EVALUATION OF MEXICO'S ENVIRONMENTAL LAWS,



           REGULATIONS ANI?; STANDARDS
                Pfeliftiihary Version



                  of Final Report
                 November 5. 1993
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY



           OFTICE OF GENERAL COUNSEL

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                      TABLE OF CONTENTS

                                                              page


INTRODUCTION                                                1
     Legal Framework: Mexico's Civil Code Law System              2
     Institutional Apparatus                                       2
     Relationship Among the Mexican Constitution, the General
          Ecology Law, Regulations and Technical Norms            4
     1992 Cost-Benefit Analysis Law                               7
     The Role of Public Participation in Mexico                      9
     Environmental Law of the Mexican States                       19

SPECIFIC  PROGRAM AREAS                                    22
     Air Pollution                                               22
     Water Pollution                                             32
     Hazardous and Other  Wastes                                  60
     Pesticides and Toxic Substances                               70
     Environmental Impact Assessment                              81
     Community Right-to-Know, Contingency Planning and Emergency  84
          Response

ENFORCEMENT                                                87

CONCLUSIONS                                                 101

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                            LIST OF TABLES

                                                                    page

Table 1 — List of Agencies and Institutions Named by the General
                 Ecology Law as Sharing Responsibility for
                 Environmental Protection Issues in Mexico              4
Table 2 — Developmental Status of Mexico's Environmental Regulatory
                 System: Number of Technical Norms and Ecological
                 Criteria Completed or Scheduled for Completion
                 through the End of 1994                               6
Table 3 — Selected Provisions of Mexico's Environmental Statutes
                 and Regulations Relating to Public Participation        12
Table 4 -- Side-by-Side Comparison pf Mexico's Ambient Air Quality
                 Standards and U.S. Ambient Air Quality Standards     26
Table 5 — Metal Finishing Industry - Direct Dischargers                 38
Table 6 — Metal Finishing Industry - Indirect Dischargers                39
Table 7 — Petroleum Refining Industry - Direct Dischargers              41
Table 8 — Petroleum Refining Industry - Indirect Dischargers             43
Table 9 — Iron and Steel Industry - Direct Dischargers                   45
Table 10 ~ Iron and  Steel Industry - Indirect Dischargers                47
Table 11 - Copper Forming Industry - Direct Dischargers               49
Table 12 - Copper Forming Industry - Indirect Dischargers              51
Table 13 — Wood Treating Industry - Direct Dischargers                53
Table 14 — Wood Treating Industry - Indirect Dischargers               55
Table 15 ~ List of Pesticides Prohibited  for Use Both in Mexico  and in
                 the United States                                    73
Table 16 — The Seventeen Pesticides with Mexican but no U.S.
                 Tolerances                                          78

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INTRODUCTION

       This report is a review by the United States Environmental Protection Agency's
Office of General Counsel ("OGC") of the Mexican environmental legal regime.1  It
attempts to compare selected Mexican environmental standards and U.S. environmental
standards in four key media areas: water, air, waste, and pesticides and toxic substances.  In
early April, 1991, as a principal part of this effort and in cooperation with the EPA Office of
Enforcement ("OE") and EPA Regions VI and IX,  OGC assembled a team of ten  lawyers,
including one from the U.S.  Department of State, to conduct a technical legal mission to
Mexico ("mission").  The mission's purpose was to study Mexico's environmental laws,
regulations and standards, assess its  compliance monitoring and enforcement activities, and
share information on U.S. environmental  law and practice.  The  scope of the mission
included the areas of air and water pollution,  hazardous waste management, environmental
impact assessment and enforcement.2 In evaluating the Mexican  environmental legal regime,
mission members used their knowledge of U.S. environmental laws as a point of reference
and attempted, in so far as possible, to compare the two regimes.  An interim report on
Mexican environmental  laws, regulations  and standards was released to the public in
November  1991.

       To supplement and update its understanding of Mexico's evolving system of
environmental law,  including the official reorganization of Mexico's environment  secretariat
in 1992, OGC led a second legal mission to Mexico in March  1993.  Since that time,
individuals from OGC, OE and from EPA's media-specific program offices have  analyzed
the information gleaned from the first and second OGC-led legal missions in order to
complete this report on Mexican environmental law.

       This report also provides an analysis of what EPA has learned thus far about
Mexico's system for environmental protection.  It can only be viewed,  however, as an
interim report.  Mexico's environmental protection system is much more advanced and
comprehensive than it was prior to 1988, at the time of the passage of Mexico's General Law
on Ecological Balance and Environmental Protection (the "General Ecology Law").  Indeed,
Mexico has progressed far in promulgating regulations and technical standards to  give full
force and effect  to the General Ecology Law, but its environmental protection regime is still
being developed. Several areas remain in which regulations and standards need to be
promulgated for the General  Ecology Law to have  its full, intended impact.
   'Other parts of EPA that have been involved with this effort include the Office of Enforcement, the Office
of International Activities, the Office of Pesticides and Toxic Substances, the Office of Water, the Office of Air
and Radiation,  the Office of Solid Waste and Emergency Response and several EPA regional offices.

   :In addition, EPA initially examined Mexico's program for pesticides and toxic substances in a parallel
effort, led by the Office of International Activities and the Office of Pesticides and Toxic Substances, in which
the Food and Drug Administration (FDA) and the U.S. Department of Agriculture also participated.  That effort
included a separate EPA mission to Mexico during May 6-11, 1991, for which a separate preliminary report
was prepared.  The Pesticides  and Toxic Substances Division of OGC participated in the second OGC-led legal
mission, and a  section on pesticides and toxic substances is included in this report

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      Legal Framework: Mexico's Civil Code Law System

      In conducting any comparative analysis of U.S. and Mexican laws, it is important to
note that the two countries enact, develop, implement and enforce their laws, regulations and
standards within different legal systems and frameworks.  The United States has a common
law tradition, built upon centuries of judicial interpretations of the law constituting binding
legal precedent in many  situations.  Mexico, on the other hand, like France or Germany has
a civil law system much less reliant on the judiciary for developing  and interpreting the law.
This fundamental difference between the two legal systems limits the degree to which the two
environmental law regimes can be neatly compared.

      The main practical difference between the two legal systems lies in the significantly
greater reliance within the Mexican system on administrative proceedings for enforcement
rather than on litigation.  This means a far less active role in environmental enforcement for
the Mexican judiciary compared to the U.S. judicial system and greater power within the
administrative governmental bodies of the executive branch.  It also means that Mexico
places a much higher priority on negotiating with the regulated community as a means of
resolving disputes.

      Institutional Apparatus

      According to the Mexican Embassy, the administration of Mexican President Carlos
Salinas de Gotari has identified four priorities  for protection of the  environment:  (1)
eliminating highly polluting activities; (2) rehabilitating areas of ecological deterioration; (3)
establishing water conservation policies; and (4)  establishing parks and land reserves.  The
agency charged with the lead environmental responsibility within the Mexican government is
SEDESOL, the Secretariat of Social Development.

       1. Reorganization of SEDUE into SEDESOL.  The environmental component of
SEDESOL was created in May 1992, when the environmental functions of several federal
agencies, including SEDUE (the Secretariat of Urban Development and Ecology) were
transferred to SEDESOL.  SEDESOL, a cabinet-level agency, was  originally created as p.r-
of the Mexican Government's economic development reform program, and therefore owr-*.^
regional development, urban development, housing, and indigenous peoples, in addition to
environmental protection and conservation of natural resources.   One of SEDESOL's core
functions is to coordinate the protection of the environment with poverty and urban plann.-i:
programs. SEDESOL currently  has a delegation  in each of Mexico's 31 states.

       SEDESOL has a mandate to work with the U.S.  on the Integrated Environmental
Border Plan3  to improve environmental laws and the mechanisms to enforce them, and
       3The Integrated Environmental Plan for the Mexican-U.S. Border Area (the "Border Plan') negotiated
by the U.S. and Mexico pursuant to the 1983 U.S.-Mexico Agreement of Cooperation for the Protection anJ
Improvement of the Border Area (the "La Paz Agreement"), is a binational blueprint which identifies

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attempt to privatize infrastructure projects and public services to take advantage of private
sector environmental capabilities. SEDESOL is headed by Luis Donaldo Colosio Mumeta.

       Within SEDESOL, environmental functions are divided between two autonomous
agencies:  the National Institute of Ecology (INE) and the Office of the Attorney General for
Protection of the Environment (the "Procuraduria Ambiental" or "PFPA").

       2. National Institute of Ecology.  The National Institute of Ecology is headed by  INE
President Sergio Reyes Lujan, formerly  head of the Environmental Subsecretariat of SEDUE,
SEDESOL's predecessor for environmental protection and conservation matters.  It is an
independent agency within the SEDESOL responsible for Mexico's overall environmental
policy  formulation and implementation, and for the development of environmental regulations
and standards, as well as for conducting research on the environment. These responsibilities
are generally  the equivalent of responsibilities held by EPA in the U.S.  However, in
conjunction with other agencies of the Mexican federal government, INE also has
responsibility for such issues as natural resource conservation and forestry, which in the U.S.
fall mainly within the Departments of the Interior and Agriculture.  Other substantive areas
primarily handled by INE include hazardous waste cleanup and  ecosystem  management.

       As the agency charged  with primary responsibility for environmental  policy making,
INE issues regulations, develops technical standards and norms, issues permits, and evaluates
environmental risk studies for high-risk activities.  It also oversees the environmental impact
assessment process in conjunction with the  state offices of SEDESOL.4

       3. The Procuraduria Ambiental.  The new Office of the Attorney General for
Protection of the Environment is headed by Santiago Onate Laborde, formerly the
Ambassador of Mexico to the  Organization of American States.  It has authority to monitor
compliance with, investigate violations of, and enforce environmental regulations. The PFPA
has administrative prosecutorial authority and the power to assess penalties.  It also conducts
environmental audits, as described in more detail in the section on enforcement below.   The
PFPA  may also refer violations  to the federal Attorney General at the Secretariat of Justice
for action with a recommendation that criminal sanctions be sought, and has oversight o\cr
actions by federal workers that may have an impact on the environment. As part of the
effort by the  Mexican government to increase public participation, the office also has pnmars
environmental priorities within the Border Area and suggests targets and time tables for dealing with those
issues given priority.  The Border Plan, released in February 1992, covers the period 1992 through 1994
Progress under the Border Plan is currently being evaluated in anticipation of the negotiation of a new L S -
Mexico Border Environment Action Program, which will cover the period 1995 through 2000.

       4INE is divided into the General Directorates of Ecological Planning; Research and Development.
Natural Resources and Conservation; and Environmental  Standards The General Directorate of Environment!
Standards is further divided into five offices: (1) Norms,  (2) Hazardous Substances and Hazardous Wastes. (3)
Implementation of Environmental Quality; (4) Environmental Risk and Environmental Impact; and (S)
Administrative Systems.

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responsibility for receiving and acting upon citizen complaints about harmful environmental
conditions.5

       4. Other Federal Entities. In addition to SEDESOL, several other federal entities
have jurisdiction over policies and activities affecting the environment. For example, with
respect to water, the  National Water Commission  (CNA) has enforcement and regulatory
authority over activities that may affect water quality, in cooperation with SEDESOL.  In the
area of pesticide and  toxic substance regulation and enforcement, the Intersecretarial
Commission for the Control of Pesticides, Fertilizers and Toxic Substances
(CICOPLAFEST), has primary responsibility. CICOPLAFEST draws its membership  from
four federal  secretariats, of which SEDESOL is one. Table 1 lists other  agencies and
institutions named by the  General Ecology Law as sharing  some responsibility for
environmental protection issues in Mexico.

Table 1.      List of Agencies and Institutions Named by the General Ecology Law as
             Sharing Responsibility for Environmental Protection Issues in Mexico

National Forestry Commission
National Commission for Nuclear Safety and Safeguards
Secretariat of Agriculture and Hydraulic Resources (SARH)
Secretariat of Commerce and Industrial  Development (SECOFI)
Secretariat of Communications and Transportation (SCT)
Secretariat of Public  Education
Secretariat of Energy, Mining and Parastatal  Industry (SEMIP)
Secretariat of Fisheries (SEPESCA)
Secretariat of Agrarian Reform
Secretariat of Health  (SSA)
Secretariat of Labor and Social Security
Secretariat of the Navy
Secretariat of Planning and Budget
       C. Relationship Among the Mexican Constitution, the General Ecology Law.
       Environmental Regulations and Ecological Technical Norms

       The Mexican environmental legal regime is established pursuant to Articles XXV ark'
XXVII of the Mexican Constitution.  Article XXV calls specifically for environmental
protection, while Article XXVII refers directly to "all natural resources."  Mexico's General
Ecology Law is a relatively new, comprehensive statute that became effective on March  1.
1988, replacing earlier environmental statutes.  The General Ecology Law  covers all types ot
pollution problems, natural resource conservation, environmental impact and risk assessment
   The PFPA consists of three divisions or subprocuradunas (1) Complaints and Accusations, (2)
Compliance, and (3) Environmental Audits

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ecological zoning and sanctions for noncompliance with federal environmental law.  The
comprehensiveness of the statute contrasts with the United States legal regime in which there
are separate statutes covering air pollution, water pollution, solid waste handling and
disposal, environmental impact assessment and various natural resource issues.

       The General Ecology Law provides general criteria and policy guidance for
developing specific regulatory regimes, leaving wide discretion to SEDESOL to develop the
details of individual environmental regulatory programs.  Since 1988, five "reglamientos"
(regulations) have been signed by the President of Mexico6 pursuant to the General Ecology
Law in a number of important areas:  environmental impact assessment, air pollution
(national), air  pollution (Mexico City), hazardous wastes, and water pollution.  At least one
older regulation, covering pollutant discharges into coastal waters,  was promulgated in 1979
pursuant to prior law, and remains in effect.

       The regulations, in turn, are implemented through ecological technical norms
("NTEs") and  ecological criteria.  As of March  1993,  83 NTEs and ecological criteria had
been developed under the 1988 law and its regulations.7  Another 120s norms are slated to
be presented for approval by the end of 1994.  Even when these additional 120 new norms
are issued, the Mexican environmental  regulatory structure will not be fully developed.
However, it was apparent to the members of the second legal mission that SEDESOL is
continuing to work to develop the regulatory and technical standards that will make Mexico's
legal environmental program more complete.  Table 2 indicates the present level of
development of Mexico's environmental regulatory system compared to its future level of
development as envisioned by Mexico's environmental officials.
   *In Mexico, regulations have a sums similar to statutes in the U.S., and they must be signed by the
president of the country.

   'Several NTEs actually preceded the associated regulation.

   'EPA had received previously information that 125 new environmental norms were to be issued by the end
of 1994. EPA has requested verification of the number of new norms from SEDESOL.

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Table 2 -- Developmental Status of Mexico's Environmental Regulatory System: Number of
Technical Norms and Ecological Criteria Completed or Scheduled for Completion through
the End of 1994
MEDIA AREA
AIR
WATER
HAZARDOUS
WASTE
MUNICIPAL
WASTE
ENVIRON-
MENTAL
ASSESSMENT
NATURAL
RESOURCES
NOISE
TOTAL
COMPLETED
1988-1989
15
26
7
0
0
4
0
52
SCHEDULED
FOR
COMPLETION
1993
16
19
11
3
34
1
4
88
PLANNED
FOR
COMPLETION
1994
11
12
15
4
9
10
2
63
Source: SEDESOL, National Institute of Ecology

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       Many of the technical standards are developed cooperatively with Mexico's Secretariat
of Health, which is responsible for gathering available health-related information, including
toxicity data and existing health-related standards from other countries, and recommending
appropriate standards or criteria to SEDESOL.  SEDESOL then translates these
recommendations into legally-enforceable proposed standards and circulates them within the
Mexican government for review and comment.  The proposed standards are also sent to state
and municipal governments, and attempts are made to reach out to the scientific, professional
and educational communities.  Mexican law requires that the development of Mexican
standards include a close examination of international standards.  Part of this process
involves an examination of what has been done in the United States as well as  other countries
to address a particular environmental problem.

       SEDESOL also consults with Mexican industry about  proposed standards and their
effective dates as these affect particular economic sectors or industries.  This negotiation
process is justified  by SEDESOL on the basis that most Mexican industrial sectors comprise
a wide range of operational sizes.   Such a policy is intended to protect the smaller, Mexican
business enterprises against the technological advantage and greater resources of larger
companies, including multinational companies (which may, in any event, adhere to more
stringent environmental  standards on a world-wide basis for internal business reasons).

       D. 1992 Cost-Benefit Analysis Law

       In 1992, the Mexican Congress approved a new Federal Law on Measurement and
Standardization.  This new law requires  that existing Mexican technical standards relating 10
the specifications that products or  processes must meet in order to protect human safety,
human health, animal health, vegetation, the environment, or natural resources, be
repromulgated after having been subjected to an analysis of their costs and benefits to
society. Virtually  all environmental and conservation standards are effected by the new la"
This could result in the elimination or consolidation of certain of the 83 existing
environmental standards.  The scope of the regulatory regime's coverage, however, should
not change.  The new law also requires that all new standards in the categories listed  abos c
are to be issued only after having  been subjected to the same cost-benefit  analysis  that appl.es
to existing norms.   Once an environmental norm (NTE) has undergone cost-benefit anahs.s
as prescribed by the law and is ultimately adopted, it is referred to as an Official Mexican
Norm ("Norma Oficial Mexicana" or  "NOM")

       The cost-benefit  analysis law requires the promulgating agency to provide the
following with respect to each proposed standard: (1) a description of the potential benefit
of the norm, including those benefits that cannot be quantified in monetary terms, and
identification of the specific populations within Mexico that will benefit from  the norm; (2) a
description of the potential costs of the norm, including any adverse effects that cannot be
quantified in monetary terms, and the identification of those  segments of the population tha:
are likely to bear those costs; (3) a calculation of the net benefit to society of adopting the

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norm, including an evaluation of the beneficial effects that cannot be expressed in monetary
terms; (4) a justification of why the norm, among the other possible alternatives, will allow
the desired goal to be achieved at the highest net benefit feasible.  This justification is
required to include a description of other mechanisms that could allow for the attainment of
the same goal at a higher net benefit than the official proposed norm, together with the legal
or other reasons as to why those other mechanisms have not been chosen  instead.  If no
alternative mechanisms exist, that should be explained in the analysis.

      From  the above description it appears that the cost-benefit analysis mandated by the
new federal law contains two provisions that could act as safeguards against any lowering of
existing Mexican environmental standards.  First, it requires consideration of costs and
benefits that cannot be expressed in monetary terms.  Environmental costs and benefits are
often difficult or impossible to quantify using the market measures of traditional cost-benefit
analysis. For example,  it is difficult to calculate the present value of natural resources to
future generations, which requires reliance  on uncertain assumptions (e.g., about future
demand and technology) and the application of discount rates and other complex accounting
procedures.   Second, the statute defines the term "highest  net benefit" as  the highest net
benefit that is feasible, allowing options that would achieve the same goal at technically
higher net benefit levels to be rejected if there is a sound legal basis or other compelling
justification for selecting a different option. This provision may be important in situations
where the most environmentally  sound regulatory means of achieving a particular goal is  not
the means that would yield  the highest net benefits achievable.

      In addition, the Measurement and Standardization Law does not prohibit policy-
makers  from  setting thresholds or designing innovative ways to implement the new norms
Furthermore, cost-benefit analysis undertaken with respect to each norm is designed to
accompany a feasibility study that is submitted to various inter-governmental committees  for
review and decision.  Therefore, the requirements of the Mexican cost-benefit analysis lav.
are not  comparable in rigidity to the requirements of the preparation of a regulatory impact
analysis and regulatory flexibility analysis that would be taken pursuant to U.S. Executive
Order 12291.

       Norms issued by a federal agency in response to an emergency situation pursuant  to
Article  48 of the Measurement and Standardization Law are exempt from the new cost-
benefit  requirements.  The  maximum period of validity of such emergency norms is six
months. This emergency provision would  apply to environmental emergencies.

       Provisions of the new law on cost-benefit analysis  indicate that Mexico intends to
begin a process of upward harmonization of its environmental  standards in anticipation of the
requirements of North American Free Trade Agreement (NAFTA).   NAFTA encourages the
U.S., Canada,  and Mexico to examine their environmental standards in light of their relative
stringency when compared  to applicable international environmental standards, and to use
those international standards as a basis provided they may always adopt higher standards
Article  41 of the Mexican Law on Measurement and Standardization requires  that each


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proposed NOM contain a statement indicating the degree to which the norm is compatible
with applicable international norms and recommendations, to the extent any exist.  Article 44
specifically states that norms issued by international institutions may be considered in the
development of NOMs, as long as their validity is recognized under Mexican and
international law. Article 53 requires imported products that are the same or similar to
domestic products to at least attain the same level of protection required by Mexican
standards.  Such products require a certificate of authorization  issued by a Mexican
government agency or by an appropriate international organization in order to enter  the
country.

       Other provisions of the new law are designed to promote increased transparency in
the process by which environmental and other standards are developed and issued in final
form, a goal also promoted by NAFTA and the North American Agreement on
Environmental Cooperation (the NAFTA supplemental agreement on the environment).
Article 2 (II)(a) of the cost-benefit law states that transparency and efficiency in the
preparation of NOMs is a primary objective of the statute.  Article 2 (H)(d) is  more specific
It proclaims that a central purpose of the statute is to  promote  the participation of the public
sector, the private sector, the scientific community, and consumers, in the preparation of
Official Mexican Norms.  All proposed norms, whether repromulgated or issued for the first
time, are published in the Official Journal  of the Federation, and are subject to a ninety-da)
public review and comment period.  (SEDESOL has indicated that both the U.S. and Canada
may comment on proposed NOMs). In addition, Article 44 enables interested  Mexican
citizens to propose norms for consideration by the appropriate agency or office within the
federal government.

       The lead agency in implementing the  cost-benefit analysis law is the Secretariat of
Commerce and Industrial Development (SECOFI). However, other agencies of the federal
government, including INE, are actively involved in implementing the new law as it relates
to the environment.   Similarly, under Article 4, SECOFI, in coordination with the Secretarial
of External Relations (SRE), is to represent the nation at all international events relating to
the development of standards,  without prejudice to the participation of other federal
secretariats, such as SEDESOL, that may have an interest in particular international
proceedings.

       E. The Role of Public Participation in Mexico

       The concept of public participation  as one  means of strengthening environmental
protection is fairly new to Mexico.  Compared to the role that the public plays in the United
States in the development, implementation and enforcement of environmental laws and
regulations, the role the Mexican public plays in  these activities is relatively has always been
different from the central role that it occupies in  the United States.  Significant strides have
been made in Mexico through adoption of legal measures designed to increase public
participation as it relates  to the environment, including the development of mechanisms

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allowing the public to make submissions to administrative authorities on any matter of
environmental concern.

       1. Overview.  Consultation by the Mexican government with its citizens for purposes
of development planning was formally institutionalized in the 1983 Development Planning
Law.  Citizen consultation in the areas of environmental protection and natural resource
conservation is to a large extent an outgrowth of this development planning consultation
process and began to develop in earnest with the First National Meeting on Ecology in 1984.

      The last decade also witnessed growth in the number and importance of non-
governmental organizations (NGOs) in Mexico dedicated to protecting and improving  the
environment. A meeting in Mexico on May 28, 1992 between the Secretary of Social
Development and more than 100 non-governmental environmental organizations resulted  in
document known as "Common  Purposes: A Basis for Dialogue between Civic  Organizations
and the Government, for Defense of the Environment."  An influential non-governmental
environmental organization in Mexico is the "Grupo de Cien" ("Group of One Hundred")
The Group of One Hundred's visibility has helped to stimulate the formation of other
environmental awareness groups throughout Mexico. These environmental interest groups,
now numbering some 250, have at times lacked adequate funding and failed to form credible
coalitions, but some have served as an aid to enforcement by performing an environmental
"watchdog" function  in local communities.

      2. Constitutional Underpinnings. In 1977, Article VI of the Mexican Constitution
was amended to establish "the right to information guaranteed by the State." Under  this
constitutional provision the Mexican government has the responsibility of assuring that all
members of Mexican society are able to obtain full and  objective information in a timely
manner.  The provision takes the form of a right to information. In addition, Article XXVII
of the Mexican Constitution forms the basis for the right of "social participation" in Mexico
These rights are self-executing, and allegation that they  have been violated can be brought
before Mexican Courts through the "audiencia" procedure.

      3. The General Ecology Law.  The 1988 General Ecology Law establishes a
framework for the exercise of these rights to information and social participation in the
context of environmental decision-making and enforcement.  There are two types of public
participation provisions in the General Ecology Law: (1) "systematic" participation
provisions, which are found in Title V, Articles 157 to  159 of the law, which is specificalK
entitled "Citizen Participation,"  and (2) "diffuse" participation provisions, which consist  of
scattered references throughout the General Ecology Law relating to public  participation

       With regard to the systematic  participation provisions, Article 158 of the General
Ecology Law is particularly important because it states that SEDESOL shall carry out several
measures intended to enhance public participation in environmental decision-making.  First
SEDESOL is to "[c]onvene, within the sphere of the National  Democratic Planning System,
representatives  of worker, business,  peasant and agricultural producer organizations, of


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communities, educational institutions, and of private non-profit institutions, as well as other
representatives of society, to express their opinions and proposals." The National
Democratic Planning system is the process in Mexico by which national plans are produced
to address specific areas of public policy. For example, Mexico has a national energy plan,
a national plan for civil protection, and a national plan for environmental protection.  These
plans are issued to cover  a six-year period corresponding to the Mexican presidential term of
office.

       However,  this provision of the General Ecology Law requiring broad  social
participation in the development of the national planning system is not at the  present time
supported by regulations  that specify how such participation is to be implemented.  It is
Mexico's goal to promulgate such regulations but they are not necessary for members of the
public to invoke the right to social participation.  The practical result of this  lack of
implementing regulations is that public participation in national environmental policy
planning continues to be addressed through the National Development Plan, rather than
through the National Environmental Protection Plan.

       The General Ecology Law does provide for administrative remedies by which the
public can make the right to social participation effective.  The most important is the
"popular complaint"  which is defined in Articles 189 to 194 of the General Ecology Law,
and discussed in greater detail in the sub-section  of this report on citizens suits.

       4. Other Public Participation Provisions.  As mentioned above, the General Ecology
Law contains "diffuse" or scattered provisions relating to public participation with regard  to
environmental protection  and the conservation  of natural resources.  Other Mexican
environmental laws and regulations also contain such diffuse public participation provisions.
Table 3 provides a summary of many  of these additional public participation  provisions.
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                     Table 3 - Selected Provisions of Mexico's
                      Environmental Statutes and Regulations
                          Relating to Public Participation
   LAW/REGULATION
       PROVISION
       CONTENT
GENERAL ECOLOGY
LAW
Article 1
Establishes that the
provisions of the General
Ecology Law are regulatory
of the provisions in Article
XXVE of the Mexican
Constitution. These
Constitutional provisions
form the basis for the
"social participation"
component of federal
legislation dealing with
natural resources and other
environmental matters.
GENERAL ECOLOGY
LAW
Article 8/XVm; Article
9/C/V
SEDESOL is to exercise its
powers in concert with the
private and social sectors,
to promote and  induce the
participation of the
Mexican citizenry in the
actions it takes and
programs it develops to
preserve and restore
ecosystems and  to protect
the environment
GENERAL ECOLOGY
LAW
Article 12
Requires SEDESOL  to
allow the participation of
the social and private
sectors, including civic
organizations and other
representatives of society.
in the National Institute of
Ecology
                                       12

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GENERAL ECOLOGY
LAW
Article  15/1
Requires SEDESOL to
respect, as part of its
ecological policies, that
ecosystems are the common
heritage of society
GENERAL ECOLOGY
LAW
Article 15/111; Article
15/VIII
Requires SEDESOL to
coordinate with other
government agencies and
with society, as an
indispensable element in the
effectiveness of its
environmental policies
GENERAL ECOLOGY
LAW
Article 15/XI
SEDESOL is required to
consider that the principal
subjects of ecological
cooperation are not only
individuals but also social
groups and organizations
GENERAL ECOLOGY
LAW
Article 18
Requires SEDESOL to
promote the participation of
social groups and
organizations in all
environmental planning
GENERAL ECOLOGY
LAW
Article 33
Requires SEDESOL to
allow any person to consult
the files of any mandatory
environmental impact
statement
GENERAL ECOLOGY
LAW
Article 66/y; Article 67/v
SEDESOL is required to
conclude agreements of
participation with the
private and social sectors
for the management of
ecological reserve areas
GENERAL ECOLOGY
LAW
Article 134
 Requires SEDESOL to
 respect the rule that
 prevention of soil
 contamination corresponds
 to both the State and
 society
                                      13

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1988 REGULATIONS TO
THE GENERAL
ECOLOGY LAW
RELATING TO
ENVIRONMENTAL
IMPACT
Article 39
Provides that any person
has the right to consult the
files of any environmental
impact statement submitted
by anyone to secure
authorization for a planned
activity
1988 REGULATIONS TO
THE GENERAL
ECOLOGY LAW
RELATING TO
ENVIRONMENTAL
IMPACT
Article 41
Allows any person to
request SEDESOL to
compel anyone undertaking
an activity with the
potential to negatively
impact the environment, to
submit for approval an
impact statement
1988 REGULATIONS TO
THE GENERAL
ECOLOGY LAW
RELATING TO
HAZARDOUS WASTES
Article 4/XHI
Establishes the duty of -
SEDESOL to promote
social participation in the
control of hazardous wastes
1988 REGULATIONS TO
THE GENERAL
ECOLOGY LAW
RELATING TO
ATMOSPHERIC
POLLUTION
Article 7/XIV
Establishes the duty of
SEDESOL to promote
social participation in the
control of atmospheric
pollution
1982 NOISE POLLUTION
REGULATIONS
Article 70
Grants the administrative
remedy of "popular action"
to any person to denounce
sources of noise pollution
The obligation to inform
the complainant about
measures taken to-control
the problem depends on the
complainant requesting such
information.
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1992 SEDESOL
REGULATIONS
Article 20
Creates a unit on social
participation within
SEDESOL to ensure that
SEDESOL complies with
its legal obligations with
respect to public
participation
1992 INE and PFPA
INTERNAL
REGULATIONS
Preamble
Invokes the commitment to
secure the participation of
the private and social
sectors.  However, the INE
regulations do not provide
the various organs of INE
with any powers regarding
social participation.  The
PFPA, however, includes
an Office of the Assistant
Federal Environmental
Prosecutor for Social
Participation and
Complaints
1992 MEXICO CITY
POLLUTION
COMMITTEE
REGULATIONS
Third Article
Provides for the creation of
a Council which includes
representatives from the
scientific community,
recognized environmental
experts and members of the
social and private sectors
                                       15

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1992 DELEGATIONAL
COMMISSIONS
REGULATIONS
Second Article
Divides the metropolitan
area of Mexico City into
sections to be represented
by various commissions
that will serve as organs of
analysis, consultation,
public opinion and
dissemination of
information for  the
prevention and control of
pollution.  Such
commissions shall
specifically include
"representatives from
ecological groups and
associations."
1992 NATIONAL
BIODIVERSITY
COMMISSION
REGULATIONS
Fifth Article
Allows for participation of
the academic and scientific
community, and of the
social and private sectors,
in specific projects
1973 WATER
POLLUTION
REGULATIONS
Article 66
Grants the administrative
remedy of "popular action"
to any person to denounce a
source of water pollution,
which triggers the exercise
of governmental functions
and responsibilities on the
matter, and the obligation
to inform the complaining
party about the measures
taken to deal with the
problem
                                        16

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  1988 ECOLOGICAL
  NORMS REGULATIONS
Third Arucle/II
SEDESOL must publish in
the Ecological Gazette
an invitation to
representatives of the
social and private sectors to
participate in technical
working groups which
formulate, issue and modify
technical ecological norms
Source: Alberto Szekely,  "Public Participation in Lawmaking and Decision Making,"
presented at Phase II of the North American Conference on Environmental Law, held in June
1993 in Berkley Springs,  West Virginia.
       The provisions listed in Table 3 are evidence of a growing trend in Mexico toward
establishment of a legal framework for public participation in aspects of environmental
decision-making and enforcement of environmental laws.  However, certain recent Mexican
laws with environmental implications, such as the 1992 National Waters Law, and the 1992
Mining Law, do not contain public participation provisions.

       5. Public Review of Environmental Standards.  As mentioned earlier in this report,
Mexico's federal Law on Measurement and Standardization mandates that all proposed norms
be published in the Official Journal of the Federation, and that all such norms be subjected to
a ninety-day public review and comment period.

       6. Citizen Suits.  Mexican  law does not  authorize lawsuits by members of the public
alleging that violations of law have resulted in generalized harm to the environment.
Mexican law does allow persons to file tort claims in court against the polluter alleging
specific harm to individual plaintiffs caused by  environmental contamination.  If a member of
the Mexican public believes that harm to the environment has occurred or is occurring
because an environmental law (e.g., a statute or a presidential decree), regulation, or
standard has been violated, Mexican law empowers that person to file a complaint of the
alleged violation with executive branch environmental authorities.  As  far as EPA is  awarv
the only potential means for a member of the Mexican public to sue the Mexican governmc;-.:
for failure to comply with or enforce an environmental law, regulation, or standard against .1
third party, is the amparo proceeding, an imporant and unique aspect of the Mexican legal
system, is used to assert that the government has  acted in violation of rights protected b> •••.
Mexican Constitution.

       Legal action in Mexico to address violations of environmental law,  including  action
by citizens or other members  of the general public, tends to be administrative rather than
judicial in nature, although the government may initiate judicial action to enforce criminal
law, and private persons may sue  in court for damages under the Civil Code. This tendencv
                                          17

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toward administrative rather than judicial enforcement of Mexico's environmental law is due
in part to the fact that Mexico's legal system is a system based primarily on civil code law,
rather than on common law.  In Mexico, standing to sue in court tends to be limited to
plaintiffs who assert that they have suffered injury, and does not usually extend to  more
generalized claims of harm to society as a whole.  Therefore, because individuals and public
interest groups usually do not have standing to formally complain in court of generalized
harm to the environment, the main avenue of formal complaint in  Mexico for members of
the public alleging generalized environmental harm is the filing of a complaint with
administrative authorities.

       Administrative proceedings in Mexico are usually "paper" proceedings in which the
panics argue by affidavit, though the law  permits the taking of oral  testimony.  The
government agency with jurisdiction to enforce a particular type of law serves as both
prosecutor and judge in these proceedings.

a. Administrative Complaints

       Chapter VII of the General Ecology Law, Articles  185-194, gives any member of the
public  the right to file a "popular complaint"  with SEDESOL alleging acts or omissions that
produce "ecological imbalance or injury to the environment" in derogation of the General
Ecology Law or other Mexican environmental laws.  The complaint would be filed with the
PFPA, within SEDESOL, which has a Claims Branch dedicated solely to relations with the
public, including response to these public  complaints of non-compliance.  This branch is led
by an Assistant Federal Environmental Prosecutor.  Under the General Ecology  Law,
SEDESOL (through the PFPA) must provide notice of each  complaint to the alleged violator
and to  other affected parties, and has 30 days from  the receipt of the complaint to investigate
the complaint and to inform the complainant of the results of the investigation and of the
enforcement measures taken, if any.  Thus, the PFPA uses public complaints of violations as
one important means of targeting facilities for inspection.

b. Amparo Proceedings

       If a person, including a judicial person (i.e..  a company) believes that its rights under
the Mexican Constitution have been  violated by administrative procedures, it can bnng an
amparo ("shelter") proceeding to the courts through  the Secretariat of Justice. For example
it may be possible for a person to allege that the Mexican government has violated Article
XXVII of the Constitution by failing to comply with an environmental law or regulation,  or
by failing to enforce an environmental law or regulation against a third party offender.

       Under Article XXVn, natural resources in Mexico are ultimately considered to be
part of the public patrimony held in trust  for the Mexican people by the Mexican federal
government.  Therefore, a complainant who has gone through the administrative system for
enforcement of environmental law, and has not had a matter resolved satisfactorily, might be
entitled to use the amparo procedure to seek redress through the courts, on the basis thai


                                          18

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Article XXVII of the constitution had been violated by the administrative agency handling the
complaint. However, it is not completely clear that this constitutional provision can be used
to support a private right of action.9 Moreover, the amparo procedure has rarely  been
invoked in any context. The feasibility of amparo proceedings as a means for the public to
redress violations of environmental laws and regulations is also limited by decisions of the
Mexican Supreme Court of Justice that restrict standing to bring  lawsuits to those individuals
who are in fact injured  by  the act  or omission in question.
Standing has also been limited in the U.S. to court decisions.

c. Private Tort Remedies

       Another possible means of judicial recourse for those complainants who have suffered
injury-in-fact through the violation of environmental laws and regulations is available under
Mexican tort law, as contained in  the Civil Code.  The elements of a civil cause of action in
tort are: illegal or negligent conduct that is the proximate cause of the plaintiffs injuries. In
the case of inherently dangerous activities, including those related to the use of hazardous
substances, one who engages in those activities is strictly liable for harm caused, although
contributory negligence or reckless conduct is a defense to strict  liability.  The types of
injury that can be asserted  by the plaintiff include harm  to a person's emotions, effects,
beliefs,  reputation, private life, and appearance, as measured in relation to how that  person  is
viewed by the rest of society.  Mexican courts typically view damages in ton suits as limited
to restitution of out-of-pocket costs resulting from the harm, or to provable lost earnings.

       F. Environmental Law of the Mexican States

       In the United States, most  minimum pollution control standards are set at the federal
level. These standards  are usually implemented by separate state legal authorities or plans
which may call for measures that are more (but not less) stringent than federal control
measures.  Federal authorities retain oversight responsibility. Examples of this approach
include  the U.S air and water pollution control regimes.  Under the U.S. Clean  Air Act,
states develop state implementation plans ("SIPs") which are submitted to EPA for approw
The plans must contain a number  of measures prescribed by the  federal statute, although t,..-
may also go further.

       Similarly under  the U.S. Clean Water Act, EPA sets minimum technology-based
guidelines for pollutant discharges into surface waters.   These are implemented through a
permitting program largely administered by the states pursuant to federal authorization and
under federal oversight. Each state develops water quality standards based on the quality and
capacity of its own receiving  waters.   Certain other U.S. programs, such as those regulating
pesticides and toxic  substances, remain highly centralized.  Even in these areas,  however, the
trend is toward increased state responsibility within the  limits of the enabling legislation.
   It is clear that the Mexican federal government is able to institute legal proceedings for damage to the
natural patrimony pursuant to Article XXVII of the Mexican  Constitution.

                                            19

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       The situation in Mexico is not much different.  There is a significant and increasing
trend toward decentralization of environmental responsibility from the Mexican federal
government to Mexican state and local governments.  Institutionally, Mexican federal law
defines the environmental areas under federal responsibility  and leaves the remaining areas of
environmental responsibility to the Mexican states.  In 1987; item "G" was added to
subsection XXIX of Article LXXTT1 of the Mexican Constitution,  which gave the Mexican
Congress the power "to issue laws to establish the joint participation of the governments of
the Federation, the states and the municipalities, in  their respective spheres of competence, in
the field of environmental protection and the preservation and restoration of ecological
balance."

       In exercising this power, the  Mexican Congress established the distribution of
environmental powers between the federal government and the governments of the Mexican
states in the 1988 General Ecology Law.  It also established a system to divide federal and
local environmental powers within the Federal District of Mexico City. State legislatures are
in turn expected to distribute environmental powers between the state government and local
municipal governments.

       The General Ecology  Law and most of the environmental  regulations issued to date
contemplate a significant role for the states in environmental protection.  Article 4 states that
all "matters of a general scope throughout the Nation," or "matters of interest to the federal
government," are the responsibility of the federal government. All other environmental
matters fall within the competence of the states and municipalities. Environmental  matters
that fall within federal jurisdiction are delineated in Article  5, and include high risk
activities,  environmental emergencies and contingencies, and activities relating to hazardous
materials or wastes. Under Article 6 of the General Ecology Law, state and local
governments have responsibility in such areas as regulating  and controlling water pollution
within state jurisdiction, verifying vehicle emissions, operating air quality monitoring
systems, routine monitoring and enforcement of regulations and standards for water pollution
from municipal sewage systems, regulating and  disposing of solid wastes, and creating and
managing state or municipal  natural  protected areas.

       The interaction between federal and state environmental regulation in Mexico is
similar to the U.S. model. For example, to achieve ambient air  quality standards Mexico
relies on a source permitting program  which is  meant to be implemented by the Mexican
states in accordance with Mexico's air regulation.  Similarly under Mexican water pollution
law, state governments  may authorize  wastewater discharges into bodies of water or into the
soil or subsoil.10 Mexican state laws issued pursuant to the General Ecology Law must be
at least as stringent as the applicable federal regulation or standard.
    10This is true for most categories of discharges, although the federal government retains jurisdiction for
certain kinds of sources, such as 'high-risk" activities

                                            20

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       At the present time,  however, Mexico's environmental programs are far more
centralized overall than their counterparts in the U.S., and a much larger portion of Mexico's
environmental protection regime is developed and implemented by SEDESOL and other
federal agencies such as the National Water Commission (CNA), than is the case under the
U.S. environmental regime.  Although the Mexican law and regulations contemplate an
expanded role for the states, this has not yet been fully realized.   However, since the General
Ecology  Law was enacted in early  1988, 29 of the 31 Mexican states, including  all  of the
states along the U.S.-Mexican border, have adopted environmental statutes.11 This  figure
can be compared to November 1991, in which only 18 of the 31 states had enacted  a
comprehensive environmental statute.  The decentralization process in Mexico is thus
proceeding at a fairly rapid  pace.  To date,  however, the states have not developed  their own
NTEs. It is legally permissible for states to develop technical standards that are higher or
more stringent that Mexican federal standards, but no state has yet done so in the
environmental area.

       In the states that have yet to adopt environmental statutes,  exclusive jurisdiction  over
most environmental matters is left to the federal government.  SEDESOL expects that the
Mexican states will assume  more responsibility for environmental protection in the  future and
is examining how it might promote that policy.
    "According to the latest information available to EPA, the two Mexican states that currently do not ha\e
environmental laws are Campeche and Tlaxcala. The Federal District, like the states, must adopt a legal
program relating to the environment but, because of the District's special status as the nation's capital,
SEDESOL retains significant environmental authority within the Federal District.

                                            21

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IT. SPECIFIC PROGRAM AREAS

A. AIR POLLUTION

       1. Summary of the U.S. Clean Air Act

       Until the enactment of the 1990 Amendments, the Clean Air Act ("CAA") could be
described generally as being divided between stationary source control requirements (in title I
of the Act) and mobile source control requirements (in title II). With the 1990 Amendments
that general division still holds true, although the statute has become more complex through
the addition of new, free-standing titles designed to combat acid rain and  stratospheric ozone
depletion.

       For twenty years,  the core of U.S. stationary source controls arguably has been the
setting of national ambient air quality standards ("NAAQS") for "criteria" pollutants under
CAA section  109, and state planning to attain and maintain those standards through the state
implementation plan ("SIP") process under section 110 and Part D of title I.  The criteria
pollutants are ozone (O3), sulfur dioxide  (SOJ, paniculate matter (now measured in terms of
fine paniculate  matter (PMIO),  replacing  total suspended particulates (TSP)), carbon
monoxide (CO), oxides of nitrogen (NOJ and lead (PB).  Primary NAAQS  are set to protect
public health, while secondary standards  protect the public  welfare from any known or
anticipated  adverse effects."  See CAA Section 109(b).  Both are established without regard
to cost.

       The CAA requires states to  demonstrate "reasonable further progress" toward
attainment in  those areas not meeting the NAAQS ("nonattainment areas") and to impose
"reasonably available control technology" on certain existing stationary sources in such
nonattainment areas. Among  other nonattainment provisions, the 1990 CAA Amendments
call for further  classification of nonattainment areas for certain pollutants, depending on th.
severity of the pollution problem, and establish dates by which a state plan must achieve
attainment of NAAQS.

       New and modified major stationary sources in nonattainment areas must undergo u '•. •
is generally referred to as "new source review."  See CAA  section 173.  These sources m.*
install technology that will meet the "lowest achievable emission rate" and obtain emission
offsets from other sources in the nonattainment area. In attainment areas, Pan C of Title 1
requires major  new sources to undergo a "prevention of significant deterioration" ("PSD")
review. See CAA section 165. Such sources must install "best available control technoloev
and demonstrate that the cumulative impact of new emissions in the area  does not violate a
specified increment of air pollution.  Sources subject to PSD review must also demonstrate
that they will not  cause an adverse  impact on air quality-related values (including visibility)
in national  parks and other "Class I" areas. See  CAA section 165(d).  In addition, section
169B requires states to adopt regulations that provide reasonable progress toward remedying
present (and preventing future) visibility impairment in Class I areas.  For both  attainment


                                          22

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and nonattainment areas, new sources must comply with any applicable "new source
performance standards" ("NSPS") promulgated under section 111.

       The CAA requires EPA to set standards for hazardous air pollutants under section
112.  Between 1970 and 1990, EPA promulgated seven such standards.  The 1990 CAA
Amendments completely revamped the standard-setting process  for toxic air pollutants,
calling first for the establishment of technology-based controls for sources of toxic emissions,
to be followed eventually by standards limiting residual risk to  human health  from emissions
from such sources.

       The 1990 Amendments also contain several  new provisions for addressing acid rain,
stratospheric ozone and permitting, in addition to an important  new provision for the
development of "clean fuels"  for mobile sources.  The acid rain provisions are contained in a
new title IV which, among other things, calls for a 10 million ton reduction in SO7 emissions
from 1980 levels, primarily from utility sources.  Sulfur dioxide reductions are to be met
through an innovative, market-based  system in which sources are allocated allowances based
on required emission reductions and past energy use. These allowances are marketable.

       A new title VI governs stratospheric ozone and global climate protection.  It requires
EPA to list specified ozone-depleting substances and their ozone-depletion and global
warming potentials.   In addition to numerous other provisions,  this title calls for more
stringent interim reductions for various substances than is required by the Montreal Protocol,
including the phase-out of all HCFCs12 by the year 2030.

       Title V of the 1990 CAA Amendments also added a new operating permit program
All major sources (as defined under the Act), sources subject to acid rain requirements and
sources subject to section 111 and 112 standards will be required to obtain operating permits
The permit will contain all applicable CAA requirements for the regulated source, which  will
have to pay permit fees to cover the  costs of the permitting program.

       Title II of the CAA has long required motor vehicles to meet emission standards
specified by EPA and has allowed the Agency to regulate fuel  and fuel additives.  Among ;'v
numerous changes to title II  made by the 1990 Amendments is the requirement that EPA  and
the states now develop new fuel regulation programs.  Specific initiatives will include: a
clean fuels program for California and for certain centrally-fueled fleets in other areas; a
reformulated-gasoline program in the nine worst ozone areas in the country;  an oxygenated
fuels program  for 41 areas with carbon  monoxide problems; controls to  limit emissions
during vehicle refueling; and volatility standards for gasoline.
   1JHCFCs (hydroclorofluorocarbons), like CFCs (clorofluorocarbons), are a class of ozone-depleting
chemicals
                                           23

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       2. Mexico's Legal Framework for Air Pollution Control

       The 1988 General Ecology Law, articles 110 through 116, provides the legal
framework for Mexico's current air quality program.  The General Ecology Law grants
SEOESOL and other specified agencies power to: issue technical emission and ambient
standards; adopt standards for test methods and air quality monitoring systems; enter into
agreements with industry and require the installation of pollution control equipment (in areas
of federal jurisdiction); issue  motor vehicles emission standards; and  promote the
establishment of motor vehicle inspection  systems.  General Ecology  Law, article  111.

       The law similarly  empowers state and municipal authorities to enter into agreements
with industry and require the installation of pollution control equipment in areas within their
jurisdiction. In addition, state and local governments are further responsible for: compiling
stationary source emission inventories; establishing vehicle inspection programs; establishing
air monitoring networks (in coordination with SEDESOL); regulating traffic and emissions
from non-federal public transportation vehicles; taking preventive measures to avoid serious
air pollution; and imposing sanctions for violations of state and local laws.  General Ecology
Law, article 112.

       Article 113 of the General Ecology Law establishes the general principle that air
pollutants may not be emitted when they may cause ecological imbalances or damage to the
environment. Sources of pollution must obtain prior authorization when their emissions
contain hazardous materials or residues.  Article 1 IS states that when SEDESOL determines
land uses under urban development programs, consideration should be given to topographic
and meteorological conditions, to ensure proper dispersion of pollutants.  Finally, section  116
authorizes tax incentives for reducing air pollution.

       To implement the 1988 General Ecology Law,  Mexico has adopted two regulations
related to air pollution and numerous technical standards under those two regulations. The
broader of the two regulations addresses air pollution nationwide, covering such issues as
stationary source controls, mobile source controls, establishment of a national air  quality
monitoring system, and enforcement, including  sanctions.  The second regulation  is much
more narrow in scope, addressing air pollution only in Mexico City  and its environs.  It
covers the regulation of traffic, motor vehicle emissions and vehicle  inspections.  Most of the
technical standards (NTEs) issued under these regulations address air pollution from specific
types of stationary sources and from various classes of mobile sources.  Others set forth
procedural requirements, as for special permitting,  test methods and  specifications for test
equipment.

       All  of the existing  technical norms are subject to the sunset provisions discussed
previously  in the section of this report on Mexico's  new law on cost-benefit analysis.  Some
of the  superseding norms ("Official Mexican Norms" or "NOMs") have been published for
                                          24

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public comment,13 with many more planned. Those that have been published may be
subject to further revision depending on the results of the public comment period established
by the new law, and some of the newly repromulgated norms, particularly  in the area of
water pollution control have been finalized.  Additional norms are now being finalized on
virtually a daily basis.

       3. Ambient Standards and Planning

       Both the Mexican and U.S. air pollution control programs require the adoption of
ambient air quality standards for certain specific pollutants. See General Ecology Law, title
IV, art. 111(1), and CAA §  109.  Mexico has issued such standards, called "maximum
permissible levels" ("MPLs"), for O3,  CO, SO7, NO^TSP, and PB.  With the exception of
TSP, which has been dropped by the U.S. program,  these are the same pollutants covered  by
the U.S. NAAQS.  As Table 6 demonstrates, many of the health-based MPLs and NAAQS
are the same, or nearly the same, in both countries.
    13National norms published to date include methodologies for measuring ambient CO, TSP, O3, NOX and
SO2 (NOM-PA-CCAM-001/93 - 005/93), as well as other norms establishing 'smokestack" limits for certain
types of sources and 'tail pipe* emissions standards for automobiles

                                           25

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                Table 4 -- Side-by-Side Comparison of Mexico's  Ambient Air
                  Quality  Standards and U.S.  Ambient Air Quality Standards
POLLUTANT
Sulfur Dioxide (SO2)
Nitrogen Dioxide (NO2)
Paniculate Matter (PM)
Carbon Monoxide (CO)
Ozone (O3)
Lead(PB)
MEXICO
.13 ppm (24-hour)14
395 ug/m3 (1-hour)
275 ug/m3 TSP" (24-
hour)
14,950 ug/m3 (8-hour)
.11 ppm (24-hour)
1.5 ug/m3 (3-month)
UNITED STATES

. 14 ppm (24-hour)15
100 ug/m3 (annual)
150 ug/m3 PM-10 (24-
hour)17
10,000 ug/m3 (8-hour)18
. 12 ppm (24-hour)
1.5 ug/m3 (3-hour)
Source: EPA, Office of Air and Radiation, Office of Policy Analysis and Review
    14 For chart, parentheticals indicate averaging time for the standard.
    13 The U.S. also has an annual ambient S02 standard, for which there is no equivalent standard in Mexico

     "Mexico's standard is for total suspended participates, while the U.S.  standard is for particles with
diameters of 10 microns or less.  When the U.S. standard was expressed in total suspended participates,  it was
set at a level equivalent to Mexico's current standard.

     17The U.S. also has an annual PM standard, for which there is no equivalent standard in Mexico.

     18The U.S. also has a short-term (1-hour) standard, for which there is no equivalent Mexican standard

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       However, there is additional protection under the U.S. NAAQS system that is not
present in Mexico's regulatory scheme.  First, as noted in the footnotes to the table, a
number of the U.S. NAAQS involve both short and long averaging periods thereby providing
protection against both acute and chronic exposure levels.  In addition, the U.S. also has
secondary NAAQS for several pollutants which provide additional ambient protection beyond
the primary NAAQS.  Finally, the PSD program also provides ambient "increments,"  which
limit the  amount of degradation that can  take place in areas in attainment with a NAAQS.  In
national parks and other specially-protected areas, the increment is quite small allowing little
degradation of air quality. Elsewhere, the increment is larger but still  typically limits
ambient loadings to levels well below the NAAQS.  At this time, Mexico does not have such
a program although it has committed to exploring the issue for the Mexican border area near
the U.S."

       The MPLs appear to be used primarily to identify areas with dangerous levels of
pollution and for triggering "contingency plans." In Mexico City, when  meteorological
conditions indicate that concentrations will not otherwise decrease, the  contingency plan calls
for imposing  restrictions on dnving and for varying degrees of production cutbacks by
certain industries.  In  addition, new sources must show that they are permitted where their
emissions will not violate a MPL. However, it is not clear to what extent modeling and
other standard tools of analysis are used  to predict violations and limit source emissions in
these situations.

       A major difference exists in the air monitoring capabilities of the  two countries.  In
the U.S., a nationwide air monitoring system operated by state and  local governments is able
to monitor concentrations of all criteria pollutants at numerous locations in each of the 50
states.  Mexico has yet to develop such a nationwide system.  In fact, there are very few ar
quality monitors in Mexico outside of Mexico City, Mexico is beginning to establish
monitoring systems in border cities and other parts of Mexico.  SEDESOL recognizes the
need to improve its monitoring capability outside of Mexico City and  hopes to begin this
process when expected loans from the  World Bank are approved.

       Mexico and the U.S. have different approaches for attaining ambient standards.  In
the U.S., the states are responsible, with federal oversight, for ensuring NAAQS  attain mi—
The states develop SIPs which are submitted to EPA for approval.  Attainment and
maintenance of the standards are demonstrated through air quality modeling,  which relates
emissions to ambient air quality standards.  In addition, states must adopt a number of
measures prescribed by the CAA and include them in their plans.

       Mexico, on the other hand, relies on a source permitting program instead  of on state
or local air quality planning with federal oversight.  Under the General Ecology Law,  the
    19See Joint Communique by Secretary Luis Donaldo Colosio and Administrator Carol Browner. Enscn.i.
Mexico (October 26. 1993).

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regulation of most types of sources is reserved to the states without federal oversight, see
General Ecology Law article 6, while other sources, notably "high nsk activities" among
others, are reserved for federal control.  General Ecology Law article 5(X).  At the moment,
all permitting is still earned out at the federal level.

       Like the U.S., Mexico has developed a system for further restricting emissions in
chronically polluted and vulnerable areas, called "critical zones." A critical zone is defined
as "[a] zone, in which -- because  of its topographic and meteorological conditions --  high
concentration of contaminants  are found." Air  Regulation (national), article 6. Two critical
zones along the U.S.-Mexico border — Ciudad Juarez and Tijuana -- appear to have been so
designated because of their air pollution problems.

       The General Ecology Law also authorizes SEDESOL to engage in  a certain amount of
additional land use planning to protect some areas and control others. Article 1 IS states that
when SEDESOL determines land  uses under urban development  programs, consideration
should be given to topographic and meteorological conditions to  ensure proper dispersion of
pollutants. The Clean Air Act provides a similar, though more sweeping, provision  in non-
attainment areas.  Section 173(a)(5) now requires a permitting authority to consider
alternative sites, size, production  processes, and environmental control techniques as part of
the new and modifying source permitting process.
No permit may be issued unless the applicant demonstrates that the benefits of the proposed
source significantly outweigh its environmental  and social costs.

       4.  Stationary Source Controls

       Mexico controls stationary source air emissions through a source registration  and
permitting program.  SEDESOL plans to eventually turn most permitting  responsibilities o\er
to the states (except where there is federal jurisdiction or where  a source affects air qualu\ m
two or more states), as contemplated  by Mexico's air regulation.  See Air Regulation
(national), articles 17-19.20 Since state and local governments do not yet  have permitting
infrastructures established, however, SEDESOL has been issuing permits  for sources in arc?s
of non-federal jurisdiction as well.  To date, SEDESOL has focused on the largest types o>
facilities.

       Permitted emission limits  may vary depending on whether the source  is new or
existing and where the source is located.  If a norm or standard  has been  established for a
given type of source,  the norm or standard will be used  to help  set the emissions limits.

       At this time, it is difficult to reach many conclusions regarding the comparative
stringency of the norms applicable to stationary sources since  Mexico is in the process of
sunsetting its existing technical norms and adopting new standards.  Thus only a few
   ^Regulation of the General Law of Ecological Equilibrium and Environmental Protection-  Control and
Prevention of Air Contamination, issued November 25. 1988

                                           28

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stationary standards exist, including source-specific standards for sulfuric acid plants (NOM-
PA-CCAT-001/93), cement plants (NOM-PA-CCAT-002/93) and coal-fired power plants
(NOM-PA-CCAT-0005/93), as well as general PM limits for sources not otherwise covered
by a source-specific standard.   At least some  of the new norms are substantially less
stringent than the comparable  provisions of U.S. law.21  However, the Mexican standards
are apparently subject to further revision.

       In the United States, the NSPS provide a floor only for control technology
requirements.  A large new or modifying source must also secure a new source review
permit.  In a nonattainment area, this process  requires the source to meet the "lowest
achievable emissions rate"  ("LAER") and secure offsetting emissions reductions from other
sources to completely offset the emissions from a new source. In areas in  attainment with a
NAAQS, the source must still comply with the PSD program which  requires the source to
install "best available control  technology" (BACT) and model its air  quality impacts to ensure
that the new emissions will not cause or contribute to a violation of a NAAQS or a PSD
"increment"  and will not adversely impact any air quality related values (including visibility)
at any National Park or other  protected area.

       As indicated, few Mexican norms for stationary sources exist, leaving large segments
of industry uncovered at this time.  For instance, a U.S. General Accounting Office (GAO)
study conducted in the spring  of  1991  reported that Mexico had  not yet established air
pollution standards for paint coatings and solvents in the border region.
    21 As part of its analysis, EPA reviewed the Mexican norm applicable to coal-fired power plants (NOM-
CCAT-005/93) and compared it to the relevant U.S. NSPS (40 CFR 51.60.40a).  Pursuant to the Mexican
norm, a plant's emissions of SO2, PM, NOX and CO are subject to limits measured by kilograms of pollutant
per cubic meter of dry coal burned.  Because the Mexican emission standard is thus tied to coal density and
(Btu) value of the coal to be burned, conversion to comparable U.S. units must be based on the individual
characteristics of the coal and burners at issue. Based upon the coal's heat value, EPA staff estimate the
applicable standards for coal-fired power plants (compared to the relevant U.S. NSPS standards) to be as
follows:

              Mexico                                        United States

SO2           8.7 Ibs per million Btu                           .3 Ibs per million Btu

PM           .31 Ibs per million Btu                           .03 Ibs per million Btu

NOx          .86 Ibs per million Btu                           .5 Ibs per million Btu

The Mexican norm also has a CO limit, which the NSPS does not include (Note: The U.S.  NSPS provide a
percentage  reduction requirement as well as a target emissions rate. The U.S. NSPS figures above represent the
lower of the emissions rate or percentage reduction)  It is important to note that the total annual SO2 emission-
in Mexico (approximately 700,000 tons) are some 25 times smaller than total U.S. SO2 emissions
(approximately 20,000,000 tons). Mexico views this disparity in per capita emissions as justification at this
stage for the current disparity in SO2 emissions standards  for coal-fired power plants.

                                             29

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       SEDESOL states that permitted emissions standards for sources located in critical
zones are often as stringent as U.S. standards and that for cases where no NTE is in place
they rely on EPA technical standards.  These assertions were not venfied in conjunction with
this report.  SEDESOL reports that it expects to promulgate 29 additional air norms before
the end of 1994.

       SEDESOL states that it plans to eliminate the import and export of CFCs,  which
destroy the stratospheric ozone layer, through the air emissions permitting process.
SEDESOL did not discuss with the members of the second legal mission  how it plans to
address domestic CFC production.  The Global Change Division in EPA's Office  of Air and
Radiation reports, however, that Mexico (the first country to sign the Montreal Protocol) has
already entered into a number of voluntary agreements with major industrial sectors for
reductions in CFC production. According to the Global Change Division, Mexico has  been
ahead of the reduction schedule for developing countries set forth in the Montreal Protocol
and has recently  stated it will  adhere to a "developed country" reduction  schedule.

       Regarding hazardous air pollutants, Mexico's law seems not to contain any program
comparable to  that established by the CAA Amendments of 1990, although it does appear to
authorize development of such standards.  Mexican law addresses toxic emissions by
requiring prior authorization for the emission of hazardous air pollutants.22  General
Ecology Law title IV, article  113.  Moreover, Mexico could adopt norms in the future which
would regulate toxic emissions.

       5. Mobile Source Controls

       Mexico's  mobile source control program is more easily compared to its U.S.
counterpart since both rely on essentially the same approaches, such as tailpipe emission
standards, vehicle inspection and maintenance, fuel content requirements and transportation
controls. The  differences  between the U.S. and Mexican systems lie primarily in the extent
to which each  of these approaches are used or else in  the stage of development of the various
implementing programs.

       SEDESOL's power to  control mobile sources derives from title IV of the General
Ecology Law.  The Air Regulation (national), article 7,  directs SEDESOL to work with
other federal agencies to develop and establish programs to reduce motor vehicle  pollution
Articles 28-40 of the air regulation provide authority for such measures as inspecting vehicles
in the public transportation service and requiring  repair  of vehicles that fail inspection.  The
General Ecology Law also gives SEDESOL special authority to address pollution in the
    22EPA is seeking verification by SEDESOL of this information.

                                          30

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Federal District, encompassing Mexico City and its environs, which is being exercised under
a separate, implementing regulation ("Federal District Air Regulation").23

       Mexico appears to be moving quickly toward establishing a tailpipe emission control
program which is comparable to the one required in the U.S.  The original NTE for light-
duty motor vehicles requires decreasing emissions beginning in 1989 with dramatic
reductions beginning in  1991, apparently envisioning a phasmg-m of cars with catalytic
conveners.  The 1993 maximum permissible emission levels for hydrocarbons (HC), carbon
monoxide and nitrogen oxides are equivalent to current U.S. standards under the Clean Air
Act for light duty vehicles.  These current U.S.  standards are 0.41 HC, 3.4 CO,  1.0 NOX,
all in g/mi.  All of these standards are based on the U.S. Federal Test Procedure.

       The gasoline most commonly available in Mexico is leaded, although unleaded is
available in  larger cities and on main truck lines. In December 1991, the Mexican
government cut the price margin between leaded and unleaded fuels in  half (by raising the
price of leaded fuels at a faster rate).  There is reported to be progress in  making unleaded
fuel  available in more of the country where  unleaded is not currently available.  Since
PEMEX,  the nationally-run  petroleum company, has a monopoly  on the sale of vehicle fuels
in Mexico, the government  is well-placed to ensure that this goal  is met.  In particular, the
government is seeking to ensure that unleaded fuel is available on all toll roads and major
inter-city  routes.  The volatility of PEMEX's gasoline is reported to be between 7.0 and  9.5
pounds per quare inch (psi).

       Experience in the U.S. has shown that factors other than the availability of unleaded
fuel  can impact the effectiveness of a mobile source control program.  It is unclear at this
time whether Mexico will similarly address  these issues.  For example, the U.S. requires
compliance with standards for a specified useful life of a vehicle, but we do not know from
Mexico's  published standards  whether SEDESOL has or will adopt a similar requirement.
EPA's current regulations for passenger cars require that the standards be met for five years
or 50,000 miles.  The 1990 CAA Amendments also will require that emissions standards be
met  for 10 years or 100,000 miles, with different standards for the first and second 5-
year/50,000 mile segments.   In addition, U.S. regulations contain warranty  and recall
provisions and restrict the sale of "aftermarket parts" that could affect emissions performance
if a car's  original equipment is replaced.

       Inspection and maintenance of vehicles are critical to the success of any emissions
control program.  Like  the U.S., Mexico has such  a program, although it is still being
developed.  The General Ecology Law assigns primary responsibility for this activity to  the
state and  local authorities.  General Ecology Law article 112(V).  SEDESOL's role is to
promote the establishment of a network of vehicle inspection systems.  General Ecology Law
   ^Regulation of the General Law of Ecological Equilibrium and Environmental Protection for the Control
and Prevention of Contamination Generated by Motor .Vehicles in the Federal District and the Municipalities in
its Suburban Zone, issued November 25, 1988.

                                           31

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article 111(VI).  SEDESOL, together with other agencies, has responsibility for inspecting
vehicles in the federal public transportation sector. Air Regulation (national), articles 30-40.
In 1989,  SEDESOL published procedures and equipment  specifications for inspecting tailpipe
emissions.  See NTE-CCAT-013/89.  Vehicles used for public and cargo transport on roads
under federal jurisdiction must be inspected semiannually.24

       SEDESOL recently gained authority to regulate the content and characteristics of
automotive fuels, a function for which PEMEX previously had sole authority.  EPA has had
such authority for many years.  Unlike the CAA, the Mexican law contains no specific
provisions for introducing cleaner-burning fuels designed to reduce motor vehicle emissions.

       The General Ecology Law and the air regulations  provide for development and
implementation of transportation controls.  Restrictions on automobile use, though rarely
adopted in the U.S., are fairly severe in Mexico City and have been  a matter of everyday life
there for the past two years.  Since 1989,  Mexico City has had "no drive days."  Each car is
prohibited from being driven  one day out of the five-day work week; the last digit of the
license plate determines which day driving is prohibited.a In addition, driving  may be
suspended in certain  parts of the city when ambient pollution  levels are high. See Federal
District Air Regulation, article 7.
B. WATER POLLUTION

1. The U.S. Clean Water Act

       The U.S. Clean Water Act ("CWA") regulates point source discharges of pollutants
into U.S. navigable waters by directing the development of federal and state standards, uhii'
are implemented through a permitting system.  The law prohibits unpermitted discharges ar.J
those that fail to comply  with permit requirements.  U.S. states have a critical role
throughout the entire process which is subject to EPA oversight for compliance with CWA
requirements (i.e., protect public health and welfare, enhance water quality and  satisfy the
intent of the CWA).

       Under the U.S. program,  each pollutant discharge from a point source is subject to
effluent limitations based upon two considerations.  The first is technology:  all  sources mu^
meet effluent limitations  based upon the best available technology that is economically
achievable  ("BAT").  EPA has established nationally-applicable, technology-based, efflue;1/
guidelines and standards  for numerous categories of industrial dischargers. These guidelines
        'agreement' of the Secretariat of Communications and Transportation issued May 3, 1990

   aSee 'agreements* establishing the criteria for limiting car traffic in the Federal District, one issued
November 8, 1989, and the other March 1, 1990.

                                           32

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and standards must be implemented in permits, as applicable.  If no national guideline or
standard exists for a given type of source, the permit-issuing authority (which may be EPA
or an authorized state) must make its own determination of what limitations reflect
appropriate technology-based controls.

       In addition to technology-based limitations, each permit must assure that discharges
will not contribute to a violation of water quality standards.  States develop these standards
for individual bodies of water (or segments thereof) in accordance with water quality criteria
published by EPA and subject to EPA oversight and approval. The standards must assure
that the public will be able to use the water body or segment in question in the manner for
which it is designated (e.g., drinking or recreation).

       Sources that discharge into publicly-owned  sewage treatment works ("POTWs") must
also comply with pretreatment standards established by EPA and any additional limits
imposed by the POTW.  POTWs are required to install secondary-level treatment systems (as
defined at 40  CFR part 133) unless they are granted a waiver, and are subject to the same
permit requirements as other dischargers.

2. Mexico's Legal Water Pollution Control Framework

       Mexico's water problems arise from  two factors:  scarcity and pollution.
Uncontaminated water for drinking and other uses is in short supply, particularly  in Mexico
City and other urban areas.  Most rainfall in Mexico occurs in sparsely populated areas.
Accordingly,  optimal use and preservation of the nation's limited water supply is  a high
priority for SEDESOL and the Mexican National Water Commission ("Comision  Nacional de
Aguas", or "CNA," a unit of the Secretariat of Agriculture and Hydraulic Resources
(SARH)).  Among other things, SEDESOL  is encouraging industry to look for ways to
minimize the  generation of wastewater and to recycle process  waters.

       The Mexican General Ecology Law and the 1992 National Water Law set  forth the
legal framework for water pollution control in Mexico. The General Ecology Law contain^
several provisions that specifically aim to prevent and control  pollution of surface, ground
and marine waters and of aquatic ecosystems.  It also contains provisions that impact
generally upon water pollution control. General Ecology Law, articles 117-133.  The 1992
Water Law significantly enhances the responsibility and authority of CNA to control water
pollution.  Mexico's water pollution law is further elaborated  through a regulation issued m
197926 whicn  controls contamination of the sea by spilled waste materials.  To the extent
that it is consistent with the 1988 General Ecology Law, this regulation will be valid until
superseded  by a newer version. As of March  1993, Mexico had also promulgated 33
    26This regulation implements portions of Mexico's Organic Law of the Federal Public Administration.
article 30, section IV, and the multilateral Convention on the Prevention of Marine Pollution by Dumping of
Wastes and Other Matter, Nov. 13,  1972, 11 I.L.M. 1294 (London Ocean Dumping Convention)

                                          33

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technical ecological norms, establishing standards for wastewater discharges from various
industries and other effluent sources.

       The scope of the General Ecology Law is fairly comprehensive with respect to water
pollution, covering releases from:  industry; municipalities; agricultural and livestock
activities; mining; the use of pesticides, fertilizers and toxic substances; infiltrations into
aquifers; solid waste dumping; and federal  facilities. Id., articles 120 and  125.  It  prescnbes
principles for developing water quality and other technical standards,  id., article 118, as well
as for exploiting and conserving marine resources, id., article 131.

       Mexico's law also prescribes certain requirements  for regulating discharges.  For
example, wastewater discharges  must be authorized by the relevant  federal or state  authority
and treated before entering a water body or wastewater treatment system.  Id., article  121.
Sources must refrain from polluting the receiving body of water, interfering with water
purification and disturbing the sewer system or hydraulic  capacity of  the watershed. Id.,
article  122.   Sources (whether discharging  directly to the  receiving  water or indirectly
through the sewer system) must  also meet technical standards developed at the federal  level
and specific requirements ordered  by  SEDESOL or local  authorities.  Wastewater discharges
must also be  registered with SEDESOL, which is charged with creating a national register of
discharges.  Id., article 119.  Releases containing hazardous  materials or residues must
receive prior authorization from SEDESOL.  Id., article  123.

       Whereas the General Ecology  Law  sets forth general  guidance for implementing water
pollution controls, the regulations, technical standards (NTEs) and ecological criteria set
forth the detailed requirements.  For example, the statute calls for developing standards  for
industrial sources to restore discharged wastewater  "to proper conditions for use in other
activities and maintain the balance of the ecosystem."  Id., art.  117(111).  In the case of  urban
wastewater, the statute calls only for  undefined  treatment prior to discharge.  Id., art.
117(1V).  While the federal government sets the standards for discharges into municipal
sewer systems, state and local governments are  generally  responsible for regulating mumcip.i
wastewater treatment systems themselves.  See Id., art. 6(VIII,  IX).

       Discharges may also be subject to plant-specific "special conditions," set by CNA,
although this is most likely to be true for new sources.  New source  special conditions are
developed in conjunction  with environmental impact assessments, which are required for all
significant public and private-sector projects.  Facilities subject to special conditions are
required to report to SEDESOL monthly.

       Three government agencies participate in setting water quality standards:  SEDESOL.
CNA and the Secretariat of the  Navy.  In  addition, the Secretariat  of Health sets sanitation
standards and becomes involved in permit  decisions if public drinking water supplies are
implicated.   Id., articles 119, 124. CNA classifies the uses  of water bodies which, along
with determinations of their "assimilative capacity," help to  determine water quality
standards.  If needed, the government can  take  measures  to assure  that the assimilative

                                           34

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determine the use that can be made of a particular water body.

       A preliminary examination of direct discharge norms for the five industries
(petroleum refining, iron and steel production, copper formation, and wood preserving)
identified by EPA Region EX as significant industries operating in the Mexican border area
near the U.S., revealed  the following information:

       o     In general the Mexican standards for all five industries tend to be in the same
             concentration  range as the U.S. effluent guidelines and standards requiring
             direct dischargers to use best practicable control technology currently available
             (BPT).

       o     The Mexican industrial wastewater discharge standards rely exclusively on
             pollutant concentration limits. Some U.S.  direct discharge standards are also
             based on pollutant concentration levels, while others are production-based
             standards.  For those U.S. standards which are production-based, the ability  to
             reduce the mass of the pollutant per unit of production is available at the Best
             Available Technology  (BAT) and the New  Source  Performance Standard
             (NSPS) levels of pollution control. (BAT and NSPS represent higher levels  of
             control than BPT.) By reducing the allowed flow  but maintaining the same
             concentration  in the effluent, the actual pollutant mass discharged is decreased
             as flow reductions for BAT and NSPS, as specified in U.S. water pollution
             regulations, are applied.  Hence on an overall basis, the U.S. standards for
             BAT and  NSPS will be substantially more  stringent than the existing Mexican
             standards  on direct discharges to surface waters.  But when comparing BPT,
             the first level  of stringency  in U.S. water pollution regulations to Mexico's
             direct discharge standards, the Mexican standards are generally in the same
             concentration  range as the U.S.  direct discharge standards.

       o     Considering the fact that most Mexican water pollution control efforts only
             date back to 1988,  it appears from their published standards for the five
             industries examined that Mexico has laid the ground work for a meaningful
             pollution control effort for industrial wastewater discharges to surface waters
             However,  for wood preserving, the U.S standard is zero discharge for most  of
             the industry.  Hence, the Mexican direct discharge standard for wood
             preserving is not as stringent as the U.S. standard.

       The Office of Water  also examined Mexico's indirect discharge standard and
concluded that it was generally within  the same range as  U.S. indirect discharge standards
However, Mexico uses a single set of limitations for all of the industries that it regulates for
                                           36

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indirect discharges,27 whereas the U.S. has set pretreatment standards with numerical limits
for both existing and new sources for 50 industrial categories.   In many cases, distinct limits
are set for subcategories for the 50 U.S. industries presently regulated.  See Tables 5  through
14 for a more detailed numerical side-by-side comparison of the Mexican direct and indirect
discharge standards to U.S. direct and indirect discharge standards.
    "A single Mexican standard, NTE-CCA-031/91. governs discharges into municipal treatment systems  The
 U.S. system includes general pretreatment standards as well as specific standards for categories of industrial
 dischargers

                                              37

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                Table 5 -- Metal Finishing Industry - Direct Dischargers
               MEXICO
MEXICO
U.S.
ILi
Parameter
pH(pH
units)
Settled
solids
Suspended
solids
Oil and
grease
Hexaval-
ent
chromium
Total
chromium
Copper
Nickel
Iron
Zinc
Cyanide
Cadmium
Lead
Aluminum
Barium
Man-
ganese
Silver
TTO
Dailv ave.
6-9
1 mg/1
50 mg/1
10 mg/1
0.1 mg/1
0.5 mg/1
0.5 mg/1
2.0 mg/1
1.0 mg/1
0.5 mg/1
0.1 mg/1
0.2 mg/1
0.1 mg/1
1.0 mg/1
2.0 mg/1
2.0 mg/1
N/A
N/A
Grabs
6-9
1.2 mg/1
60 mg/1
15 mg/1
0.2 mg/1
1.0 mg/1
1.0 mg/1
2.4 mg/1
1.2 mg/1
l.Omg/l
0.2 mg/1
0.4 mg/1
0.2 mg/1
1.2 mg/1
2.4 mg/1
2.4 mg/1
N/A
N/A
BFT
6-9
N/A
60 mg/1
52 mg/1
N/A
2.77 mg/1
3.38 mg/1
3.98 mg/1
N/A
2.61 mg/1
1.20 mg/1
0.69 mg/1
0.69 mg/1
N/A
N/A
N/A
0.43 mg/1
2.13 mg/1
BAT
6-9
N/A


N/A
2.77 mg/1
3.38 mg/1
3.98 mg/1
N/A
2.61 mg/1
1.20 mg/1
0.69 mg/1
0.69 mg/1
N/A
N/A
N/A
0.43 mg/1
2.13 mg/1
NSPS
6-9
N/A
60 mg/1
52 mg/1
N/A
2.77 mg/1
3.38 mg/1
3.98 mg/1
N/A
2.61 mg/1
1.20 mg/1
0.69 mg/1
0.69 mg/1 |!
N/A
N/A
N/A
0.43 mg/1
2.13 mg/1
Source: EPA, Office of Water,  Office of Science and Technology, Engineering and AnaKsis
Division
                                         38

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Table 6 -- Metal Finishing Industry - Indirect Dischargers
   MEXICO
MEXICO
IZi
Parameters

Temperature
pH (pH units)
Settled solids
Oil and grease
Electric
conductivity
Aluminum
Arsenic
Cadmium
Cyanide
Copper
Hexavalent
chromium
Total
chromium
Iron
Mercury
Nickel
Silver
Lead
Zinc
Phenol
Active
substances to
methylene blue
Dailv avg.

—
6-9
5 mg/1
70 mg/1
10,000 micro
mhos/cm
10 mg/1
2 mg/1
0.5 mg/1
1.0 mg/1
5.0 mg/1
0.5 mg/1
2.5 mg/1
30 mg/1
0.01 mg/1
4.0 mg/1
1.0 mg/1
1.0 mg/1
6 mg/1
5 mg/1
30 mg/1
Grabs

40 degrees C
(313 K)
6-9
10 mg/1
140 mg/1
15,000 micro
mhos/cm
20 mg/1
4 mg/1
1.0 mg/1
2.0 mg/1
10 mg/1
1.0 mg/1
5.0 mg/1
60 mg/1
0.02 mg/1
8.0 mg/1
2.0 mg/1
2.0 mg/1
12 mg/1
10 mg/1
60 mg/1
PSES Daily
max.







0.69 mg/1
1.20 mg/1
3.38 mg/1

2.77 mg/1


3.98 mg/1
0.43 mg/1
0.69 mg/1
2.61 mg/1


PSNS Dailv
max.







0.11 mg/1
1.20 mg/1
3.38 mg/1

2.77 mg/1


3.98 mg/1
0.43 mg/1
0.69 mg/1
2.61 mg/1


                         39

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TTO (int.,
final)
--
—
4.57, 2.13 mg/1
2.13 mg/1
Source: EPA, Office oTWater, Otfice of Science and Technology, Engineering and AnaKsis
Division
                                         40

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                  Table 7 -- Petroleum Refining Industry -  Direct Dischargers
                 MEXICO
MEXICO
U.S."
U.S.
Parameter
pH(pH
units)
BOD
TSS
Oil and
grease
Hexa-
valent
chromium
Total
chromium
Phenols
(4AAP)
COD
Daily avg.
6-9
60mg/l
70 mg/1
40 mg/1
0.2 mg/1
1.0 mg/1
1.0 mg/1
100 mg/1
Grabs
6-9
72 mg/1
85 mg/1
48 mg/1
0.25 mg/1
1.2 mg/1
1.2 mg/1
120 mg/1
BPT29
6-9
48 mg/1
33 mg/1
15 mg/1
0.06 mg/1
0.6 mg/1
0.9 mg/1
248 mg/1
BAT30
N/A"
N/A
N/A
N/A
0.06 mg/1
0.6 mg/1
0.9 mg/1
248 mg/1
NSPS31
6-9
48 mg/1
33 mg/1
15 mg/1
0.06 mg/1
0.6 mg/1
0.9 mg/1
248 mg/1
    28
      In addition to the parameters listed in the table above, the following may be included in the U.S. as
special conditions of discharge:  temperature, dissolved solids, chlorides, sulfates, mercaptans, arsenic,  cobalt.
copper,  iron, lead, mercury, nickel, M^mmm  zinc, aluminum,  and vanadium.
    29The above levels of BPT control are daily maximum limits expressed in terms of concentration based on
existing flow for current regulatory basis (1979).  The 40 CFR part 419 regulation for the petroleum refining
source category has 5 subcategones, uses production-based effluent limitations, and relies on size factors as uell
as process factors which depend on process configuration.

    30The above levels of BAT control are daily maximum limits expressed in terms of concentration, based  on
reduced flows per production units below 1979 basis.  Actual regulation is in mass per unit of production

    3 'The above levels of NSPS control are daily maximum limits expressed in  terms of concentration, based
on reduced flows per production units below 1979 basis.  Actual regulation is in mass  per unit of production

    32In the  U.S. the five conventional pollutants (biochemical  oxygen demand  (BOD), total suspended solids
(TSS). pH, fecal coliform, and  oil and grease) are not regulated under BAT controls by definition.  Only non-
conventional  pollutants and toxic pollutants are regulated under BAT controls.  BPT and NSPS controls regulate
all three groups  of pollutants.
                                                   41

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Sulfides
Ammonia
(asN)
Fecal
coliform
0.5 mg/1
N/A
100 /ml
1.0 mg/1
N/A
200 /ml
0.3 mg/1
33 mg/1
N/A
0.3 mg/1
33 mg/1
N/A
0.3 mg/1
33 mg/1
N/A
Source: EPA, Office of Water, Office of Science and Technology, Engineering and Analysis
Division
                                          42

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Table 8 -- Petroleum Refining Industry - Indirect Dischargers
  MEXICO
MEXICO
U.S.
U.S.
Parameters

Temperature
pH (pH units)
Settled solids
Oil and grease
Electric
conductivity
Aluminum
Arsenic
Cadmium
Cyanide
Copper
Hexavalent
chromium
Total
chromium
Iron
Mercury
Nickel
Silver
Lead
Zinc
Phenol
Active
substances to
methylene blue
Daily avg.

--
6-9
5 mg/1
70 mg/1
10,000 micro
mhos/cm
10 mg/1
2 mg/1
0.5 mg/1
1.0 mg/1
5.0 mg/1
0.5 mg/1
2.5 mg/1
30 mg/1
0.01 mg/1
4.0 mg/1
1.0 mg/1
1.0 mg/1
6 mg/1
5 mg/1
30 mg/1
Grabs

40 degrees C
(313 K)
6-9
10 mg/1
140 mg/1
15,000 micro
mhos/cm
20 mg/1
4 mg/1
1.0 mg/1
2.0 mg/1
10 mg/1
1.0 mg/1
5.0 mg/1
60 mg/1
0.02 mg/1
8.0 mg/1
2.0 mg/1
2.0 mg/1
12 mg/1
10 mg/1
60 mg/1
PSES Daily
max.



100 mg/1
















PSNS Dailv
max.



100 mg/1







1 mg/1








                          43

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Ammonia (as
N)
TTO (int.,
final)
—
~
Note: The U.S. pretreatment standard
discharger category.
—
~
100 mg/1

100 mg/1
,
s in this table pertain to the petrochemical indirect
Source: EPA, Office of Water, Office of Science and Technology, Engineering and Analysis
Division
                                         44

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                     Table 9 - Iron and  Steel Industry  - Direct Dischargers
              MEXICO
MEXICO
U.S."
U.S.
Parameter
M
pH(pH
units)
Cyanide
Phenols
(4AAP)
TSS
Oil and
grease
Daily avg.
6-9

N/A
30 mg/l
50 mg/1
Grabs
6-9

N/A
36 mg/1
70 mg/1
BPT"
6-9
0.29 mg/1

41 mg/1
20 mg/1
BAT36
N/A38
0.29 mg/1

N/A
N/A
NSPS37
6-9
0.29 mg/1

41 mg/1
20 mg/1
    33The blank spaces in the columns of the above table relating to U.S. standards indicate that a production-
based limit was not converted  to a concentration-based limit.  In addition, it should be noted that where U S
production-based standards have a significant recycle of wastewater.  the mass of pollutant discharged is
significantly reduced and dilution as a means of meeting effluent guidelines is virtually eliminated

    MIn addition to the parameters listed  in the above table,  the following parameters may be included in the
U S. as special conditions of discharge:  temperature, nitrates, phenols, fluorides, zinc,  cyanide, sulfides, lejJ
and manganese.

    3SThe BPT control levels  in the above table are based on technology using 'line and settle* with normalized
flow from existing point sources.  Front end treatment uses phenolic recovery, flotation to separate oil  and
grease,  ammonia stopping, aeration, and neutralization where appropriate.  Note: Regulations in 40 CFR  pars
420 are production-based and  use separate limits for different operations and/or waste streams in 12
subcategones.

    36The BAT control levels in the above table are based on the same technology as the BPT control  le\ eU
except for one subcategory where  lower flow bases are achieved by recycle techniques,  which has the  effect of
reducing the allowed release of pollutant mass per day.

    37The NSPS control levels in the above table are based on  the same  technology as the BPT and BAT
control  levels, except for one  subcategory in which the technology level is increased by adding multi-media
filters.

    38In the  U.S.  the five conventional pollutants (biochemical oxygen demand (BOD), total suspended solid-
(TSS), pH, fecal cohform, and oil and grease) are not regulated under BAT by definition.  Only
nonconventional pollutants and toxic pollutants are regulated  under  BAT.  BPT and NSPS regulate all
groups of pollutants.
                                                   45

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Chromium
Zinc
Lead
Nickel
Ammonia -
N
Benzene
Benzo(a)-
pyrene
Naptha-
lene
TRC
Tetra-
chloro-
ethylene




30 mg/1









36 mg/1





0.44 mg/1
1.46 mg/1
0.42 mg/1
1.92 mg/1
133.3 mg/1





0.44 mg/1
1.46 mg/1
0.42 mg/1
1.92 mg/1
133.3 mg/1





0.44 mg/1
1.46 mg/1
0.42 mg/1
1.92 mg/1
133.3 mg/l





Source: EPA, Office of Water,
Division
Office of Science and Technology, Engineering and Analysis
                                          46

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                   Table 10  -- Iron  and Steel Industry -  Indirect Dischargers
                    MEXICO
MEXICO
ILL.
ILL.
Parameters39

Temperature
pH (pH units)
Settled solids
Oil and grease
Electric
conductivity
Aluminum
Arsenic
Cadmium
Cyanide
Copper
Hexavalent
chromium
Total
chromium
Iron
Mercury
Daily avg.

—
6-9
5 mg/1
70 mg/1
10,000 micro
mhos/cm
10 mg/1
2 mg/1
0.5 mg/1
1.0 mg/1
5.0 mg/1
0.5 mg/1
2.5 mg/1
30 mg/1
0.01 mg/1
Grabs

40 degrees C
(313 K)
6-9
10 mg/1
140 mg/1
15,000 micro
mhos/cm
20 mg/1
4 mg/1
1.0 mg/1
2.0 mg/1
10 mg/1
1.0 mg/1
5.0 mg/1
60 mg/1
0.02 mg/1
PSES Daily
max.40

N/A

20 mg/1



0.34 mg/1
0.29 mg/1
N/A

0.44 mg/1


PSNS Dailv
max.41

N/A

20 mg/1



0.34 mg/1
0.29 mg/1
N/A

0.44 mg/1
j
I
    39In addition to the parameters listed in the above table, the following parameters may be added in th? '  S
as special conditions of discharge: temperature, nitrates, phenols, fluorides, zinc, cyarude, sul fides, lead, ai._
manganese.

    40The limits in this column of the table are based on technology using 'line and settle' with normalized
flow from point sources.  Front end treatment uses phenolic recovery,  flotation to separate oil and grease,
ammonia stripping, aeration, and neutralization where appropriate.  Note: Regulations in 40 CFR part 420 arc
production-based and use separate limits for different operations and/or waste streams in 12 subcategones
    41The limits in this column of the table are based on the same technology as die limits in the PSES
maximum column, except that lower flow bases achieved by recycle techniques has the effect  of reducing the
allowed release of pollutant mass per day, and the technology level is increased by adding multi-media filter*
                                                  47

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Nickel
Silver
Lead
Zinc
Phenols
(4AAP)47
Active
substances to
methylene blue
Ammonia-N
4.0 mg/1
1.0 mg/1
1.0 mg/1
6 mg/1
5 mg/1
30 mg/1
~
8.0 mg/1
2.0 mg/1
2.0 mg/1
12 mg/1
10 mg/1
60 mg/1
—
1.92 mg/1

0.42 mg/1
1.46 mg/1


133.3 mg/1
1.92 mg/1

0.42 mg/1
1.46 mg/1


133.3 mg/1
Source: EPA, Office of Water, Office of Science and Technology, Engineering and Analysis
Division
    42The blank spaces in the U.S. portion of this row indicates that the U S. production-based limits for
phenols (4AAP) were not converted to concentration-based limits
                                              48

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                   Table 11 — Copper Forming Industry  - Direct Dischargers

                 MEXICO      MEXICO       U.S.43         U.S.         U.S.
Parameter
pH(pH
units)
Arsenic
Cadmium
TSS
Oil and
grease
Total
chromium
Copper
Zinc
Lead
Daily avg.
6-9
5 mg/1
0.01 mg/1
30 mg/1
10 mg/1
1.0 mg/1
1.0 mg/1
10 mg/1
5 mg/1
Grabs
6-9
6 mg/1
0.12 mg/1
35 mg/1
12 mg/1
1.2 mg/1
1.2 mg/1
12 mg/1
7 mg/1
BPT44
7.5 - 10
N/A
N/A
41 mg/1
20 mg/1
0.44 mg/1
1.90 mg/1
1.46 mg/1
0.42 mg/1
BAT45
N/A47
N/A
N/A
N/A
N/A
0.44 mg/1
1.90 mg/1
1.46 mg/1
0.42 mg/1
NSPS46
7.5 - 10
N/A
N/A
15 mg/1
10 mg/1
0.37 mg/1
1.28 mg/1
1.02 mg/1
0.28 mg/1
      In addition to the parameters in the above table, the following parameters may be added in the U S  as
special conditions of discharge:  temperature; benzene;  1,1,1-Tnchlorethylene chloroform; 2-6 dimtrololuene
methylene chloride; naphthalene; anthracene; toluene; tnchloroethylene; beryllium; ethylbenzene, and antimon>

    "The BPT control limits in this column are based on technology using 'line and settle* with normalized
flow from existing point sources.  The basis for BPT are primarily for metals, oil and grease and suspended
solids removal.  Oil skimming and chromium reduction are included when necessary.  Note: Regulations in •>'
CFR part 468 are production-based and use separate limits for 17 different operations and/or waste stream*
The Combined Metals Data Base (CMBD) was used to determine treatment effectiveness and pollutant
concentrations.

    4SThe BAT  limits in this column are based on the same technology as the limits in the  BPT column of this
table, except lower flow bases are achieved by recycle techniques, which has the effect  of reducing the allo«.<.J
release of pollutant mass per day.

    46The NSPS limits in this column are  based on the same technology as the BPT and BAT  limits in this
table, except the technology level is increased by adding multi-media filters and countercurrent cascade nnsing

    47In the U.S., the  five conventional pollutants (biochemical oxygen demand (BOD), total suspended solids
(TSS), pH, fecal coliform, and oil and grease) are not regulated under BAT by definition.  Only
nonconventional  pollutants and toxic pollutants are regulated under BAT.  BPT and NSPS regulate  all three
groups of pollutants.
                                                  49

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Nickel
TTO48
N/A
N/A
N/A
N/A
1.92 mg/1
0.010 mg/1
1.92 mg/1
0.010 mg/1
0.55 mg/1 1
0.010 mg/1 1
Source:  EPA, Office of Water, Office of Science and Technology, Engmeenng and Analysis
Division
    48ln the U.S. regulation governing direct discharges from the copper formation industry, the U.S define^
total toxic organics  (TTO) to include: benzene;  1,1,1-tnchloroethane; chloroform; 2,6-duutrotoluene; eihvlene.
methylene; chlonde, naphthalene;  n-nitrosodiphenylamine; anthracene; phenanthrene; toluene; and
tnchloroethylene.

                                                50

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                 Table 12 -- Copper Forming Industry - Indirect Dischargers
               MEXICO
MEXICO
U.S.
Parameters49

Temperature
pH (pH units)
Settled solids
Oil and
grease"
Electric
conductivity
Aluminum
Arsenic
Cadmium
Cyanide
Copper
Hexavalent
chromium
Total
chromium
Iron
Mercury
Dailv avg.

—
6-9
5mg/l
70mg/l
10,000 micro
mhos/cm
10 mg/1
2mg/l
0.5 mg/1
1.0 mg/1
5.0 mg/1
0.5 mg/1
2.5 mg/1
30 mg/1
?,01 mg/1
Grabs

40 degrees C
(313 K)
6-9
10 mg/1
140 mg/1
15,000 micro
mhos/cm
20 mg/1
4 mg/1
1.0 mg/1
2.0 mg/1
10 mg/1
1.0 mg/1
5.0 mg/1
60 mg/1
0.02 mg/1
PSES Dailv
max.50

7.5 - 10

20 mg/1



0.34 mg/1
0.29 mg/1
1.90 mg/1

0.44 mg/1


PSNS Dailv
max."

7.5 - 10

10 mg/1



0.20 mg/1
0.20 mg/1
1.28 mg/1

0.37 mg/1


    49In addition to the parameters in the above table, the following parameters are included in the U.S as
special conditions of discharge: temperature; benzene;  1,1,1-tnchlorethylene; chloroform; 2,6-dmitrotoluene,
methylene chloride;  naphthalene, anthracene; toluene; tnchloroethylene; beryllium; ethylbenzene; and antimony

    50The technological basis for PSES is the same as for BAT in Table 11.

    5lThe technological basis for PSNS is the same as for NSPS in Table  11.

    S2In the U.S.  the oil and grease parameter limits are used for alternate monitoring of TTO for this category
of indirect discharges from the copper forming industry
                                                 51

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Nickel
Silver
Lead
Zinc
Phenol
Active
substances to
methylene blue
TTO (int.,
final)53
4.0 mg/1
1.0 mg/1
1.0 mg/1
6 mg/1
5 mg/1
30 mg/1
--
8.0 mg/1
2.0 mg/1
2.0 mg/1
12 mg/1
10 mg/1
60 mg/1
~
1.92 mg/1

0.42 mg/1
1.46 mg/1


0.010 mg/1
0.55 mg/1

0.28 mg/1
1.02 mg/1


0.010 mg/1
Source: EPA, Office of Water, Office of Science and Technology, Engineering and Analysis
Division
     S3In the U.S. regulation governing indirect discharges from the copper forming industry, the U S  define-
total toxic organics (TTO) to include the following: benzene;  1,1,1-tnchloroethane;  chloroform; 2.6-
dmitrotoluene; ethylene; methylene chloride; naphthalene; n-nirosodiphenylamine; anthracene; phenanthrene
toluene; and tnchloroethylene
                                                 52

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                    Table 13 -- Wood Treating Industry - Direct  Dischargers

                 MEXICO       MEXICO        U.S.34         U.S.         U.S.
Parameter55

pH(pH
units)
BOD
TSS
Oil and
grease
Hexava-
lent
chromium
Phenols
(4AAP)
COD
Sulfides
Ammonia
Fecal
coliform
Cadmium
Lead
Aluminum
Daily avg.
6-9
240 mg/1
ISO mg/1
100 mg/1
N/A




100 /ml
0.1 mg/1
0.2 mg/1
0.1 mg/1
Grabs
6-9
240 mg/1
180 mg/1
120 mg/1
N/A




200 /ml
0.2 mg/1
0.4 mg/1
1.2 mg/1
BEE













BAT













NSPS













    54Wilhin 40 CFR part 429 governing the timber processing point source category in the U.S., there arc
three subcategones that deal with wood treating. In some cases the regulation specifies that *[t]here shall be no
discharge of process wastewater pollutants from into navigable waters."  Such a limitation is referred to as
"zero discharge* and largely accounts for the absence of numerical limits in the U.S. portion of this table.
although for one subcategory in many of these parameters, a production-based limit is specified which was noi
converted to a concentration limit.

    55No numerical values are stated for the following compounds that would be included in the U.S as special
conditions of discharge:  benzofluoranthene; dibenzoanthracene;  benzopyrene; tnchloromethane; phenanthrene
ethylbenzene; fluoranthene; naphthalene;  fluorene,  benzene,  toluene; pyrene; indene; copper; lead,  zinc.
chromium;  nickel; mercury; and arsenic.
                                                  53

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1 Vanadium
Mercap-
tans










Source:  EPA, Office of Water, Office of Science and Technology, Engineering and Analysis
Division
                                         54

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                   Table 14 - Wood Treating Industry -  Indirect  Dischargers

                MEXICO          MEXICO          U.S."            U.S.
Parameters"

Temperature
pH (pH units)
Settled solids
Oil and grease
Electric
conductivity
Aluminum
Arsenic
Cadmium
Cyanide
Copper
Hexavalent
chromium
Total
chromium
Daily avg.

—
6-9
5mg/l
70 mg/1
10,000 micro
mhos/cm
10 mg/1
2 mg/1
0.5 mg/1
1.0 mg/1
5 mg/1
0.5 mg/1
2.5 mg/1
Grabs

40 degrees C
(313 K)
6-9
10 mg/1
140 mg/1
15,000 micro
mhos/cm
20 mg/1
4 mg/1
1.0 mg/1
2.0 mg/1
10 mg/1
1.0 mg/1
5.0 mg/1
PSES Dailv
max.5.8



100 mg/1


4 mg/1


5 mg/1

4 mg/1
PSNS Dailv
max.












    56Within 40 CFR part 429, the U.S. regulation governing indirect discharges from the timber processing
point source category, there are three subcategones that deal with wood treating.  The absence of mans
numerical limits in the columns of this table corresponding to U.S. standards indicates that zero discharge
requirements tend to apply to these categories.

    57No numerical values are stated for the following compounds, but under special conditions they could be
assigned maximum permissible limits: alkalinity/acidity; heat; biochemical oxygen demand (BOD), chemical
oxygen demand (COD); phosphorous; heavy metals; nitrogen; dissolved solids; suspended solids; turbidity,
acrylonitnle; acrolein; aliphatic and halogenated aliphatic  compounds;  monocyclic and polycychc  aromatic
compounds; phthalic acid esters; ethers; isoforon; nitroamines; and pesticides

    58The numeric  limits listed for certain parameters in this column indicate that identical  concentration limns
of the amount  specified are required in the U S  for two of the industry subcategones for that parameter
                                                  55

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Iron
Mercury
Nickel
Silver
Lead
Zinc
Phenol
Active
substances to
methylene blue
30 mg/1
0.01 mg/1
4.0 mg/1
1.0 mg/1
1.0 mg/1
6 mg/1
5 mg/1
30 mg/1
60 mg/1
0.02 mg/1
8.0 mg/1
2.0 mg/1
2.0 mg/1
12 mg/1
10 mg/1
60 mg/1
















Source:  EPA, Office of Water, Office of Science and Technology, Engineering and Analysis
Division
                                          56

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       Under the 1992 Law on Measurement and Standardization, discussed earlier in section
on Mexico's new cost-benefit analysis law above, INE is required to transform all existing
NTEs into "official norms."  This process, which was to have been completed by October
15, 1993, requires a cost-benefit review of virtually all environmental norms by INE staff.59
A new norm is then proposed, and submitted for review and approval to an ad hoc
subcommittee (with public and private members).  The proposed  norm,  as modified, is then
submitted for review and approval  to the  National Committee on  Norms.  Following a 90-
day public comment period, the review process is repeated, after  which the norm is signed
by the Director of INE and the Secretary  of SEDESOL.  As of October, 1993, 33 existing
water norms were repromulgated and  11 new norms are also in progress.

       Requirements more stringent than  those of the NTEs may  be imposed with respect to:
(1) discharges to sources of drinking water; (2) underground injection (allowed only if study
shows that the aquifer won't be damaged); and (3) discharges to  marine waters.  Violators of
NTEs or other legal requirements are subject to closure and other penalties.  Fines for
substantive violations may be levied up to the amount of 20,000 times the daily minimum
wage.

       3. Federal. State and Local Roles

       Both Mexico and the U.S. rely on federal, state and local permitting to implement
controls on dischargers.  In the U.S., the federal government is responsible for developing
the technology-based effluent limitation guidelines and standards  and the water quality
catena that form the basis for decisions about  effluent limitations. The states are general I \
responsible for establishing water quality  standards and for determining the specific effluent
limitations that apply in individual cases.  Either level of government may be involved in
writing actual permits.

       The breakdown of federal, state and local roles appears to be somewhat different in
Mexico.  The Mexican federal government is responsible for developing technological
standards and criteria for evaluating water quality, while the Mexican states and localities are
responsible for municipal wastewater treatment systems, as in the U.S.   The allocation of
responsibility for permitting or authorizing discharges, however, may be different.  Under
Mexico's General Ecology  Law, a significant amount of authorization responsibility is
reserved  to the federal government.  To the extent that CNA, the Secretariat of Marine
Affairs and SEDESOL are  responsible for authorizing discharges into bodies other than
sewer systems, the federal government in Mexico may have more authority in Mexico than.
EPA does in the U.S., where the states are primarily responsible for permitting discharges
into water bodies.
   "Standards that are not approved by an independent committee by October IS, 1993 (which is subject to
some extension) will become void.  The law does allow for "emergency" norms, which are valid only for MX
months.

                                           57

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       It is important to note that Mexico's control system regarding municipal treatment
systems is not yet fully developed.  In the U.S., municipal treatment systems must comply
with the secondary treatment requirements  of 40 CFR part 133, unless a special waiver is
granted; effluent discharges from those systems must be permitted.  In addition, U.S. sources
that discharge into municipal treatment systems are subject to federal pretreatment standards
Mexico's federal law calls  for pretreatment of indirect discharges and standards for municipal
systems, and an NTE establishes standards  for discharges  into such  systems.  However, there
does not appear to be any federal requirement that local municipal systems employ
secondary, or even primary treatment, as those forms of treatment are defined under the
U.S. regulatory system.

       A potentially  important difference between the Mexican system and the U.S. system
for control of water  pollution lies in EPA's legal mandate to maintain strong oversight of the
activities of the states. Under the CWA, while permit authority is shared by EPA and the
states,  EPA must approve,  and has  oversight jurisdiction over, state permitting programs.
This federal oversight responsibility does not appear to be part of the Mexican  system.
While  the Mexican system  also divides authority between  federal and state/local authorities,
the law seems not to provide for the kind of extensive approval power over state/local
programs  that is a hallmark of the U.S. system.  5ee_General Ecology Law, article 121.
This might have some bearing on the enforceability of the Mexican statute as compared to
the CWA.

       4. The Permitting Systems

       The Mexican water pollution legal regime appears to contemplate a regulatory system
that would control both point and non-point sources of pollution as broadly as the CWA   In
fact, the Mexican system appears to go beyond its U.S. counterpart in applying to discharges
to ground water as well.  Both the General  Ecology Law and the CWA provide for the
adoption of wastewater discharge restrictions implemented through  a federal/state permitting
program.  Both rely on technology-based controls and effluent limitations, water quality
standards and consideration of the assimilative capacity of the receiving  waters in
determining the level of control that is necessary for a given source.

       Mexico's requirements for permitting point source discharges and for setting
maximum permissible limits ("MPLs") appear to be comparable to the CWA's permit and
discharge  limitation  system.  Its water quality criteria, which appear to be similar to EPA s
water quality criteria (although used for  a  different purpose),60 are  to be based strictly on
scientific evidence.
         Mexican water quality criteria are supposed to be used in designating uses of water bodies.  EPA's
criteria are used in establishing water quality standards, which will vary according to the designated use

                                            58

-------
       Mexico and the U.S. both subject new and existing sources to category-specific
technology standards, which to date in Mexico cover almost 30 different source categories.
In comparison, the U.S. has technical standards for SO categories of industrial dischargers.
Like the effluent limitations guidelines and standards promulgated by EPA,  the Mexican
standards are based on economic and technical feasibility and often reflect technologies of
sedimentation, flocculation and precipitation.  A significant difference, however, is that the
Mexican standards appear to  focus primarily on the control of conventional pollutants (such
as pH, BOD, TSS), rather than toxic pollutants.

       Although both countries use technical standards to restrict wastewater discharges, they
may treat new and existing sources differently.  In Mexico,  both new and existing sources
must at least meet the same standards for a given category, although some leniency is shown
toward existing sources in the amount of time that is allowed for them to come  into
compliance.  New sources in Mexico must also undergo an environmental impact review
which may lead to more stringent limitations.  In the U.S., new sources must meet new
source performance  standards, which may be more stringent than the requirements  placed on
existing sources.  Also, new source permits issued by EPA are subject to an environmental
impact review.

       Based on the legal requirements alone, the two countries appear to have  generally
comparable regimes for the control of water pollution.  Differences may exist in the two
systems, however, depending on how the MPLs, criteria, permitting system and other
requirements are implemented in Mexico.

       5. Monitoring and Reporting Requirements

       The U.S. requires a great deal of self-monitoring by companies.  This means thai
companies must conduct extensive testing on their discharges to water to determine what
pollutants are being  released.  The U.S. further requires companies to report the monthly
averages of their discharges, and in some cases, the daily emissions. In Mexico, on the
other hand, most of the monitoring so far has been done by federal inspectors.  Furthermore.
although the situation is improving, SEDESOL's resources for inspections and testing ha\e
been limited and reporting systems are being developed.

       As in the U.S., SEDESOL and CNA rely on monitoring to support enforcement
efforts; both agencies conduct periodic and surprise inspections of discharging  facilities.  In
addition, each facility with special conditions imposed must submit a monthly report.  This  is
a less frequent level of data collection and reporting than in the U.S., where the monthly
reports required  under the National Pollutant Discharge Elimination System ("NPDES") are
supplemented by weekly and even daily reports, in some cases.

       The information SEDESOL and the CNA collect is stored in paper format,  rather than
in computerized  systems. SEDESOL recognizes the need to develop further its data
                                          59

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management systems and expects to apply some of its future resources to obtaining the
necessary equipment and support.

       6. Public Involvement

       In the U.S., the public is extensively involved in developing regulations as a result of
requirements for public  notice and comment on proposed rules.  The CWA also provides for
citizen enforcement of its provisions as a supplement to federal enforcement activities. By
way of contrast, there appears to be no legal requirement or systematic voluntary program  in
Mexico to make effluent data available to the public.  However, while Mexico does not have
the same tradition of public involvement  in the administrative process as the U.S., the 1992
Law on Measurement and Standardization does provide for a 90-day public comment  period
prior to the promulgation and  revision of environmental standards, including water pollution
standards.
C. HAZARDOUS AND OTHER WASTES

       Mexico's laws and regulations regarding hazardous waste are comparable in many
ways to their counterparts in the United States. There are, however, differences.

1. The U.S. Resource Conservation and Recovery Act

       The Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. 6901 et seq.,
sets forth a comprehensive "cradle to grave"  framework for hazardous waste management.61
Hazardous waste must be treated, stored or disposed of in accordance with permits which
incorporate substantive and procedural requirements specified in the statute and in federal
regulations.  If transported off-site, the waste must be accompanied by a manifest showing
chain of custody and providing technical information about the waste. The  statute and
regulations also restrict export of hazardous waste by requiring the consent of the receiving
country.

       RCRA defines "hazardous waste" as a subset of "solid waste."62 Thus, the
definition of solid waste  is critical to  the applicability of RCRA, and EPA's regulations
address that definition in great detail.  See 40 CFR part 260.  The Agency has gone to
considerable lengths to delineate when a material is a waste as opposed to a product or m-
   61 RCRA also provides for regulating non-hazardous municipal solid waste (RCRA subtitle D) and
underground storage tanks (Subtitle I).  In both Mexico and the U.S., federal involvement in municipal waste is
confined to establishing technical standards; enforcement is a local concern. With regard to underground
storage tanks,  Mexico has not yet established a regulatory program.

   s:"Solid waste" may be in solid, liquid, or contained gaseous form.

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process material.  A solid waste is considered to be a hazardous waste if it exhibits one of
more characteristics set forth in EPA regulations or is listed by EPA as a hazardous waste.

       The "core" of RCRA regulation pertains to the treatment, storage and disposal
("TSD")  of hazardous waste. Treatment, storage or disposal cannot take place without a
permit or without complying with "interim status" requirements.63  For the most part,
hazardous waste must be treated prior to disposal to a level that meets a "best demonstrated
available technology" criterion, in accordance with EPA regulations. See 40 CFR part 268.
RCRA also requires that surface impoundments and new or expanding landfills employ two
liners and a leachate collection system.  EPA regulations impose numerous additional
technical operating requirements which apply directly to interim status TSD facilities, or are
incorporated into facilities' permits.64

       U.S.  hazardous waste regulations apply to a number of different types of units,
including tanks, containers, landfills, surface impoundments, injection wells, waste piles and
incinerators.  Facilities containing these types of units must meet several requirements
relating to closure.  For example, they must prepare a facility closure plan and provide
evidence of financial responsibility to  undertake closure, post-closure care, and pay for
liability arising from any release of hazardous waste.  They must also undertake corrective
action for any releases of waste constituents.  In addition,  the regulations specify  how closure
may be accomplished.  For landfills, construction of a cap and groundwater  monitoring for a
thirty-year period are generally required.  Principal provisions relating to the operation  of
incinerators include the requirement to achieve a destruction removal efficiency of 99.99%
and to conduct a test burn of principal organic hazardous constituents before going into
operation.

       2. U.S. Superfund Law

       While RCRA is aimed primarily at the active management of hazardous waste, the
Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), *1
U.S.C. § 9601 et seq., establishes a program for responding  to releases of hazardous
substances"  or "pollutants or contaminants" into the environment from unmanaged dispose!
sites. CERCLA provides legal authority and financial resources for a federal response  to
remediate such releases and also establishes a strict regime of liability for those responsible
for the releases.
   °Facilities existing on November 19, 1980 that have applied for a RCRA permit can operate legal I > under
'interim status" if they comply with a number of requirements.

   "Permits may be issued by EPA or by states authorized to implement the RCRA program.

   "Hazardous substances, defined in section  101(10) of CERCLA, include but are not limited to RCRA
hazardous wastes

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       3. Mexican

    The 1988 General Ecology Law provides the general framework for Mexico's hazardous
waste program that sets the stage for more detailed regulations to be promulgated by the
President and implementing ecological technical norms (NTEs) to be issued by National
Institute of Ecology (INE). The General Ecology Law, like RCRA, strives to regulate
activities dealing with hazardous waste from generation, storage, treatment, and
transportation, to final disposition.  For example, article 139 of the law provides:

       Any discharge, deposit, or infiltration of polluting substances or materials into
       the soils shall be subject to the provisions of this Law, its regulations, and the
       technical ecological rules issued for such purpose.

Article 1S1 parallels  U.S.  law by requiring government authorization (in the U.S., a permit)
prior to hazardous waste management activities.

       4. The Definition of Hazardous Waste

       As in RCRA, the starting point of the Mexican hazardous waste program is what is
considered  to be hazardous waste.  The criteria for determining what is a hazardous waste
are set forth as characteristics in NTE-CRP-001/88, which also lists about 144 types of
industrial wastes that are defined as hazardous.  The characteristics are very similar to those
used by EPA, although Mexico includes one, "explosiveness," that is not used in the U.S.
program.46

       The Mexican  legal  regime for the control of hazardous waste, like that in the U.S  ,
also contains a toxicity characteristic that is evaluated by means of an "extraction test."
NTE-CRP-002/88. This characteristic is shown if the test procedure yields any  of a list of
51 chemicals  in specified concentrations.  The  extraction procedure is very similar to, and is
perhaps based on, a November 7,  1986, proposed EPA regulation.  That proposed regulation
would have established a toxic chemical leaching procedure (TCLP) for use in establishing
waste treatment requirements.  Mexico's version is similar to the modified  version of the  test
that is now used in the U.S. under 40 CFR section 261.24.

       The number of chemicals that can  trigger a finding of hazardousness under the
Mexican extraction procedure is greater than under its U.S. counterpart.  It is notewonh)
that 23 of the 27 chemicals on the Mexican hazardous waste list that are  also considered
hazardous under RCRA through the TCLP have maximum permissible concentration (MFC)
levels that are lower  than their TCLP equivalent.  This means that the Mexican  extraction
procedure regulation for these chemicals is more stringent than its U.S. counterpart.  Only
three of the chemicals listed have lower limits  under RCRA than under Mexican law.
   "In EPA's view, the RCRA 'reactivity" characteristic encompasses explosivity as a hazardous waste trait

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      As for the listed wastes, the Mexican program covers more characteristic wastes
    .> ignitable, corrosive wastes) than the U.S. program under RCRA.   However, the scope
of the listed wastes in the Mexican program is less than under  RCRA.  The Mexican
regulations include approximately 61% of the wastes included on RCRA's "K" list (i.e.,
wastes from specific sources) and 45% of those on the "F" list (i.e.,  wastes from non-
specific  sources).  Nearly all RCRA "F-code" wastes have at least some corresponding listing
in the Mexican regulations.  The exact number of chemicals specifically listed under both
U.S. and Mexican law cannot be readily assessed, however, because  the F-listings are
categorical and may include several chemical solvents.  Regarding the other two RCRA lists,
Mexico's law includes none that are on RCRA's "P" list and only one that is on the "U"
list.67  "U" and "P" wastes are not high volume wastes, but they do  tend to be among the
most toxic of the wastes regulated under RCRA.

      In addition, the Mexican program does not appear to include a rule clarifying the
extent of regulation of waste mixtures and residues derived from the  treatment of listed
wastes.  Without coverage of mixtures and "derived  from" wastes, the scope of the Mexican
hazardous waste listings may be much more narrow than the listings  under U.S. law.

      Mexican technical norm, NTE-CRP-003/88, goes into considerable detail on
determining incompatibility  between two or more hazardous wastes to prevent problems that
can occur during improper storage.  EPA simply prohibits the storage of incompatible
hazardous wastes, which are defined at 40 CFR section 260.10.

      5. Mexican Regulatory Framework for Hfl^flrdous Waste

      On November 25, 1988, Mexican President Miguel de La Madrid promulgated the
hazardous waste regulation implementing the General Ecology Law.  This regulation
addressed the regulatory scheme to manage hazardous waste activities.  Among its
noteworthy provisions of the regulation are the following:

      Art. 6 — Generators must determine if their wastes are hazardous.

      Art. 7 -- All persons intending to carry out activities in which hazardous waste rmghi
      be generated or handled must be authorized to do so by SEDESOL.

      Art. 8 -- Generators must keep a monthly log of hazardous waste that has been
      generated; comply with NTE requirements regarding the handling, storage,
      identification, transport, treatment, and final disposition of hazardous  waste; and
      provide a semiannual report to SEDESOL regarding hazardous waste that has been
      transported during the reporting period.
   87 Combined, there are over 400 separate wastes listings on the RCRA 'IT and "P" lists.  The listings on
the "U" and "P" lists are for chemical commercial products.

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      Art. 9 — Defines what is meant by activities dealing with      hazardous waste.

      Art.  10  -- SEDESOL's authorization is required for installation and operation of
      systems  for TSD, collection, reuse, and recycling of hazardous waste.

      Article 11 - Requires an environmental assessment of anyone     obtaining
      authorization pursuant to An. 10.

      Article 14 -- When storing or transporting hazardous waste, the generator  must  follow
      NTE requirements.

      Art.  IS  -- Imposes requirements for storage areas.

      Art.  18  - If they produce leachate, bulk materials may not be stored in unroofed
      areas.

      Art. 21  -- Movement of waste into and out of storage areas must be recorded in a log.

      Art. 23  — Before transporting hazardous waste to a treatment facility or for final
      disposition, the generator must obtain and use the proper manifests from SEDESOL.

      Art.  24 -- Transporters and the receiving facility  must file semiannual reports  with
      SEDESOL regarding the hazardous waste  that was  transported or received for final
      disposition.

      An. 27  ~ Vehicles intended for hazardous waste transport must be registered with the
      Secretariat of Commerce and Industrial Development (SECOFI) then may be used
      only for such transport (except for container haulers).

      An. 35  ~ Leachate from confinement cells must be collected and treated in
      compliance with NTE requirements.

      Art.  39  -- Polychlorinated biphenyl (PCB) wastes must be destroyed.

      Art.  40  -- SEDESOL may require treatment of certain  wastes prior to  disposal.

      Art.  42 - In the event of a release of hazardous waste, the generator  must
      immediately notify SEDESOL with the pertinent information regarding the release and
      measures taken to clean up the affected area.

      Two important components of the Mexican legal framework regarding regulation  of
hazardous waste are the authorization process and the manifest system.  Pursuant to
Mexican law, persons  who wish to construct a facility that will either generate or manage
hazardous waste must  receive prior authorization from INE.  The first step in obtaining

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authorization is to apply to the INE General Directorate for Environmental Standards for
authorization. In the authorization application, the applicant must state the type of waste that
would be generated, describe the geographic area in which the proposed facility would be
located, and describe the type of management  that would be provided at the facility.   The
applicant must also describe the  proposed facility itself. This is similar to RCRA which
requires a part A and B application.  Part A requires general information about the proposed
facility, and Pan B requires extensive highly technical  information.

    Second, the  applicant must obtain zoning authorization to construct the proposed facility
from  the state and/or municipal  government with jurisdiction over the area on which the
proposed facility is to be built.

    The applicant must then prepare an environmental  impact study of the area for the
proposed site. Pursuant to Article 3, there are three types of environmental impact studies: a
general study, an intermediate study, and a specific study.   The applicable environmental
study depends on the type of industry for which a permit is requested. General and
intermediate environmental studies involve industries connected to urban activities, such as
hospitals and schools.  Specific environmental studies involve such industries as
petrochemical industries and  pharmaceutical industries.  Obviously, the requirements for the
type of environmental impact study vary depending on the type of study, with the specific
environmental study having the most requirements and the general environmental study
having the least  requirements. Furthermore, when dealing with high risk activities,  the
applicant must prepare a risk study.  The risk study primarily deals with the dangers
involved in high risk activities, such as the implications of an explosion at the facility site or
the release of hazardous waste.  In contrast, RCRA does not require specific environmental
impact studies and risk studies in considering  siting of a facility.

    The applicant must then submit for review the detailed plans of the construction and
operation of the  proposed facility with other information such as a description of processes,
operating manuals, the design of operation, etc.

    Next the applicant must obtain authorization to construct the facility from INE's  General
Directorate for Environmental Standards. If the operation of the facility will involve any
discharges of wastewater, the applicant must get authorization for the water discharge from
the applicable federal, state, and municipal governments.

    Finally, the  applicant must obtain the authorization to operate the facility from INE.
Once the applicant receives authorization to operate the facility, the applicant must present
SEDESOL with  manifests required of a facility that generates hazardous waste, as discussed
below.

       Construction of a new facility is subject to detailed location standards.  NTE-CRP-
008/88 sets forth the requirements that sites must meet if they are to be used for the
controlled "confinement" of hazardous wastes.  In some respects (e.g., siting landfills in


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zones connected to groundwater aquifers), the NTE is more stringent than its counterpart
EPA regulations; in others (e.g., siting in flood and seismic zones),  the Mexican approach is
less stringent.  Few off-site waste disposal facilities are currently authorized and operating in
Mexico.  SEDESOL officials recognize the need to develop more waste disposal capacity but
note that efforts to develop that capacity may be hampered by Mexican state laws which can
validly prohibit the importation of hazardous  waste.  However, SEDESOL is promoting the
creation of waste management  facilities.  In February 1993, SEDESOL officials indicated
that they are reviewing 26 license applications for hazardous waste recycling, incineration
and disposal facilities nationwide.

       As in other areas of environmental regulation, Mexican controls on hazardous waste
TSD facilities tend to be more  stringent for new facilities than for existing ones (although
very few TSD facilities currently exist in Mexico).  New facilities are  subject to detailed
siting criteria.  Also, existing sources are allowed some time to comply with the
requirements (new sources generally are not allowed to operate unless  and until the
requirements are met).  SEDESOL's policy is that new facilities must use best available
technology, while existing sources are called  on to optimize their processes and recycle.

       6. Design. Construction and Operation of Disposal Facilities

       Ultimately, both the U.S. and Mexico require hazardous wastes to be disposed of in
facilities that meet applicable regulations.  In Mexico, four NTEs pertain  to the siting of
disposal facilities and to their design, operation and construction:

       NTE-CRP-008/88 ~ siting requirements for the controlled confinement  of hazardous
       waste;

       NTE-CRP-009/88 — prerequisites for  the design and construction of disposal sites.
       including "support services;"

       NTE-CRP-010/88 -- design, construction, and operation of "confinement cells". ar.J

       NTE-CRP-011/89 — prerequisites for  operating a disposal site.

       Hazardous waste for disposal in Mexico must be disposed of in a controlled
confinement or disposal facility in accordance with applicable NTEs and other  requirements
With the exception of requiring treatment of  ignitable and incompatible wastes prior to
disposal, however, SEDESOL  has not yet issued treatment-oriented  land disposal restriction^
comparable to those under RCRA or addressed the issue  of leaking  underground storage
tanks.  Mexico's hazardous waste regulation, however, allows SEDESOL to issue technical
norms prescribing treatment standards for individual wastes and SEDESOL has indicated that
it intends to address these issues in the near future.  The secretariat  is also legally authorized
to require treatment-oriented land disposal restrictions on a case-by-case basis or for certain
individual wastes.


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       Mexico's regulations for landfills apply to any controlled confinement system for
hazardous waste management, and therefore could be interpreted as being broad enough to
apply to other land disposal units, such as surface impoundments or waste piles.  EPA,
however, has no information as to what extent these other land disposal units are utilized in
Mexico, nor any information verifying that the regulations do in fact apply to other land
disposal units in addition to landfills.  EPA did not find any regulations or standards
governing treatment units such as incinerators, cement kilns burning hazardous waste as fuel
(other than paniculate emissions standards which are applicable to all  cement kilns operating
in Mexico), or tanks.  The issue of whether Mexico's hazardous waste regulations apply  to
disposal units other than landfills is important because the disposal of liquid hazardous wastes
into landfills is restricted in Mexico (although not as strictly as under U.S. law), and
presumably must be handled in  other types of units.

       Other  design requirements for land disposal units also appear to be somewhat less
stringent than the U.S. program, such as allowing the use of concrete containment walls  and
the disposal of bulk wastes with up to 30% liquids into landfills.  Also, while the NTEs  do
require leachate collection and treatment, they do not require the installation of a double liner
below the waste deposited. (The double liner is required by U.S. law for all landfills
constructed after 1984.)

       Another important element of the U.S. program for management of hazardous waste
landfills under RCRA is groundwater  monitoring.  The Mexican hazardous waste system
contains groundwater monitoring provisions, but they are very general as compared  to the
requirements  of the U.S. program.  For example, there is no point of compliance specified,
no specificity as to constituents to be monitored, and no performance standard.  Because
EPA does not know how these requirements are applied, EPA is unable to evaluate at the
present time whether Mexico's groundwater  monitoring program associated with hazardous
waste disposal is significantly different than that under U.S. law.

       7. Record Keeping and Reporting Requirements

       Mexico has extensive recordkeeping and reporting requirements for the management
of hazardous  waste.  There are seven  types of manifests that are used in the Mexican
regulatory  system pertaining to hazardous waste.  The following list describes  these
manifests:

    1) the manifest required of generators in which the generator provides an inventory of
chemicals used at the facility;

    2) the reporting manifests  required of generators,  transporters, and final disposition
facilities in which quantities and types of hazardous waste are reported;

    3) the manifest by which monthly tabulations are reported of hazardous waste sent  for
recycling, incineration, or for  land disposal;

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    4)  monthly and semiannual manifests for reporting of hazardous waste received by
facilities for recycling and/or incineration;

    5)  monthly and semiannual manifests for reporting of hazardous waste received by
facilities for final land disposition;

    6)  the manifest used to report accidental releases of hazardous waste; and

    7)  manifests reporting the generation of PCBs.

    Mexican law on the manifesting of hazardous waste appears to be similar to its U.S.
counterpart as manifests are required by Mexican law for the delivery, transport, and receipt
of hazardous waste, as well as for any "incidents" involving hazardous waste.  Manifests
must be submitted to SEDESOL with each hazardous waste shipment, and disposal facilities
must file monthly and biannual reports.  In the U.S., manifests are required for the
transportation of hazardous waste; however, pursuant to 40 CFR section 262.41 generators
must report only biennially regarding the hazardous waste transported to TSD facilities.  See
generally 40 CFR §262.40 - 43.

    Furthermore, Mexican law requires  substantially more oversight of the generation of
hazardous waste than U.S. law. Unlike in the U.S., new generators must receive prior
authorization by SEDESOL to operate.  (In the U.S., generators need only obtain a RCRA
facility i.d. #; they need not obtain a permit unless they store hazardous waste for more than
90 days, or engage in treatment or disposal.)  Mexican law also requires facilities generating
hazardous waste to maintain  monthly records and submit semi-annual reports on the volume.
type of and disposition of hazardous waste that is generated.  Mexico also requires new  and
existing facilities to reduce or minimize  the volume of waste generated and then apply
physical, chemical, or biological treatment to the waste.

      Overall, the Mexican regulations governing hazardous waste generation and hazardous
waste transport (including importation and exportation of hazardous waste, as discussed
below) appear to be similar to or more stringent than U.S. law.

      gl Hazardous Waste Import and Export Requirements

      In terms of the importation and exportation of hazardous waste, article 142 of the
General Ecology Law flatly prohibits the importation of hazardous wastes for storage or
disposal.  It allows importation only for treatment, recycling or reuse pursuant to Article
153.  Moreover, a decree issued by the  President of Mexico on January  19, 1987, provides
that each import or export shipment of hazardous materials or residues shall require a permit
from SEDESOL. Article 153  of the General Ecology Law and the Procedures for
Authorizing the Import and Export of Hazardous Materials and Wastes, published April 6,
1989, also require the notification and consent of the country receiving Mexican hazardous
waste exports.  In the U.S.,  by contrast, authorizations to export based on the receiving


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country's consent are issued for prospective shipments for up to a year.  Waste imports m
the U.S. do not currently require specific authorization — a receiving facility must only
submit a one-time notification of expected receipt of a waste stream from a foreign source.
In addition, Mexican import requirements are more stringent than U.S. requirements by
requiring specific authorization for imports of hazardous raw  materials as well as wastes.
       9. Remedial Action for Rf-^CflffiS of Hfl7tJ>rd.
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       10. Assessment of Penalties for Non-Comphance

       Penalties in the case of non-compliance with Mexican hazardous waste standards can
be significant — a prison term and a fine of up to 20,000 times the Mexican daily minimum
wage.  SEDESOL also has power to shut down or fine facilities.  Penalties apply to the
unauthorized management of hazardous materials or wastes that causes or may cause serious
damage to public  health or ecosystems.  Usually, SEDESOL enforces the law by shutting
down a facility temporarily and then negotiating an enforceable agreement with that facility
that sets out how and when the facility will be brought into compliance.  Once an agreement
is reached,  the facility may reopen.

       11. Municipal Waste

       Like EPA, SEDESOL has only "normative" responsibility over municipal waste,
which is under local control.  SEDESOL has identified three kinds of "correct" landfills and
provides ongoing  technical assistance and guidance to municipalities.

       12. Conclusions

       The structure of the Mexican hazardous waste program is similar to the U.S. program
in many respects.  In some respects, Mexican law is more stringent or detailed than U.S.
law; in  other respects  the opposite is true.   On balance, it appears that while Mexico has a
credible administrative scheme to control the management of hazardous waste, U.S. law is
generally more comprehensive.  The Mexican program, like the U.S. program, is likely to
evolve significantly over time.  The U.S. program under RCRA has changed markedly over
the past few years, adding requirements  such as pre-land disposal treatment requirements and
corrective action relatively recently.  As the Mexican hazardous waste regulatory program is
not yet  fully developed, the Mexican government  may be making similar types of changes to
its regulations  to make them more comprehensive in scope.
D. PESTICIDES AND TOXIC SUBSTANCES

       1. Organizational Structure

       Pesticides and toxic substances do not fall neatly under the SEDESOL environmental
umbrella.  They are  regulated instead by the Commission for Control of Pesticides,
Fertilizers, and Toxic Substances (CICOPLAFEST).w This Commission includes
   "Much of the information on Mexican regulation of pesticides included in this report was provided b>
Thomasa Leona Sanchez and Sergio Eduardo Filio Velazquez of CICOPLAFEST. Other sources of information
include information from an EPA-led tnp to Mexico in 1991 to leam about Mexico's pesticides and toxic
substances regulatory regime, and a June 1992 GAO report entitled 'Pesticides: Comparison of U.S and

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representatives from SEDESOL as well as officials of three other federal secretariats: the
Secretariat of Commerce and Industrial Development (SECOFI), the Secretariat of
Agriculture and Hydraulic Resources (SARH), and the Secretariat  of Health (SSA). Within
CICOPLAFEST, there are separate subcommissions responsible for Registration, Health and
Ecological Effects Studies, Training, Technical Norms (development of specific regulatory
requirements), and Commerce and Industrial Development.

       The responsibility for enforcement of pesticides laws, regulations, and standards also
belongs primarily to CICOPLAFEST.  PFPA authority over pesticides is limited to
hazardous waste requirements that relate  to pesticides. At this time, however, enforcement
capacity within CICOPLAFEST is quite limited. Several steps designed to increase
compliance with Mexico's pesticides and toxic substances laws are planned or underway and
are discussed in the section concerning enforcement below.

       2. Pesticide Registration

       The basic approaches of the U.S.  and Mexican pesticide regulatory  systems are
fundamentally similar.  As in the United  States, in Mexico a pesticide may not be marketed
until it has been registered.  In both countries, the registration process begins when an
applicant provides scientific data concerning the effects of the pesticide  on  human health and
the environment to support its application for registration.

       Mexico's data requirements for the registration of pesticides are almost identical to
those used by EPA. Both the U.S. and Mexico require toxicological data, efficacy data, and
long-term environmental effects studies.  However, since almost all pesticides registered for
use in Mexico are imported from outside of Mexico, the  Mexican registration authorities do
not review each individual study, as EPA does.  They rely instead on the review conducted
in the industrialized country of origin which has approved the pesticide for use.  In addition
to the data, a certificate of registration in the country of origin is  required. If Mexican
officials determine that the foreign data do not account for Mexican weather conditions or
climate, the officials ask for additional data that take these factors into consideration.
Mexico also relies on information from the United Nations International Registry of
Potentially Toxic Chemicals (IRPTC) regarding the health, safety  and environmental
problems that may be associated with imported pesticides.

       While there are no specific requirements in Mexico for good laboratory practices
("GLPs") to be followed in generating pesticides data, most of the countries that supply
pesticides to Mexico (e.g., the U.S., Germany, Switzerland, Great Britain, and  France) Jrt
members of the Organization for Economic Co-operation and Development (OECD),
subscribing to good laboratory practices.  In addition, Mexico is currently discussing  with the
OECD the possibility of developing its own GLPs program for pesticides.
Mexican Pesticides Standards and Enforcement.*
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       Each of the secretariats represented in CICOPLAFEST can ask for the pesticides
registration applicant to provide the information they need in order to make a decision as to
whether or not to register a particular pesticide.  If appropriate information is not provided,
the application  can be put on hold.  Once sufficient information has been submitted, the four
secretariats then reach a joint decision on whether to grant or deny the registration.  The
form for registration has spaces for three signatures,  suggesting a requirement of concurrence
by three secretariats before a registration can be granted.  CICOPLAFEST officials,
however, indicated that the process is more one of reaching  a consensus than it is a voting
process.

       Registered pesticides are listed in the Official Pesticide Catalogue.  The  Catalogue,
which is updated annually, provides information for each registered pesticide on its registered
uses, toxicity category,  maximum residue limit, re-entry interval (e.g., the period of  time
after application of a pesticide that farm  workers must wait before they may  safely enter the
treated held), and adverse effects potentially associated with use of the pesticide.

       Only a few pesticides that are banned or unregistered in the U.S. are  registered for
use in Mexico.  DDT is registered in Mexico for use in malaria control programs by  public
health officials, a use approved by the World Health Organization. Benzene hexachloride
(BHC) is authorized as a restricted use pesticide for locust control. Neither DDT nor BHC
is registered for food uses in Mexico.  EPN and chlordane,  which are prohibited for  food
uses in the U.S., are being considered for bans in Mexico.  Table IS provides  additional
information on pesticides  prohibited for use in Mexico and in the U.S.
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                Table  IS - List of Pesticides Prohibited for Use Both  in Mexico
                                      and in the United States
Pesticides Prohibited70 for
Use Both in Mexico and in
the United States



Aldrin
Chloranil
Chlordecone
DBCP
Dieldrin
Dinoseb
Endrin
Mirex
Nitrofen
Phenylmercury Acetate
2,4,5-T
Number of Pesticides
Banned71 for Use or the
Use of Which is Severely
Restricted72 in the United
States but are not Banned
for Use in Mexico
41 other pesticides
(including BHC, DDT,
EPN, and chlordane, as
mentioned above)







Sources: EPA, Office of Pesticides, Prevention and Toxic Su
Number of Pesticides
Banned73 for Use in
Mexico, but not in the
United States


10 other pesticides
(including erbon, schradan,
and sodium fluoroacetate)








^stances, "List of Pesticides
Banned or Severely Restricted in the United  States;"  SEDESOL, National Institute of
Ecology,  "List of Pesticides Prohibited for Importation, Manufacturing, Formulation, Sale.
    70This list includes pesticides that are either banned for use in the U.S. or the use of which is severeK
restricted in the U.S.

    71A pesticide 'banned* for use in the U.S. is defined as a pesticide for which all registered uses are
prohibited by final government action, or for which all requests for registration or equivalent action for all u-e*
have,  for health or environmental  reasons, not been granted.

    72A pesticide with a  'severely restricted' use in the U.S. is a pesticide for which virtually all registered
uses have been prohibited by final government regulatory action, but for which certain specific registered  u^e or
uses remain authorized.

    ^Pesticides that are  prohibited for use in Mexico are also banned for purposes of importation,
manufacturing, formulation, or sale.   This table does not include pesticides in Mexico  such as DDT and BHC
which are  registered for only a small  number of uses, similar to the category of pesticides with severely
restricted use in the United States.
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and Use in Mexico," as published in the Official Journal of the Federation on January 3,
1991.
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       Pesticides that are prohibited for use in Mexico also may not be manufactured in
Mexico.  This contrasts with current U.S. law which allows any pesticide to be manufactured
in the U.S., even if it is prohibited for use in the U.S.  Furthermore,  provided the exporter
of a pesticide manufactured in the U.S., but banned for use in the U.S., meets requirements
under the U.S. Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), 7 U.S.C.
section 136 et seq., for notification of foreign purchasers and foreign governments,
packaging,  and labelling, that pesticide may be  exported from the U.S.  Mexican law
prohibits the export of pesticides that are not allowed to be used domestically.

       3. Pesticide Regulations

       There are few Mexican technical norms concerning pesticides currently on the books.
There is a hazardous waste norm that classifies as hazardous wastes pesticides  which have
reached the expiration dates on their labels.  The CICOPLAFEST officials also indicated that
technical norms are under development or being considered that would address pesticide
containers (e.g.,  what types of containers pesticides can be distributed in) and  pesticide
labeling. Regulations concerning management of pesticide and fertilizer wastes are  also
under development.

       Mexico's current pesticides labelling practices are consistent with those of the U.S.
and with United Nations Food and Agriculture  Organization (FAO) Guidelines on Good
Labelling Practice.  Current  labelling requirements in Mexico include requirements  of
ingredient statements, toxicity category, use directions (including the crops on which a
pesticide may be applied), and warnings and cautions.

       4. Training

       The Training and Communications Subcommission within CICOPLAFEST is involved
in getting companies to employ technical experts to instruct workers on pesticide application
precautions, including wearing protective clothing, how to apply the pesticides and
precautions to take after application (such as not eating lunch in the application area,
showering after application,  etc.).

       CICOPLAFEST officials indicated that in reality it is very hard to ensure that
pesticide application restrictions are followed in the field. They highlighted problems with
agricultural workers taking home used pesticide containers and using them  for drinking or
dish washing water.  CICOPLAFEST officials  are considering requiring manufacturers to
include special gloves and protective masks with products. The officials noted the difficulty
of wearing protective clothing in the heat of the workday (EPA recognizes that this problem
affects U.S. regulatory efforts as well) and indicated that some companies are looking  into
development of light protective  clothing.
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      There is interest within CICOPLAFEST in seeing that medical doctors receive
additional training concerning adverse effects associated  with pesticide exposure.  There is
also interest in conducting epidemiologies! studies of pesticides effects.  In addition, the
Ecology and Human Health Subcommission of CICOPLAFEST is said to be developing a
registry of pesticide poisonings that would include a record of actual poisoning incidents that
have been reported.

      5. Authority of the Mexican States

      There is a trend in Mexico toward decentralization of environmental protection efforts
from the central federal agencies to federal outposts in the states and to state governments.
This trend applies to the pesticide area as well as to other environmental issues.
CICOPLAFEST is seeking to form commissions in the Mexican states that would allow for
decentralization while reinforcing CICOPLAFEST efforts. CICOPLAFEST could participate
in training these officials, who  would report to CICOPLAFEST.

      6. Pesticide Residues

      One of the issues of greatest concern in the U.S.  regarding Mexican regulation of
pesticides is the setting of standards, known as tolerances, for the maximum amount of
residue of pesticides allowed on treated produce.  Because of the importance of the U.S.
export market  for Mexican agricultural product products, Mexican officials often adopt  U.S
residue tolerances as Mexican tolerances, where such U.S. tolerances exist.  However,
Mexico also adopts maximum residue limits (MRLs) for some  pesticides set by an
international organization known as Codex  Alimentarius, and tolerance levels set by
industrialized countries other than the U.S.  EPA, by contrast, sets its own residue limits
without relying on Codex Alimentarius or other countries' standards.

      While some Codex  Alimentarius standards cannot be  directly compared with U S
standards,  of those Codex standards that  can be compared with U.S. standards, some are
comparable to U.S. standards,  some are  higher than U.S. standards, and some are louer than
U.S. standards.  A recent investigation by the U.S. General  Accounting Office (GAO)
indicated that approximately 19% of those Codex standards which could be compared uerc
less stringent than  U.S. standards.

      One result of Mexico adopting  Codex Alimentarius standards and the standards of
industrialized countries other than the  U.S. is that Mexico has adopted some pesticide residue
tolerances for  which there  are no comparable tolerances in the United States.  The U.S Food
and Drug Administration monitors agricultural imports to ensure that food entenng the U S
meets U.S. pesticides standards.  According to FDA,  the rate  of pesticides residue violations
from agricultural products exported to the U.S. from Mexico is not significantly different
from the residue violation rates of other  countries exporting  agricultural products to the U S
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       According to a GAO report released in June 1992, there are three categories of
pesticides tolerance differences between the U.S. and Mexico: (1) There are 58 pesticides
that have tolerances in both countries but which have Mexican tolerances for some  produce
without comparable U.S. tolerances; (2) there are 17 pesticides that have tolerances in
Mexico, but not in the U.S. (only six of these, however, have tolerances for food
commodities that are exported from Mexico to the U.S.) (see Table 16 below); and (3) there
are 3 pesticides that have tolerances in both countries for the same commodities but the
tolerance is set at different levels. Since the this GAO report was released, the number and
type of pesticides tolerance differences between Mexico and the U.S.  is likely to  have
changed somewhat.  Also,  the GAO report did not address the  largest category of pesticides
tolerance differences between the U.S. and Mexico - pesticides that have tolerances in the
U.S for which there is no corresponding tolerance in Mexico.74  However, some of the
tolerance differences noted by the GAO report are due to differences  in weather, climate,
crops, and pest problems between Mexico and the U.S., and thus are not likely to  change.

       A joint working  group has been formed to ensure that Mexican export commodities
comply with U.S. tolerances.  The joint working group includes representatives from
CICOPLAFEST as well as U.S. representatives from EPA, FDA and the Department of
Agriculture.  The working group is focusing on Mexico's pesticides tolerances for  which
there are no corresponding U.S. tolerances and those tolerances for which U.S. tolerances
are more stringent than  the corresponding Mexican tolerance.  The group's work plan
includes four basic steps:

       1) development of a joint inventory of differences in U.S. and Mexican tolerances;

       2) identification  by  Mexico of pesticide-food commodity combinations that are most
       important to Mexican agriculture, and refinement by the U.S. and Mexico of that list
       of pesticide-food commodity combinations;

       3) joint identification of alternative  means of pest control,75 and provision by EPA  of
       information on the reregistration status of pesticide alternatives; and

       4) coordination between Mexico and pesticide manufacturers to ensure the
       development of such data as is necessary to support establishment of U.S. tolerances
       for Mexican pesticide-food commodity combinations, where it is feasible  to do so
       within  the confines of the present U.S. tolerance-setting system.
    74The large number of pesticides with U.S. tolerances but no corresponding Mexican tolerances is due m
part to the fact that U.S. agricultural sector is more diverse than Mexico's agricultural sector and that the b S
has therefore issued hi more pesticides tolerances overall than has Mexico.

    75In some instances alternatives could include the identification of alternative pesticides with a U S
tolerance for the agricultural commodity in question, or simply the non-use of a pesticide, as opposed to non-
pesticide methods of pest control.

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Table 16 -- The Seventeen Pesticides With Mexican
             but no U.S. Tolerances
PESTICIDE
Azocyclotin
Betacyfluthrin
Bitertanol
Carbindazim
Clethodim
Copper 8-Quniolinolate
Edifenphos
Haloxyfop-methyl
Isazophos
THE COMMODITIES THAT
HAVE
MEXICAN TOLERANCES
Apples, avocados, beans, peaches
Cottonseed, potatoes
Beans, cottonseed
Apples, avocados, bananas, beans,
cucumbers, eggplant, garlic, grapefruit,
grapes, lemons, lettuce, limes, mangos,
melons, oranges, pears, pecans, peppers,
pineapple (edible pulp), squash,
strawberries, tomatoes, watermelon
Soybeans (EPA has a temporary tolerance
for soybeans, which will expire on
1/31/94)
Barley, oats, wheat (This pesticide has
been exempted from having a tolerance in
Mexico for these commodities. A tolerance
exemption is granted by EPA if it
determines that a tolerance for a pesticide
is not necessary to protect the public
health).
Husked rice, polished rice
Cottonseed |
Corn, sorghum :
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Omethoate
Phoxim
Pihmicarb
Propamocarb hydrochloride
Tebuconazole
Thazophos
Triflumuron
Vamidothion
Alfalfa, apples, beans, snap beans, dry
beans, lima beans, cabbage, cabbage head,
cauliflower, celery, chard, corn (grain),
cottonseed, grapefruit, grapes, lemons,
lentils, lettuce, lettuce head, lettuce leaf,
melons, oranges, pears, peas, pecans,
peppers, potatoes, safflower seed, sorghum
(grain), soybeans, spinach, tomatoes,
turnips, wheat
Corn, rice, sorghum
Apples, beans (shelled, common), citrus
fruit, onions, bulb onions, peaches, pecans,
chili peppers, sweet peppers, potatoes,
wheat
Melons, peppers, sweet peppers,
strawberries, tomatoes
Barley
Corn, cottonseed, potatoes
Cottonseed
Apples
Agriculture, House of Representatives, entitled "Pesticides: Comparison of U.S. and
Mexican Pesticides Standards and Enforcement," June 1992.  (The information  contained m
this chart is likely to have changed somewhat since June 1992,  and has not been the subject
of independent verification by EPA).

       7. Enforcement

       Primary enforcement authority for pesticide residue levels is in CICOPLAFEST, not
SEDESOL's PFPA. In both Mexico and the U.S., an important component of the
enforcement effort is to prevent pesticides misuse by ensuring that pesticides are used
according to the instructions on the pesticides labels. CICOPLAFEST officials indicated that
SARH inspectors supervise  applications of restricted use pesticides to make sure it is done
properly.  This includes supervision by both federal inspectors  and "delegados" (delegados
are federal  officials working in the  states).

       Due to limited  resources, laboratory capacity for testing the amount of pesticide
residue on  agricultural products produced in Mexico is limited. CICOPLAFEST plans to
develop a system in which one federal laboratory will certify the reliability of a series of
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perhaps a dozen private laboratories throughout the country.  Information on the progress
toward development of this laboratory system was not available from CICOPLAFEST
officials.

       8. Toxic Substances

       Mexico does not have an extensive system for screening all new chemicals along the
lines of the system EPA operates under TSCA. Mexico generally follows international
guidelines in determining  whether industrial chemicals will be allowed for use.  Mexico
imports most of its industrial chemicals, and relies on information from the country of origin
(often the U.S. or a European nation) and from international organizations, including the
ERPTC, regarding health, safety and environmental problems that may be associated with
imported industrial chemicals.

       Mexico publishes official lists concerning those chemicals subject to handling and
reporting requirements.  Mexico also has a list of hazardous chemicals that are banned for
use in Mexico.  In addition, environmental impact assessments must be submitted before new
industrial chemical production facilities can obtain operating licenses.

       SEDESOL has instituted a new and growing audit program.  This program includes
both chemical manufacturers and manufacturers of consumer products made from chemicals.
The initial 19 audits in this program were all directed at the chemical industry.  This audit
program is discussed below in detail in the section  of the delegation report on enforcement.

       9. Conclusions

       The Mexican pesticide regulatory system is similar in its basic approach to the U.S.
system. Both systems prohibit domestic marketing of products which have not been
registered and rely on review of health and environmental data prior to approval of a new
pesticide.

       There are differences in the pesticide residue levels permitted in Mexico and the U S
Mexico adopts some residue limits set by  an international body called Codex Alimentarius
and by industrialized countries other than the U.S.  Codex Alimentarius standards and the
pesticides standards of industrialized countries other than the U.S. are not always comparable
to U.S. standards - some are higher, some are comparable, some are  lower.  However, it is
important to reiterate that FDA monitors imports to ensure that all food entering the U.S.
meets U.S. standards.

       Mexico is taking steps to improve  compliance with and enforcement of pesticide
residue limits. These efforts include working to increase laboratory capacity for testing
treated food for pesticide residues,  and participation in a joint working group with the EPA,
FDA, and USD A to find ways for Mexico to ensure that its food exports meet U.S. pesticide
residue standards.

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       Rather than screen all new chemicals comprehensively as the U.S. does under TSCA.
Mexico frequently relies on information from the chemical's country of origin or on
international standards regarding industrial chemicals.
E. ENVIRONMENTAL IMPACT ASSESSMENT

       The U.S. National Environmental Policy Act ("NEPA"), 42 U.S.C. §§ 4321-4370a,
and its implementing regulations require that an environmental impact statement ("EIS") be
prepared for "major Federal actions significantly affecting the quality of the human
environment." 42 U.S.C. § 4332(2)(C). The two fundamental purposes of this requirement
are to ensure environmentally-informed decision-making by federal agencies and to provide a
springboard for public comment.  Although explicitly attaching only to federal actions, in
practice, actions subject to NEPA also encompass a variety of state, local and private
activities due to federal funding or regulatory involvement.

       U.S. environmental review law relies on procedural process to fulfill its objectives,
rather than on substantive standards.  A very  important element of this is the requirement for
public participation.  U.S. law requires public notification of the preparation of an EIS,
public participation in initial issue-scoping meetings, and public comment opportunities on
both the draft and final EIS.  The U.S. legal  system also allows challenges through the courts
and judicial redress for agency failure to comply with NEPA.  Once the requisite
environmental impact study has been completed and considered, however, NEPA is
considered to have fulfilled its primary purpose.  Thus, decision-makers are not constrained
by NEPA from concluding that environmental values are outweighed by other concerns.
Furthermore, there is no mechanism for ensuring compliance with the selected proposal plans
after construction and during operation.

       Like the U.S., Mexico has provisions  in its federal environmental law to conduct pro-
construction environmental impact reviews of proposed new sources.  Mexico's General
Ecology Law, Section V, Articles 28-35, governs the environmental impact evaluation
process.  An environmental impact review is  required  from any party in Mexico that plans :o
conduct any public or private  work or activity which may cause and ecological imbalance  or
exceed the limits and conditions of federal regulations  or of federal ecological technical
standards.  Article 29 specifically describes the projects and activities that require
SEDESOL's prior approval of the environmental impact statement before beginning
construction and operations.   These projects  and activities are:

       1) federal public works;

       2) hydraulic works, general communication channels, oil pipelines, gas pipelines,  and
coal chutes;
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       3) activities of the chemical, petrochemical, steel, paper, sugar, liquor, cement,
automotive, and electrical generation and transmission industries;

       4) exploration, extraction, treatment, and refining of mineral and non-mineral
substances with jurisdiction  reserved to the federal government;

       5) federal tourism development;

       6) installations for treatment, storage, or elimination of hazardous waste, or of
radioactive waste; and

       7) use of forests and tropical jungles or of species whose regeneration is difficult,
under the circumstances  described in Article 56 of the national forestry law.

       State and municipal environmental review laws govern additional types of activities.
Many of Mexico's 31 states have promulgated such laws, and although the breadth of  the
state requirements vary,  so  far many of these state laws provide for environmental review  of
state public works projects.76

       To obtain SEDESOL's authorization of a project or activity, an interested party must
present INE with an environmental review analysis prior to initiating an activity.77 A  brief,
preliminary report is sufficient in cases where the activity has no adverse ecological effects
and complies with applicable legal standards. Certain kinds of activities, however, especially
"high risk" activities, must also conduct and submit a risk analysis along with the
environmental impact review.  Depending upon the gravity of a project's potential impacts, a
"general", "intermediate" or more detailed "specific" environmental review is required.  INE
reviews and approves the environmental impact reviews in consultation with other Mexican
federal agencies, and state and municipal governments.  If other permits outside of
SEDESOL's jurisdiction are required of the  applicants, SEDESOL issues conditional licenses
subject to the approval of those other permits.

       Both Mexican and U.S. law require an analysis of a proposed  project's potential
environmental impacts, possible mitigation measures, and compliance with other
environmental laws.  U.S. law also requires consideration of all reasonable alternatives to a
proposed  action,  including no action.  In addition, U.S. law requires,  more broadly than
    76The Mexican border area states of Baja California and Sonora have requested delegation of the federal
environmental impact program.

    ^In August, 1992. the GAO released a Report entitled.  "Assessment of Mexico's Environmental Controls
for New Companies."  The Report concluded that each of six U.S. majority-owned maquiladora companies that
had established plants in Mexico between May, 1990, and July, 1991, which were studied had failed to prepare
environmental impact appraisals or obtain operating permits before beginning operations  The sample chosen b>
GAO was very small and the conclusions that can be drawn from such a limited study are few.

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Mexican law, consideration of cumulative impacts resulting from the proposed action when
added to other past, present and reasonably foreseeable future actions.  However, in certain
respects, Mexico's environmental review regime goes beyond U.S. requirements.  First,  it
requires federal, state or local government authorities, after reviewing  an EIS, to authorize in
advance both public and private activities  that could cause adverse ecological effects or
violate federal environmental regulations and standards.  Activities that may have significant
transboundary effects are explicitly included. Second, in the case of activities considered
highly dangerous, Mexico  also requires a  separate risk study in order to  minimize and plan
for accidents.78 Accordingly, Mexico's federal environmental review law may achieve
broader coverage than the  counterpart U.S. regime since NEPA applies only to federal or
federally-related actions.

      In addition, the Mexican regime, also empowers  SEDESOL to  deny authorization for
a project or to impose conditions on its design, construction or operation.  For example, in
the water area, this process is used to impose facility-specific "special  conditions."  It
appears  that for many of these imposed conditions SEDESOL has found  guidance in U.S.
regulations. Mexican environmental impact assessment law further mandates that proposed
activities comply on a continual basis with any established conditions and provides for
monitoring, inspections, and sanctions for non-compliance. These requirements, though
applicable only when projects are so conditioned, appear to go beyond the procedural and
pre-decisional elements of  U.S.  environmental review law. They also provide SEDESOL
with the legal means for ensuring environmentally sound growth even  in cases where
environmental standards have not yet been developed.

      INE certifies the consultants who prepare EIS reports.  INE's General Directorate of
Ecological  Planning is responsible for issuing the certifications.  For companies that choose
to prepare their own EIS,  the report must include a description of the  qualifications and
experience of the personnel involved in preparing the EIS.

      SEDESOL appears  to rely rather heavily on the EIS process, in conjunction with
regulatory standards, to ensure that the "best available technology" is  used in all new
projects. Indeed, Mexico's federal environmental review effort has produced a dramatic
increase in the number of  environmental review documents since 1988.  Between 1983 and
1988, SEDUE evaluated about 400 environmental impact studies and almost 100 risk studies
Since promulgation of the  General  Ecology Law in  1988 through May 1991, however,
SEDUE evaluated more than  1500  EIAs and nearly 300 risk studies.

      The siting of new sources in Mexico is constrained by a national "ecological zoning
program which defines appropriate activities and uses for particular geographic  areas.
General Ecology Law,  title III.   Mexico  has defined more than  380 such areas in order to
protect them,  through tighter regulation, from federal "megaprojects"  involving, for example.
    ™See General Ecology Law, Chapter V, article 32.

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tourism, energy, and industry. State and local authorities, as well as the federal government,
may designate such protected areas.

      Public participation, though recognized under the General Ecology Law, article 33
and title V, does not play as extensive a role in Mexico's environmental review process as it
does under NEPA. In Mexico, when an environmental review is completed, a notice is
required to be published in SEDESOL's Ecological Gazette and access by any individual  to
the file is allowed  once project conditions have been established. Copies of the
environmental impact review may be obtained.  Upon publication of the notice, any
individual  may request SEDESOL to consider additional issues. In contrast to U.S. law,
which allows citizens to seek judicial redress for agency failure to comply with NEPA,
Mexican law does  not provide for a  private right of action; administrative challenges,
however, may be made.  In addition, environmental assessment reviews are admissible as
evidence in Mexican courts as proof of injury in tort suits.
F. COMMUNITY RIGHT-TO-KNOW. CONTINGENCY PLANNING AND
EMERGENCY RESPONSE

      Mexico currently has no law that is comparable to the U.S. Emergency Planning and
Community Right-to-Know Act (EPCRA), 42 U.S.C.  section 1101 et seq. The absence of
an EPCRA counterpart statute in Mexico points up the lack of legally-required toxic
chemicals inventory reporting and community right-to-know procedures in that country.
Toxic chemicals inventories and community right-to-know programs are important
components of the U.S. environmental protection system.

      Although Mexico does not have on the books community right-to-know reporting
requirements, EPA believes that these types of measures will be enacted in Mexico. Mexico
has subscribed to the United Nations Awareness  and Preparedness for Emergencies at the
Local Level (APELL) program, which is akin to the U.S. community right-to-know regime
Mexico has also signed on to declarations of the United Nations Conference on Environment
and Development, held in Rio de Janeiro in 1992, calling on governments to keep their
populations apprised of hazardous materials stored in communities.  Furthermore, in the
North American Agreement on Environmental Cooperation, Mexico has agreed with the U.S.
and Canada that the Council of Environmental Ministers formed by the Agreement (which
includes Mexico's Secretary of Social Development as a member of the Council) shall
promote and develop recommendations regarding public access to information concerning the
environment that is held by each government, including information on hazardous materials
and activities in its communities and opportunities to participate in decision-making processes
related to such access.

      In the area of contingency planning and emergency response,  Mexico has a developed
legal regime.  Coordinated response to chemical and other environmental emergencies in
Mexico has its legal basis in the Presidential decree of May 6,  1986, which called for the


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establishment of a National System of Civil Protection.  The third article of the decree
designates the Secretariat of the Interior as the federal agency responsible for the
development and oversight of such a system.  In accordance with the decree, the
Subsecretariat for Civil Protection, Prevention, and Social Adaptation and the General
Directorate for Civil Protection were established within the Secretariat of Interior in
December 1988. These two entities are governed by their own internal regulation which
authorizes them to coordinate  the various organizations that may be involved in responding to
an emergency or disaster.

       In addition, the National Center for the Prevention of Disasters was created by
Presidential decree on September 20, 1988. Acting under the  supervision of the
Subsecretariat for Civil Protection, Prevention, and Social Adaptation, the Center has the
authority to conduct investigations and training sessions, and to disseminate information
about contingency planning and emergency response.

       The General Directorate for Civil Protection serves as the coordinator between
Mexican federal contingency planning and emergency response units, and state counsels for
civil protection.  The General Directorate also has responsibility for the development of
programs and methodological  guidance for civil protection committees formed in the private
sector and for voluntary non-governmental organizations concerned with contingency
planning and  emergency response.

       On May 11, 1990 the National Council for Civil Protection was established by
Presidential decree, as a consultative organ to coordinate action on environmental
contingencies and other emergencies. The President of the Republic serves as the head of
the counsel, and the counsel has a permanent membership drawn from nine federal
secretariats, as well as from state governments, municipal governments, and the government
of the Federal District of Mexico City. Other non-permanent  participants on the Counsel are
drawn from the private sector, academia, and non-governmental organizations.

       Most of Mexico's contingency planning and emergency response measures for
environmental and other emergencies are implemented though  the National Contingency  Plan
Mexican communities are authorized to develop their own contingency plans within the
parameters established by the  national contingency plan.  This process is most important to
the United States in the area near the U.S. border with Mexico. Many of the Mexican
"sister cities" of U.S. border cities have developed their own contingency plans and have
entered into joint response arrangements with the U.S. cities directly across the border.  For
example the city of Mexicali has a long-standing joint response relationship with
Calexico/Imperial County, California. These communities have worked effectively together
The City of Matamoros, directly across the border from Brownsville, Texas recently issued a
local plan to respond to environmental emergencies, and the city of Nog ales, Sonora, the
sister city of  Nogales, Arizona, will be inaugurating a contingency plan before the end of
1993.  At the national level in both countries, joint contingency planning and emergency
response activities for the U.S.-Mexico border area is authorized by Annex II of the 1983


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U.S.-Mexico Agreement of Cooperation for the Protection and Improvement of the
Environment in the Border Area.
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m. ENFORCEMFNT

      The General Ecology Law vests authority to enforce environmental laws, regulations
and standards primarily in SEDESOL.  Prior to the 1992 reorganization of Mexico's
environmental secretariat, EPA found that the senior management and staff of SEDUE had
demonstrated a willingness to mount a credible and effective environmental enforcement
program, despite inadequate funding and other resources.  This was reflected by the closure
of a large number of industrial  plants and facilities, including the permanent closure of a
large PEMEX facility near Mexico City for failure to comply with environmental regulations
and standards. Significant strides had been made in enforcing Mexico's still evolving
environmental regime:  an increasing percentage of SEDUE's budget was being designated
for enforcement and enhancement of inspection capabilities; and the number of inspections
conducted in Mexico had been increasing since 1982.

      It was in the context of this increasing emphasis on enforcement that Mexico
reorganized its environmental authorities in June-July, 1992, to further enhance its
enforcement of environmental laws.  Mexico created within SEDESOL a semi-autonomous
enforcement infrastructure, the  Procuraduria Federal de Proteccion al Ambiente (PFPA),
roughly  translated into English  as the Office of the Federal Attorney for Environmental
Protection.

      A. Inspection and Enforcement Procedures

      Environmental enforcement in Mexico usually involves one or a combination of four
techniques:  (1) plant closings,  which may be permanent or temporary, and total or partial,
(2) the negotiation of compliance agreements, particularly in response to a temporary plant
closing;  (3) the imposition of fines; and (4) the posting of a surety bond to secure compliance
with an  agreed or ordered schedule of compliance;. These enforcement tools are
implemented administratively, with SEDESOL acting both as prosecutor and adjudicator
Judicial  proceedings, which would require referral of the matter to the Federal Attorney
General's office in the Secretariat of Justice, are reserved for criminal prosecutions.
Although criminal actions have been rare in the environmental  area,  they have occurred in
response to a few environmental incidents.

      When SEDESOL investigates a facility and takes enforcement action, all the
formalities of Mexican  law must be strictly observed by the investigators. SEDESOL
inspectors must document inspections by obtaining an inspection order which  identifies the
place  to be visited, the  reasons for the  inspection, and the scope of the inspection.  The
inspection order must be presented to company personnel, along with the inspector's
credentials.  The company must provide access to all operations and documents necessary to
carry  out the inspection, as outlined in the order.  Refusal of access may result in the
inspector requesting police assistance.
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       Upon concluding the inspection, the inspector must prepare an inspection report on
the premises, to be signed by two company witnesses designated by the inspector.  The
company is given an opportunity to include any comments or objections in the report, and
copies  of the report are provided to the company.

       If the inspector finds an ecological imbalance or irregularity that may impact human
health or the environment, the facility is notified of the initiation of administrative
proceedings, and given 10 days to prepare a response to the inspectors' findings.  This
triggers an administrative adjudication process which is generally conducted by the creation
of a written  record of each party's offering of proof, as opposed to the conduct of oral
hearings.  Through the offerings of proof, SEDESOL describes in detail the irregularities it
found;  the facility is given an opportunity to present rebuttal evidence; a determination is
made on which counts to proceed; and needed corrective actions are identified.  Within 30
days of the offering of proof, SEDESOL will render its resolution of the matter,  including
corrective actions to be implemented, time periods for implementation, and sanctions or
penalties.  SEDESOL notifies the facility of its decision, which must then execute the
decision.

       To effectuate a decision to apply a fine, SEDESOL must transmit its decision to the
Secretariat of the Treasury.   If a facility shutdown is ordered, SEDESOL's decision will
specify what actions must be taken before the facility may reopen, as well as compliance or
corrective requirements which continue after reopening.  Within five days of the term
specified in the decision, the company must report on the status of its compliance with the
decision.  If a follow up inspection uncovers non-compliance, SEDESOL may double the fine
and shut the facility down, or modify a pending shut-down order to impose  more stringent
conditions for reopening.

       Companies may petition for reconsideration of SEDESOL's decision within IS days
The petition for appeal must identify injury sustained by the company in the underlying
proceeding,  and controverting evidence.  SEDESOL's final decision, which may sustain,
overturn or modify the original decision, must be made within IS days of submission of  the
appeal  petition.  Judicial review of administrative decisions for Constitutional violations b>
the federal government may be obtained through the use of amparo  procedures.  Use of these
procedures has been rare but is increasing.  In addition  to reliance on precedent, Mexico'^
courts  are likely to grant considerable discretion to the substantive decisions of the
administrative agency in such appeals, narrowly confining the  scope of review to procedural
irregularities that violate constitutional protection of individual liberties.

       B. Sanctions and Settlement Negotiations

       A primary enforcement tool utilized by SEDESOL is plant closure, which may be
temporary or permanent, and may involve closing the entire facility or only a portion of us
operations.  A closure order issues when SEDESOL inspectors discover a direct and

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significant threat to the environment or human health, or a high level of nuisance, such as
noise pollution.

      Temporary closures are ordered when the immediate problem creating the health or
environmental threat is remediable.  Such temporary closings are intended to lead to
consultations between SEDESOL and corporate entities formally charged with violating
environmental law. The closings occur in advance of negotiations, and the plant is allowed
to reopen only after the company resolves the immediate problem, and an agreement with
timetables for achieving full compliance is reached.  In negotiating a compliance agreement,
SEDESOL may use its discretion to allow industries -- especially the smaller industries - a
reasonable time to comply with its  requirements.  These legally enforceable agreements are
monitored by SEDESOL.

      SEDESOL has relied heavily on requirements that facilities post performance bonds to
secure their compliance with the terms of a  settlement agreement or order.  Once the
performance bond was created to ensure further compliance in accordance with a settlement
agreement or order, SEDESOL would allow a closed plant to reopen operations.  As of
August, 1992, however, SEDESOL has tightened its policy to insist  that problems actually be
fixed prior to lifting a shutdown order. This provides SEDESOL with more effective
leverage than performance bonds to secure immediate correction of the most egregious
violations.

      Permanent closures are employed more  rarely than temporary closures, but the threat
of permanent closure serves as a major deterrent to noncompliance.  A permanent closure
might be ordered where a facility has huge  emissions problems, perhaps exacerbated by the
fact that it is located in  a highly-populated area where exposure risks are increased.
Permanent closures are  likely to be ordered when the problems are impossible or too
expensive to fix; however,  this sanction may also be imposed punitively,  such as where there
is a history of extreme noncompliance even though it may be possible to mitigate the
immediate environmental risks created by the plants' operations.

      SEDESOL prefers, however, to order total, but temporary closure, and negotiate
solutions wherever possible that will allow the plant to reopen.  At times, plants subject to
temporary closure orders may terminate operations permanently if the operational changes
sought by SEDESOL are too expensive to implement.  When a plant closes permanently and
relocates, it will be subject to all SEDESOL requirements for new operations, including
permit requirements, environmental impact  assessments, and compliance with regulations and
ecological norms.

       Both SEDESOL and EPA rely on negotiated settlements to achieve compliance and
remediation of environmentally unsound conditions. Approximately 95% of EPA's
administrative and civil judicial actions are  concluded as negotiated settlements.  The primary
distinction between the  Mexican system and the U.S. system is that  in Mexico, a strong
sanction -- facility shutdown -- may be imposed prior to initiation of negotiations, and may


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continue in effect until negotiations are complete and the facility initiates agreed-to concern e
measures to SEDESOL's satisfaction.

       In the United States, in both administrative and judicial enforcement, negotiations
usually take place during the pendency of the enforcement proceeding (i.e., after filing of a
complaint)  which seeks to impose sanctions, including civil penalties and injunctive relief.
At times, the government negotiates  a settlement with the facility prior to the filing of a
complaint,  and a consent agreement and formal complaint are filed simultaneously.  The
court or administrative tribunal must approve and enter the terms of any settlement.  Once
entered, the settlement is judicially enforceable.

       In contrast to the Mexican system, in the U.S., only when the government satisfies a
high burden of demonstrating that a company's actions present an imminent and substantial
endangerment to human health and the environment,  or that emergency injunctive relief is
otherwise warranted,  will a court or administrative tribunal enjoin continuing activities of the
subject of an  enforcement action prior to full adjudication or settlement of the matter.  In the
absence of  clear emergency conditions, it may take years before a case is adjudicated or
settled, resulting in an enforceable order to correct violations and remedy any environmental
problems caused thereby.   In the Mexican system, the authority to shut down a facility
pending the negotiation of a compliance agreement provides SEDESOL with substantial
bargaining  power in promoting rapid and favorable settlements.

       SEDESOL's reliance on the use of fines has varied.  In the early 1980's, SEDUE
relied primarily on fines in its enforcement approach. By mid-decade, however, SEDUE
changed its strategy, becoming reluctant  to use fines  in the belief that available capital  should
be directed instead  toward investment in  pollution control equipment.  Prior to the 1992
reorganization, SEDUE began rethinking its strategy once again and appeared poised to use
fines more  frequently as an enforcement  tool against violating facilities. Now, SEDESOL is
once again  fully embracing the use of fines to deter noncompliance.  SEDESOL also intends
for these charges to be used as a means of passing along inspection costs to the violator.

       Existing law permits the  imposition  of fines equivalent to 20,000 times the daily
minimum wage in the Federal District of Mexico (up to approximately US $85,000).
According  to Mexican officials,  fines can be imposed on a per-day,  per-violation basis for as
long as the violation persists. By comparison, most  U.S. environmental statutes allow for
civil penalties up to $25,000 per day per violation.  Thus, the range of monetary, fines that
can be imposed by SEDESOL is comparable to, and can even be greater than, those imposed
by the United States.

       In practice, just as  in U.S. administrative and civil judicial enforcement cases, the
penalties sought or agreed to in  settlement for initial violations may  be much lower than the
statutory maximum, based upon considerations of economic fairness and the seriousness  of
the violation. However, whereas a U.S. consent decree often contains stipulated penalties
for failure  to comply with its provisions  that are generally higher than the  initial penalty


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agreed to in settlement, SEDESOL may double the fine for persistent violations, creating a
powerful deterrent against failing to implement the terms of an agreed or ordered compliance
schedule.

       Another tool that Mexico has used is administrative detention, which is distinguished
from a criminal arrest.  Administrative detention can result in the deprivation of a corporate
officer's freedom for up to 36 hours.  More commonly, it is applied for several hours on a
daily basis until agreement is reached on a compliance plan and schedule.

       Criminal prosecutions are contemplated under specific regulations.  SEDESOL may
refer a criminal case to the Federal  Attorney General to initiate prosecution at any time it
believes evidence of a crime exists,  including during the conduct of administrative
enforcement proceedings.  Such  proceedings, although, rare, have been increasing,
particularly in cases involving hazardous waste disposal, where disposed wastes may provide
clear evidence of patently criminal activity. In the recent Mexico case, for example,  the
operator of a solvent recycling facility was arrested for mismanagement and illegal disposal
of wastes, placed in custody, and released on a $1 million bond which  secured the
cooperation of the operator in cleaning up the waste.

       Mexican officials acknowledge that some review of criminal offenses might be needed
to better pursue prosecutions of environmental crimes.  Some Mexican courts have been
reluctant to impose criminal sanctions in environmental or analogous types of cases, overly
broad descriptions of criminal offenses in legislation or regulations. Thus, improving the
usefulness of criminal prosecutions as an environmental enforcement tool may require the
Mexican Congress to redesign some of the offenses.

       C. SEDESOL Oversight of Other Federal and State Rtfnmyment

       As noted above, in the section of this report on water pollution, SEDESOL shares
jurisdiction over water quality protection with the National Water Commission (CNA)
While CNA has primary jurisdiction over pollution of national waters,  SEDESOL may
promulgate technical norms pertaining to the discharge of hazardous or toxic  wastes into
water.  CNA has primary authority  to enforce the standards  promulgated by SEDESOL. and
can itself create special conditions on toxic and hazardous waste discharges as long as ihc\
are no less stringent than SEDESOL's requirements. SEDESOL, however, plays an
important function in overseeing and monitoring CNA's enforcement of water quality
regulations and norms.  SEDESOL  inspectors are trained to  evaluate water discharges for
compliance, and may receive complaints from the public about industrial discharges to water
SEDESOL refers violations detected by its inspectors or alleged by citizen complaints to
CNA for follow up.  If CNA does not respond to these claims, SEDESOL's PFPA can
counsel CNA about surveillance of water discharges, and make recommendations.

       If counseling does not result in satisfactory action  by  CNA, SEDESOL may bring  a
claim to the General Comptroller's office alleging that CNA has failed to discharge its dut\

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The claim would be litigated in accordance with federal law regulating the responsibility of
public servants, with sanctions including fines, removal of officials, and possible criminal
action.

      SEDESOL officials explained that its oversight role of monitoring CNA's
enforcement of SEDESOL water norms applies to other federal agencies as well. The
Procuraduria often receives claims that have to do with the work of other federal agencies,
and has  similar authority to ensure that these agencies comply with SEDESOL requirements.
SEDESOL reports that its recommendations are usually adopted, and that it has  not been
necessary to resort to formal legal proceedings before the Comptroller General for
SEDESOL to ensure that other agencies carry out its mandate.

      In addition, SEDESOL officials report that, on an operational level, they are working
cooperatively with CNA to ensure joint compliance monitoring of industry, including
inspections conducted jointly by the two agencies.

      SEDESOL, at least theoretically, enjoys a similar oversight role with respect to state
implementation of environmental laws.  Many states have begun to promulgate their own
environmental  laws.  SEDESOL has the authority to verify a state's enforcement of its
environmental  laws, and may make recommendations to ensure that state laws implementing
federal standards are adequately enforced. In practice however, although many states have
passed environmental laws, some of these states have discovered that they are not prepared to
fully implement these laws.  The result is that, at the moment,  the federal government is
more involved in direct enforcement than in oversight of state enforcement activities.

      D.  SEDESQL's Inspection  Program

      The PFPA has initiated a vigorous inspection program under the Subprocuraduna for
Normative Verification and the Subprocuraduria  for Social Participation and Complaints
The inspection program is  organized into four, essentially separate subprograms:

      1.  Targeted Inspections --  Industries which pollute the most or consume large
      quantities of fuels are targeted for inspection visits.

      2.  Public  Complaints -- The establishment of a Subprocuraduria for Social
      Participation and Complaints ensures that PFPA is equipped to routinely investigate
      citizen complaints about polluting industries.

      3.  Aerial  Surveillance -- Helicopter flights are conducted in Mexico City to detect air
      emission sources.

      4.  Verification -- This consists of follow up on previously  visited facilities.
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       As reported by SEDESOL officials in October,  1993, SEDESOL has 90 inspectors in
Mexico City metropolitan area,79 130 inspectors in the U.S./Mexico border area,  and 240
inspectors throughout the rest of Mexico, for a total of 460 inspectors nation-wide.80

       Shortly after its creation, SEDESOL developed a work plan for conducting
inspections in the Federal District of Mexico, calling for 200 inspections per month. This
work plan was initiated in August, 1992.  With its 88 inspectors dedicated to this region,
SEDESOL was able to exceed its goal of 200 inspections per month, and in November,
1992, modified the work plan to set a goal of 500 inspections per month. This goal was
immediately exceeded:  in December, 1992, SEDESOL conducted 1000  inspections in
metropolitan Mexico City, in January, 1993, 1008 such inspections occurred.  From August
4, 1992, through August 31, 1993, SEDESOL exceeded its target of inspectors for
metropolitan Mexico City by more than 3,000, conducting a  total of 8,304 inspections, which
resulted in  partial closure of 522 facilities and total temporary closure of 29 facilities.

       Once it began to successfully implement the inspection work  plan in the greater
Mexico City metropolitan area, SEDESOL extended the work plan to the rest  of the country,
calling for  750 inspections per month in areas outside of Mexico City (this, together with the
target of 500 inspections per month for Mexico City, yields a total goal of 1250 monthly
inspections nation-wide). From August,  1992 through  September, 1993, SEDESOL's PFPA
had carried out approximately 16,386 inspections, resulting in 1,161 temporary partial
closures, 216 temporary total closures, and over 100 permanent plant shut-downs.  2,447 of
these inspections were carried out on  the Mexican side  of the U.S./Mexico border area,
resulting in 202 temporary partial closures and 55 temporary total closures.

       SEDESOL conducts two types of inspections: (1) a multimedia,  comprehensive
inspection,  examining  the facility's total compliance with all  relevant regulations and
technical norms; (2) a "short inspection", which  is geared more toward determining whether
paperwork  requirements have been met, e.g., whether facilities have obtained necessary
permits or authorizations, and whether they are complying with record keeping and reporting
requirements.  Examples of such documents include facility operating licenses, annual air
emissions evaluations, and monthly records tracking hazardous wastes generated and
transported. SEDESOL's policy is to assess a fine of NP 7,000 for each major document
that is  not in proper order,  the amount of which depends on  the type or  size of the facihu
involved.

       One explanation for SEDESOL's early success in meeting aggressive inspection goals
is that  many of the inspections were of the latter "short" variety.  However, SEDESOL's
    ''Forty per cent of Mexico's industrial operations are located in the Mexico City metropolitan area

    "Recent reports, however, indicate that SEDESOL's inspection forces, particularly in the border area,
have been beset by attrition, attributed to SEDESOL's inability to compete with private sector salaries, as firms
gear up to hire environmental managers.

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predecessor, SEDUE, was beset with allegations that it lacked basic information about the
number of facilities operating subject to its regulatory jurisdiction.  SEDESOL has responded
to this concern by initiating an entirely new program, geared first toward achieving
compliance with facility authorization and other information requirements which form the
fundamental bases of pollution control.  In so doing, SEDESOL has set in process a much-
needed effort to establish baseline data on industrial operations nationwide, while promoting
a culture of compliance among  industrial facilities in Mexico.

       SEDESOL inspectors, however, also conduct comprehensive inspections, which are
multimedia in nature.  Although CNA  has primary jurisdiction to control water pollution,
SEDESOL inspectors are trained and competent in detecting water  violations, for  referral to
CNA for further action,81  as well as violations of air, and waste management requirements.
By way of contrast, multi-media inspections in the U.S. are rare, and U.S. inspectors tend to
be trained to uncover noncompliance with particular media-specific statutes.  EPA is,
however, placing increasing emphasis on multi-media enforcement. Due to the multi-media
nature of Mexico's General Ecology Law, SEDESOL's inspection  program is designed to
achieve comprehensive compliance evaluations, avoiding  the division of enforcement
resources into more narrow areas of expertise.

       Currently, inspections by SEDESOL are visual, and do not involve actual  sampling of
emissions or discharges.  Rather, inspectors will examine inventories of chemicals used and
released, or inspect to determine whether emission control technologies have been adopted.
At times, actions may be taken  based on visual observations of actual pollutants,  such as  for
opacity violations or discharges  with obviously noxious odors.

       SEDESOL hopes to use  funds from its World Bank  loan to obtain equipment for
sampling and analyzing pollutants.  Such technology is much-needed to enable SEDESOL
inspectors to move fully from the first  phase of establishing compliance with baseline
authorization and record keeping requirements, to a full compliance inspection program
capable of  detecting violations of numerical protection  standards.

       SEDESOL, however,  hopes to rely as much as  possible on  shifting the burden to the
facility to analyze and document releases to the environment, or to install specific pollution
control equipment.  SEDESOL can thus base enforcement responses  on whether facilities
have installed the required equipment,  or upon the completeness and integrity of monitonng
or materials usage data.82  For example,  although SEDESOL has not yet  published air
    "SEDESOL inspectors are similarly competent to detect pesticide violations, which may be within the
jurisdiction of the CICOPLAFEST for enforcement action.  SEDESOL officials observed, however, that many
irregularities in Che handling of pesticides may be sanctioned under the regulation controlling hazardous waste

    ^Similarly, reliance on actual sampling or monitonng of emissions by inspectors is uncommon in several
of EPA's programs. For example, enforcement of the U.S. Clean Water Act relies heavily on discharge
monitonng reports submitted monthly by facilities.  Actual discharge sampling is uncommon except to venf>

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emission standards for volatile organic compounds (VOCs), it is requiring companies to
measure VOC emissions.  Negotiated compliance agreements may similarly include
provisions requiring companies to install other emission control devices, such as calibrated
self-monitoring devices.  Finally, voluntary agreement may result in the obligation to install
technology or use practices for which compliance may be monitored through visual
inspection.  For example, a number of companies in the Mexico City area  recently
committed to changing to natural gas fuel to reduce emissions to the environment. Although
this was a voluntary action, the companies have signed an agreement committing to the
change with  local government authorities, creating an enforceable voluntary compliance
agreement.

       E. Targeting

       SEDESOL's inspectors are instructed by PFPA headquarters in Mexico City on the
types of plants which present the highest priority for inspections. Top targeting priorities are
companies which deal with petroleum, petrochemicals, and  other hazardous substances, as
well as recycling facilities. In addition, public complaints are utilized as a primary targeting
device for inspection follow-up.  A facility  may also be targeted for comprehensive
multimedia inspection based on the results of short inspections which yield suspect
information.   Finally, in the Federal District of Mexico, helicopter  overflights  provide a tool
for targeting facilities, particularly for suspected violations  of air requirements.

       F. Public Complaints

       As noted above,  SEDESOL's Subprocuraduria for Social Participation and Complaints
has institutionalized SEDESOL's commitment to enhance public participation in the
enforcement  process and respond to public complaints.  Although there is no formal citizen
suit mechanism for allegations of generalized harm to the environment (with the exception  of
the possible use of amparo proceedings when constitutional violations are alleged),
SEDESOL has made it clear that it is receptive  to receive citizen complaints and tips about
environmental violations, and that it will respond to these complaints with  plant inspection*
violations discovered by reviewing such reports.  Under the Clean Air Act, actual stack testing is rare exn.pi
when a facility first installs equipment. Inspections are geared to verifying compliance with requirements for
operating and maintaining such equipment. Under the 1990 amendments to the Clean Air Act. increasing
emphasis is being placed on self-monitoring requirements.  Under RCRA, inspections rely on visual
verifications of facility management practices and review of records, including groundwater data from sample
collected and analyzed by the facility, with actual inspector-conducted sampling limited to investigations inu>
actual releases of hazardous waste constituents to the environment.
       Differences between the U.S. and Mexican programs, however may appear in the degree of detail anJ
frequency of self-monitoring, record-keeping, and reporting required, as well as the degree to which control
technologies are specified in the regulations or imposed on an ad hoc basis through the facility authorization
process or in response to irregularities detected by inspectors.

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       For example, from August, 1992 to February, 1993, SEDESOL received complaints
about 187 facilities in the Federal District of Mexico City, and responded to all of them.  Of
the 187 plants inspected, SEDESOL ordered total temporary shutdowns of 11 facilities,
partial temporary shutdowns of 80 facilities, and made technical recommendations on
improvements in plant operations or management to fix minor problems discovered at the
remaining 96 plants.  SEDESOL officials report  that it has received a lot of public support
for its program  of responding to complaints.  SEDESOL hopes that public participation will
continue to grow as the public sees the results of the program: that complaints do in fact
result in facility shutdowns or other enforcement response in appropriate cases.

       G. Aerial Surveillance

       SEDESOL has instituted an aerial helicopter surveillance program in the metropolitan
Mexico City area.  This program takes place only in the winter,  when air quality is at its
lowest in Mexico City.   In January to February of  1992, the helicopter surveillance program
identified  148 air-polluting facilities for inspection visits.  Of the 148 plants visited,
SEDESOL ordered two total shutdowns, and 54 partial  shutdowns.  In the remaining 92
plants, SEDESOL inspectors recommended operational or management improvements to
ensure compliance.

       H. Mobile Source Enforcement

       SEDESOL,  in coordination with authorities  in the state of Mexico and the Mexico
City Federal District government, has instituted a program to identify vehicles producing
excessive air pollution.   As  of March, 1993, 17,000 vehicles had been stopped pursuant to
this program. Operators of the vehicles are fined 24 times the daily minimum wage in
Mexico City, and given 24 hours to repair the vehicle.  If the vehicle is stopped again within
30 days, the authorities may seize the vehicle.

       I. SEDESOL's Environmental  Audit Program

       In addition to its  aggressive program of targeted inspections and responses to public
complaints, SEDESOL has initiated an innovative program of voluntary environmental
audits, promoting compliance by providing facilities with an opportunity to discover
irregularities in  their operations, and eliminate them prior to the appearance of an inspector
and the threat of shutdown or fines.  SEDESOL developed its program based on a
cooperative project with the Canadian government focussing on environmental auditing of the
petrochemical industry, and built its capacity to implement the program by participating in
training exercises provided by a number of private  institutes in North America.

       The program is targeted toward high-risk industries, and designed to identify nsks
created by operations likely to lead to environmental accidents or contamination, and
potential compliance irregularities.  Accordingly, the audit serves a dual function of
encouraging  individual facility compliance, as well as providing a baseline of background


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information for SEDESOL on management practices in high-risk industries on which to base
future targeting of priorities for SEDESOL's inspection program.

       The environmental audits are conducted by approved private consultants.  The audit
entails a comprehensive plant survey, conducted in three phases:

       1.  Pre-Audit:  The auditor reviews basic data, including facility hazardous materials
       handling records,  as well as worker safety and health records, and develops a work
       plan for conducting the audit.

       2.  Audit:  The audit itself thoroughly evaluates internal management of the plant,
       including company environmental policy, hazardous waste handling practices,
       emergency response mechanisms, and other factors pertaining to controlling pollution
       or contamination.

       3.  Post-Audit:  The audit results are  evaluated, and based on the results,  an action
       plan is developed  for correcting each  of the problems identified. SEDESOL will
       negotiate the action plan with the facility. The negotiated action plan is legally
       binding, and may  be secured by a performance bond.

       The action plan becomes, in essence,  an enforceable contract between the facility and
SEDESOL.  If the facility fails to comply fully with the action plan, SEDESOL may declare
the performance bond forfeited, and also may institute formal  inspection and administrative
proceedings to penalize or shut-down the facility for persistent violations discovered by the
audit and not corrected.  In addition, if, during the conduct of the audit, the auditor discovers
serious violations of the General Ecology Law or its regulations and norms,  SEDESOL may
request immediate corrective action or that of the problematic  activity cease - and may, upon
following procedural requirements for inspections and administrative enforcement,  impose
the full range of its enforcement sanctions if its request is not  followed.

       A company's decision to participate in the audit program,  however, is purely
voluntary, and is intended to encourage companies to foresee and eliminate potential
violations or risks prior to the  appearance of the inspector at the facility door.  Because it is
conducted by agreement of the parties, SEDESOL is not required to obtain an inspection
order to conduct an audit, and  the audit itself will not lead directly to the imposition of a
penalty or shut-down order.  Administrative  enforcement procedures would have to be
initiated and followed in  the event uncorrected violations discovered by the audit require the
imposition of enforcement sanctions.

       SEDESOL initiated the audit program at the end of 1992,  targeting for participation
petroleum extraction industries, petroleum product and petrochemicals  facilities, and textile
manufacturers.  The initial effort was  focussed in the state of Veracruz, with 19 audits
conducted in the petroleum and petrochemical industry concentrated there.  These audits
were completed, and action plans have been  finalized with at least four companies.  Action

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plans for the remaining companies are being negotiated. After the audits were conducted in
Veracruz, 58  more audits were conducted throughout the country, including maquiladora
facilities in border states, as well as companies in Guadalajara, Monterrey, Michoacan, and
the Valley of  Mexico.

       SEDESOL financed the initial 77 audits, starting in the end of 1992, but hopes that
the program will attract voluntary participation by companies which will fund their own
audits by approved independent consultants, gradually phasing out SEDESOL financing of
the audit program.  After approaching the initial companies to encourage participation in the
audit program, SEDESOL has embarked on the next phase of the program, in which it will
assess the degree to which companies will participate without being directly solicited.
Because the audit program focuses on companies in high-risk industries or zones, which are
targeted for regular inspection and frequently the subject of popular complaints,  SEDESOL
hopes that the threat of inspection and its possible sanctions will act as an  incentive for
companies to  participate in the audit program.  SEDESOL hopes to promote the audit
program actively among facilities which do not request to participate unsolicited; and retains
the option and threat of actively inspecting facilities which resist  participation in the audit
program.  The scope of the environmental  audit program is significant. For example, with
respect to PEMEX alone, audits of over 80 facilities were completed in 1992, with the
remainder of  PEMEX  facilities to be audited by the end of 1994.

       In addition, SEDESOL expects public corporations to embrace environmental audits:
PEMEX, for  example, has agreed to audit all of its facilities. PEMEX began the first phase
of this comprehensive program in October, 1992, by initiating audits at 80 facilities. The
second phase  of the program  involving audits at PEMEX's remaining plants was scheduled to
begin  mid-1993.

       Audits also differ from inspections in that they are more flexible.  In addition to
looking for current violations, audits attempt to identify areas which may  lead to potential
violations or risks to human health and the environment. SEDESOL therefore views the
audit program as comparable to a preventive check-up.  The audit program also has some
potential to promote the adoption of facility practices or operational changes which go
beyond mere  compliance in reducing pollution emissions (i.e.. "pollution prevention" as that
term is used by EPA).

       Although this pollution prevention potential exists, however, it is currently limited  b\
two factors.  First, because of its voluntary nature, facilities are  only likely to adopt process
or practice changes which go beyond mere compliance if the auditor and/or SEDESOL is
able to convince them  that such changes are in their economic self-interest.  Thus, facilities
are most likely to agree to such process changes only  when they  would also increase facility
efficiency.  Secondly,  because the audit program  is still in its inception, and SEDESOL must
focus  on obtaining voluntary  participation in the program.
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       These limitations notwithstanding, SEDESOL's audit program is clearly innovative,
going beyond traditional exercise of enforcement functions as utilized in the U.S. by actively
promoting compliance and sound environmental management practices through preventive,
non-adversarial facility evaluations." At the same time, the audit program will serve as a
primary source of information on which to base future inspection targeting.  As an ancillary
benefit, once fully accepted by industry, the audit program has great potential  to lead to the
identification, and potential negotiation  of binding agreements for, changes to facility
processes and practices which will reduce pollution beyond the levels required  to achieve
mere compliance and minimize the risks of extraordinary accidents.

       J. Conclusion

       The creation of the PFPA marked a significant turning point in the development of
SEDESOL's environmental enforcement program.  Since it creation, the PFPA has
implemented a program of inspections,  leading to increasingly tough enforcement follow  up
when violations are  discovered.  Recognizing that Mexico's General Ecology Law was only
enacted in 1988, and that additional technical sophistication in the inspection program will
help bridge the gap  between establishment of a strong enforcement presence and widespread
development of compliance-oriented environmental  management practices in industry,
Mexico has made strides in implementing its enforcement program.

       There is strong  indication that SEDESOL's enforcement program, combined with
increasing state and  local enforcement activities, have received the attention of industry.  For
example, a recent survey of U.S.  industry operating in Mexico by the American Chamber of
Commerce of Mexico indicates that industry has a strong perception that enforcement
measures are being  more stringently applied by all levels of government since  five years  ago;
that numbers of inspections carried out by all levels of government have been  increasing
significantly in number since 1990; that since 1990, inspectors have demonstrated increasing
levels of thoroughness, technical proficiency, understanding of the environmental laws, and
honesty.

       There is also some evidence of recent increases in compliance with the requirement  to
export  hazardous waste from the maquiladora industry.  For example, SEDUE had
previously estimated that 30% of the hazardous wastes generated by the maquiladora industry
operating in the Mexican border area near the U.S.  were being accounted for.  In statistics
published for inspections through  February 1993, SEDESOL estimated that 65% of the
maquiladora facilities that generate hazardous waste complied with record-keeping
requirements, and 40% of hazardous waste-generating maquiladoras returned their wastes for
disposal. U.S. data on maquiladora shipments supports SEDESOL's estimate  of increased
    13Although in the U.S., EPA encourages voluntary pollution prevention and encourages facilities to conduct
environmental compliance audits, SEDESOL's audit program involves SEDESOL much more interactively with
participating facilities in reviewing audit results, malong recommendations, and developing an action plan to
implement the recommendations.

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compliance.  During the last few years there has been a steady increase in the number of
hazardous waste manifests received by EPA for maquiladora waste imports and the volume
of waste shipments they represent.  There has also been a significant increase in the number
of notifications submitted prospectively by U.S. facilities for receipt of hazardous waste from
Mexico's maquiladora industry.  This information appears to corroborate the notion that
Mexico's enforcement program is increasingly effective in promoting  industry compliance.

       Mexico's continuation along this path of improved enforcement of environmental
laws, regulations and standards will depend upon SEDESOL's ability  to maintain adequate
resources to ensure  that it can retain and provide continuous training for its inspectors, and
that it can obtain the technical sophistication to verify compliance with specific discharge and
emission standards or permit conditions.  The recent announcement of a $1.8 billion World
Bank loan to Mexico, reinforced by a $2.2 billion Mexican commitment, will help to ensure
that these resource needs can  be met  in the near term.
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rv. CONCLUSIONS

      In April 1991, EPA led a legal mission to Mexico which resulted in a preliminary
report, released in November of that year, concluding that Mexican environmental laws,
regulations and standards then in existence were generally comparable to their counterparts in
the U.S., although the countries' environmental regimes were not identical and each regime
contained provisions that the other lacked.  The presence of these differences was not
surprising.  Comparisons of different countries' environmental protection regimes inevitably
reveal differences in approaches and standards, because the relevant scientific questions and
regulatory issues are  so complex.  This is especially the case when a common law system
such as the United States' is compared with a civil law system such as Mexico's.  EPA noted
that the Mexican environmental regulatory regime was incomplete.  EPA was careful to note
that to the extent differences in scope were due to the early stage of development of
Mexico's program, it was premature to draw many conclusions about overall stringency or
comparability.  EPA's conclusions were echoed by a 1991 GAO report  which noted that
while the two regulatory regimes were similar, many Mexican regulations still had to be
developed.

      Against this backdrop, EPA returned to Mexico in March 1993.   EPA and SEDESOL
agreed in principle at that time to continue what has become a periodic joint examination by
legal experts of U.S.  and Mexican environmental  laws, regulations and  standards.

      Mexico's environmental regime is still incomplete.  Since 1992,  Mexico has been in
the process, not yet conducted, of reexamining and reissuing all of its existing 83
environmental standards in response to a new law that requires that many Mexican technical
standards be subjected to cost-benefit analysis.  By the end of 1994, Mexico also expects 10
have completed the release, well underway, of 120 new environmental standards  which will
have been subjected to the same cost-benefit analysis. Even when all 120 new standards are
issued, the environmental regulatory picture in Mexico will not be finished, because, by their
nature, environmental protection regimes continue to evolve.

      There is no Mexican analogue as  yet to the U.S. Safe Drinking Water Act, EPCRA
or Superfund.  Such  gaps are not surprising given that the Mexican General Ecology Law, is
only five years old and Mexico has had less than half a decade to construct an entire
regulatory regime.  However,  with certain important exceptions, the Mexican laws and  many
of the regulations and standards promulgated thereunder in the principal media areas of air,
water, waste, and pesticides are broadly  comparable to their counterparts in the United
States. The Mexican and U.S. environmental protection regimes as a whole are designed to
achieve, when implemented and enforced, comparable levels of environmental protection

       Notwithstanding  the general comparability of U.S.  and Mexican environmental
standards, EPA is aware of a number of individual standards in particular economic sectors
that diverge substantially from their U.S. counterparts.  The most notable example is air
emissions standards for  coal-fired electrical power generating plants.


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      EPA intends to continue to examine Mexican environmental standards as these are
issued or reissued to determine their comparability to U.S.  standards.  When standards are
found to be substantially divergent,  such issues could be taken up by the Agency either
through existing bilateral mechanisms, such as the 1983 U.S.-Mexico "La Paz" Agreement
or through new mechanisms provided for in the NAFTA and the North American Agreement
on Environmental Cooperation, once these enter into force.
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