vvEPA United States Environmental Protection Agency Office of Water and Waste Management Washington, D.C. 20460 February 1981 Proposed Effluent Guidelines Rulemaking for the Iron and Steel Manufacturing Point Source Category ------- Background The Clean Water Act Under the Clean Water Act (the Federal Water Pollution Control Act Amend- ments of 1972, as amended by the Clean Water Act of 1977), the Environmental Protection Agency (EPA) is charged with the responsibility to restore and main- tain the chemical, physical, and biological integrity of the Nation's waters. Direct Dischargers The act requires that all industries discharging wastes into navigable waters achieve by July 1, 1977, the "best practicable control technology currently available" (BPT). This control technology represents the average of the best exist- ing waste treatment performance within each industry category or subcategory. By July 1, 1984, the Act requires the achievement of effluent limitations based on the very best control and treat- ment measures that have been devel- oped or that are capable of being developed within the industry category or subcategory. These effluent limita- tions require the following controls: • Toxic and Nonconventional Pollutants—Application of the "best available technology economically achievable" (BAT) • Conventional Pollutants—Applica- tion of the "best conventional pollu- tant control technology" (BCT) New source performance standards (NSPS) are also established for new in- dustrial direct dischargers. NSPS, which goes into effect at the commencement of operation, is described as the "best available demonstrated control technology, processes, operating methods, or other alternatives including, where practicable, a standard permitting no discharge of pollutants." Indirect Dischargers Indirect dischargers are industrial facilities that discharge pollutants to publicly owned treatment works (POTW). The Clean Water Act directs EPA to establish national pretreatment stand- ards for pollutants that are incompatible with or pass through municipal treat- ment plants. The Act requires: • Achievement, within 3 years of pro- mulgation, of pretreatment stand- ards for existing sources (PSES) • Achievement, upon commencement of operation, of pretreatment stand- ards for new source$ (PSNS) Purpose of Proposed Regulation The primary purpose of this proposed regulation is to provide effluent limita- tions guidelines for BPT, BAT, and BCT and to establish NSPS, PSES, and PSNS under Sections 301, 304, 306, 307, and 501 of the Clean Water Act. While the requirements for direct dischargers are to be incorporated into National Pollutant Discharge Elimination System (NPDES) permits issued under Section 402 of the Act by EPA and par- ticipating States, pretreatment stand- ards are enforceable directly by the Agency against indirect dischargers. The proposed regulation does not re- quire the installation of any particular treatment technology. Rather, it requires the achievement of effluent limitations representative of the proper operation of treatment model technologies or equivalent tecnologies. Industry Coverage The Iron and Steel Manufacturing Industry is included within the U.S. Department of Commerce, Bureau of the Census Standard Industrial Classifica- tion (SIC) 3300. This proposed regulation applies to subgroups SIC 3312 (except forgings and cold coatings), 3315, 3316, and 3317, which include all processes, subprocesses, and alternative processes involved in manufacturing intermediate or finished products. The Iron and Steel Manufacturing Industry uses a variety of processes that require large quantities of raw materials. The industry can be divided into raw steelmaking and forming and finishing. Steel facilities range from plants using few processes to extremely large industrial complexes that may use all production processes. • In 1978, revenues of the U.S. Steel industry were $46 billion; it ranks third in the Nation in value of total shipments and accounts for about 15 percent of world production • In 1978, approximately 87 percent of the total U.S. steel ingot output was produced by 15 corporations • This industry is one of the highest water users of all manufacturing industries—water is essential in almost all process operations, with an average 40,000 gallons required to produce 1 ton of finished steel Pollutants Pollutants discharged by the industry include: • Toxic Pollutants—Total and hex- avalent chromium, cyanide, phenols, copper, lead, tin, nickel, zinc, cadmium, and approximately 40 toxic organics ------- • Conventional Pollutants—TSS, pH, and oil and grease • Nonconventional Pollutants— - Fluoride, ammonia-N, and iron ERA'S Development Program -To implement the Clean Water Act, EPA conducted a complex development pro- gram. This program included: • Development of analytical methods for detecting and measuring toxic pollutants • Sampling of intake water and raw and treated wastewater at a representative number of plants • Use of the best state-of-the-art methods for detection of toxics, i.e., atomic adsorption spectro- metry (AAS), inductively coupled argon plasma (ICAP) spectrometry, and gas chromatography/mass spectrometry (GC/MS) Technical Data Gathering The technical analysis was based on: • Data Collection Portfolios (DCPs) requesting information on pro- cesses and production as they relate to water usage and wastewater generation. DCPs were sent to all U.S. steelmaking and 85 percent of U.S. steel forming and finishing operations, of which 393 steelmaking and 1,631 steel forming and finishing operations responded • Detailed DCPs (D-DCPs) requesting detailed cost information and long- term test data results were sent to 50 steelmaking and 128 forming and finishing facilities • A two-part sampling and analysis program involving 31 steelmaking and 83 forming and finishing facilities • Data from previous studies, NPDES permit files, Discharge Monitoring Reports, contacts with suppliers of pollutant control equipment, treatability studies, and literature searches Methodology After developing analytical methods for detecting and measuring toxic pollu- tants, EPA studied the Iron and Steel Manufacturing Industry to deter- mine whether separate standards were needed for different segments of the industry. Next, EPA identified the wastewater constituents to be considered for effluent limitations guidelines and standards of performance and identified in-plant and end-of-process treatment technologies that were being used, or that could be used, by the industry. EPA analyzed data on the performance of each technology and its associated non- water-quality environmental impacts. The cost of each control and treat- ment technology was estimated for model facilities for each subcategory or subdivision. Baseline projections of costs were computed for up to five alter- native treatment models in each sub- category or subdivision. Costs were also calculated for the steel industry as a whole for installing technologies capable of achieving various levels of regulation. The economic impacts of these costs were then evaluated. EPA then identified the various treat- ment technology options for BPT, BCT, BAT, NSPS, PSES, and PSNS. Finally, EPA selected the preferred option by in- dustry subcategory or subdivision for each set of standards. Subcategories EPA found that the manufacturing pro- cesses of the Iron and Steel Manufactur- ing Industry provide the most significant basis for determining subcategories. Consequently, EPA has divided the industry into the following 12 main pro- cess subcategories: • Cokemaking • Sintering • Ironmaking • Steelmaking • Vacuum Degassing • Continuous Casting • Hot Forming • Scale Removal • Acid Pickling • Cold Forming • Alkaline Cleaning • Hot Coating The Agency further segmented the subcategories into 50 subdivisions based on product type, composition, shape, water use rates, control technologies, and process variations. ------- Summary of Control Technologies Considered The following pollution control tech- niques and technologies were con- sidered by EPA in developing standards for the Iron and Steel Manufacturing In- dustry: • In-plant control —Cascade rinse systems in pickling and hot coating operations to reduce rinse flow discharges by up to 95 percent —Process modifications and reduc- tion of wastewater generation by recycle and reuse • End-of-pipe treatment • Add-on technology to BPT for BAT, BCT, NSPS, PSES, and PSNS treat- ment levels —Extended biological treatment (cokemaking) —Granular activated carbon —Powdered carbon addition —Pressure filtration with and without sulfide addition —Multistage evaporation/condensa- tion systems reports in the Development Document for Effluent Limitations Guidelines and Standards for the Iron and Steel Manufacturing Point Source Category (EPA 440/1-80/024b, December 1980). The pertinent sections are as follows: • BPT—Section IX • BAT—Section X • BCT—Section XI • NSPS—Section XII • PSES, PSNS—Section XIII Regulated Pollutants Proposed BPT • Same as those for prior BPT with some deletions in various sub- categories Proposed BCT • TSS, pH, and oil and grease Proposed BAT, NSPS, PSES, and PSNS • Phenols (4AAP), cyanide, cadmium, chromium, copper, lead, nickel, zinc, ammonia-N, fluoride, benzene, naphthalene, benzo(a)pyrene, 1,1,1-trichloroethane, 2-nitrophenol, anthracene, and tetrachloroethylene Non-Water-Quality Aspects of Pollution Control Air Pollution • Aeration of cokemaking wastewaters may release minimal amounts of volatile organic com- pounds • Small emissions may result as iron- making wastewaters quench hot slag • Water vapor having some par- ticulates will be released from cool- ing tower systems Solid Waste • No significant change in solid waste generation is anticipated Consumptive Water Loss • None of the requirements will cause significant evaporative water loss Energy Requirements • A net increase of 2.07 billion kilowatt hours will be incurred at the BPT, BAT, and BCT levels of treatment, 3.6 percent of the elec- trical (0.6 percent of the total) energy consumed by the industry in 1978 The Proposed Regulation The regulation for BPT, BAT, BCT, NSPS, PSES, and PSNS was developed for specific subcategories. Detailed discussions of the regulation, tech- nologies, and rationales are contained in sections of each of 12 subcategory Effluent Reduction Benefits • Proposed BAT and BCT limitations will result in removal per year (from BPT effluents) of: —1,900 tons of toxic organic pollutants —2,500 tons of toxic metals —130,000 tons of other pollutants Best Management Practices Although EPA is not proposing them at this time, the Agency is considering development of BMP specific to the Iron and Steel Manufacturing Industry. These will be applicable to all industrial sites and will offer guidance to permit authorities in establishing the BMP required by unique circumstances at a given plant. ------- Economic Impact Analysis The economic analysis was based on: • A policy-testing model that com- bined a methodology for calculating economic effects with the cost- impact methodology used by the American Iron and Steel Institute (AISI) • An assessment of the economic im- pact of the proposed regulation under three scenarios The impacts of the three scenarios are summarized in Tables 1 and 2. —Scenario 1: A continuation, from 1981 to 1990, of the economic environment and governmental policy faced over the last 10 years with two sub- scenarios: zero passthrough of an- nual costs and full passthrough of annual costs —Scenario 2: A 3-percent growth in steel shipments; higher profitability; and policy changes, including quicker recovery of capital investments, return to "fair value" import prices, and latitude to increase prices —Scenario 3: Changed economic environment as a result of governmental policies, such as increased real economic growth, reinstatement of trigger prices, and a 40-percent increase in depreciation cash flows TABLE 1 SHORT-RUN ECONOMIC IMPACT OF PROPOSED WATER POLLUTION CONTROL REGULATION—1984 Industry Status in 1979 Scenario 1: Baseline Additional Water Pollution Control Costs Zero Passthrough Full Passthrough Scenario 2: Baseline Additional Water Pollution Control Costs Scenario 3: Baseline Additional Water Pollution Control Costs Domestic Shipments (millions of net tons) 100.3 101.3 101.3 101.3 106.7 106.7 106.6 106.6 Number of Employees (thousands) 342.0 334.5 335.8 335.8 356.0 357.3 354.8 356.1 Market Share (percent) 84.8 82.0 82.0 82.0 82.0 82.0 85.0* 85.0 * Reflects new surge provisions of recently reinstituted Trigger Price Mechanism. TABLE 2 LONG-RUN ECONOMIC IMPACT OF PROPOSED WATER POLLUTION CONTROL REGULATION—1990 Industry Status in 1979 Scenario 1: Baseline Additional Water Pollution Control Costs Zero Passthrough Full Passthrough Scenario 2: Baseline Additional Water Pollution Control Costs Scenario 3: Baseline Additional Water Pollution Control Costs Domestic Shipments (millions of net tons) 100.3 92.4 86.1 89.1 126.0 126.0 117.8 115.3 Number of Employees (thousands) 342.0 271.1 254.6 262.9 366.4 368.3 341.5 336.0 Market Share (percent) 84.8 71.5 66.6 68.9 82.0 82.0 85,0" 83w2* •Represents recovery from baseline market share of 77.8 percent in 1988 and from market share after additional water pollu- tion control costs of 73.4 percent, also In 1988. ------- Total additional investment costs are estimated at $1.02 billion —BPT: $418 million —BAT: $444 million —NSPS: $159 million Incremental annual costs are estimated at $264 million in 1984, decreasing to $226 million in 1990 —BPT: $97 million decreasing to $93 million —BAT: $150 million decreasing to $93 million —NSPS: $17 million increasing to $40 million Industry's ability both to finance baseline production and to satisfy capital requirements for water pollu- tion control from 1981 to 1990 depends heavily on governmental policy changes EPA believes that Scenario 3 represents the operating environ- ment the Iron and Steel Manufactur- ing Industry probably will face in the i980's. In this event, these regulations will have the following impact: —Temporary job loss of 14,540 below projected baseline for late 1980's, but rising to only 5,500 below baseline in 1990 —Decreased market share of 4.4 per- centage points below baseline for late 1980's, but rising to only 1.8 percent below baseline in 1990 Glossary AAS Atomic adsorption spectrophotometry AISI American Iron and Steel Institute BAT "Best available technology economically achievable," to be achieved by July 1,1984 BCT "Best conventional pollutant control technology," to be achieved by July 1,1984 BMP Best management practices BPT "Best practicable control technology currently available," to be achieved by July 1, 1977 DCP Data Collection Portfolio D-DCP Detailed Data Collection Portfolio EPA U.S. Environmental Protection Agency GC/MS Gas chromatography/mass spectrometry ICAP Inductively coupled argon plasma NPDES National Pollutant Discharge Elimination System NSPS New source performance standards, to be achieved upon commencement of operation of a new plant POTW Publicly owned treatment works PSES Pretreatment standards for existing sources, to be achiev- ed within 3 years of promulga- tion of a regulation PSNS Pretreatment standards for new sources, to be achieved upon commencement of opera- tion of a new plant SIC Standard Industrial Classifica- tion (Department of Commerce, Bureau of the Census) TSS Total suspended solids For further information, contact: Technical information may be obtained from: Mr. Ernst P. Hall Effluent Guidelines Division (WH-552) U.S. Environmental Protection Agency Washington, D.C. 20460 (202) 426-2726 Copies of technical documents may be obtained from: Distribution Officer Effluent Guidelines Division (WH-552) U.S. Environmental Protection Agency Washington, D.C. 20460 (202) 426-2724 Copies of the economic impact analysis may be obtained from: Mr. Robert Greene Industrial Analysis Branch (PM-220) U.S. Environmental Protection Agency Washington, D.C. 20460 (202) 287-0713 ------- |