SEPA
           United States
           Environmental Protection
           Agency
            Office of Water
            Washington, DC 20460
           Water
Office of Water
Annual Report
                                  December 1984

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                       ANNUAL REPORT
                           TO THE
                      OFFICE OF WATER
     During our September meeting at the Arena Stage,

I promised a year-end report of. your accomplishments.

Routine work sometimes goes unheralded, therefore I wanted

to be sure we took time to acknowledge the significant progress

that we made in the past year.  By putting this in writing, as

a means of affirmation, it's another opportunity for me to

thank you for a job well done.


     The Agency has been through some difficult times in

the past few years, but you have continued your work in

exemplary fashion.  I congratulate you on your accomplishments.

Administrator Ruckelshaus and I thank you for your spirit

and commitment to environmental protection.


     We look forward to the further accomplishments of the

Office of Water in the coming year.  Each of you can claim

a significant part of this progress.


                                    Sincerely,
                                    Jack E. Ravan
                                    Assistant Administrator
                                    for Water

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               PROTECTING THE NATION'S WATERS 	



                      PROGRESS IN 1984 .






     EPA's Office of Water has had a year filled with



activity and accomplishments.  To the outside world, our



acronyms may be confusing, but we are proud of our progress



in such things as NPDES, UIC and CBOD5.  Because of our



many initiatives, it is helpful to have a listing of



what is happening in the various water programs.  It is with



this in mind, that we look at the past year's experiences.






                    NEW PROGRAM OFFICES



     The most dramatic structural change to occur in the



last year was the creation of two new offices, the Office



of Ground Water Protection and the Office of Marine and



Estuarine Protection.  These new offices are the visible



signs of an increased effort on two agency priorities.






Ground Water Protection



     Setting up the Office of Ground Water Protection was



extremely important for creating a focal point to coordinate



policy, to deal with other federal agencies, and to support



the work of the states.  Because half of this country



drinks ground water, and because we have discovered increased



ground water contamination, it was clearly time to give this



important resource a new level of attention.



     The Office of Ground Water Protection began operation



officially in April of 1984.  One of its primary responsibilities,

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under the leadership of Marian Mlay, is to implement the



Ground Water Protection Strategy that was released in August 1984



     The strategy has four major elements:



     1) Build and enhance institutions at the state level.



     2) Address problems associated with inadequately controlled



     sources of contamination.



     3) Issue guidelines for EPA decisions affecting ground



     water protection and cleanup.



     4) Strengthen EPA's own organization for ground water



     management.



     The regional ground water offices are now in place,



$7 million in grants has been allocated to the states for



developing and implementing programs, and we will be providing



states with assistance in addressing technical and design



issues.  Although much remains to be done, we now have the



people ready and the commitment necessary to tackle this



difficult task.






Office of Marine and Estuarine Protection



     Before we established the marine and estuarine office in



October, the organization of ocean activities was divided



among several offices, with no central focal point or overall



coordination* The new office, with Tudor Davies as its director,



is a contact point for all issues relating to protection of the



marine and estuarine environment.



     The-se activities include decisions on 301(h) waivers for



marine discharges, as well as overall implementation of the

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Marine Protection Research and Sanctuaries Act/ which

includes site designations and permit issuance.  The office

establishes criteria for the issuance of ocean disposal

permits, and works closely with the agency's regional

offices in evaluating and selecting suitable sites for the

ocean disposal of dredged and other materials.  The office

is also responsible for developing an environmentally

sound incineration-at-sea program.
                        j
     The office participates with the regions and state agencies

in designing and providing technical support to the Chesapeake

Bay and estuaries programs.  The Chesapeake Bay, of course,

received special attention last year in the President's

State of the Union address, the President's visit to the Bay,

and the allocation of §40 million.  The program is a model

for state and federal coordination.  An additional $4 million

has been appropriated by Congress to do research, monitor, and

assess problems in the following selected estuaries:  Narragansett
                                         , '*
Bay, Long Island Sound, Buzzards Bay and Puget Sound.

     The office also represents the Great Lakes National Program

in Washington.  The significance of this program centers around

international obligations under the Great Lakes Water Quality

Agreement with Canada and the leadership of the Great Lakes

states in nutrient and toxics control.


                 IMPROVING COMPLIANCE RATES

  A major effort was spent during the last year to improve

compliance rates for major municipals.  In June 1983,

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1024 major facilities were in significant noncompliance



with their NPDES permits.  As of September 14, 1984, the



regions reported that they expected these results by the



end of the fiscal year: 527 facilities returned to compliance,



472 addressed by a formal enforcement action, and only 25



yet to be addressed.  This represents a success rate of



nearly 98 percent for the year.



     The rate of significant noncorapliance for all categories



of facilities dropped sharply in the third—quarterly



reporting period, and we expect the rates to improve even



more for the last quarter of FY 1984.






                        REGULATIONS






     EPA is a regulatory agency, and it is in the business



of issuing regulations to implement the laws passed by Congress.



During the past year, the Office of Water has produced a



number of both proposed and final regulations.






Effluent Guideline Regulations



     An important part of carrying out the Clean Water Act



involves the issuing of effluent guidelines for industry.



Certain industries make products that have toxic by-products,



and EPA is charged with placing limits on wastes the industry



discharges into rivers and streams.  During the last year,



the Office of Water issued guidelines both for discharges



that go directly into rivers and for those indirect discharges



that go first into sewage treatment facilities.

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     The following effluent guidelines were issued last year;
Industrial effluent                         Date
guideline

Battery Manufacturing                       2/84 (final)

Foundries (Notice of
Availability)                               3/84 (issued)

Inorganic Chemicals
(Phase II)                                  Z/84 (final)

Nonferrous Metals
Forming                                     2/84 (proposed)

Pesticides (Notice
of Availability)                            6/84 (issued)

Plastics Molding &
Forming                                     2/84 (proposed)

Nonferrous Metals
(Phase II)                                  5/84 (proposed)

Phosphate Fertilizer
(Revision)                                  7/84 (proposed)

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NPDES Litigation Settlement
                                               c   ' '
     When EPA promulgated its revised National Pollutant

Discharge Elimination System (NPDES) regulation in 1979, the

agency was sued almost immediately by industry.  in 1980 it

was sued again over a combination permit program.  The two

suits were combined into one petition. Extensive negotiations

resulted in four separate settlement agreements.

     The final NPDES litigation rulemaking contains over 30
                                                /
separate issues.  The outcome represents a balance between

the legitimate concerns of the industry and the significant

opposing comments received from the public.


Construction Grants Regulations Revision

     The construction grants program was responsible for a

number of regulations during the last year.  In February,

the overall construction grants regulations were issued in

final form.  The revised regulations are shorter, simpler,

and provide more flexibility to the states in managing the

program to assist local governments in building wastewater

treatment facilities.
                                                  U
     The revisions are in response to changes in t:he Clean

Water Act that would eliminate delays during the planning

and design stages, and thereby eliminate the impacts of

inflation resulting from those delays.

     The regulations also reflect a legislative reduction of

the federal share of project costs.  Beginning October 1

of this year, federal grants cover 55 percent of costs instead

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of 75 percent.  Also, collector sewers and correction of



combined sewer overflows were eliminated as separate



categories of eligibility, although states still have



authority to fund those categories within certain limitations.





Secondary Treatment Definition



     The secondary treatment regulations provide more flexibility



to smaller communities in meeting Clean Water Act requirements,



while making sure that water quality is maintained.



     Communities are now allowed to install less expensive



methods of biologically treating wastewater, such as trickling



filters and waste stabilization ponds, which are considered as



equivalent to conventional secondary treatment systems under



certain conditions.  Small communities that are having difficulty



financing complex secondary treatment plants will now be able to



achieve compliance with the Clean Water Act.





CBODr;



    EPA proposed to allow the level of organic matter in



wastewater from secondary treatment facilities, to be defined



in terms of a recently developed measure (CBOD) that reflects



the organic waste load more accurately than the traditional



80-year old measure (BOD).  BOD refers to biological oxygen



demand and CBOD refers to carbonaceous biological oxygen



demand.  These are terms used to measure the amount of oxygen



used in the breakdown of waste.  The greater degree of



pollution, the higher becomes the BOD number.

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Proposed Drinking Water Regulations for Volatile Synthetic
Organic Chemicals

     This proposed rule establishes recommenced maximum

contaminant levels (RMCLs) in drinking water for seven

carcinogens and two non-carcinogens.  RMCLs are non-

enforceable health goals that would result in no known or

anticipated adverse health effects.  The level for carcinogens

was set at zero in response to Congressional intent.  The level

for the non-carcinogens was based on chronic toxicity data.


Advanced Notice of Proposed Rulemaking to Revise the National
Primary Drinking Water Regulation    v

     We announced our intention to propose regulations for

organic, inorganic, microbial and radionuclide contaminants

in drinking water.  This effort, which will be done in four

phases, is designed to control additional contaminants,

prescribe technology requirements to reduce ongoing levels

of waterborne disease outbreaks, as well as modernize

existing interim maximum contaminant levels.


Water Quality Standards

     The revised water quality standards regulation set

guidelines which the states use to set water quality goals

for specific bodies of water.  State standards serve as the

regulatory basis for treatment controls that go beyond

technology-based treatment.

     Particular attention was given to maintaining a strong

antidegradation requirement.  There was also a much stronger

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emphasis an state adoption of water quality criteria for



toxic pollutants.



     In addition, the Office of Water produced an extensive



series of guidance documents on wasteload allocation procedures



to support the water quality based approach to permitting,



as well as guidance to conduct use attainability analyses.





Underground Injection Control Direct Implementation



     In May, EPA announced we would be directly administering



an Underground Injection Control  (UIC) program in 22 states.



In October, we announced programs in five states, two



territories, and on Indian reservations located in four states.



This program is to control the underground injection of



liquids.



     The regulated wells are used to dispose of wastes,



enhance oil and gas recovery, and mine certain minerals.  If



left unregulated, these activities could pose a significant



threat to ground water quality.





Incrneration-At-Sea Program



     The incineration-at-sea program has feeen a highly



visible program at EPA during the past year.  In November



of 1983, EPA held a public hearing in Brownsville, Texas,



on proposed permits for incineration of hazardous waste at



sea.  A crowd of 7,000 people turned out, mostly to protest



those permits; it was the largest public hearing in the



history of EPA.

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     In response to concerns raised at that hearing, the



the Office of Water delayed the issuance of permits until it



develops proposed regulations that deal specifically with



incineration-at-sea, and new research criteria to be incor-



porated into a research strategy.  The public has been



involved extensively in the development of both of these



documents.  We anticipate they will be released around the



first of the year.






Ocean Disposal Criteria



     We anticipate publication, within a few months, of a



proposed rule in the Federal Register that responds to a



court decision and statutory amendments enacted since the



current ocean disposal regulations were promulgated in 1977.



As a result of the decision, EPA will be considering the



availability and environmental impacts of land based disposal



alternatives in evaluating applications for ocean disposal



permits.  At the same time, we are proceeding to develop a



comprehensive revision of the ocean disposal regulation.






Proposed Rule for NPDES Noncompliance



     The purpose of the changes in this rule was to establish



a consistent basis for reporting noncompliance in the



Quarterly Noncompliance Report (QNCR), and to propose



additional reporting of other noncompliance.  This is the



main compliance report available to the public.

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     The proposed rule defined specific criteria for

reporting noncompliance, i.e., time frames for reports and

criteria for the magnitude and frequency of effluent violations.

These were called Category I noncompliance and were based on our

definition of significant noncompliance.  A state agency

could list a second category of noncompliance at their discretion,
              /


General Pretreatment Regulation, Removal Credits

    The Clean Water Act required EPA to have a program to

control industries that discharge into publicly owned

treatment works any pollutant that will interfere with the

way the plant works.  A later amendment allows POTWs to

adjust their standards for industries, if a particular

pollutant is already being treated by the POTW.  This

adjustment is called a removal credit.

     The final regulations require any POTW seeking removal

   dit approval to demonstrate its performance through

sampling on a regular basis thoughout one full year at

approximately equal intervals and calculating its rates

based on these data.   These procedures will ensure that

the removal capability of a POTW is determined on a case-


by-case basis.



Water Quality Planning and Management Regulation

     This regulation establishes policies and program

requirements for water quality planning, management and

implementation.  This process provides the authority for a

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consistent national approach for maintaining, improving and

protecting water quality, while allowing states their individual

programs.

     The process is implemented jointly by EPA, the States,

interstate agencies, and areawide, local and regional planning

organizations.  This regulation explains the relationships

between the several components of the water quality management

process and outlines the roles of the major participants.  It

was released by the Office of Management and Budget on December 7,

1984, and will be promulgated shortly as a final regulation.


                          REPORTS


Report on Future Federal Role in Municipal Wastewater
Treatment Financing

     EPA has completed a study of the Federal role in

financing municipal wastewater treatment facilities.  The

goal of the study was to develop a national consensus on the

future direction of the EPA construction grants program, and

to develop funding strategies that promote state and local

financial self-sufficiency and long-term municipal compliance.

EPA's Management Advisory Group took testimony from states,

cities, engineers, and other interested parties.  An EPA task

force was established to coordinate the study.  A final report

and a legislative package were completed in December 1984,

and presented to the Administrator.  The recommendations

included a revised grant program that would capitalize

state-administered revolving loan funds.

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Surface Impoundment Assessment Report


     In response to growing indications that the storage,


treatment, and disposal of liquid wastes in surface impound-


ments might be a significant source of contamination to


ground water, EPA conducted an inventory of impoundments


and their potential to contaminate ground water.


     Although the Surface Impoundment Assessment Report was


issued in January 1984, the data have been available since


1979 and have been used extensively by both the Office of
                                                          l

Solid Waste and the Superfund program.  The study was


designed to: 1) increase our knowledge concerning impoundments;


2) determine numbers, location, and potential effects of


surface impoundments on ground water quality; 3) solicit


information on existing state approaches to ground water


protection from these facilities; and 4) provide EPA with


  formation to allow for a review of our programs regarding


ground water protection and surface impoundments.


     The results of the study confirmed the concerns that


led to its initiation: surface impoundments, without proper


siting, design, construction, and operation, can threaten


ground water quality.  In the past, federal regulations and


most states did not adequately address this problem.



Nonpoint Source Report to Congress


     EPA released a report on nonpoint source (NPS) pollution


that informed Congress that six out of ten EPA  regions found


NPS pollution to be the principal remaining cause of water

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quality problems.  Half of the states repotted that NFS



was a major or significant cause of their remaining water



quality problems*  Nonpoint source pollution can be the



chemicals associated with agricultural activities, runoff



from urban and mining activities, or pollution associated



with silviculture.



     In recognition of the problem and in the absence of a



Congressional mandate, a nonpoint source task force was



formed, comprised of twenty-five policy level representatives



of federal, state, interstate and local agencies.  The



objective of the task force was to develop a realistic



nonpoint source strategy that would encourage nonpoint



source management programs that ensure water quality protection,



while recognizing the competing uses of resources.  Success



will depend on the close association of government and the



private sector.





The States' Evaluation of Progress 1972-1982 {STEP Report)



     In cooperation with EPA, the Association of State and



Interstate Water Pollution Control Administrators published a



report in February that described a decade of progress in



water pollution control.



     Although the nation's population grew by 11%, with a



sizable increase in the use of surface waters for industry



and recreation, we still had the following progress:



42,000 stream miles improved in quality; 390/009 acres of



lakes showed improved water quality.; 142 ail-lion people are

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receiving secondary or more advanced levels of sewage treat-
ment, up from 85 million in 1972; and cities and industries
have substantially increased compliance with their limits on
waste discharges.

Rural Water Survey
     This survey is concerned with an intensive, one-time
national statistical assessment of rural water conditions.
It focuses primarily on the quality, quantity, availability,
cost, and affordability of domestic water in rural households.
     Some of the conclusions were: 1) most rural households have
a water supply  that is acceptable by most of the indicators;
2) water is in  sufficient quantity; and 3) water is readily
available at a  reasonable cost.  Nevertheless, the exceptions
to these findings were not rare, and the difficulties were
 Dt  always minor.  Bacterial contamination was the predominant
  oblem encountered.

Pesticides Survey
     The Office of Drinking Water and the Office of Pesticides
Programs have jointly undertaken the design of a monumental
survey of pesticides in ground waters, to determine the type
and  extent of pesticides migration into water supplies.
Results will benefit the Office of Drinking Water in its
design of national regulations, as well as helping to develop
pesticides registration rules.

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Report of the Pretreatment Implementation Review Task Force



     The Pretreatment Implementation Review Task Force (PIRT)



was chartered by the Administrator to make recommendations on



the pretreatment program.  The final report, which should be



available to the public in January, focuses on five sections:



simplification and clarificationf enforcement, resources,



roles and relationships, and suggestions on regulatory changes






               POLICIES/GUIDANCE/STRATEGIES





Construction Grants Financial Capability



     This policy was developed to ensure that construction



grants applicants could show their financial and management



capability to construct, operate, and maintain a wastewater



treatment system.



     It describes legal and regulatory requirements for



applicants and provides a framework for applicants by



asking five questions concerning the total costs of the



proposed treatment system. These questions provide answers



for how the project will be financed, what are the total



annual costs per household, and what are the roles and



responsibilities of local governments involved.






Dioxin Strategy



    The strategy was designed to determine the nature and



extent of dioxin contamination throughout the country.



Dioxin contamination may exist in soil, water, or air.



Seven categories of sites are being investigated, ranging

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from sites where contamination is strongly suspected to



ambient sites with no known sources of dioxin.





Toxics Control Policy (Biomonitorinq)



     The biomonitoring policy was developed because of an



increasing need to control toxics in surface water,  the



Clean Water Act set up two methods of controlling water



pollution—technology-based standards and water quality-



based standards.  It did not, however, take into consideration



the fact that when some pollutants are mixed together, their



toxicity changes.



     The biomonitoring policy recommends an integrated



approach to monitoring; using both chemical and biological



methods to assess and control toxic substances in surface



water.  In the biological methods recommended, scientists



c  :pose fish and other aquatic animals to samples of effluent



  j.uted with varying volumes of receiving water.  The effects



on the animals are then observed over time and the toxicity



of the wastewater is calculated.  This represents a clearer



picture of what is actually going on in the receiving waters,



and provides a tool for setting limits in discharge permits



to regulate whol<* effluent toxicity.  The Office of Water



also produced a support document to implement the policy.
    National Municipal Policy



     This policy demonstrates the Agency's commitment



to municipal compliance with the Clean Water Act.  The Act

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requires all publicly owned treatment works (POTWs), to



meet the statutory compliance deadlines and to achieve the



water quality objectives of the Act, whether or not they



receive federal funds.



     We are focusing on those plants that previously received



federal funding and are not currently in compliance with



their applicable effluent limits, on all major POTWs, and



on minor POTWs that contribute significantly to an impair-



ment of water quality.  Our goal is to get compliance by



POTWs as soon as possible, and no later than July 1, 1988.



     In April, the Office of Water released regional and



state guidance that contained procedures and criteria for



setting priorities, preparing compliance plans, and



establishing final schedules for noncomplying POTWs.






Construction Grants Advanced Treatment Policy



     The policy provides for a consistent national approach



for review of Advanced Treatment (AT) projects. Advanced



treatment projects are those designed to meet effluent



requirements more stringent than secondary treatment.



The policy establishes nationally consistent procedures for



advanced treatment reviews and improves the technical basis



for reviewing AT projects.



     These grants funds are available only if the incremental



cost of AT is $3 million or less, or if the Administrator



determines that AT will definitely result in significant



water quality and public health improvements.

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Municipal Sludge Management Policy



     The Sludge Task Force was established to examine the



problems of sewage sludge disposal and use, and to look at



the need for additional regulations.



     In June of 1984, we published a policy that promotes



sludge management practices that recycle sewage sludge to



recover its resource value.  EPA will regulate and guide



sludge management and provide research.  State governments



will regulate local sludge disposal and help in planning and



operating local systems.  Local governments can choose available



management options, and they have the responsibility to maintain



an adequate system.



     This policy is a framework for regulations that establish state



requirements and technical controls on sludge disposal and use.
         Guidance for Oversight of NPDES Programs



     This guidance document establishes criteria for the



NPDES program  (including pretreatment ) .  It is being used



as a framework with the regions and states, giving details



for their individual agreements and/or work plans.



     It defines the major elements of a sound NPDES program;



outlines high priority achievements for FY 1985; clarifies



how the regions and states should translate specific goals



into annual grant agreements; and defines roles of EPA



regions and states in carrying out the NPDES program.

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Drinking Water Additives



    EPA published a notice in June that examined the



possibility of transferring the responsibilities of the



Drinking Water Additives Evaluation Program.  The Federal



Register notice solicited bidders for a third-party self-



regulating program for the additives manufacture and user



industry.  Additives are substances added to drinking water



to improve its quality.





                       OUR CHALLENGE



    The items mentioned in this annual report are the



highlights of the past year.  No less important are the



many individual efforts made every day to keep the Office



of Water running smoothly.



    It is sometimes difficult to remember the relationship



between what we do and protecting the water of this country,



but nevertheless the relationship exists and is a crucial one,



Because of our work, rivers are cleaner than they were ten



years ago.  Because of our work, we continue toward the goal



of safe drinking water for every American.



    We don't come to just any kind of job in the morning.



We come to participate in one of the most important movements



of this century ... protecting the environment.  Because of



the job we do, the environment will be better protected for



future generations.  It is a job worth doing 1

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