief
          Waste Identification Branch (WH-562B)

TOs       Michael J. Sanderson, Chief
          RCRA Branch
          Region VII

     •In your memorandum of March 5, 1985, you requested guidance
on whether lime-stabilized waste pickle liquor sludge  (LSWPLS)
generated by Valmont Industries Inc., (Valley, Nebraska) qualifies
for the exclusion for LSWPLS from iron and steel industries
promulgated on June 5, 1984.  (Valmont was classified under SIC
Code 331 for the purpose of acquiring a NPDBS permit.) Also,
your request guidance regarding the types of facilities and
processes included in SIC Code 331 and 332.

     Before addressing the items raised in your memorandum, one
point should be clarified.  That is, the RCRA inspection report
for Valmont Industries indicates that the facility treats
pickle liquor with anhydrous ammonia to raise the pH to 6.5 or
above.  The waste is then pumped from the pickling tanks into
lagoons.  However, Wayne Kaiser, of your staff, has informed
us of Valmont's intent to pump the neutralized waste from the
lagoons to the wastewater treatment system for treatment with
lime.  It is at this point, that lime stabilized waste pickle
liquor sludge is generated.

     In determining the primary SIC code for a facility, the
Agency considers the principal product or process.  Thus, a
facility that is primarily engaged in the manufacture or
processing of steel (i.e., SIC code 331 or 332) qualifies
for the "exclusion.*  The following types of operations are
included In these SIC codess

     3312 - blast furnaces, steel works, and rolling mills
     3313 - electrometallurgical products
     3315 - steel wire drawing and steel nails and spikes

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                              -2-
     3316 - cold rolled steel sheet, strip, and bars
     3317 - atoel pipe and tubes
     3321 - gray Iron foundries
     3322 - malleable iron foundries
     3324 - steel investment foundries
     3325 - steoi foundries (not classified elsewhere)
     In considering Valmont for a NPD6S permit, State and
Regional officials designated the facility as SIC code 331.
according to the "Rationale For NPDE3 Permit For Valrnont
Industries, Inc.," the Regional Water Management Division
categorized the three wastewater generating processes at
Valmont Industries (acid pickling, galvanizing, and tube forming)
as belonging to the iron and steel subcategory since these
operations normally are associated with iron and steel mills.

     This designation, however, is inconsistent with the way
the Agency normally classifies the various industry segments.
In particular, many industries other than iron and steel are
engaged in acid pickling and may generate spent pickle liquor
(see Notice of Availability of Data, January 4, 1984).  The
galvanizing operation at Valmont Industries is integrated into
the various product lines and should not be considered under a
separate SIC category.  The tube forming operation is the only
process at Valraont which falls under the iron and steel
subcatogory.  Since the principal product is pivot irrigation
systems, we believe the primary SIC code to be 3523 - Farm
and Garden Machinery and Equipment.

     In resolving this matter, the Agency is faced with three
major options —  we could re-open the permit application for
Valmont Industries and assign the correct SIC code, we- could
consider Valmont as non-iron and steel only for purposes of
determining whether the exclusion for LSWPLS is applicable,
or we could stand by the NPDBS SIC code designation and consider
Valmont covered under the exclusion for LSWPLS.

     We realize that re-evaluating the permit application at
this time would be resource intensive and impose additional
coats to Valmont and the Agency.  A decision to classify Valmont
under different SIC codes for purposes of RCRA and CWA would .
be viewed as contradictory and unjustifiable.   Since we believe
it prudent to maintain consistency in assigning SIC codes for
regulatory purposes, it is our recommendation that the Agency
maintain its earlier SIC code designation for Valmont.   As a
practical matter, this means that Valmont Industries would
continue to be designated as SIC code 331, and as such, would
be covered under the exclusion for LSWPLS.

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     Wo believe that the situation  regarding  Valtaont Industries         *
represents an isolated incident.  The  Agency  will continue to           w»
raako decisions regarding applicability of  the exclusion for             S
L3WPLS based on the rationale set forth earlier in this memorandum.     .5*
                                                                         &4
     If you have further questions  or  require additional information    a
regarding this guidance, please call Jacqueline Sales, of my staff,     £
at PTa 382-4807.                                                         «J^
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