ASSESSMENT OF THE IMPACTS
                            OF INDUSTRIAL DISCHARGES
                        ON PUBLICLY OWNED TREATMENT WORKS
                                 FINAL REPORT
          Submitted to the Environmental  Protection  Agency
         ) ASSOCIATES, INC.
A Subsidiary of Science Applications, Inc.

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                                                                      ?5585
                         ASSESSMENT OF THE IMPACTS
                         OF INDUSTRIAL DISCHARGES
                     ON PUBLICLY OWNED TREATMENT WORKS
                               FINAL REPORT
                            November 20, 1981
               This document has been prepared pursuant  to
                    Directive of Work No.  54 for the
                  U.S. Environmental Protection Agency
                       Office of Water Enforcement
                           401 M Street, S.W.
                            Washington, D.C.
                               Prepared by:

                              JRB Associates
                           8400 Westpark Drive
                          McLean, Virginia 22102
                               Assisted by:

                                AEPCO, Inc.
                               Sobotka, Inc.
                             With Support From:

                              SCS Engineers
                                 ETC, Inc.
                              Burns and Roe
EPA Contract No.  68-01-5052, DOW No. 54
JRB Project No.  2-817-03-587-37

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JRB Associates   8400 Westpark Drive, McLean. Virginia 22102   (703)821-4600
A Company of Science Applications. Inc
                                               November 20, 1981
 Mr. Thomas O'Farrell
 Office of Water Regulations and Standards
 Environmental Protection Agency
 401 M Street, S.W.
 Washington, DC  20460

 Dear Mr. O'Farrell:

      Enclosed is our final report  and  accompanying appendices on the impacts
 of industrial discharges on POTWs.   The document provides a thorough dis-
 cussion of the data and methods used in and findings of the project.  The
 comments of the EPA staff who  reviewed the earlier drafts are addressed in
 this report.

      I think that the modifications  we made provide a better framework than
 earlier drafts for understanding  the complexity of pretreatment issues.
 Still, the report is a technical  submission.  It is not intended to be a
 complete Regulatory Impact Analysis  although the report addresses most of the
 elements of OMB13 RIA directive.

      If I can be of any further assistance to you, please call on me.  It has
 been a pleasure working on this project with you and the other members of the
 EPA working group.

                                               Sincerely,
                                               Edward R. Saltzberg, Ph.D.
                                               Business Area Manager
 ERS:wd
 Enclosure

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                            TABLE OF CONTENTS



STATEMENT OF THE PURPOSE OF THE PROJECT

1.   INTRODUCTION

     1.1  COMPARISON OF DIRECT AND INDIRECT DISCHARGES OF
          TOXIC POLLUTANTS                                               1-2

     1.2  POTW DEMOGRAPHICS                                              1-6
          1.2.1  Wastewater Flow                                         1-6
          1.2.2  Type of Treatment                                       1-7
          1.2.3  Conclusions                                             1-11

     1.3  DESCRIPTION OF THE NATIONAL PRETREATMENT PROGRAM               1-11
          1.3.1  Evolution and Scope of the National Pretreatment
                 Program                                                 1-12
          1.3.2  General Pretreacment Provisions Under 40 C5R 403        1-13
          1.3.3. National Categorical Standards for Industry             1-14
          1.3.4  Applicability of the Program                            1-15
          1.3.5  Other Environmental Provisions and Laws Affecting
                 The National Pretreatment Program                       1-16

     1.4  AMOUNT OF AND MOTIVATION FOR INDUSTRIAL WASTE CONTROL
          CURRENTLY IN PLACE AT POTWs                                    1-19
          1.4.1  Amount of Industrial Waste Control Currently in
                 Place at POTWs                                          1-20
          1.4.2  Motivation of Industrial Waste Control Currently
                 in Place                                                1-21

     1.5  STATUS OF PRETREATMENT IMPLEMENTATION                          1-22
          1.5.1  Municipal Efforts                                       1-22
          1.5.2  State Efforts                                           1-24
          1.5.3  Federal Efforts                                         1-24

     1.6  SUMMARY                                                        1-26

     1.7  OVERVIEW OF THE PROJECT                                        1-28
          1.7.1  Purpose                                                 1-28
          1.7.2  General Technical Approach                              1-29
          1.7.3  Limitations of This Assessment                          1-35

2.   DETAILED ANALYTICAL APPROACH                                        2-1

     2.1  CRITERIA FOR ASSESSING THE IMPACTS OF DISCHARGES FROM
          INDUSTRIAL USERS                                               2-1
          2.1.1  Pass-Through and Water Quality                          2-2
          2.1.2  Interference and Upsets                                 2-7
          2.1.3  Sludge Contamination                                    2-9
          2.1.4  Worker Health and Safety                                2-10
          2.1.5  Air Pollution                                           2-11
          2.1.6  Groundwater                                             2-11
                                                                        •JRB Associates*

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                      TABLE OF  CONTENTS  (Continued)

                                                                         Page

     2.2  METHODS OF ANALYSIS                                            2-11
          2.2.1  Analysis of Data Bases Depicting POTW Operations        2-12
          2.2.2  Summary of Information from Data Bases                  2-21
          2.2.3  POTW Modeling Effort                                    2-25

     2.3  BENEFITS INVESTIGATION                                         2-35
          2.3.1  Introduction                                            2-35
          2.3.2  Methodology                                             2-36

3.   ASSESSMENT OF THE NEED FOR CONTROL OF INDUSTRIAL DISCHARGES
     TO POTWs                                                            3-1

     3.1  WATER POLLUTION                                                3-2
          3.1.1  NPDES Penult Violators                                  3-2
          3.1.2  Exceedances of Water Quality Criteria                   3-3
          3.1.3  Effluent Improvement Comparison                         3-12
          3.1.4  Bypass (and Overflow)                                   3-12

     3.2  INTERFERENCE AND UPSETS                                        3-14

     3.3  SLUDGE CONTAMINATION                                           3-17

     3.4  ENVIRONMENTAL AND HEALTH CONSIDERATIONS                        3-24
          3.4.1  Worker Health and Safety                                3-24
          3.4.2  Air Pollution                                           3-27
          3.4.3  Groundwater                                             3-29

     3.5  SUMMARY                                                        3-30

4.   ANALYSIS OF PRETREATMENT OPTIONS                                    4-1

     4.1  KEY DESIGN CHOICES                                             4-4
          4.1.1  Targeted Versus Untargeted Requirements                 4-4
          4.1.2  Technology Based-Requirements Versus Water
                 Quality-Based Requirements                              4-4
          4.1.3  Regulation of Industry Versus Regulation of POTWs       4-5
          4.1.4  Persumptive Versus Back-up Federal Requirements         4-5

     4.2  OPTIONS EVALUATED                                              4-6
          4.2.1  The Existing Program                                    4-6
          4.2.2  The Existing Program, But Reduced Scope                 4-7
          4.2.3  Technology-Based Limits for POTWs                       4-8
          4.2.4  Water Quality Based Limits for POTWs                    4-9
          4.2.5  Pretreatnent Required to Address Documented Problems    4-10
          4.2.6  Guidance Only                                           4-10
          4.2.7  Waivers                                                 4-11
                                                                        •JRB Associates.

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                 TABLE OF CONTENTS  (Continued)

                                                                    Page

4.3  SIMILARITIES AND DIFFERENCES BETWEEN THE OPTIONS               4-11
     4.3.1  The Basic 403 Program                                   4-12
     4.3.2  Comparison of Key Design Features                       4-12
     4.3.3  Coses and Environmental Impacts                         4-15

4.4  ENVIRONMENTAL EFFECTS OF THE OPTIONS                           4-16
     4.4.1  Bypasses, Interference and Upsets                       4-16
     4.4.2  Removal of Pollutants                                   4-16
     4.4.3  Effectiveness in Reducing Water Quality Violations      4-18

4.5  COST, COST-EFFECTIVENESS AND BENEFITS                          4-19
     4.5.1  Cost                                                    4-21
     4.5.2  Cost-Effectiveness                                      4-21

4.6  LOCAL BENEFITS OF PRETREATMEOT                                 4-24
     4.6.1  Benefits of Control That Were Not Analyzed              4-27
     4.6.2  Benefits Where Exceedances are Eliminated               4-29

4.7  FEASIBILITY ISSUES FOR IMPLIMENTINC PRETREATMENT               4-30
     4.7.1  Water Quality Waiver System for Toxics                  4-31
     4.7.2  Technology-based Toxic Limits for POTWs                 4-33
     4.7.3  Water Quality-Based Approach for Toxics                 4-34
     4.7.4  Design Variations for Option 5                          4-35

4.8  OTHER CONSIDERATIONS                                           4-36
     4.8.1  Administrative Constraints                              4-36
     4.8.2  Effectiveness                                           4-37
     4.8.3  Economic Efficiency/MaximizinR Net Benefits             4-37
                                                                    •JRB Associates*

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                             LIST OF TABLES

                                                                     Page

l-l  COMPARISON OF DIRECT VERSUS INDIRECT DISCHARGES                 1-3

1-2  COMPARISON OF DIRECT AND INDIRECT DISCHARGES OF TOTAL
     HEAVY METAL                                                     1-5

1-3  DISTRIBUTION OF POTWs                                           1-8

1-4  AMOUNT OF FLOW PROCESSED BY POTWs                               1-9

1-5  POTW SLUDGE DISPOSAL METHODS                                    1-10

1-6  CONSTRUCTION GRANTS FUNDS OBLIGATED FOR PRETREATMENT            1-16

1-7  INDUSTRIAL WASTE CONTROL PROGRAMS IN PLACE AT POTWs             1-20

1-8  MOTIVATION FOR IMPLEMENTING A PRETREATMENT PROGRAM              1-21

1-9  POTW PRETREATMENT PROGRAM STATUS                                1-23

1-10 STATUS OF STATE PRETREATMENT PROGRAM DEVELOPMENT                1-25

l-ll FEDERAL PRETREATMENT PROGRAM RESOURCE EXPENDITURES              1-27

2-1  STATES AOUATIC HEALTH STANDARDS                                 2-5 & 2-6

2-2  MAJOR DATA SOURCES USED BY THE COMPUTER MODEL                   2-30

3-1  MODEL INDICATORS OF WATER DUALITY VIOLATIONS                    3-5

3-2  THRESHOLD DILUTION RATIOS                                       3-8

3-3  RELATIVE CONTRIBUTION OF INDUSTRIAL AND NOW-INDUSTRIAL
     SOURCES TO POTW INFLUENTS                                       3-10

3-4  DISTRIBUTION OF POTWs BY DILUTION RATIOS                        3-11

3-5  PERCENT IMPROVEMENT IN POTW EFFLUENT QUALITY WITH PRETREATMENT
     PROGRAM                                                         3-13

3-6  CONCENTRATION OF SELECTED METAL IN SECONDARY SLUDGE FROM
     40 POTW STUDY                                                   3-19

3-7  SLUDGE QUALITY WITH AND WITHOUT PRETREATMENT FROM
     MODELING EXERCISE                                               3-20

3-8  PERCENT IMPROVEMENT IN SLUDGE WITH PRETREATMENT PROGRAM         3-21

3-9  REPORTED INCIDENTS OF SLUDGE CONTAMINATION AT 77 POTWs          3-22
                                                                        -JRB Associates-

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                      LIST OF TABLES (Continued)




                                                                     Page




3-10 AVERAGE CONCENTRATIONS OF 11 COMPOUNDS                          3-25




3-11 VOLATILES WITH HIGHEST INFLUENT CONCENTRATIONS                  3-26




3-12 EXPOSURE CRITERIA FOR HEAVY METALS                              3-28




4-1  SUMMARY OF OPTIONS ANALYZED                                     4-13




4-2  IMPACT OF THE OPTIONS ON ENVIRONMENTAL RESIDUALS                4-17




4-3  EFFECTIVENESS OF THE OPTIONS IN REDUCING EXCEEDANCES            4-20




4-4  TOTAL COST OF THE OPTIONS FOR POTW AND INDUSTRY                 4-22




4-5  COST OF THE OPTIONS FOR POTWs EXPERIENCING DIFFERENT
     WATER QUALITY PROBLEMS
                                                                      4~25  &  *-2
                                                                        -JRB Associates.

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                             LIST OF FIGURES
                                                                     Page

1-1  WASTESTREAMS AND ULTIMATE REGULATORY ENVIRONMENT                1-38

2-1  COMPARISON OF 132 POTW SUBGROUP TO 2000 POTWs                   2-15

2-2  COMPARISON OF 132 POTW SUBGROUP TO 2000 POTWs                   2-16

2-3  COMPARISON OF 132 FOTW SUBGROUP TO 2000 POTWs                   2-17

2-4  SIMPLIFIED FLOW CHART OF COMPUTER MODEL                         2-29

3-1  PERCENTAGE OF POTWs REPORTING MONTHLY SEWAGE BYPASSES
     BY AVERAGE DAILY FLOW CATEGORIES                                3-15
                                                                        •JRB Associates.

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                    STATEMENT OF THE PURPOSE OF THE PROJECT
Scone
     The purpose  of  this   project  is  to  evaluate  the  General  Pretreatment
Regulations (40 CFR 403) and a range of possible alternative regulatory strate-
gies in a manner  consistent  with the  intent  of Executive  Order 1229L. ^In this
evaluation, we  examine  the need  to protect  the  operations of  publicly  owned
treatment works (POTWs) from industrial discharges, the potential contamination
of POTW sludge,  and the need  to control the  pass-through  of  toxic pollutants
specifically included in EPA categorical pretreatment standards for industries.

     The General  Pretreatment  Regulations  have  two  primary  coraponencs.   The
basic provisions of the regulations direct municipalities to control discharges
which interfere  with,  bypass  or  pass-through  the POTW.J  In  addition,  they
cover administrative  procedures,  surveys  of  industries  which  use  the  POTW,
enforcement, and reporting requirements.  {The other component of the Regulations
cover delegation  to the POTW of  Che federal  authority to  enforce EPA-set toxic
limits  for categorical industries^! These two  components of the Regulations are
separate and distinct.

     Problems  related to upset and bypass resulting  from industrial discharges
were examined  in this  study.    We were  able to  analyze  the extent  of these
operational problems using POTW  inspection reports and the findings  of  visits  to
municipalities  in other projects.   Operational problems can cause the  discharge
of  untreated  wastes into receiving waters and can increase operating costs  to
POTWs.  These  problems  were found to  be pervasive  and a significant motivation
for the development of  industrial waste control  programs  in existence today.
The causes of upset and bypass are highly variable, case specific, and  therefore
very difficult  to  address  on  a  national  level.    The basic  provisions of  the
General Pretreatment  Regulations  require  that local  programs  be developed  to
address problems  affecting the  integrity  of POTW operation.   Since this basic
403 program  calls  for  a miriimal and  flexible local  response to address these
operational problems,  no alternatives to  the basic provisions were  evaluated.

                                       (i)
                                                                      •JRB Associates*

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      The emphasis  of this study was  on  Che  analysis  of Che second component of
 the  General  Pretreatment  Regulations — the control  of pass-through  and  sludge
 contamination through the application of  categorical pretreatment standards to
 industries by POTWs.   This  study focused on  four major questions:

      1)   Does  the  pass-through  of  toxic   pollutants  pose  pervasive  water
          quality problems?

      2)   Is   the  uniform application  of  categorical  pretreatment  standards
          needed to address  these water quality concerns?

      3)   Can a  reduced  program of  categorical pretreatment  standards  achieve
          much of the benefits of the full program at  a lower cost?

      4)   Is  the contamination  of  POTW sludge by toxics  a significant problem?

      After determining the nature  of the environmental  problems, alternatives
 to the current  program were  developed.   The options  range  from being based on
 national uniform  requirements  to   options  whose  requirements   reflect  local
 problems and  solutions.   The  options vary  in  terras  of  whether Che  control
 point is at  the industry or  at  the POTW.  The  options  also vary in terms of
 the level of  federal  involvement   and  reliance on  local  initiative.   Within
 the limits  of  the available  data,  the  costs  and benefits  of  each option were
 estimated.

      Pretreatment is  not  an   independent  environmental program.    In  itself it
 does not directly  regulate  environmental problems.  What it  regulates  is the
 pollution loads in  the discharge  of industrial users  of  sewers.   Other provi-
 sions of the Clean Water Act  and  the Resource  Conservation  and  Recovery Act
 were developed  by Congress  to  regulate environmental  quality;  mainly through
 sludge and  water quality criteria and standards.  The fact Chat these standards
 are not  widely  accepted  in  some  cases,  or have  not been  finalized  in others
 is a limitation of this  analysis.   It is very difficult to assess the environ-
 mental benefits of  pretreatment  without  the  compliance boundaries established
 by other programs being in place.

                                       (ii)
	                                                                    m° Associates.

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                                      1-1
                               1.    INTRODUCTION

     Industries may discharge wastewacer into Che Nation's surface waters in
one of two ways - either directly into navigable waters or through publicly
owned treatment works (POTWs).  The former are termed direct dischargers; the
latter are called indirect dischargers (or industrial users).  POTWs which
receive industrial wastes employ treatment processes in an effort to remove
pollutants and then themselves discharge effluent to surface waters.  Congress,
in the Federal Water Pollution Control Act of 1972, and the Clean Water Act of
1977 established separate regulatory mechanisms for these two classes of point
source dischargers.  Direct dischargers are subject to effluent standards and
water quality standards applied in limitations set in each firm's NPDES permit.
Indirect waste dischargers are regulated by the General Pretreatment Regulations
(40 CFR 403) and Pretreatment Standards for New and Existing Sources which are
enforced by POTWs receiving industrial wastes or by State or Federal authorities.
This second regulatory program - to control the indirect discharge of industrial
wastes into Che Nation's waters - also known as the National Pretreatment Pro-
gram, is the program under evaluation in this report.  Table 1-1 list the 22
categorical industries which are known to discharge toxic pollutants.  It is
these industries which are the objects of the program under evaluation.

     Pursuant to the recently issued Executive Order 12291, major pending
regulations (among others) must be analyzed to ensure that underlying strategies
chosen maximize net benefits to society.  To meet this goal, Regulatory Impact
Analyses (RIAs) are to be prepared which evaluate the costs and benefits of the
alternative strategies examined by the regulations.  The General Pretreatment
Regulations, issued on June 26, 1978 and amended on January 28, 1981, were
identified by the President's Task Force on Regulatory Relief/The Office of
Management and Budget for evaluation by the Environmental Protection Agency.
As categorical pretreatment standards and the General Pretreatment Regulations
are mutually interdependent, the focus of this analysis was expanded to encompass
a review of the full National Pretreatment Program with particular emphasis on
che control of toxic pollutants.  This document reports the findings of a
                                                                      •JR8 Associates.

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                                       1-2
project by  contractors to provide EPA with  technical information important  co
the preparation  of  this  RIA.   The  remainder  of  this  Chapter  covers basic
information on  1)  The magnitude of  the  indirect  water  pollution problem;
2) The characteristics of POTWs receiving industrial wastes  and the degree  of
toxics control  at POTWs;  3)  How  the  National  Pretreatment  Program regulates
indirect discharge  and POTVs;  and 4) An  overview  of  the approach used  in this
project to  evaluate the  National  Pretreatment Program.   Chapter  2  introduces
the criteria  for assessing  the impacts  of  indirect discharges and discusses
analytical methodologies  used  in  the  project  to   investigace environmental
impacts, costs, and benefits.  Chapter 3 presents findings of the assessment  of
the need for  control  of  industrial  dischargers to POTWs.   Finally,  Chapter 4
contains an analysis of the  pretreataent  alternatives evaluated in this study.

1.1  COMPARISON OF DIRECT AND INDIRECT DISCHARGES OF TOXIC POLLUTANTS

     A major rationale  for the  regulation  of both direct and indirect discharges
is their discharge of  toxic pollutants - primarily metals and. organic chemicals
- into waters.   Table  1-1  provides  a  perspective of  the magnitude  of toxic
pollutants discharged by both classes of discharges.   It was compiled from data
provided by the  Effluent  Guidelines  Division of  the Environmental Protection
Agency (EPA).   The  table  shows  annual national  estimates of  raw wasteloads,
current wasteloads  (with  the amount  of partial controls  in  place  estimated  by
EPA), and ultimate  wasteloads  if  all regulations are met  [Best Available Tech-
nology, (BAT)   regulations for  direct dischargers  and  Pretreatment  Standards
for indirect dischargers]  for the  major industrial sources of toxic water pol-
lutants.   Table 1-1, shows  that  indirect  dischargers are responsible  for the
generation of  35  percent  of  the combined industrial  output  of  raw total metal
and organic wastes nationally —  34  percent  of the raw  wasteload of metals and
36 percent of raw total toxic  organlcs.   When these  calculations are performed
on EGD estimates of  the levels of current control In place, indirect dischargers
account for 60 percent  of  the total metals and  toxic organlcs discharges for in-
dustry - 61  percent  of  all metals and  59 percent of all toxic organic discharges.
At. full controls, indirect dischargers generate 54 percent of total metals and
toxics.

                                                                      100 Associates.

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1-3
Table 1-1. Comparison of Direct Versus Indirect Discharges*
Indirect Discharge**
Tutai Tout Metals (PoundsiYeerl

M«ta! finishing*
Electroplating
lion and Steal
leattier Tanning
Aluminum Forming
Pulp. Pacer,
PaQerDoard
Inorganic 1 6 II
Porcelain Enameling
Cooper Forming
Organic* 6 Pinna
Textiles
Petroleum defining
Foundries
Cod Coating
Electrical
Benny
MOn Ferrous
Peim
Steam 6r Bactnc
Pesticides
Timber
Ink
P nfl rmscouticBis
Totals

Raw
120.000000

12.000 000f
5. 700.000
8.400000
3.800.000

3.300000
1.400000
970.000
790.000
580000
360.000
1.700.000
360.000
160.000
2.300.000
-
610.000
20000
24.000
8.500
2.000
S3 000
160.000000

Current BAT
32.000000 3.500000

3.100.000 72000
5 700.000 430,000
4.300.000 0
3.800.000 3.800.000

1.400.000 50.000
1.300.000 0
970.000 20.000
707000 79.000
580000 570000
560.000 550.000
330.000 0
210 000 Z10.000
160.000 160 ODD
150,000 0
130.000 10.000
130000 130.000
20,000 2.000
16.000 0
6.200 6.200
1.900 600
-
56.000.000 9.500.000
Direct Discharge
Total Toxic Matali iPoundsrYaar)
Industry
Metai FinohmgS
Electroplating
Iron end Steel
Leatnet Tanning
Aluminum Fonning
Pulo. Paner,
Paparboard
Inorganic 1 & II
PoiuBflin enameling
Copper forming
Organica Gr Planes
Textiles
Petroleum Refining
Foundries
Coil Coanng
Bectncal
Senary
Non Ferrous 1
Paint Forming
Steam & Etectnc
Pesticides
i fniwr
Ink
Pharmaceuticals
Totals
Raw
44.000.000

18.000.000?
530.000
4.500.000
4603.000

7,900000
170.000
580.000
154000.000
470000
1.300.000
11,000,000
4*3.000
82.000
680,000
63,003,000
21.000
700.000
21.000
-
-
23.000
310.000.000
Current BAT
1.500.000 1.500,000

2.400.000 580.000
33.000 18.000
2.800.000 0
2.600.000 2.600,000

700,000 140.000
260,000 0
590,000 20.000
7, tOO 000 2.700,000
380,000 220,000
560000 280000
1,700,000 0
260,000 0
62000 62.000
200,000 —
14.000.000 0
3.900 500
700.000 20.000
11,000 1.000
- -
-
11.000
38.000.000 8.100.000
Total Toxic Organic* (Pounds/Year)
Raw
98000000

2S.OOO.OOO
532.900

1. 000,000

-
-
-
171.000000
1,050.000
2.000,000
220.000
3.300
313.000
103
1.600
300,000
-
240,000
110.000
8.900
-
300.000.000

Total Taxi
Raw
33.000.000

25.000.000
90000
-
8.600,000

-
-
-
447.000.0CO
710.000
5.900000
1. 400.000
4.000
104.000
77
i9.ooo.om
33.000
-
320.000
—
-
-
S40.000.000
Current
26.100.000

7.200.000
580.000
210
1,000.000

—
—
-
154.000000
1,050,000
2.000.000
60000
t.900
230,000
90
630
40.000
-
240.000
15,000
1300
-
t90.000.000

BAT
12.100 000

1.3X000
580.000
to
1,000.000

—
—
—
43.000000
t. 050.000
2.000.000
—
1 900
60.000
1
620
39000
-
30,000
45 COO
1.300
—
61000.000

« Organic* (Pounds/ VearJ
Currant
9600000

4.800.000
15.000
410
620.000

-
—
-
112.000000
85 000
20.000
390,000
2.400
99,000
73
6.300,000
1,300
-
15.000
—
-
-
130000.000
BAT
4000.000

260.000
4.000
250
520.000

—
—
—
45.000 000
52.000
10.000
0
0
19.000
0
600.000
1300
—
1.000
"•
—
-
50000000
•Does not ineiuaa Peragraoh 8 subcategones. and based on EPA oroiections
"Loadings are estimation ot pounds discharged
TRerers to 1972 discharge



into sewers prior 10 treatment at ihe POTW












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                                      1-4
     Table 1-1  also  demons traces that,  la gross  terms,  the  metal  finishing/
electroplating industry Is the greatest  contributor of toxic pollutants vis-a-
vis other indirect dischargers.  This fact was the basis Ear EPA's promulgation
of categorical standards for the electroplating industry as the first pretreat-
aent standard to be  issued.   It is also the  reason for the Agency's selection
of a  "metal  finishers only" pcetreatment  option for  evaluation  later in this
report.

     The discharge from industrial  users  receives further treatment by the FOTW.
Although municipal treatment works  are rarely designed to process toxic pollu-
tants, there is a significant amount  of  incidental  removal  of toxics by POTWs.
Metals removed  from  the  Influent of POTWs concentrate  in  the sludge and toxic
organics volitalize  or  are decomposed by  the facility's  biological treatment
processes.  At  secondary  treatment  plants a  representative removal efficiency
for metals is 60 percent and 79 percent for toxics  (see Appendix C-2).  Accord-
ingly, much of the mass of metals and organics in the discharge from industrial
users does not  reach surface  waters.  Table 1-2  reports  the actual  fate  of
metals generated  by   indirect  dischargers*   It  was prepared by  applying  the
representative secondary  treatment  removal efficiency  for  metals  to  the data
In Table 1-1.  (For comparison, Table 1-2 also lists the fate of metals generated
by direct dischargers.)

     As pretreatment  implementation advances  to  full controls under 40 CFR 403
the metals discharged to surface water through POTWs and concentrated in muni-
cipal sludge decreases drastically.  Metal concentrations in industrial sludges
increase a like amount.  In many respects the value of pretreatment is determined
by the relative importance of the distribution and fate of pollutants generated
by industrial dischargers.
                                                                     .JRB Associates.

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                                       1-5
                                   TABLE  1-2

                  COMPARISON OF DIRECT  AND  INDIRECT  DISCHARGES
                              OF TOTAL  HEAVY METAL
                         Degree of Industrial Treatment
                               (Ibs/yr x  1,000,000)
Fate of
Pollutant

Industrial Waste-
water
Waterbody
Industrial Sludge
Municipal Sludge

Industrial Waste-
water
Industrial Sludge
Raw Current
Indirect Contributions*
160 56
64 22
104
96 34
Direct Contribution
312 35
277
403

9
4
151
5
(BAT)
8
304
*  Assumes that POTW removes 602 of the metals from  the  industrial  wastewater
   which is concentrated In the municipal sludge.
                                                                     •JRB Associates.

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                                      1-6
     Tables l-l and 1-2  provide  an overview of the magnitude and relative impor-
tance of toxics contributions from  indirect  dischargers  but do not allow mean-
ingful estimates to be derived for the environmental impacts of  these wasteloads.
The volume and  relative  mix of  toxic wastes  from  indirect discharges received
by POTWs  varies from plant  to  plant,  as  does the POTW's  removal efficiency,
its level of wastewater  treatment (primary,  secondary,  tertiary)  and the char-
acteristics of  the POTW's receiving waters.  These variables are the key deter-
minants of the environmental impacts of  indirect toxic discharges.  The majority
of our  effort  on  this  project  has   been  to  collect data  and  develop modeling
tools which allocate these  pounds of toxic  pollutants  to  POTWs  in a realistic
manner to  allow an estimation  of  the  impacts they  have  on  water  and sludge
quality at  municipalities.   These  impacts  were  then  aggregated back  to the
national  level  to  allow  conclusions  to be  made  on  the National Pretreatment
Program and other  regulatory alternatives to control the  indirect discharge or
t oxic po 1 lut ant s .

1.2  POTW DEMOGRAPHICS

     The  preceding discussion introduced  the industrial waste component of the
pretreatment program.   The  second major group  of  regulatees under the  general
Pretreatment Regulations  are the POTWs which  receive  industrial wastes.  The
following  section  presents  basic  information on Publicly  Owned Treatment  Works
to  provide  a  background understanding  of their aggregate  physical characteris-
tics  and  the   impacts that  industrial  wastes  may  have.  These characteristics
include wastewacer flow,  industrial  flow, sludge handling methods and  level  of
treatment.

1.2.1      Wastewater Flow

      There are  15,250  complete  wastewater  treatment  facilities1  in  the  U.S.
today.  These   15,250  POTWs have a  total  influent  flow  of  approximately  26
      1 Although there are 32,000 municipal waste handling  systems in the coun-
 try, only 15,250 treat wastewater and produce  a  sludge.  The remaining include
 septic systems, pumping stations or sludge handling facilities.
                                                                      -JR8 Associates-

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                                      1-7
billion gallons per day  (bgd)  and a  total  industrial flow  of  4.4 (bgd).  The
2,000 POTWs  estimated  by EPA  to need  pretreatment  programs treat  81 percent
(21.1 bgd)  of  the total national flow  and  91 percent (4 bgd)  of the national
industrial  flow to POTWs.   Sixtj^ pejreent oLthe  industrial  flow is frora _cate-
go_rjxa-t—industries, the  rest of  the  industries flow is attributed to non-cate-
gorical or  commercial  sources.   Most  of Che  industries  in  the  country subject
to the  categorical pretreatment standards  discharge to  the  POTWs  regulated
by the  General Pretreatment  Regulations.   Table  1-3 summarizes  key physical
charateriscics of the POTWs subject to  the pretreatment regulations.

     POTWs handle  their  treated  effluent  discharge  in  the  following manner:

     •  83.6 percent of  the total flow  or 17.6 bgd goes to surface waterbodies,
     •  Of  those  planes  discharging to  surface waterbodies,  36  percent or  15.1
        bgd goes  to rivers and streams,  the rest  to  lakes and bays,
     •  12.1 percent of  the total flow or  2.5 bgd  is discharged to the  ocean,
     •  The  remaining  discharge is  distributed  among  a  number  of disposal
        alterations, including:
             -  groundwater recharge  and deep  well injection
             -  irrigation and land disposal
             -  recycling and holding ponds.
     •  60%  of  plants  (1189)   have  less   than   15  percent   industrial   flow.

1.2.2     Type of Treatment

     Three  types  of treatment   systems  are  commonly used  at  POTWs.  Primary
treatment is a physical  sedimentation  process  for removing  settleable solids,
secondary treatment  is  a physical/biological  process for removing solids,  BOD,
and  pH, and  tertiary treatment is a process which accomplishes  secondary  treat-
ment with   an  additional  capability  to  remove  or  alter   other pollutants.

     Table  1-4  shows  the amount  of   flow processed  by POTWs and  indicates  the
average efficiency of primary, secondary and tertiary treatment.  Most municipal
waste receives secondary treatment.
                                                                      •JR8 Associates.

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                              1-8
    TABLE 1-3.  DISTRIBUTION OF POTWS 3Y AVERAGE DAILY FLOW
iVER.
3AILY

0-1
MCD

1-5
MCD

5-20
MCD

20-50
».G3

50-100
".CD

> 100
.MCD


TOTAL FLOW
INDUSTRIAL FLOW
SO. OF PLANTS
TOTAL nOW
INDUSTRIAL FLOW
SO. OF PLANTS
TOTAL nOW
INDUSTRIAL FLOW
:io. OF PLAHTS
TOTAL now
INDUSTRIAL FLOW
HO. OF PLANTS
TOTAL nOW
INDUSTRIAL nOW
SO. OF PLANTS
TOTAL FLOW
INDUSTRIAL FLOW
SO. OF PLANTS

0-15
153
3
373
1.070
41
422
2.717
123
292
1.690
116
37
1.609
108
22
2,366
192
13

13- iO
16
3
32
134
23
59
439
79
43
249
43
10
313
56
5
1.436
235
4
: s D c
:o-30
19
-
37
ISO
4}
73
633
174
57
628
157
19
:39
68
4
1.752
i04
7
3 i X I •
30—0
15
5
30
116
41
47
567
200
53
306
111
11
352
119
5
1.153
394
6

4J-50
6
3
16
113
51
42
263
120
25
279
126
9
' 293
123
»
122
49
•
F L 0 «
so-ioo
17
12
34
213
148
36
321
225
36
526
356
17
32
52
L
—
—
0
TABLE 1-3  (Continued)   DISTRIBUTION  OF  POTWS  BY  LEVEL  OF  TREATMENT
PERCENT
INDUSTRIAL
FLOW
0-15
15-20
20-30
30-40
40-50
> 50

F
NO. OF
PLANTS
228
26
25
16
16
32

R I M A R V
TOTAL PLOW
(MGO)
2960
786
761
187
388
La&

INDUSTRIAL
?LOU
(MCO)
198
131
201
64
167
13S

S E
NO. OF
PLANTS
914
119
166
131
78
133

c o a o A R
TOTAL T.OU
IMCD)
6831
1720
2597
2201
667
379

Y
INDUSTRIAL
F10W
(HGD)
360
292
628
765
297
597

T
NO OF
PLANTS
47
3
16
5
3
lŁ

E R T I A R \
TOTAL FLOW
(MCD)
fcLB
34
93
119
lit
96

INDUSTKl
FLOW
(MCD)
25
16
23
41
12
al

"•








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                                      1-9


                                   Table 1-4

                               Z of Flow        Flow (bgd)

           Primary                 25              5.3
           Secondary and           71             15.0
           Advanced Secondary
           Tertiary                 4              0.8

The cable shows  Chat  although secondary treatment  is  most  common,  much of the
nation's industrial flow  only receives primary treatment.  Twenty-five percent
of the total flow is processed by  primary treatment  plants.   This is significant
because secondary  plants  remove 70 percent of  the  toxic pollutants on average
by incidental removal, while at primary plants only  35  percent of  the toxics are
removed.

     Five major  sludge disposal technologies  are commonly used by POTWs;  incin-
eration, landfilling,  land  spreading, trenching and  ocean  dumping.  Table 1-5
depicts the  amount (in tons/year)  of sludge disposed by primary, secondary and
tertiary treatment  facilities for  each disposal method.  Sludge  quality numbers
vary tremendously  from one plant  to another, making  it  difficult to estimate a
representative sludge  concentration  value  for each  type  of  treatment.  However,
because of  the differences  in removal efficiences,  the sludge  generated at  sec-
ondary plants will contain  more toxic pollutants than  that  generated at primary
facilities.  Five  times  as  much  sludge is  generated  at secondary plants  than
at primary  plants.

     The aggregate characteristics  of POTWs  measured by  total flow,  percent
industrial  flow  and  level  of  treatment do  not  vary  significantly among EPA
regions.  Where  this similarity ends  is  in sludge disposal methods and  method
of  liquid  effluent disposal.  Ocean dumping  of sludge and  effluent  is  confined
 to  coastal   States.   Irrigation occurs  mostly in  Arizona,  Nevada, New  Mexico
and  California.
                                                                      •JR8 Associates.

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                                      1-10




                                   TABLE 1-5

                          POTW SLUDGE DISPOSAL METHODS
Tons/Year


Incineration
Landfill
Land Spread
Trenching
Ocean Dumping
Total
(Number of
Plants)
(230)
(1163)
(481)
(4)
(300)


Primary
193,791
250,849
15,445
794
133,567
594,446

Secondary
772,915
1,463,593
254,638
18,386
256,384
2,776,866

Tertiary
100,726
164,607
30,221
-
-
295,554

Total
1,121,132
1,879,049
300,304
19,630
400,451
3,666,866
*Some plants use more than one  disposal  method,  this is reflected in double
 accounting of the disposal  alternatives.
                                                                       •JR8 Associates.

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                                       1-11
 1.2.3     Conclusions


      The following conclusions  can be drawn  from assessing  POTW demographics

 for the 2,000 POTWs estimated to need pretreatment:


        •  The 2,000 POTWs estimated to have pretreatment account for 81 percent
           of the  total  POTW flow  in  the nation  and 91  percent  of  the  total
           POTW industrial flow.

        •  Most of the industries subject  to categorical pretreatment standards
           discharge to the 2,000 POTWs.

        •  1,441 of the 2,000 POTWs  are at secondary  treatment.

        •  Primary treatment plants  process 25  percent of the total flow for the
           2,000 POTWs.

        •  84 percent  of  the total  flow  from  the 2,000 POTWs  is  discharged to
           non-marine surface water  bodies.

        •  The total  volume  of  sludge  generated  by   secondary  treatment plants
           is 5 times the amount  generated by primary plants.

        •  In general, sludge generated at secondary  plants  contain more toxics
           than that generated by primary  treatment facilities.

        o -49 percent of the total flow from the  2,000 POTWs falls in the range
           of 0 to 15  percent industrial  flow.   Although  this  range  seems  low,
           it is  strongly  influenced  by   the largest cities  (>200  mgd)  which
           have a  low  percentage of  industrial  flow even  though  they have  a
           large number  of  industrial  discharges.   Support  for  this  finding
           appears in Appendix A  (under separate cover).

        •  Small plants (those under 5  mgd) typically have more than  25 percent
           Industrial flow.
 1.3  DESCRIPTION OF THE NATIONAL PRETREATMENT  PROGRAM


      In 1972,  Congress cited the need for a national mechanism to protect POTWs

 and the environment from various problems associated with industrial wastewater

 discharges  to  municipal sewers.  Through  Section 307 of the Federal Water Pollu-

 tion Control Act,  Congress  directed  the  EPA Administrator to  establish waste-

 water discharge standards for Industrial  users of publicly owned treatment works



	                    	                             	IP° Associates*

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                                      1-12
(POTWs) "to prevent  Che  discharge  of any  pollutant  through treatment works...
which pollutant  interferes  with,  passes through,  or  is otherwise incompatible
with such  treatment  works."  Incompatibility  applies to  both  wastewater dis-
charge quality and the sludge.  The following discussion examines the evolution
and workings  of  the  current  federal  regulatory approach  for  the  control  of
industrial wastes  at  POTWs receiving  industrial wastes which  constitutes the
National Pretreatment Program.  The requirements  and  procedures of the General
Pretreatment Regulations (40  CFR403),  and Categorical Pretreatment Standards,
are presented in this section  along with the  interrelationships  of these regula-
tions with  other Clean Water Act  provisions  and  environmental  statutes.   This
section is  intended  to  establish  the  regulatory  backdrop for  the  subsequent
analyses of alternative pretreatment programs, and define the method  of analysis
used in this study.  More detailed legal and programmatic  information is avail-
able in Appendices A-2 and A-4.

1.3.1     Evolution and  Scope of the National Pretreatment Program

     The initial strategy to control industrial discharges  to POTWs was detailed
by EPA  in  the original  pretreatment  regulations (40  CFR  128  in 1973).  These
provisions required major industrial dischargers to comply with effluent guide-
lines (established by  EPA)  defining  best practicable  treatment  for the removal
of pollutants  incompatible  with the operation of  POTWs.  Technological uncer-
tainties and  administrative delays hindered  EPA's promulgation  of guidelines
and standards  and  in 1976  EPA  was  sued by  several environmental  groups.  The
Toxics Settlement  Agreement^ which—resulted  from this  suit (NRDC v.  Train 12
ERC 1833)  required EPA to  develop a program  and  adhere to a schedule for pro-
mulgation of Best Available Technology  (BAT) effluent  limitations and pretreat-
ment standards  for 21 major  categories  of  industries  covering  65  "priority"
toxic pollutants.   This  national   and   uniform  approach  for  the   control  of
toxic pollutants  was  incorporated  into  the Clean  Water   Act  (CWA)  of  1977,
which amended  the Federal Water Pollution Control Act.
                                                                      -JRB Associates.

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                                      1-13
     The 1978 General  Pretreatment Regulations  (40  CFR 403)  revised  Che 1973
provisions and were issued Co provide  a  framework  and delineate responsibilities
Cor Che application of  pretreatraent standards.  A  range of alternative pretreat-
menc strategies  were considered  during this  regulations-developtnene  process.
The alcernatives varied in terms of Che extent to which  industrial users of POTWs
would be  controlled by  national  technology-based pretreacment  standards,  the
amount of  local  flexibility  allowed,  and  the relative  roles of  the  federal,
State, and local governments.  The approach finally selected  in the General Pre-
treatment Regulation (40 CFR403, June 26, 1978, amended January 28, 1981) places
principal authority  for  implementation and  enforcement  with municipalities.

     Municipal responsibilities under  the  General Pretreatment Regulations are
essentially two-fold:

       •  General  responsibilities  to protect  plant  operations and local envi-
          ronmental quality.
       •  Specific respoasibiiites to implement and enforce national categorical
          standards.

These responsibilities  which are  separate  and distinct,  are discussed  in the
following two sections.

1.3.2     General Pretreatmetit Provisions Under 40 CFR 403

     This responsibility entails the development and  implementation of an admin-
istrative program  to deal with the site-specific  and  unique problems that the
POTW experiences due to  non-domestic  contributions  of  conventional  and other
pollutants which interfere with or upset  the  operation  of  the  POTW.   The 403
Regulations contain generic "prohibited discharge standards"  for such parameters
as pH, corrosivity,  flammabiiity,  and heat to assist POTWs  in protecting plant
operations.  Under  the  403  program,   municipalities  are  required to  survey
industrial users and identify  the types and  volumes  of industrial pollution
                                                                      •JRB Associates*

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chey receive.  Industrial waste-related  plant problems are to be analyzed and ef-
fluent limitations are to be developed to .protect the POTW from prohibited dis-
charge.  Mechanisms for permitting, monitoring,  and enforcement must be designed
and administered to implement  controls  on industrial discharges of detrimental
conventional wastes.  POTWs  then  work with existing  industrial  users to  bring
about the  installation  of pretreatmenc  technologies, process  changes,  or the
like to control  deleterious  discharges.  (In contrast,  categorical  industries
must comply  with Federally-set pretreatment  standards.)  New industrial con-
tributors may  be required to  incorporate pretreatment  in  the facility design
before being  allowed  to  connect  to  the POTW system.  Monitoring  is performed
to assure  compliance.  Where violations are found,  enforcement  actions  are to
be brought.

1.3.3     National Categorical Standards for Industry

     Two separate regulatory mechanisms were established for indirect discharg-
 ers in the CWA.  Section 307(b) of  the Act requires EPA to promulgate pretreat-
 ment standards  for existing sources (PSES) which must be met within  three years
 of promulgation.  Section 307(c)  requires  pretreatment standards for  new sources
 (PSNS).  Both  sets  of  standards  deal  primarily with toxic  pollutants  and are
 to prevent  the  discharge of  pollutants which  pass-through,  interfere .with, or
 are otherwise incompatible with the operation of POTWs.

      The Settlement Agreement and .§307  of the Clean Water Act  establish a parity
 between direct  and  indirect dischargers  in the control of priority  pollutants.
 Categorical pretreacment  standards require pollution reduction  such  that the
 combination of  industrial  pretreatment and treatment at the  POTW are equal to
 the pollution  reduction attained by a  direct  discharger meeting BAT standards.
 The designation of industries for which standards must be developed  was recate-
 gorized by EPA  to cover 34  industries.
                                                                       •JR8 Associates*

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                                      1-15
     Firms In these categorical  industries  are  believed by EPA to be the major
sources of toxic pollutants.  They contribute about 60 percent of the volume of
industrial wastes to POTWs.  EPA does not establish specific discharge standards
for firms in non-categorical  industries because they are  not  major sources of
toxics.  However, these firms  can be regulated locally under the general prohibi-
tions of the General Pretreatment Regulations.

     To date, two sets of pretreatment standards have been developed — one for
the electroplating industry and the  the  other for the timber products processing
Industries.   The  electroplating  standards  (40  CFR  413)  were first  issued on
September 7, 1979,  have  gone through  three  revisions,   and  were amended on
January 28,  1981.   Certain portions of  the electroplater regulations pertain-
ing to  captive  facilities, as opposed  to  the  smaller  job shops,  are  not yet
in effect.  The  timber  products  processing  pretreatment standards (40 CFR 429)
were issued on January 26, 1981.

     A major role for municipalities required to have 403 programs is to imple-
ment and  enforce PSES's and  PSNS's  for  categorical  industries  discharging to
their POTWs.  Categorical  industrial  users, identified in the industrial waste
survey, must be  apprised of  the existence  of  national pretreatment  standards
by the  control   authority.  The  administrative  devices of  local pretreatment
programs discussed above may then be applied to assure compliance.  In addition,
POTWs may apply  for removal  credits  which, if approved by  EPA,  may  be passed
on to categorical industrial users.

1.3.4.    Applicability of the Program

     Two groups  of  POTWs must develop programs  under  the General Pretreatment
Regulations.  POTVs with  total  flows greater than  5  million gallons  per  day
(mgd) and which receive wastes from industries subject to national pretreatment
standards must develop and operate pretreatment programs.  Compliance schedules
have been inserted  into  the discharge permits issued to  these POTWs  to ensure
                                                                    -JRB Associates.

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                                      1-16
Chat they will have programs Ln  place by July 1,  1983.  These permits are issued
under EPA's National Pollutant Discharge Elimination System  (NPDES).  POTWs with
total flows less than five ragd may  also be required by EPA to establish programs
where warranted by  special  problems with  industrial  discharges.   NPDES States
(with EPA approval to  issue  NPDES  permits)  which develop approvable State pre-
treatraent programs receive full NPDES delegation to oversee pretreatment activ-
ities in their States.  NPDES States may also choose to operate State-wide pro-
grams and assume implementation and enforcement authority in lieu of municipal-
ities.  EPA Regional offices will  implement  and enforce pretreatment  in non-
NPDES States and in NPDES States rejecting pretreatment delegation.

1.3.5     Other Environmental Provisions and Laws Affecting The National Pre-
          treatment Program

     Categorical pretreatment standards  afford  a mechanism  for  the control of
the pass-through of toxics at POTWs, while the 403 program regulates conventional
pollutants and provides  an  overall administrative framework for implementation
and enforcement  of the National Pretreatment Program.   Other Clean  Water Act
provisions and environmental statutes provide further financial or environmental
incentives for the  control  of  industrial wastes by pretreatment.  These  provi-
sions are discussed  below.

1.3.5.1   Financial  Incentives  under the Clean Water Act

     The Federal government  provides financial incentives to POTWs  for develop-
ment of  pretreatment programs  by underwriting 75  percent  of development  costs
in  §201  construction grants.  As shown in Table 1-6, almost 40 million dollars
has been obligated in municipal construction grants for  pretreatment since 1977.

                                    TABLE 1-6
       CONSTRUCTION  GRANTS  FUNDS OBLIGATED FOR PRETREATMENT ($THOUSANDS)
                       (See  Appendix A-4  for Data Sources)
EPA Region                I           II          III          IV        V
Grant $ Total          2,500       11,221        4,874        1,245     9,240
EPA Region                VI          VII         7TII         IX        X
Grant $ Total          3,352        2,041       .  331        2,348     1,800
                                TOTAL:  $38,952

                         	—^.IRR Associates*

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                                      1-17
     States may also be eligible for  §201 grants for pretreatment.  In addition,
§106 grants and §205(g) allotments may be used to administer State pretreatment
programs.

1.3.5.2   Performance Standards  for POTWs

     A variety of standard setting  and  enforcement  provisions  in the Clean Water
Act encourage the  application  of pretreatment to  control  industrial  wastes at
POTWs.  The NPDES program, §402 of  Che  CWA, requires Chat poinc sources, includ-
ing POTWs which  discharge to navigable waters,  must  obtain  permits.   Written
into POTW  NPDES  permits   are   plant-specific  effluent  limitations  to  assure
that the facility  complies with applicable  technology-based  performance  stan-
dards [Secondary Treatment by 1977  and  Best Practical Waste Treatment Technology
by 1983 §§201(g)(2)(A), 301(b),  and  304(a)]  as well as pretreatmenr standards.
In addition, the NPDES  permit  is the  vehicle  for  imposition  of limits to meet
stream-based State  or  federal   water  quality  standards.   These  two sets  of
standards, applied in a POTW's permit,  dictate the level of pollution reduction
which must  be  achieved  by  a  municipality.    To  date, however,  the   focus  of
these standards has been  on  conventional  pollutants,  very few POTWs have toxic
effluent limits in their NPDES  permits.  Data  from a  study of 132 POTWs  by JRB
suggests that between  70  to 80  percent of POTWs  subject  to 40 CFR 403  do not
have NPDES  permit  limits  for  heavy metals  or  toxic  organic chemicals  (see
Appendix B-2).

1.3.5.3    Provisions to Control Sludge Quality Under the Clean Water Act (CWA)
          and Resource Conservation and Recovery Act (RCSA)

     Categorical pretreatment standards  and  the National  Pretreatment Program
have also been  intended  to prevent  sludge contamination at POTWs, and are there-
fore closely tied  to  municipal  sludge  disposal requirements  established  under
§405 of the Clean Water Act and §4004 of the Resource Conservation and Recovery
Act (RCRA).   Any industry  discharging  pollutants  which would  interfere  with a
POTWs ability to meet  §405 disposal  guidelines must  pretreat  its wastes.   The
                                                                      .JRB Associates*

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                                      1-18
issuance of  removal  credits  is  also tied  to  the  POTW's  ability to  comply
wich §405 criteria.

     Under joint authority of the Resource Conservation and Recovery Act (RCRA)
and §405, limits have  been set  on the amounts  of cadmium and  PCBs  which may
be in  solid  wastes  intended  for application  on lands used  for production of
food chain crops.  These  regulations  at 40  CFR 257 also provide guidelines for
disposal of  sludge incinerator  ash  and sludge  in landfills,  surface impound-
ments, and by  land spreading.   EPA  has also  issued  a preproposal draft under
§405 to  regulate  the distribution and marketing  of  sludge and  sludge products
as fertilizer  or a soil  conditioner.   Extensive development remains to be done
to define Che  safe limits and regulate the disposal of sludge containing any of
the other  129  priority  pollutants.   Pretreatment  is  the  principal means  for
reducing toxicity  levels  in municipal sludges.

1.3.5.5   Constraints Imposed by Other Statutes

     Reduction of  industrial  wastes  at POTWs by  requiring pretreatment  is  also
intended to  ease POTW compliance burdens vis-a-vis other environmental  statutes.
The Clean Air  Act  requires  POTWs choosing tc incinerate or dry  their  sludge to
meet National  Ambient  Air Quality Standards (NAAQS) and New Source Performance
Standards (NSPS)   for  sulfur  dioxides,  particulate  matter,  carbon  monoxide,
hydrocarbons,  nitrogen dioxide,  ozone and lead,  and National Emission  Standards
for Hazardous  Air Pollutants  (NESHAPS)  for mercury.   Further,  the Toxic  Sub-
stances  stances  Control  Act  under the PCB  regulations  specifies  incineration
practices for  sludges containing certain  levels of PCBs.   As sludge  quality
improves as  the  result of a  pretreatment program, the cost and efforts needed
Co meet  air  standards  should  decline.

     The ban on  ocean  dumping.of municipal  sludges,  for cities  not meeting  dis-
posal  criteria,  to take  effect in December  of 1981 under  the Marine Protection
ResearehTnd^§anctuaries Act, has had  the  effect of  forcing municipalities  to
                                                                       •JRB Associates.

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                                      1-19
find alternate sludge disposal methods.   The  improvement  of sludge quality af-
forded by pretreatment has  eased this transition for cities such as Philadelphia.
The Safe Drinking  Water Act  establishes maximum  contaminant levels  for sub-
stances ,such_as heavy metals in drinking water.  POTWs may affect drinking water
sources in a  number  of  ways.  A considerable  portion  of  the Nation's drinking
water sources  are  surface  waters  into  which  POTWs  discharge.    Reduction   in
toxics discharged to  these  waters should ease  the  water  treatment obligations
of municipalities.    Leaching of  toxic  pollutants  from  municipal  sludges   to
groundwater will also be reduced as sludge quality is improved.

     An area  lacking any regulatory protection ouC3.ide_the pretreatraent program
is wo_rker_health_and safety at the  POTW.  The Occupational  Safety and  Health
Act specifically exempts national, State,  and  local governments from its defini-
tion of  an employer.   Thus POTW workers are  not  protected  from job-related
health or safety hazards under OSHA.  Similarly, State OSHA laws do not provide
any mechanism affording sewage  treatment  workers  protection  from industrial
slug loads of toxic  chemicals.  The  pretreatment  program  may play an  important
role in the  absjence__of  _other xwrprker_health_and safety protection.  This issue
is further addressed in Appendix B-4.

1.4  AMOUNT OF AND  MOTIVATION FOR INDUSTRIAL  WASTE CONTROL CURRENTLY IN PLACE
     AT POTWs

     As mentioned  above,   EPA  has identified  approximately 2,000  POTWs  which
either receive  categorical  industrial  wastes  or are  experiencing  other in-
dustrial waste  related  problems,  and  therefore  will  be  required  to develop
local pretreatment  programs under  the  General Pretreatment  Regulations.   To
understand the  magnitude  of the  compliance  burden  the  General  Pretreatment
Regulations impose on these 2,000 POTWs, and  to  evaluate the need for federal
regulatory stimulation  to  achieve waste  control at POTWs  a study was  performed
of 132 municipalities (statistically representative of the 2,000) to  determine
the extent  to which  industrial  waste control  programs  are  already   in  place.
Additionally,  the motivation for  the development of  local programs already  in
                                                                      •JRB Associates*

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                                      1-20
existence was explored.  The  section presents  summary  results on  these ques-
tions.  Further information is provided in Appendix B-3.

1.4.1     Amount of Industrial Waste Control Currently in Place at POTWs

     Table 1-7 summarizes  data  based on a study  of  132 POTWs  which are repre-
sentative of the 2,000 POTWs and indicates that only 25% of these 2,000 munici-
palities have the  essential mechanisms  in place  to  control industrial wastes.
These mechanisms defined by JRB as essential to  a  basic  POTW industrial waste
control program include (1) the existence of a sewer use ordinance with specific
effluent limits, (2)  some  form of permitting mechanism,   and  (3)  a monitoring
and enforcement  program.   (It  should  be noted  that this 252  figure  does not
represent formal pretreatment programs  under the  403 program,  but  rather muni-
cipalities having  the three fundamental elements  of  a control program.  Section
1.5 presents estimates of the  number of  federally  or  State-approved 403 programs
in place today.)
                                   TABLE 1-7
                 INDUSTRIAL WASTE CONTROL PROGRAMS IN PLACE AT POTWS
Item
                                 POTWs with
                                 >5 MGD Flow
                   POTWs with
                   <5 MGD Flow
Total
  Pretreatment In
  Place  (ordinance,
  permits and enforcement)
        Yes
        No
     Unknown
a - 65
    312
    66%
n •



67
18Z
75Z
7Z
n » 132
25S
70%
5%
     Other  indicators  of  the  extent of and motivation  for  effective  industrial
waste  control  programs  may be drawn from the 132 POTW  study.   For  instance,  in
order  to  control  industrial influents, a POTW must first identify  the  sources,
magnitudes,  and  characteristics of Che industrial wastes it  receives.   The  132
Study  further  indicates that  (as  of March  1981) 64  percent  of the POTWs have
                                                                      .JRB Associates.

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                                      1-21
conducted an industrial waste survey  (IWS).  However,  a majority of these cities
completed their IWS within the last  three years.  This suggests that the federal
pretreatment program is a primary motivation for two  reasons.  First,  an IWS is
required in the 403 program.   Second, 403 provides financial incentives for local
program development.  Additionally,  sixty-six  percent of the POTWs examined do
not monitor  for heavy metals in their  influent  and  69  percent  do not  monitor
for the presence of toxic organics.   A study by JRB  of 77 POTWs (See Appendix B)
reinforces these  findings.   Sixty-eight percent of  these  POTWs  have  no indus-
trial monitoring  programs.   Of  those that do  monitor, only 12 percent  monitor
for metals  and  I  percent  for  toxic organics.   Finally,  30 percent  have no
knowledge of the quality of  their sludge.

1.4.2  Motivation  of Industrial Waste Control  Currently  in  Place

     As estimated  above,  about  25%  of  the 2,000 POTWs  subject  to the  General
Pretreatment Regulations  have  industrial  waste  control mechanisms  in place.
Table 1-8 presents reasons  cited  by municipalities  for  instituting this indus-
trial control.   (Multiple responses were  given  by   some  cities  and  others did
not respond.)   The  primary  reason  given by  POTWs  was that the  program was
required either by the  State or Federal  Government.   The second most frequently
cited reason was to protect  the POTW from harmful  wastes.  Sixty-five percent
of the programs were motivated by these  two reasons.
                                   TABLE  1-8
               MOTIVATIOH  FOR IMPLEMENTING A PRETREATMENT  PROGRAM
Motivation
POTW  cost  recovery
POTW  protection
Sludge Quality Improvement
Water Quality Improvement
Required by  State/Fed Authority
POTW  Worker  H &  S
No  response
n - 81
 13 Z
 24%
  9%
  9%
 38Z
  IZ
  6%
 = 43        n • 124 responses
^^•^•^•B       ^Biaai^pi^^^^^^^^HMMaA^^BB^^H^^
  0                 8%
 30%               27%
  2%                6%
  7%                8%
 37%               38%
  0                 IZ
 24%               12%
     Where  pass  through  and  operational  problems  at  POTWs  contribute  to  a water
 quality problem,  control of  toxics  from  industrial users may be  necessary.   The
                                                                      •JRB Associates*

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                                      1-22
relative significance  of  government  intervention  in  bringing  about  controls
suggest the  importance of  some  form  of  government  involvement  to  stimulate
toxics control where  environmental  problems exist.  The determination  of this
need and an  assessment  of alternatives programs  to meet  it is  the  subject  of
Chapters 2, 3 and 4 of this report.

1.5  STATUS OF PRETREATMENT IMPLEMENTATION

     As discussed above, The National  Pretreatment  Program  relies on an inter-
governmental, three-tiered administrative  system involving  the Federal govern-
ment, States,  and  municipalities  for  the  development  and  enforcement  of
categorical and  prohibited  pretreatmenC  standards.    The  following  section
summarizes the  progress that  has  been made  by   each  in  implementing  these
responsibilities to date.

1.5.1     Municipal Efforts

     First line  responsibility rests  with municipalities  required  to develop
and operate programs under the General Pretreatment Regulations.  Approximately
2,000 POTWs have been identified by  EPA as  requiring formal programs.  Table 1-9
estimates  the  implementation  progress  that  has  been  achieved to  date  by
these municipalities.  The table  shows that  138 POTWs or 9 percent of the muni-
cipalities subject  to  the  Regulations  have  applied for approval or are imple-
menting formal  pretreatment  programs.   Further,   substantial  progress  toward
approval has  been  made by 79 percent of POTWs larger than 5 mgd  and 45 percent
of chose POTWs under 5 mgd which  oust develop  programs.

     Municipalities have  spent about  34.9  million dollars in  local  revenues
and Construction  Grants to reach this  point.   (Table  1-6  indicates that 38.9
million dollars have been obligated  for pretreatment.   This  figure also includes
funds  spent  by  States from S201  grants.) A  liberal estimate of  the  total money
needed  to  develop  municipal  pretreatment programs  is 45.8 million dollars (see
                                                                      •JRB Associates*

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3J
CD
                                            TABLE 1-9.  POTW PRETREATMENT PROGRAM STATUS
                                            PRETREATMENT PROGRAM STATUS
          DESIGN     TOTAL 0  tf POTW'S   # POTW'S    * POTW'S   APPLIED FOR    # POTW'S                EST. DEV'T COSTS

         FLOW (MOD)  POTW'S   NO ACTION  PLANNING   DEVELOPING    APPROVAL   IMPLEMENTING  NO DATA	TO DATE  ($ MILLIONS)



         0<5        1261        714       301          76          38           38         94                5.696



           5 >           735        143       245         2J6          79           33          19               29.204
TOTAL 1996 857 546 292 117 71 113
h-
1
34.900 "
PERCENTAGE 100 43 27 15 6 3 6
        See Appendix A-4  for  sources.

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                                      1-24
Appendix A-2  for  estimation  techniques).   Accordingly,  municipalities  have
spent 76  percent  of  the  funds  necessary to  develop  pretreatment  programs.

1.5.2     State Efforts

     NPDES States  may assume  responsibility for development  and operation of  a
State-wide pretreacment  program,  by  submitting a  program plan  and  having it
approved by EPA.   NPDES pretreatment  delegation entitles the State to  identify
POTWs needing programs,  review and approve local programs,  conduct compliance
monitoring, and  initiate enforcement  actions.   Of the  33 NPDES  States,  32 could
currently receive  delegation  for  State pretreatment  programs.   (The Virgin
Islands was  deemed by  EPA not  to need  a pretreatment  program.)   Table  1-10
shows that  to date 8  States or 25 percent  of the total have had their  programs
approved, and  12  others have  made substantial  progress  in obtaining  programs
and  are close to receiving  delegation, comprising almost 63 percent of  eligible
States.

     New Jersey, West  Virginia,  and Puerto  Rico  are  currently applying  for
overall NPDES  delegation and  are developing pretreatment  plans as  a part of
their applications.  Hence,  twenty-three of the soon  to  be  thirty-five  eligible
States have  received  or are  in  the  process of  applying for NPDES  pretreatment
delegation.  Collectively,  eligible  States have spent $3.4 million  out of an
estimated  total  of $5.9  million  or 58  percent of  the  amount  that  would be
required  for  full State  assumption  of pretreatment  responsibilities.   (For-
greater detail,  see Appendix A-4).

 1.5.3      Federal  Efforts

        Federal  activities  in the National Pretreatment Program range from cate-
 gorical  standard development by the  Effluent Guidelines Division of  the Office
 of Water  Regulations  and  Standards, program  implementation and  assistance by
 the Permits Division  of the Office of Water Enforcement,  financial support  from
                                                                       .JRB Associates.

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                                      1-25
                                   TABLE 1-10

                STATUS OF STATE PRETREATMENT PROGRAM DEVELOPMENT


Program Approved  (AL, MN, WI, GA, OR, MO, IA, CT)                          3

Reviewed in Headquarters by Permits and OGC - further action delayed by     4
  issues referred to State (MS, NV, SC, VT)

Submitted to Region
     -  Program changes needed by the State  (TN, NB, KS, IL, NY)           5
     -  Changes needed in MOA - Program complete  (NC)                       1

Draft submission received - formal submission to  Region anticipated soon    2
     (HA, MI)

Submission awaiting finalization of amendments to 40 CFR Part 403  (PA)      1

States working on draft submission (IN, OH, DE)                             3

Problems delaying State program delegation

     -  Resource shortages in State (VA, CA)                                2
     -  Other problems in State delaying development                        6
           (MD, CO, WY, MD, MT, WA)                                      	
                                                                            32 MPDES
                                                                               State

 States working on NPDES submissions which include pretreatment programs     3
      (WV,  PR, NJ)                                                        	
                                                                            35  State
                                                                      .JRB Associates.

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                                      1-26
Che Municipal Construction Grants Division of the Office of Water Program opera-
Clous, co day-to-day administration by  Che  tea EPA regional offices.  Table 1-L1
provides a breakdown  of  the federal pretreatment expenditures  by  office since
1977.

1.6  SUMMARY

     In sum, progress  towards  implementation of the National Pretreatment Pro-
gram has been substantial.   Roughly  two  thirds of eligible States have developed
(or are close co completing  development of)  the capabilities necessary to control
indirect dischargers in their States.  One out of ten municipalities is operating
(or has applied for approval to operate) a local pretreatment program with work
towards program development begun at 1,147 POTWs (57 percent of all municipali-
ties obligated  to  develop  programs).   The Federal  government has  issued and
amended regulations for two of the thirty-four categorical industries.

     In the four years since affirmation in the Clean Water Act of pretreatment
as a means to control toxic  water pollution and  to protect  POTWs, the nation has
spent almost 72  million  dollars to  develop  and  carry out the 403 program  (this
includes all  Federal  expenditures plus  monies  spent  by  municipalities and
states).  The nation has spent almost 39 million dollars in construction grants
funds for pretreatment to protect the larger investment made in overall funding
of municipal treatment works.

     The actual extent of controls on industrial users is, however, unclear.  EPA
data, summarized in Table 1-1, indicates that over 652 of  the metals and 372 of
the  toxic organics from indirect dischargers  have already been controlled.  How-
ever, the analysis in  Section 1.4.1 estimates that only  25 percent of the  2,000
POTWs are implementing controls  on industrial users.  This  result is based on
a  study  of  132  municipalities in  which  municipal officials  were questioned
about the extent to which  they were  controlling industrial wastes.  Likewise,
the  results of visits  to 77 POTWs indicates that electroplaters are controlling
                                                                    -JRB Associates.

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                                                            TABLE 1-11
                                      FEDERAL PRETREATMENT  PROGRAM RESOURCE EXPENDITURES
                                                         ($ Thousands)

UQ Permits Division
Personnel
Contracts
UQ Effluent Guidelines Division
Personnel
Contracts
lin Municipal Construction Division
Personnel
Grants
Regional Personnel
(Including all I'retreatment
' FISCAL
1977 1978 1979
317 317 200
100 1 , 706
273 273 273
2,340 2,340 2,340
40
390
YEAR
1980
200
1,862
273
2,340
40
390
1981
200
1,419
273
2,340
40
390
TOTAL
1,234
5,087
1,365
11,700
120
38,952
1,170
59,628
                                                                                                                                I
                                                                                                                               Nl
                                                                                                                               -J
         related personnel)
3J
oa
B>
S
CONSTKUCflON GRANTS FUNDS OBLIGATED TO POTMs AND STATES FOR PRITFREATHKNT ($ Thousands)
                                                                                                          Total for
Region             I       II      HI       IV        V       VI      VII      VHl      IX        X      all  Keg Jons

flrant Total      2,500   11,221   4.874     1,245    9.240    3,352   2,041      331     2,348    1,800      38,952

Note:  These figures have not been adjusted to  1981 dollars.  Also Included in the perfaonnel  figures  is  a
       $5.000 per fiscal year total travel cost estimate; no other costs were Included.

   Totals for each area are:  Personnel      3,889
                              Contracts     16,787
                              Grants        38.952
                              Total         59,628

Source: Survey of EPA Headquarters and Regional Office Staff

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                                      1-28
50 percent of  Che metal3 they  generate racher Chan the 65 percent indicated on
Table 1-1.  The  analysis  of toxic discharges  from industry la this project is
based on  the  data  supplied by  EPA.   Accordingly,  if  EFA's estimates  of  the
amount of  pretreatment  la place  are,  la fact,  high then the  extent  of water
quality impacts estimated in this report are low.

1.7  OVERVIEW OF THE PROJECT

1.7.1     Purpose

     EPA issued  amendments  to  Che General  Pretreatment  Regulations  on  January
28, 1981, which were to have taken effect on March  13,  1981.  The Agency  decided
that these amendments did not have "major economic consequence" and, therefore,
an economic  impact  statement  as required  by Executive  Order 12044,  was  not
prepared.  On  January  29,  1981,  President  Reagan  froze a number of regulations
including the General Pretreatment Regulations (GPR) and postponed their effec-
tive dates.  On  February  17, 1981, Executive  Order 12291 was issued  replacing
Executive Order  12044  and  altering  the   procedural  and   substantive   review
requirements incumbent on  federal agencies  Cor new, existing and pending  regu-
lations.  Executive Order  12291  was invoked on March  27, 1981, to indefinitely
suspend the  applicability of  the GPR until  a regulatory  impact  analysis  was
prepared by EPA.

     The purpose of this project  Is to provide technical information in  support
of EPA's  preparation  of this  Regulatory Impact Analysis  (RIA)  of the  General
Pretreatment Regulations.

     The Office  of Management  and Budget has  identified  five elements  essential
to a regulatory  impact analysis;

        1) A statement of the need for and consequences  of  the regulatory  action;
        2) The  examination of alternative approaches;
                                                                     .JRB Associates-

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                                      1-29
       3) An analysis of benefits and costs;
       4) The rationale for choosing Che proposed regulatory action; and
       5) The statutory authority.

     JRB Associates' work over the last several months has  focused on identifica-
tion of  key  policy issues and relevant data,  and  the  development and  use of
analytical techniques  to assist  EPA  in  evaluating  the  General  Pretreatment
Regulations, and preparing an RIA which fulfills OMB requirements.  This report
presents information collected, the analyses conducted,  and significant findings
of this effort.  In addition, more detailed information is provided on the data
and discrete  analyses  which  support  this  report in  an accompanying Appendix.
An extensive  bibliography is  included in  the  Appendix  which  catalogues the
numerous data  sources   used  in  this  projects.   Finally,  a  discrete  computer
model has  been developed  and  is  currently  operational  on  the  EPA  computer
which generates data valuable to the assessment  of  regulatory  options for the
control of industrial wastes at POTWs.

     The following  section briefly describes  the  approaches utilized to analyze
the impacts of the National Pretreatment Program  and the proposed  alternatives.
Far greater detail  is provided  in Chapter 2.

1.7.2     General Technical Approach

    .JRB and  EPA  worked  together  in  formulating  a three-phased  approach to
study the  necessity of  metal and toxic organic industrial pollution control at
POTWs.  Phase  I  consisted of  an  initial data collection  and evaluation effort
aimed at identifying all relevant data, data  weaknesses, and  potential applica-
tion to  subsequent pretreatment program analyses.   In  addition,  intitial  work
was performed to develop candidate methodologies for ultimate use in the analysis
phase.   In Phase II of  the study, techniques were designed  to  fill remaining  data
gaps, and  final  analytical  methodologies  were chosen.  In Phase III,  component
analyses were  performed and  this  report was prepared.  This staged  approach al-
lowed a  periodic   reevaluation of data  and  methods  to ensure  that   solutions
                                                                      .JRB Associates.

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                                      1-30
were feasible within Che time constraints of this study and tied to the central
purpose of measuring the impact of the existing pretreatment program and proposed

alternatives.


    The elements  of  the analysis  are  described in  the  following  subsections.


1.7.2.1   Selection of Environmental Impacts to be Analyzed


     This study analyzed the  central  environmental problems which the existing
National Pretreatment Program was intended to reduce:


     •  Water Pollution - which can occur as  a result of improper operations and
        maintenance of  the  POTW.   It  can  also  occur  as  a result  of indirect
        discharges through by-pass, pass-through and upsets.

     •  Sludge Contamination -  which  can occur if indirect dischargers fail to
        remove metals  from their  discharges.   As  a  result,  the  municipality
        may be limited in its disposal options.

     •  Air Pollution  - which  can occur  from  volatilization  at  the  POTW or
        through the incineration of  sludges  that cannot be disposed  of through
        other means because of contamination.

     »  Worker Health and Safety - which  can  be jeopardized  by indirect dis-
        charges through  resulting  explosions and  worker  exposure to toxics in
        the waatewacer,  fumes or sludge.

     •  Overall POTW Operation  -  which may  be  adversely  affected due to  upset
        and interference problems caused by  industrial discharges.

     •  Groundwater Pollution  which  may  occur  due  to  POTW  exfiltration and
        leachate  from municipal sludge.


     The determination of the relative effectiveness  and cost of  each pretreat-
ment regulatory  option  in  controlling the above  problems  is  the principal
focus of this study.


1.7.2.2   Analytical Methods


     Having  specified  the  above problems as  the central issues  behind  the pre-
treatment regulatory  impact analysis,  it remained to be decided  which measures
                                                                      •JR8 Associates.

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                                        1-31
could and should be  employed  to quantify the magnitude  of these impacts.  The
availability of  data and applicability  of  legal  standards  largely determined
which measures  were  used.   Almost no data  existed  on the volume  of toxic air
emissions attributable to the incineration of municpal sludges or from influent
volatilization.  Nor  were  any nationwide statistics  found on  the frequency of
worker injuries  or deaths  at POTWs  as  a result  of industrial  discharges of
toxic pollutants.  Data  inadequancies  1)  forced a more qualitative, case-study
evaluation of  groundwater,   worker health  and  safety,   and  POTW  operational
problems and  2)  dictated the development of  a mass-balance  computer model to
forecast water pollution, sludge  contamination  and air pollution impacts  asso-
ciated with alternative  regulatory strategies.

     The mass-balance  computer  model  of  a POTW  system was the primary tool for
quantifying the  environmental benefits  and  costs for any alternative pretreat-
raenc program.   JRB developed  this  mathematical  model for the  2000 POTWs across
the country required  to  implement  local pretreatment  programs  under  the General
Pretreatment Regulations.  The  model  simulates  the operation  of a  single  POTW,
distributes pounds of priority pollutants  from industry  among  POTWs to  allow
an assessment  of water quality and sludge  impacts,  and  allows aggregration of
individual results to  national  or regional  totals.  It consists of  eleven data
sources, including Dun and Bradstreet industrial  lists, EPA's  Permit Compliance
System, STORET,  USGS, and  EPA's  NEEDS   Survey,  among  others.   The  types of
outputs of the model  are discussed  in the following  subsections.

1.7.2.3   Environmental  Measures

      The POTW model estimates the following quantitative environmental measures
for alternative  pretreatment  options  for  each of  the  2000 POTWs:
                                                                       .JRB Associates*

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                                      1-32
              PROBLEM                  	MEASURE
     Water PoLIucion                    Exceedances of Water Quality Criteria
                                              Violation of  NPDES  Permits
                                                  Mass of Pollutants
                                            Volume of  Pollutants   Discharged
                                            Net Change  in Effluent Quality
     Sludge Contamination         Volume and Contamination of Municipal Sludge
                                Volume and  Contamination of  Industrial  Sludge
     Air Pollution                       Mass of Volatile Priority Pollutants
                                                   Discharged to Air

Most of  these measures  quantify  for  comparison  among  pretreatmenc  options,
the volume  of pollution reduced,  the  volume  that  continues to  be discharged
and the concentration of toxics in the POTW effluent and in sludges.

     While measures of pollutant volume and  concentration are useful indicators,
they do not necessarily reflect  the significance of their impacts to  the environ-
ment.  Therefore, the impact of the POTW effluent  discharge on the concentration
of toxic pollutants in the POTW receiving waters was also estimated.  For these
concentration estimates to be most useful,  they were compared to benchmark con-
centration  levels that  indicate  whether the resulting concentration represents
a water  quality  problem.   When the  concentration of a  toxic  in  the receiving
stream was  greater  than that  threshold,  it was  termed an "exceedance"  —  an
indicator of  potential water quality problems.

     Unfortunately, there  are  few well-established  environmental  standards in
place which  provide  a basis for establishing  the  threshold for an exceedance.
Only 30  States  have  set State water quality  standards for one  or more toxic
organic  pollutants and 29 have  standards for one or more heavy metals.  Efforts
were made  to calculate representative  average  values  for  State  water quality
standards  for the  critical parameters  to fill  in  these considerable voids  and
to facilitate a  national   impact  assessment.   However,  the  results of this
exercise were not  felc to  be either manageable or a better indicator of  actual
conditions.   Moreover,  very few POTWs  have toxic  pollutant limits  in their
                                                                      •JRB Associates-

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                                      1-33
NPDES permits,  thereby  eliminating the use  of these levels  as  thresholds (as
well as the  significance  of  permit violations to this analysis).  The decision
was made,   therefore,  to use  federal  water  quality  criteria as  the  benchmark
for exceedances and, therefore, potential water quality problems.

     As a final component  to  the estimation of exceedances, a significant effort
was made to  gather  ambient water  quality  information on the level of toxics in
receiving streams.  However,  this data was severely inadequate.  Therefore, the
water quality impacts of POTW discharges are measured as if the POTWs were dis-
charging to  pristine water, obviously  not  the case  in  the  real world.  To offset
this assumption,  this  report  provides a  sensitivity  analysis  that  predicts
exceedances  for three levels of ambient concentrations in the receiving waters.

     A parallel effort  was made  to analyze  the  significance  of changes in the
concentration of priority pollutants in municipal sludge resulting from indirect
industrial discharges.  Unfortunately,  few  sludge  disposal  guidelines have yet
been issued  by EPA under Section 405  of the  Clean  Water Act or Section 4004 of
the Resource  Conservation  and Recovery Act.   The  most relevant  of these, the
limits on  cadmium in municipal^sludgeto  be landspread, requires  a  knowledge
of soil cation  exchange capacities, and the  type of  crops to be cultivated, in
addition to  the cadmium concentration  level in the  sludge.   This  information
could not  be collected and  analyzed  in the  time  frame of this  study.   State
solid waste disposal rules vary considerably as to their coverage of  the numerous
disposal options  used by POTWs  and very  few contain  specific  limitations on
pollutant concentrations  in   sludge.   Food  and  Drug Administration  (FDA)  and
the Department of Agriculture foodchain related guidance were deemed inadequate.
Even regulations  of foreign  countries  were  evaluated  for  possible use.   Com-
pounding these regulatory difficulties,  it  proved impossible to develop meaning-
ful predictors  of  a municipality's ability to switch between disposal methods.
Costs for  the same disposal option vary  dramatically between cities, affected
by the  availability and proximity of  disposal  sites, agricultural  land,  and
other site-specific  factors.   JRB  and  EPA  eventually  decided  that given time
                                                                      .JRB Associates.

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                                        1-34
constraints, no meaningful sludge criteria could be constructed for this study.
The report makes  predictions  on sludge quantity and  quality  both for industry
and municipalities but,  given  the  lack  of  regulatory triggers,  assumes  that
all industrial  sludge is  hazardous  (although  some  industrial sludges  are no
longer classified as  hazardous  by EPA) and all  municipal  sludge  is nonhazard-
ous in  calculating  associated  disposal  costs, regardless  of  sludge quality
improvement or degradation under the various options.

1.7.2.4   Cost Assessment

     Having identified  the  central  environmental  problems  to  be  controlled
under any pretreatment  program  and having chosen key  criteria used to measure
the environmental  impacts  of alternative programs,  it was necessary to identi-
fy where  the  costs  of  compliance  would  be  sustained  so that  data  could be
collected and  impacts estimated.  The  principal actors under  any pretreatment
strategy are  industry,  POTWs,  States  and the  federal  government.   A decision
was made  to  limit the cost  assessment  on this  project to the  following direct
costs:

          • Industrial Impacts
              Pretreatment Technology  Costs
              Sludge  Disposal Costs

          • Municipal Impacts
              POTW Pretreatment Program Development  Costs
              POTW Pretreatmeat Program Operational  Costs
              POTW Sludge  Disposal Costs
          • State Imoacts
               State  Pretreatment  Program Development  Costs
               State  pretreatment  Program Operational  Costs
           • Federal  Impacts
               EPA Administrative  Costs
               Construction Grants  for  Pretreatment  Program Development
                                                                      •JRB Associates.

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                                        1-35
     The POTW Model provided treatment  and  sludge  disposal costs.  Administra-
tive costs for municipalities,  States  and to  the  federal government were based
on historical estimates and case study extrapolations.

     A number of  coat factors had  to  be excluded due to  the  lack of adequate
data or as a result of regulatory assumptions made  above.  For example, municpal
costs were not  reduced  to account  for  savings  experienced by  POTWs due to the
fewer operational problems  attributable to  an  effective pretreatment program.
Sludge disposal cost  savings  similarly could not  be  passed  on to cities where
the improvement in sludge quality due  to pretreatment facilitate use of a less
expensive disposal option.

1.7.3     Limitations of This Assessment

     The data collected and analyses performed  in  support  of EPA's  pretreatment
regulatory impact analysis  and presented in  this  report  should provide mean-
ingful decision-making  tools  and  information  for  the ultimate  resolution  of
the complex issues inherent to the  assessment of this major regulatory program.
Nonetheless, a  number of  caveats oust  be presented which  place  the  findings in
perspective.

1.7.3.1   Data Limitations

     Our  ability  to  analyze  the  existing  pretreatment   program  and possible
alternatives in a  logical and complete  manner  was often  hindered by the lack
of available health  and environmental data.  Solutions  were designed to over-
come these data deficiencies where  possible,  but  some gaps could  not be filled
in the  time  frame  of  this  study.  For instance, no  single data  source had
complete  data on  the number and type  of categorical  industries discharging to
individual POTWs.   This  information  is critical  for  constructing  the  raw
wasteloads entering  POTWs as  a  result  of  industrial  users.   To  surmount this
inadequacy, Dun  and   Bradstreet  computer lists were  searched  by  SIC codes to
                                                                    •JRB Associates.

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                                      1-36
identify Che  universe of  categorical industries  in Che  vicinity of  a POTW.
The Permit  Compliance  System Data  Base  was  then used  to  back  out  direct
dischargers holding  NPDES  permit  from  this total  and  these  were  assigned to
the appropriate municipality  according  to the city  name  of  the POTW as stated
on the NEEDS Survey.

     In fact, every component  variable in  the assessment of water quality  impacts
for this project required assumptions in order  to  achieve results.  The mass  and
volume of discharge of priority pollutants from all lUs in an  industrial category
were all assumed to  be the same — equal  to those of an average  firm.  The  POTW
receiving these wastes was assumed to attain average treatability  levels.   Per-
haps the  greatest  frustration  with  data  weaknesses was  experienced with  data
on receiving  stream  characteristics.  Stream  flows  were available  for less  than
half of  the stream segments on which the 2000 POTWs are  sited.  Ambient water
quality  for all eleven toxic  pollutant  parameters (nine metals,  total toxic
organics and  cyanide)  were   almost  uniformly  unavailable   resulting  in   the
assumption  that POTWs are discharging to  pristine waters;  and the unavailability
of State water  quality standards  resulted  in  our use of  federal  water  quality
criteria.   Most  of these data  limitations  work to understate the magnitude of
water  quality violations  associated with  indirect  industrial  discharges  but
simply could  not  be avoided.  As the assumptions  necessary  to overcome  these
weaknesses  are  uniform  for all  the pretreatment  options evaluated,  findings
are  still   meaningful  for  comparative  purposes.    In  absolute  terms,  however,
higher water  quality  violations   should  be expected  without industrial waste
control  than  those predicted  in this project.

      Data  inadequacies were  found to be  much  worse for  the health effects of
 toxic  pollutants  in  air,  groundwater and  sludge,   and  findings could  only be
 presented  in  terms  of volumes and  mass  discharged  to  the   environment  either
 directly or concentrated in sludge.   Thus, no final judgements could be made as
 to the beneficial effects of  improving sludge quality  by roughly 50 percent as
 our report predicts  if the pretreatment  program  is  implemented  either  in terms
 of reduced costs or a safer environment.
                                                                       •JRB Associates.

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                                      1-37
1.7.3.2   Limitations Due To Inability To Evaluate Interaction With Other Programs

     Pretreatment under §307 of Che Clean Water Act only regulates discharges to
municipal sewers.  Alone,  it  does  not guarantee  that  water quality  or sludge
goals will be met.  Moreover,  its  effectiveness can only be measured against the
environmental standards established  Ln  other  regulatory programs.   As Figure
1-1 illustrates, these standards are  set under §402,  208,  405  of CWA and §3004
of RCRA.

     Pretreatmenc is,  in  fact, one  of  several  regulatory  tools  available to
control agencies to meet  the environmental  standards set up under the provisions
which directly  control environmental  quality.   The   fact  that water  quality
criteria are  not widely  accepted,  municipal sludge criteria have  not been set
and the  rules  governing  the  classification  of industrial  sludge  have  only
recently been established create major short comings in this analysis.  Without
the compliance  boundaries  established  by  other  environmental programs,  the
improvements  in  environmental  quality  attributed  to pretreatment  are  very
difficult to  evaluate.
                                                                      -JR8 Associates-

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                                        1-38
                                     Figure 1-1
                  WASTESTREAMS and ULTIMATE REGULATORY ENVIRONMENT
   I         I
   [  Sludge ]     RCRA 3004
   [         ]     RCRA 4004
    Industry
        X    CWA 307
             WASTEWATER
Scream
                                                 §208 CWA
                                                  Runoff
                                                 CWA 402
                                           CWA 405
RCRA - Resource Conservation and Recovery Act

       §3004    Hazardous and Non-Hazardous
       §4004    Waste Disposal Critria

CWA - Clean Water Act

       §307    Pretreatment Standards
       §402    NPDES Permitting
       §405    Municipal Sludge Disposal Guidelines
       §303    Water Quality Standards
       §208    Nonpoint Source Control
                                                                        CWA 303
                                                                       •JRB Associates.

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                                      2-1
                      2.  DETAILED ANALYTICAL APPROACH

     This chapter discusses the criteria used in this study to measure environ-
mental and cost  impacts  of industrial discharges to POTWs and the methods used
Co analyze these impacts.

2.1  CRITERIA  FOR ASSESSING  THE  IMPACTS  OF DISCHARGES  FROM  INDUSTRIAL USERS

     Industrial wastes  can cause  a  variety of  problems at POTWs.   The most
direct impact  is  on  the operation of  the  POTW  itself.   The  generation of con-
taminated municipal sludge and the  discharge of  partially treated wastewaters to
receiving bodies  are  additional  impacts  that can,  in  many  instances,  be tied
to industry.   Additionally,  groundwater can be contaminated  by  leachate from
landfills used  to  dispose of POTW  sludges and agricultural lands  may  be con-
taminated by direct application  of municipal sludges.   Further, the  atmosphere
in the  vicinity  of  municipal  treatment  plants  can become  contaminated from
toxics which  volatilize,  affecting  not only the health of POTW  workers but
also those  living and  working  near  these  facilities.   This section describes
the criteria used in this analysis  to  define and measure the impact  of  industrial
dischargers on  POTW operations and environmental  quality.

     This project  is designed to analyze impacts  which  result  from  the  indirect
discharge of industrial wastes.  When possible,  these impacts are measured quan-
titatively.  However, some impacts cannot be quantified  from  the data  available.
In these  cases the extent of the  impacts  are described and  examples  of the  im-
pacts  from case study reports are used to document their occurrence.  The impacts
are organized  into six categories:   pass-through and water quality,  interference
and upsets,  sludge contamination, worker  health  and safety, air pollution  and
ground water  pollution.   The following  section introduces each of the  impacts
with a  preliminary overview  of the  data  sources  and  their findings,   and  the
methods  and criteria used to  measure  these impacts.
                                                                            »JRB Associates.

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                                      2-2
2.1.1     Pass-Through and Water Quality

     Some pollutants  pass-through  a  POTW untreated  or  partially  treated  to
the receiving vaterbody.   The most  common reasons for pass-through  are that:
       •  POTWs  are  not  designed  for  the  removal  of  certain  pollutants.
       •  Interference of the POTW system occurs which reduces the POTWs treat-
          ment capability
       •  Slug  loadings,  hydraulic  overload  and  operator errors  upset plant
          operations.

     The pass-through  of pollutants  has  no significant  impact on  the POTW's
collection and  treatment system.  However,  pollutants which  pass-through can
degrade the  quality  of  the  receiving  waters.  This  degradation  may  violate
water quality  standards  thereby  restricting   the  use  of the  waterbody  and
potentially affecting  the  health of humans and aquatic organisms.   For exam-
ple, a contaminated  river  may no longer be adequate as a drinking water supply
or for recreational purposes.

     The most direct  way to measure the  extent of  pass-through at POTWs would
be to count  NPDES  permit violations.  However,  few  POTW  permits include toxic
limits.  For  most  POTWs in  the  U.S.,  NPDES discharge limits  have been estab-
lished for  conventional pollutants  based  on  technological   capabilities  and
reflect a  level of  secondary treatment  as  required  by  the  Clean  Water Act
(CWA).  Many  POTWs  have NPDES limits which  are more  stringent  than secondary
treatment.  These limits are usually set to  protect the  quality  of receiving
waters rather  than  solely  to meet  a  specific  technology-based removal effi-
ciency.  Limits  established  for this purpose  are  said  to  be  "water quality
limited."  Since toxic pollutants  are  not  addressed in the  CWA definition of
secondary treatment,  toxic  pollutant limits  incorporated into POTW permits are
generally water-quality  based.
                                                                         •JRB Associates.

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                                      2-3
     In general, daca on NPDES permit  violations  exist  for conventional pollu-
tants [biochemical oxygen  demand  (BOD),  suspended solids  (SS)J.   However,  few
POTW permits contain water-quality  based  limits  for  toxic pollutants.   Even in
those case where  limits  have been  set,  there is only  limited monitoring data
for toxic pollutants in  POTW effluents.   Accordingly, NPDES  permit  violations
are not currently a good indicator of toxic water quality problems.

     Because of the limited number of POTW permits with toxic limits and insuf-
ficient monitoring data  for  toxic pollutants, our approach  to assessing water
quality impacts from POTW discharges was to estimate the amount of pass-through
at each POTW using a mathematical model.  This model was relied upon to predict
the quantity and  quality  of  toxic  discharges from  each  POTW.  Using measured
stream flow  data, the  model predicts the  concentration of  toxic  pollutants
in the receiving water body contributed by POTWs.

     These predicted toxic pollutant concentrations  from the model can be com-
pared to  environmental  standards as  a way  to  measure water  quality.   If the
standard  is  exceeded,  than a water quality problem has  been identified.  The
question  is what  environmental  standard  to use.   The comparison should be con-
sistent with the  way  water quality based  NPDES  permit  limits are established.
Generally, State  water  pollution control agencies set  these limits  as part of
a water quality management process  as  outlined below.

       •  First,  the  use of  the  water body  is  designated by  the  State  agency
          (e.g., water supply, contact  recreation).
       •  Second,  the  State  derives  water  quality   standards to  protect the
          designated use.   The basis for State standards are the National Water
          Quality  Criteria  which  EPA is developing for toxic pollutants.  Water
          quality  standards can differ from National criteria because of site-
          specific chemical,  physical and  biological  conditions.
       •  Third,  NPDES permit limits  are  set  for each point  source and other
          water management  plans  are  implemented to ensure  that  water  quality
          standards are met in the receiving  body.
                                                                         •JRB Associates.

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                                      2-4
     Clearly, che  most  appropriate way  to evaluate  water quality  impacts is
to directly compare  modeled  effluent  concentrations  to established State water
quality standards.  However, few State water quality standards have been estab-
lished to  date.   Table 2-1  lists  the values  of  State standards  for metals.
Those with more  stringent  values  are reported separately  from the less strin-
gent values.  In addition,  the number of  States with  standards for each para-
meter is  listed  at the bottom of  the table.  The  greatest number of standards
have been established for  lead, cyanide,  and  cadmium.   However, only 16 States
have values for  these pollutants.   Only six States  have standards for silver.
Since we  were interested in  comparing  ambient water  quality  for eleven toxic
parameters for all 50 States, the  State water quality  standards are too limited
for determining   the  National  water  quality  impacts  of  industrial  users.

     The  next  best  benchmark  for  counting water quality problems  caused by
POTWs are the National  Water Quality  Criteria themselves.   The use of national
criteria  enables the analysis to address all toxics of  interest and also conform
to the national  scope of  this study.   Accordingly, these  criteria were adopted
in this project.   There are  two kinds  of National criteria: (1)  concentrations
estimated to be  protective of aquatic life and wildlife; and (2)  concentrations
relevant  to the  protection of human health.  They  are  prepared according to  the
procedures in the revised  guidelines  issued in 45  FR 79318 (November  28, 1980).
These criteria are simply the best estimate  of  the concentration-effect rela-
tionship  informed scientists are  able  to make,  based on  the  information  from
published studies.  Specific  numerical  concentration  limitations  are estab-
lished for most  pollutants.   When data limitations preclude a numerical deter-
mination, the criteria  is  given qualitatively.

      EPA  develops both  chronic  (long-term) and acute (short-term) water quality
criteria. In this  analysis,  chronic toxicity  criteria  for  human health  and
aquatic organisms are used  along  with average stream flows,  to measure water
quality impacts   of  the POTW  effluents  computed  by  the  model.   The  criteria
                                                                         .JRB Associates.

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                                      2-5
                                   TABLE 2-1
                      STATES WITH STRICTER AQUATIC HEALTH
                        STANDARDS THAN NATIONAL CRITERIA
                                   (mg/1)
State
                 CN
   Ag
                               Cd
                 Cr
       Cu
Hg
                                                           Ni
                                             Pb
                                    Zn
California
Colorado
Florida
Indiana
Kentucky

Missouri
Montana*
N. Carolina
Ohio*
Oregon*
Pennsylvania

Utah
Virginia
.00005
      .005    .00005   .05

             .00005
             .00005

.01          .00005
      .001
             .00005
                .02   .005
                                     .01
                                   (96LC50)
                             .00005
                             .00005  .01
                                   (96LC50)
                                                   .01
                                                  (96LC50)
                                    .01
                                    .01
                                  (96LC50)
                                    .005
                                    .01
                                  (96LC50)
                                                                          •JRB Associates*

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                                     2-6
                              TABLE 2-1  (Continued)

           STA1ES WITH EQUIVALENT OR LESS STRINGENT AQUATIC HEALTH

                       STANDARDS THAN NATIONAL CRITERIA
                                    (mg/1)
State
Arizona
California*
Colorado
Florida
Illinois**
Indiana
Iowa
Kentucky
Missouri
Montana*
Nebraska*
Nevada*
New Jersey
New York*
N. Carolina
N. Dakota
Ohio*
Oregon*
Pennsylvania
Tennessee
Utah
Virginia
W. Virginia
Qi Ag
.1 .05

.005 .001
.005
.1 .005
.01
.005 .05
.005
.005
.01
.005

.05
.1



.005
.005
.1
(96LC50)
.005 .05
.005
.025 .05
Cd Cr
.01 .05

.0004
.0008 .05
.01 .3
.05
.0012 .05
.004 .1
.012
.05

.05
.01 .05
.3
.004
.01

.003
.05
Cu Hg Ni
.05 .005


.5 .0002 .1
1.0 .0005 1.0

.05 .1
Pb
.05

.004
.05
.1
.5
1.0
Zn




1.0


.01 .01
(96LCso> (96LC50)
.02 .1



.005
.2
.1
.002


.1
.1 .1 .1 .1
(96LC50) (96LC50) (96LC50) (96LC50)
.004 .1
.1
.01 .05
.01
.1
(96LC30)
.1 .1
(96LC50) (96LC50)
.05
.05


.05

.03


.05
.05
.1
(96LC50)
.05
.1
(96LC50)
.05
.1
.1



.3





.1
(96LC50)


.1
(96LC50)
Total No. States
with Standards  16
16
15
14
                     15
                            16
                                            11
*  At certain discharge  points
** Have State criteria for  all  9  pollutants
+  For fresh water discharge
                                                                          .JRB Associates.

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                                      2-7
were chosen over acute toxicity  criteria  and  7-day/10-year low flow conditions
because the POTW model  incorporates yearly average data.   It  does not predict
short-term events because  industrial  effluent and POTW  influent  data  was most
complete and  readily  available  as  annual averages.  Therefore,  chronic  water
quality criteria are the appropriate standards in this analysis.  A shortcoming
oŁ this analysis  is  that all  regulators  and  scientists do  not  agree  that the
National Water Quality Criteria  are set at the optimal level.   Some argue that
the data base  used  to establish the  standards  is flawed;  others  criticize the
methods used  by  EPA  to  analyze  the  data.   Nonetheless,  these  values are the
best available for  a  national assessment of  water quality impacts.  At a mini-
mum, they  enable  the  relative impacts among pretreatment  alternatives  to  be
compared.

     In addition  to  pass-through,  POTWs  can  also affect water quality through
by-passing of  raw wastes directly  to  the receiving  body.  Causes for by-pass
include (1) extensive  infiltration, (2) storm water runoff,  and  (3) operational
problems.  Periodic by-pass  can  degrade water quality.  Data  from EPA's Opera-
tion and Maintenance  File can and  is used in this study to estimate Che  extent
of bypass  at POTWs.

     As a  final  component of  this  water  quality equation,  a  signficant  effort
was made to gather  ambient water quality information on the level  of  toxics  in
receiving  streams.  However,  this data  was severely inadequate.   Therefore,  the
water  quality  impacts of POTW  discharges  are measured  as if  the POTWs were
discharging to  pristine  water,  obviously not the case  in the real world.   To
offset this  assumption,   the  model was  used to predict  exceedances  of  three
 increments of the applicable  water  quality criteria (for 25, 50  and 100 percent
of  the water  quality criteria) rather than actual  water  quality violations.

2.1.2      Interference and Upsets

      Interference  is  defined as the  inhibition  or  disruption  of  the  POTW,  its
 treatment  processes  or  operations,  its  sludge  processes,  its  sludge  use  or
                                                                            -JRB Associates-

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                                      2-8

disposal.  Interference may  be  caused  by  high  volumes  or concentrations  of
pollutants which  can adversely  impact  the  proper operation  of a  POTW,  thus
causing it  to treat  its wastes  less efficiently than  normal.   Conventional
pollutants are the principle cause  for  interference problems.   The  most common
types of interference are:

       •  Corrosion of POTW equipment and materials due to low pH.
       •  Obstruction of  flow  or interference with operations  due  to solid or
          viscous pollutants.
       •  Creation of a fire or explosion due to  discharge of volatile materials
       •  Unit process upsets caused by the discharge of any  pollutant (including
          BOD and SS).
       •  Inhibition  of  biological activity or  increase  in POTW  influent  temp-
          erature due to  heat  discharges.
       •  Inhibition  of biological  activity due  to toxic  pollutants.

     A way  to assess the impact of  interference is by examining operation  and
maintenance  problems  at  POTWs  as  well  as  increased POTW  expenditures,  and
additional POTW  protection equipment attributable  to  interference.   Documenta-
tion of  the  number,  type, and  extent of interference is  not kept by all POTWs.
Although  precise measures of  industrial-related interference  problems  are  not
available for all POTWs, quantitative  and  qualitative  information does  exist
for some.  Our method of  analyzing  interference  problems  is based on statistical
summaries of data on  interference  from  EPA's  Operation and Maintenance  File,
the results   from  field  visits  to  77  POTWs conducted by JRB,  and from  case
study  findings  reported in the literature.   However,  pass-through due to inter-
 ference  is  not   incorporated into  the POTW  model.   As a  result,  the model only
predicts persistent   water  quality  effects.    Chapter  3   discusses  this  in
greater  detail.   Actual impacts would be higher.

      There are   many  causes of POTW upsets,  including  inadequate design  and
 plant  obsolescence.   However,  industrial waste has been identified by POTWs as a
 major cause of O&M problems and poor plant performance.  Upsets from industrial
 waste can have  a number of  different  adverse  effects on  a POTW including:
                                                                            .JRB Associates.

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                                      2-9
       •  Upsets from slug discharges of toxic pollutants (e.g., unexpected
          batch dumps);
       •  Digester upsets which can lead to reduced POTW efficiency;
       •  Upset from slug discharges of conventional pollutants (high BOD).

Upsets are, again, not addressed by the computer model and are another contri-
buting source of water quality violations.  The extent of these impacts are
addressed in Chapter 3.

2.1.3     Sludge Contamination

     Many toxic pollutants, especially metals, are removed from the influent to
a POTW and are deposited in the POTW's sludge.  This removal is incidental and
occurs through normal secondary treatment.  The contamination of the POTW  sludge
with toxic pollutants can limit sludge disposal alternatives as follows:
       •  Land spreading of sludge may be restricted because toxic  pollutants
          can result  in uptake  into crops and  into the human food chain or
          cause surface/ground water contamination.
       •  Storage of  sludge on  land may be  restricted for the above reasons.
       •  Sludge may  not be'permitted  in conventional landfills due to the
          potential contamination of ground water as a result of leaching.
       •  Selling sludge as a soil conditioner may not be an option due to
           toxics  contamination.
       •  Unknown environmental effects of  toxics on municipal  sludges has
           led  some State agencies to restrict  land disposal of  these  sludges.

      Sometimes, POTWs with  potential contamination problems conduct sludge
 sampling  and  analysis.  This  data  is also  available as a result of  several
 EPA studies which included  special  analyses of POTW sludges for industrial
 contaminants.   The  literature,  EPA  studies, and case  studies provide  further
 information on disposal, ground water,  and  surface water problems caused  by
 contaminated  POTW sludge.   This information is an  important part of our
 analysis  of  sludge contamination.
                                                                            •JRB Associates-

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                                      2-10
     As in the case of pass-through, quantitative sludge contamination, and  dis-
posal data do not exist for all POTWs.  Since improved municipal sludge quality
is an  important  aspect of  a pretreatoent  program,  quantifying this  data was
accessary for our  analysis.   Again, the mathematical model  was used as a  pre-
dictive tool.  Based  on  actual data for selected POTWs,  the model was used  to
estimate the  amount  of  sludge  generated,  pollutant  concentrations,  disposal
methods, and  related  costs.  The model  was used to estimate  both POTW sludge
and sludges generated by industrial pretreatment systems.

     A parallel  effort was  made  to impose  meaningful  regulatory limits  on
priority pollutants  in municipal   sludge   resulting  from  indirect Industrial
discharges.  Few  sludge  disposal  guidelines  have yet   been  issued  by  EPA
under {405 of the Clean Water Act  and  Section 4004 of  Resource   Conservation
and Recovery  Act.   State solid  waste disposal  rules  vary  considerably  as  Co
their coverage  oC the  numerous disposal  options  used by POTWs  and  very few
contain specific  limitations  on pollutant  concentrations  in sludge.  Food and
Drug Administration (FDA) and  the Department  of  Agriculture food  chain-related
guidance were deemed  Inadequate.   Even  regulations  of foreign countries   were
evaluated for possible use.   JHB  and EPA  eventually  decided  that given  time
constraints, no meaningful sludge criteria  could be constructed for this study.
The report makes  predictions  on sludge quantity and quality both   for industry
and municipalities  but,  given  the  lack of regulatory triggers,  assumes   chat
all industrial sludge is hazardous  and  all municipal sludge  is  non-hazardous
in calculating associated disposal costs, regardless of sludge  quality improve-
ment or degradation under the various options.

2.1.4     Worker Health and Safety

     POTW workers can be exposed to chemical substances caused  by  or related  to
the discharge of industrial effluents.  The principal concerns  are:

       •  Exposure to airborne chemical contaminants.
                                                                         •JRB Associates.

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                                      2-11
       •  Skin contact with industrial effluents.
       •  Handling of  strong acids and bases  used as pH  control  reagents for
          wastestreams with variable pH.
       •  Explosions  caused  by  industrial wastes  in the  POTW collection  or
          treatment system.

     The toxicological  properties  and  exposure  criteria  are  known  for  many
toxic industrial  pollutants.   However,  only  a  limited   amount  of  data  exist
related to  airborne   industrial  contaminants  in the  vicinity of  POTWs.   The
limited data  available were  collected in this  project  and  compared to the
toxicological criteria.  The  analysis  of  worker health/safety focuses on case
studies of problems at various POTWs.

2.1.5     Air Pollution

     Air pollution  problems  from  the   incineration  or pyrolysis  of municipal
sludge is assessed  qualitatively in this  analysis.  Although  some evidence of
adverse health effects and violation of air emission standards are  found in the
literature, there  is  not  enough information to  perform  a quantitative assess-
ment.  The  results of  the  analysis of  air pollution problems  from municipal
sludge incineration is discussed in Chapter 3.

2.1.6     Ground Water

     Ground water  problems from  indirect discharges is handled qualitatively in
this analysis.  Although the  literature contains evidence of exfiltration from
sewer pipes,  the  data does not  lend  itself to  incorporation  into  the modeling
efforts.  The  results from this literaure  search  are  summarized  in Chapter 3.

2.2  METHODS OF ANALYSIS

     Two types  of analyses were performed  during  this project.   The  first was
an analysis of available information to assess four of  the six  impacts  described
above;  (1)  interference and upsets,  (2)   worker  health  and  safety,  (3) air
                                                                            •JRB Associates.

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                                      2-12
pollution, and (4) groundwater.   The second  type of analysis was the development
and use of  the  mathematical model to examine  the  remaining two impacts, pass-
through and water quality, and sludge generation.   Data from the first analysis
were also used  in the  modelling effort.  The two  analyses are described below.

2.2.1     Analysis of Data Bases Depicting POTW Operations

     Seven  data  sources  were used  in  this  study  to develop  profiles  of POTW
operations.  These data sources provide the means to carry  out quantitative and
qualitative analyses of  actual  conditions encountered at municipal facilities.
The purpose of  these analyses is  to  determine:

        •  The frequency of  occurrence of  operational problems.
        •  Persistent  operational problems which are  linked to industrial dis-
          charges and  lead  to environmental  degradation.
        •  The  impact  of  pretreatment on POTW  effluents before and  after imple-
          mentation of pretreatment.
        •  The motivation for the development of pretreatment programs by munici-
          palities.
        •  Other  information  regarding specific  POTW operations  and  environ-
          mental conditions and problems.

The data  sources  presented in  this section are used  in Chapter 3  to  document
 and exemplify industrial  discharges and treatment facility operations.  Complete
 analyses  of each data source are provided in Appendix B.

 2.2.1.1   40 POTW Study

      The Effluent Guidelines Division  (EGD) of EPA carried out a two-year study
 at 40 POTWs to determine the fate and occurrence of both conventional pollutants
 and the 129 priority pollutants.  The 40  POTWs selected for study were distribu-
 ted according to geographic location, average daily flow, percentage industrial
 flow, and  the treatment processes  utilized.  The  study  represents  a profile of
                                                                          •JRB Associates'

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                                      2-13

well operated  POTWs  receiving  more  than 5  mgd average  daily  flow  which are
required to implement local pretreatment programs.

     At each of the 40 POTWs, an intensive, week long priority pollutant sampling
and analysis program was  conducted of various operations.  Sampling points in-
cluded the POTW influent, secondary effluent, primary and/or tertiary effluent,
primary or  combined sludge,  and  secondary  sludge.  Six  24-hour  samples were
normally collected at each POTW.

     Detailed  results of  this analysis are presented ia Appendix B-4.

2.2.1.2   EPA  4-City Study

     During 1978  and 1979 the Monitoring and Data Support Division of EPA con-
ducted a  source sampling survey of 4 POTW collection systems.  Sampling in  all
4  cities was conducted in interceptors from domestic, commercial, and  industrial
users, and  at  the POTW influent.  The  industrial component of  this  study  was
not used  in the  RIA because the  four  collection  systems did  not  include  a
sufficient  variety of  EPA's categorical  industries.  However, the domestic  and
commercial  results were used in the model as a second measure of  nonindustrial
contribution.   It is important to note  that two  of  the  four  cities  in  this
study were  the  two  plants from  the  40  POTW study that had little  industry.
All  four  cities were included in the  40  POTW sampling.

2.2.1.3    132  Study

      In  1981,  the  EPA  Office  of Water Enforcement engaged  in a  statistical
assessment  of   selected  municipalities  to estimate the  progress  made  in  con-
 trolling industrial waste discharges to POTWs.  The analysis  included a deter-
 mination of  the  control programs  developed  through  local  initiatives,  and
 those developed  in  response  to the  requirements of the  National Pretreatment
 Program.   The assessment of local control programs consisted  of  a study of 132
 randomly selected municipal authorities,  operating 294  plants  made  in conjunc-
                                                                         •JRB Associates*

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                                      2-14
Cion with a  technical  assessment  project managed  by  JRB.  The data  sought in
the study were:

       •  General facility data,
       •  Industrial waste survey information,
       •  Industrial users information and regulated industries,
       •  Legal authority,
       •  Formal pretreatment  programs,  including motivation for program deve-
          lopment, sewer ordinance limits, and monitoring,
       •  Industrial controls,
       •  POTW NPDES permit information, including permit violations.

     The POTWs  included  in the  assessment were  chosen  using  a  random number
generator and  proved  to  be a  statistically representative  sample of the 2,000
POTWs required  to develop  local  pretreatment  programs  for  key  measurements.
Figures 2-1  to  2-3 present a graphical comparison  of the  132 data  base  with
the complete 2,000 POTW data base for three important measurements:

       • Total Flow
       • Percent Industrial Flow
       • Number of Metal Finishers and Percent  Industrial Flow

These figures  indicate that the  132  subgroup have similar trends as  the entire
population of 2,000 POTWs.

     The results of this  analysis are presented in Appendix  B-2.

2.2.1.4   The Operation and Maintenance  Data  Base (O&M)

     The Operation and Maintenance (O&M) data base was compiled  and  computerized
by EPA  from  reports of POTW  inspections conducted by EPA and  the  States.   The
                                                                           •JRB Associates-

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      1200-
      1000 -
       800 -
       600-
       400 -
       200
33
CD
                                                Figure 2-1
COMPARISON OF  132  POTW. SUBCKOUP TO 2000
    NUMBER POTWS vs.  POTW  EX 1ST INC FLOW
                                                                          	O	Needs 132
                                                                                   Needs 2000
                                                                                                                          to
                                                                                                                          H
                                                                                                                          u.
                                                 *
                                  j()
 ~r~
 40      SO      60     70
POTW Existing Flow  (MfiD)
                                                                               90
                       100

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         1200-
   in
   S
   o
   o
   [25
          800-
          600-
                                                             2-2.   COMPARISON 01-  132 I'OTW SUBCKOIII' TO  2000 I'OTW
                                                                       NUM15KR I'OTWS  vs.  I'HkCKNI' INDUSTRIAL KI.OW
         HK)0-
                                                                                     — Noeds  132
                                                                                        Needs  2000
                                                                                      —JRB Survey 132
3)
CD
          AOO-
          200-
                                                                                              100
                                       % Existing  lihtuMiri.il

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                                           Figure 2-3.
                                                           COMPARISON OF 132 POTW SUBGROUP TO  2000  I'OTW
                                                    NUMBER OF  POTWS WITH ELECTROPLATES vs.  PERCENT INDUSTRIAL FLOW
         250-
                                                                         	(•)	Needs 132
                                                                                  •Needs 2000
3J
CD
    12
    01
p.
O
u
O
0)
w
.C
    B
    O
    PU
         200-
         150-
         100-
          50-
           0--
                                                                                                                           r
                    T
                    10
                        1
                        20
       ~^r      r
30      AO     50      60      70
    %  Existing Industrial Flow
100

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                                      2-18
purpose of these inspections  is Co check on POTW compliance with che requirements
of NPDES permits  and Construction  Grants  and  to assess  staffing and training
needs.  These inspections  are  required by §210 of the  Clean  Water Act and the
results are  summarized  by EPA  and reported  to Congress  annually.  Inspection
frequency is determined  by  the  requirements of  the  State and  the  degree and
type of problems encountered at each facility.

     Information is  collected  on EPA Form 7500-5  (4-72),  "Report on Operation
and Maintenance of  Wastewater Treatment  Plant."  Inspectors obtain  information
to complete the form from on-site reviews of facility records, such as labora-
tory records, maintenance records, and daily  logs of operation, and by examining
equipment, interviewing staff, and observing  procedures.  Four generic categor-
ies of  data  addressed by the inspections  are  represented in the  data   base:

        •  Identification  information
        •  Facility  data
        •  Pollution load  data
        •  Facility  operations assessments

     The O&M  inspections  are  performed  at   the  discretion  of  State  and EPA
Regional offices.   Generally they  contain  reports  of upset and  by-pass and
their duration,  as  well as  NPDES permit violations and  identification of the
causes of operational problems  including industrial sources.  Complete inspec-
tions and assessments  are usually  made  if problems have been reported, •  while
more routine  inspections  are made  if no  problems  have been encountered.   In
the latter case,  only an  overall assessment of  plant  operation is performed,
and portions  of the inspection  form  related to  problems  are left blank.   The
data used  in  the  analysis  come  from  1500  inspections  conducted  in   1980.

     Detailed results of  this analysis are presented in Appendix  B-l.

2.2.1.5   77 POTW Study

     The 77  POTW  Study was  conducted by JRB Associates  and  subcontractors  in
                                                                            •JRB Associates*

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                                     2-19
1979 to 1980.  Under  this  sCudy,  technical  assistance  was provided to 77 POTWs
with design flow less than 5 ragd.   Candidate POTWs were selected after screening
from a  list  identified by  EPA Regional Offices  and HPDES  States.   The POTWs
covered in this assistance program were distributed  over  22  States and nine of
the ten EPA  Regions.  A  report  was  prepared  on each POTW,  describing plant
operations, performance  data,   and  operating  conditions  and  problems.   Major
nondomestic users  of each  POTW  were  visited  to determine  the  quantity  and
origin of pollutants entering the POTW.  An analysis  of these data was performed
Co examine:

       • POTW operational problems,
       • Distribution of  categorical  and noncategorical  industries discharging
         to these POTWs,
       • The  impact  of  specific industries  discharges  to  these  POTWa,  and
       • Industrial  discharge   limit  setting  and  monitoring/enforcement prac-
         tices.

     The results of this analysis  are  presented in Appendix B-3.

2.2.1.6   Literature  Search Case  Study

     JRB compiled data on nineteen municipalities with industrial waste  control
programs to  assess  differences in POTW operating parameters  before  and after
program initiation.   The sources  of  information included  academic  and trade
literature, published reports  and papers by  the  municipalities  and EPA, and  a
telephone  survey  of  nine  POTWs  conducted  by JRB.   Eight  municipalities had
sufficient documentation  regarding pretreatment  to be  included  as  an  infor-
mation  source  for  this study.  The  eight  municipalities are  representative  of
a variety  of  population  sizes  and service areas,  average daily flows, types  of
industries, and quantities  of  industrial flow.

     The case study  analysis is presented in Appendix B-5.
                                                                            .JRB Associates-

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                                      2-20
2.2.1.7   NEED'S Survey

     Since 1969, EPA  has assessed  POTW construction  requirements  through the
HEED's Survey.  The  results  of the  survey are summarized  and  computerized by
EPA and  used  for appropriating  Construction Grant  funds  to the  States.  The
1980 survey includes  estimates  of the present needs  to  fulfill NPDES require-
ments, and cost predictions to meet the 1990 needs.  Various means were used by
EPA to make  these estimates,  such as  engineering estimates,  comparison with
previous costs, EPA  cost estimating procedures,  and  rough estimates.  The 1990
predictions are  based on  projections  of future  populations  and  the present
value of future construction costs.

     The data  for  the 1980  HEED's Survey  was developed  by updating the 1978
HEED's Survey on a facility-by-facility basis.   Information from previous  HEED's
Surveys  is recorded on the HEED's Survey  form  and  updated  using information in:

       •  1978 NEED's Survey
       •  Regional files
            -  NPDES  permits and  applications
            -  Construction grants
            -  O&M data
            '-  Facility  and/or  regional plan (201  and 208)
            -  State  water quality  files
       •  State  and  locally supplied  data
 Five  generic  data categories  are represented in the survey:

        •  Identification information
        o  Pollution load data
        •  Pollution control data
        •  Facility status information
        •  Construction needs information.
                                                                             -JRB Associates.

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                                     2-21
     All communities with populations greater than 10,000,  and  all communities
within Standard  Metropolitan  Statistical  Areas (SMSAs),  are included  in  the
survey.  States decide how  many  of their communities with  populations  of less
than 10,000 would also be surveyed, but at  least 20 percent of these communities
are included.  Twenty-nine States and territories included 100 percent sampling
of the  small communities.   All  2,000  municipalities  subject  to  the  General
Pretreatment Regulations are included in the NEEDs Survey.

2.2.1.8   Permit Compliance System

     The Permit  Compliance  System (PCS)  is designed  to track construction and
monitoring events  detailed  in NPDES  permits.   Inspections  of  POTW facilities
are made by the State or EPA Region to verify that the construction requirements
scheduled in the permits have been completed.

     The PCS, a  computerized  system,  contains  no technical data.  Regional EPA
offices keep the  technical  data  separately in  NPDES  files  which are generally
not computerized.   These  data  include   pollution   loadings,  waste  treatment
components,  and  proposed  construction   information,  and discharge monitoring
reports, which  contain  the results  of  periodic  self-monitoring  required  in
each NPDES  permit.  Although  this technical  information is not  entered  into
PCS, portions  are  extracted and  compiled  in the  NEED'S  Survey data base.

    •The information  contained  in PCS  is entirely  descriptive and  used for
enforcement  and  compliance purposes.  It is continually updated by  EPA as  a
current source  of  descriptive  information  on  compliance.   In  this  project,
PCS data  is used soley to  estimate  the  number of industrial users discharging
directly to  receiving  water bodies.

2.2.2      Summary  of  Information from Data Bases

     The data  bases  that   measure  POTW  problems  tend  to   verify  that  common
problems exist  at  POTWs.   Many of the problems are national  in  scope and cover
                                                                           .JRB Associates.

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                                      2-22
plants with a  full  range of  flow and industrial  contributors.   The following
discussion details  some  of  the  findings  from  the  major  data  bases.   These
findings are presented here  in  order to highlight the  generic  problems common
to POTtfs.  In  Chapter  3  of this  report, these data bases  are  further analyzed
as part of our evaluation of industrial impacts on FOTWs.

O&M and Process Upsets

     A high percentage of O&M and  process upset problems at POTWs  are associated
with nondomestic  (industrial)  flows entering the  POTW.   From a  review of the
O&M data base  and the 77 POTW visits, it can be concluded that industrial waste
control will  reduce the O&M and process  upsets  and improve  POTW operation.

       •  Approximately  79  percent  of the  POTWs  with  O&M  problems receive
          industrial wastes  and  are of a design capacity  less  than 5 mgd (O&M
          Data Base).
       •  Over 70 percent of POTWs  that report receiving industrial  wastes cite
          O&M  problems associated with their industrial  flow  (O&M Data Base).
       •  Of POTWs with overloads, 77 percent  report hydraulic overload  problems
          and  42  percent  report  organic  overload problems  (O&M  Data Base).
       •  O&M  problems associated with industrial waste  and O&M  problems associ-
          ated with  sludge handling and processing  are the  most  frequenctly
          reported  problems  other   than plant   obsolescence  (O&M  Data Base).
       •  The  most  commonly  listed problem  industries  for POTWS <_ 5 mgd are:
           food, electroplating,   mechanical  products,  and  textiles  (77  POTW
          Study).

Permit Problems

      A high  percentage of POTWs  violate  their  NPDES permit.   For  most POTWs,
NPDES permits  include limits  on conventional pollutants  only.  The data pre-
sented  in these  analyses  and summarized below  indicate that  industrial  users
are  signficant contributors  to  POTW permit problems.

        • More than 60 percent of the POTWs in the O&M data base chat report  O&M
           problems  associated with  industrial wastes violate their NPDES permit.
                                                                            •JRB Associates
_1

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                                      2-23
       •  Of  the POTWs  in the  77 POTW  data base with  permit violations,  65
         percent of  the operators at plants with permit violations  attributed
         those violations to  industrial  discharges.

       •  Almost 70  percent  of  all  POTWs  violate  their  NPDES  permit  with
         approximately  50 percent of then  in  violation  10 percent  or  more  of
         the time  (132  POTW Study).

       •  Approximately  80  percent  of  all permits  address  only  conventional
         pollutants  with 30-40 percent  of current permits having  been issued
         prior to  1977  (132 POTW  Study).

       t  Approximately   50  percent  of  the POTWs  have some  level   of  control
          (ordinance, permit,  etc.) on  all  industrial users  in  their  system,
         but approximately 70  percent  do not  monitor industries on a  regular
         basis (132  POTW Study).


Sludge Problems


     The multiple  data  base  analyses indicate  that  sludge  contamination  is
usually associated with the concentration  of  metals  in  the  POTW  sludge.  As
more POTWs   select  land-based disposal  options,  metal concentrations  in POTW
sludges will become  a more  serious  concern and will need to be decreased  prior
to sludge disposal.

       •  Heavy metals  removed at POTWs are incorporated into  the sludge of  the
          POTWs (40  POTW  Study).

       •  Nearly all of the POTWs in  the  O&M data base that  were evaluated  for
          sludge problems  reported  dissatisfaction  with  their sludge  disposal
          practices  and/or costs.

       •  Of  the POTWs in the  77 POTW  data  base,  87  percent  report sludge
          contamination contributed by industrial wastes.

       •  The  77 POTW data base indicates  that 30 percent of  the  POTWs  have  not
          sampled  their sludge.


Pass-Through.  Bv-paaa and Combined Sever Overflow  (CSO) Problems


     The data  available from the  literature and other studies are  insufficient
     for an  analysis of pass-through of  toxic pollutants.   In by-pass situations
                                                                         •JRB Associates.

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                                      2-24
some pollutants are  discharged  into Che  receiving  waters untreated.   The O&M

data base yields the following:


       •  Approximately 35 percent of the POTWs bypass monthly for varying time
          periods of up to 24 hours per month (O&M Data Base).

       •  The highest  reported  instances of  bypass occur in  Regions  II and V
          which are  heavily  industrialized.   The potential exists  for signfi-
          cant industrial  pollution due  to  bypassing in  these  regions (O&M
          Data Base).

       •  The 40 POTW  study  found increased heavy metal concentrations in com-
          bined sewer systems due to wet conditions.  This may be due  to flushing
          of metals  that settle during dry conditions.


General


     POTWs have  operational  problems  that  are  influenced  by  the industrial

flows  entering  their systems.  A  number of POTWs  do not report industrial flows

because  they do not  know the volume.  However,  they do report  industrial wastes

as  contributors to  their O&M, sludge and  permit problems.


        • In the  40  POTW  Study,  industry was found  to be the  major  contributor
          of the priority pollutants to POTWa.  Variations in  priority  pollutant
          concentrations can be  attributed  to the types and sizes  of industries
          discharging  into the POTW.

        • Approximately 15 organics, 8  heavy metals, and cyanide are normally
          found in POTW influent (40  POTW Study).

        • A number of  POTWs report O&M  problems due to industrial  wastes but do
          not  know  the  industrial flow  contributors  into  their  facility (O&M
          Data Base).

        • POTWs meeting secondary treatment requirements also  remove priority
           pollutants.   Generally, these  POTWs  remove  70-80  percent or more of
           the  heavy metals, 80  percent  of  the total  volatile organics,  and 70
           percent of  the  total  acid-base-neutral  organic  pollutants  (40 POTW
           Study).
                                                                          •JRB Associates.

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                                      2-25
       •  Sixty-eight (68) percent of the POTWs do not monitor their industrial
          users or enforce  their  industrial  requirements  on  a regular  basis
          (at least  once  per year);  and  of  the  remaining 32  percent  that  do
          monitor, only 12  percent monitor  metals  and  1  percent  monitor  for
          toxics (132 POTW Study).
       •  POTWs that have  existing pretreatraent programs have lower concentra-
          tions of priority pollutants in the POTW influent and effluent.  Based
          on the  40  POTW  Study,   for  example,  total metals  were 28  percent
          higher in  the  influents of  POTWs  that did not  have  a  pretreatraent
          program.  This trend carried  through to the acid-base-neutrals which
          were 76  percent  higher  in the  influent;   and  the volatile  organic
          priority pollutants which were 315 percent higher.

2.2.3     POTW Modeling Effort

     The data  sources  examined  above are valuable to assess  the general degree
and extent of environmental, health and cost  impacts  of pollution  from indirect
dischargers.  However, they are insufficient to adequately  measure  these  impacts
for alternative pretreatment  programs.   Moreover, there is  little actual data
that precisely or systematically relates indirect  discharges of  toxic pollutants
to environmental  effects  such as   industrial  sludge  quality  and quantity, POTW
influent and  effluent  quality,  water quality  impacts on receiving streams and
pretreatment  related costs.  To provide EPA with a precise  decision-making tool,
JRB developed a mathematical model of a POTW  system to help quantify these envi-
ronmental impacts  and  costs of pretreatment program  alternatives  at individual
POTWs.

     To measure water  pollution and  sludge contamination,  the discharge  of ele-
ven pollutant  parameters — nine heavy metals, cyanide,  and total toxic organics
— were  quantified.   These choices  once again required balancing of  what was
available with what  would  be  most  meaningful for  the  analysis of toxics  control
at POTWs.   To provide a  comparative baseline,  volumes  and  mass  of discharges
for silver,  arsenic,  cadmium,  chronium,  copper, mercury,  nickel, lead, zinc,
cyanide  and total organics released  into  the water  or  concentrated in  sludge
were calculated.   For obvious  reasons,  only  volatile  toxic organics were
measured  in air  emissions.
                                                                           •JRB Associates*

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                                     2-26
     The resulting information on total mass of priority pollutants released to
the environment under each regulatory  strategy is  used  in  Chapter 4 to compare
the costs and effectiveness of alternative pretreatment programs.  The modeling
effort was computerized because:

       •  It would  facilitate data  input  from  sources  that were already compu-
          terized (e.g.  STORET,  NEEDs Survey,  D&B  etc.)  and  would quickly
          handle the  sheer magnitude of the input  data required to thoroughly
          simulate the interactions  of industry,  the POTW  and the environment.
       •  It would  allow a microanalysis  for  a large  number  of POTW systems,
          providing a better basis for analyzing national  impacts.
       •  It could  easily perform the  number  of  simulation  runs necessary to
          analyze the  sensitivity of the key  assumptions  made in the project.
       •  It  would permit a precise  analysis that includes  all of  the 2000
          POTW3 for which data  could be obtained.
       •  It would  be easy  to make  modifications and  changes in assumptions
          or data  elements  in  order to rapidly  test  additional  alternatives.

     The model  can calculate   coat  and environmental  results at each  of  the
2000 POTWs  subject  to the General  Pretreatment Program and aggregate national
totals of these impacts  for  comparison.  At the time of this  report,  some data
elements were  lacking for all  2,000 POTWs.  For  example,  1,583 POTWs  discharge
to  receiving  streams, however, stream  flow data  was  available  for  only  703
POTWs.   Brief  details of  the  model development  are provided  below.   Appendix
C  provides  a thorough description of the model.

2.2.3.1   Central Approach

      The approach  of  the modeling  effort  was  to collect  as  much specific  data
as possible for each of  the  2,000 POTWs  subject  to  the  General Pretreatment
Regulations.   The model  relies  heavily on the centralized data bases (NEEDs,  Dun
and Bradstreet,  PCS)  and  projects  average  data characteristics  where specific
data were not  available.  The model has three  conceptual modules:
                                                                            •JRB Associates.

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                                      2-27
     1.  Selection of a regulatory  alternative  and  designation of major baseline
         assumptions.

     2.  Effects  on  industry;  including  environmental effects  such as sludge
         quality and  quantity,  and  effluent  quality;  and  financial  effects
         such as  pretreatment  related  costs,  sludge  disposal  costs,  etc.

     3.  Effects  on  POTWs — including environmental  effects such as influent
         and effluent  concentrations,  receiving scream  flow  and  water quality
         impact, sludge quality and air emissions of volatile toxic pollutants;
         and cost  factors such as  municipal  pretreatment  program costs.

The computer model performed  the following key computations after receiving  the
input data:

     1.  Identification   of   all  industrial  users  (Ills)   served   by  a  POTW.

     2.  Prediction  of the average effluent  flow  and  characteristics and pre-
         treatment cost for each IU.

     3.  Addition  of a baseline  concentration of  toxic  pollutants to account
         for domestic and commercial contributions.

     4.  Adjustment  of each  IU  flow  to reflect the actual  industrial  flow  at
         that POTW (normalization).

     5.  Application of an average POTW  removal  efficiency for each pollutant
         depending on  its level of  treatment.

     6.  Calculation of  toxic  pollutant  concentrations in  the POTW influent,
         effluent, and  sludge and summation of appropriate costs.

     7.  Effects  of  the  POTW effluent on  stream quality  and  contribution  of
         the POTW to potential water quality violations.
                                                                           -JR8 Associates-

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                                      2-28
The model uses a variety of adjustments to account for discrepancies among data
sources and to fill  in  missing data.   These factors are discussed in detail in
Appendix C-3.  A  simplified  flow diagram  of the model is  presented  in Figure
2-4.

2.2.3.2   Data Sources

     Table 2-2 identifies the major data elements required  to operate the model
and the  sources  for each  element.   The principal data  sources are identified
below.

     1.  Dun  and  Bradstreet's  (D&B)  marketing service provided the information
         which identified a  count of  IU's  in each POTW1 s  jurisdiction by SIC
         Code.  This data is on a computer  tape.

     2.  The  Permit  Compliance System (PCS)  data base provided  the  number of
         direct dischargers  in each POTW.   These are  subtracted from the D&B
         listings to  arrive  at the   number  of  indirect   dischargers  at each
         POTW.  We  then  normalized  that  information  to  the  total'  industrial
         flow.

     3.  EPA  Effluent  Guidelines Division (EGO)  supplied the  effluent  flow
         and  pollutant  concentrations  for  each of  the  34 categorical  industries
         included in  the model.  EGD  also  supplied the removal  efficiency  for
         each pollutant required by PSES, the associated pretreatment  technology
         costs, and  the SIC  code definition of each  industry.

Other  data derived  from EPA  estimates  include:

         •   Sludge  disposal  costs
         •   Applicable  stream  quality  criteria
         •   Adjustments to D&B to match  the number of Ill's nationwide counted
             by EPA
         •   POTW  removal efficiencies  (40  POTW  Study)
         •   Nonindustrial contribution to POTWs  (40 POTW Study and 4 City Study)
                                                                            .JRB Associates.

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                                          2-29
           FIGURE  2-4;  Simplified Flow Chart of Che Computer Model
    D & B
    PCS
    Needs Survey
    Stream Flows
    EGD CAtegorical Data
    Cost Data
    PTOW Efficiency Data
    Water Quality Criteria
                                  Compute Ills
                                 and Industrial
                                 Flow per POTW
 Normalize if
  necessary
                              Calculate Industrial
                            Sludge Quality/Quantity
                                 Calculate POTW
                                    Influent
    Quantify Environmental
          Effects
• Water Quality Violations
• Emission to Air
• POTW Sludge Quality
• POTW Effluent Quality	
 Quantify Option
    Costs
• Industrial Sludge Disposal
• Industrial Pretreatment Techology
• Pretreatment Program Costs
• POTW Sludge Disposal Costs	
                                 Output Summary
                                   of Results
                                                                           •JRB Associates*

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2-30
TABLE 2-2. MAJOR DATA SOURCES USED BY THE COMPUTER MODEL


















DATA GROUP DATA XHPUT ELEMENT
POTW Data




Daca On
Industrial
Users






Sludge
Generation/
Water
Quality
Data



Cose Daca




Miscellaneous
Data
POTW ID & Location
POTW Flow
POTW Level of Treatment
Methods of Sludge Dispodal Used by POTW
POTW Removal Efficiency of Priority Pollutants
Industrial Flow to POTW
Number of ID's per Category

Total dumber of Direct lU's per Category
Total Number of Industrial Planes per Category in U.S.
Total Number of Direct Industrial Dischargers Per Category in US
Average Model Industrial Plane Flow per Category
Raw Wasce Concentrations
Raw Waste Concent. Assuming No Pretreatment In Place (Baseline)
Industrial Sludge Generation Races
Municipal Sludge Generation Rates
Average Receiving Stream Flows
Low Receiving Stream Flows
Receiving Stream Water Quality Criteria for Aquatic Life
Receiving Stream Water Quality Criteria for Public Health
Volatilization Rate of Volatile Toxic Organics
Unit Cose for Pretreacmenc Technology
Cost Estimate for Development of Local Pretreatment Programs
Cose Estimate for Implementation of Local Prerreaemenc Programs
Unit Industrial Sludge Disposal Coat
Unit Municipal Sludge Disposal Cose Per Method
Pollutant Concen. Contrib. by Non- Indus. Sources u Model POTW
Matching between SIC Codes and Category Codes











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-------
                                      2-31


     4.   The EPA  NEEDs  Survey  provided  the  total flow,  industrial  flow  and
         sludge disposal method(s)  for each POTW.  The  NEEDS Survey  was  also
         used for  generating  descriptive  statistics  on  the POTW  population.

     5.   STORE! and USGS  data bases were used to determine the applicable stream
         flow for  POTW discharges.


2.2.3.3   Weaknesses of the Modeling Effort


     The model was designed to simulate the  interactions  of industry, the POTW

and the  environment  at  each  municipality.   However, the  model was designed
primarily to indicate specific differences between various pretreatment options.

Accordingly, the results calculated  for any particular POTW are often inaccurate

because of  the  generalizations  and normalization  assumptions needed to design

the model and because of certain data deficiencies.  Nonetheless, the aggregate

results closely represent  the  actual  cost and environmental effects expected

from pretreatment.  The  major  omissions and assumptions  of  the modeling exer-

cise that affect the conclusions are:


                              POTW Module Weakness


     •  Conventional pollutants are not addressed, except as they affect sludge
        generation.  EPA data for each of the  categorical  industries does not
        always include treatability of conventionals and  removal by pretreatment
        technologies to  be incorporated  into  the  model.  This  could be taken
        into account in  future analyses.

     •  The POTW removal efficiency for each  pollutant in  the model is  identical
        for all POTWs  within a  given level of treatment.  The most  representa-
        tive data  on priority  pollutant  removal  by a POTW  is  the  EPA 40 POTW
        study which  only includes  well operating plants. The  median  removals
        from this study  are used in the  model.  As  a result, the estimates  of
        possible water quality violations  are probably a  minimum.

     •  Municipal sludge was defined to be non-hazardous. The cost of  municipal
         sludge disposal  is, therefore,  not a function of  level of contamination
        with toxic pollutants from  industry  —  no  matter  how  severe  the  contam-
         ination.  Consequently,   improved  sludge  quality  will  not  have  any
         quantifiable economic  effect  in  the  model.   If  EPA  issued  new sludge
         criteria, then certain  sludge disposal options utilized by  POTWs might
         need to be  replaced by more costly options.  This result could increase
         the cost  effectiveness of some pretreatment  options.
                                                                          •JRB Associates-

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                              2-32
Ambient water quality data for toxic pollutants is not available for
most water bodies.  Therefore, Che model could not calculate the incre-
mental degradation caused by the POTW discharge.  As a result the
actual number of violations are likely to be substantially higher than
those calculated by the model, especially when several POTWs and other
direct dischargers are on one stretch of a stream.  The model could be
modified to take into account other discharges so that the marginal
water quality impacts of each POTW can be calculated.

                  Industrial Module Weaknesses

The only common denominator between the NEEDS Survey information of POTWs
and D&B identification of lUs is the city name.  Consequently, Ills
within a POTW service area but in a suburb or different city will not
be counted in this method.  This affects the distribution of industry
in each POTW simulation.  The model uses EPA waste load data for each
of the categorical industries to construct the influent to the POTW.
Accordingly, errors in the identification of industrial users' impacts
the environmental and costs outputs from the model for individual POTWs.
However, these errors have only minimal effect on the aggregate results.

Within cities with multiple POTWs, D&B cannot distinguish which POTW
services each III discharger.  This error is minimized by the flow
normalization procedure described in Appendix C-3.

Each IU is assumed to have the characteristics of the EGD model plant.
As a result, the characteristics of an individual POTW will contain
errors related to the degree  to which actual ITTs  in  that system vary
from the national composite.  Again, this assumption leads to an under-
statement of water quality impacts.

SGD has not entirely verified all organic priority pollutant discharge
data from industry categories.  Model plant data  are especially suspect
for the organics  and plastics industry due to diversity within the
industry.  Consequently total toxic organics had  to  be treated as a
group  in the model rather  than individually.  Therefore, the model
does not now estimate water quality criteria exceedences for toxic
organic pollutants.

EGD has not entirely verified the amount of metal pollutant discharge
from industrial categories.

Industrial sludge was defined to be hazardous.  In  light of the current
delisting of certain  industrial wastes of hazardous  this assumption  results
in  an  overstatement of  disposal costs.

                        Overall Data Weaknesses

The bench mark  for water  quality  impacts of POTW  discharges on  the
model  is the Federal Water Criteria, and Drinking Water  Standards.
State  standards were  evaluated but  were  not  found to be  better  for  use
in  the model.
                                                                    .JRB Associates.

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                                     2-33
     •  Scream  flow  data is only  available  for 703  screams  from computerized
        data bases and  other  readily accessible  information.   However,  both
        the 132  POTW Data  Base  and  Che  703  stream  flows  available  for Che
        2,000 POTWs  show  similar  Crends.   For boch groups,  the  average scream
        flow is approximately 10,000 cfs, influenced  by  a  small  number of very
        large screams.  The median scream flow from Che 703 streams is approxi-
        mately 500 cfs.  versus 400 cfs. for Che 132 POTWs.  Since Che character-
        istics of  Che  132 POTWs  are  nearly  idencical  Co  chose  of  Che encire
        sec of POTWs (chis is documented in SecCion 2.2.1.2), it is likely that
        Che 703  scream  flows are  also representative  of  Che distribution  of
        screams servicing Che 2,000 POTWs.  EPA is currendy reviewing Che rep-
        resenciveness of Che stream flows  and  dilution ratios used in Che model.


2.2.3.4   Aggregation of Che Modeling Results For Comparison of Options


     As explained previously, Che model calculates a variety of cosC and environ-

mental quality data  for  each POTW.  The last step  in Che  modeling exercise  is
preparation of an  aggregate  summary cable, presenting  the national  costs, and

Che net improvemenC  in waCer,  air and sludge qualiCy.   The  aggregation output
can be  used  Co  compare  Che  results  of  various  pretreatment  options.   Items

that appear on the aggregation summary include:


       •  Industrial sludge quantity and quality

       •  POTW sludge quanticy and qualiCy

       •  POTW influenC and effluenC quality

       •  Applicable Water Quality and Health Criteria

       •  Ambient  stream concenCration  (POTW  effluenC  concentration/dilution
          ratio)

       •  Average Incremental Percenc of Water Quality criteria consumed by the
          POTW discharged

       •  Number of POTWs exceeding water qualiCy criCeria.


The aggregace results closely match available EPA national projections and mea-
surements.  A detailed analysis of Che model's accuracy is  presented in Appendix

C-4, and Che model results  are  summarized in Chapter 4.  In general, Che model
appears Co be a credible  simulation of  a POTW system and a  reasonable analytical

cool for quantifying che nacional  impacts of alternative pretreatment programs.
                                                                            •JRB Associates*

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                                      2-34
     Aggregate results are  more representative  of  national  cost  and environ-
mental impact  than  is  the  result  for  a  particular  POTW.   Inaccuracies  in
individual POTWs  could  be greatly  minimized by  improving  the quality  of the
input data.  For example,  by contacting  the POTW  to determine  its actual service
area, the  accuracy of local  industrial  pretreatment  costs  and  industry dis-
charge calculations  could be improved  greatly.   Thus,  the model  is  a useful
predictive tool  for  local  POTWs  and  States having accurate  municipal  data.
Moreover,  the use of local site specific water quality and local sludge criteria
would enable  the  model  to be used  to optimize  the  levels  of industrial  waste
control needed to  meet local environmental goals at  specific  POTWs.

2.2.3.5    Sensitivity of  the Model

     The measure   used  by  the  model  to  assess  water quality   criteria  is
exceedances,  which are defined  to  be an incremental  stream concentration  for
any  pollutant contributed by  a POTW that exceeded  the National Water  Quality
criteria.  This  measure,  although  useful  is  limited  in  that the  number  of
exceedances  is  primarily  driven by  the ratio  of stream flow to POTH  flow—the
dilution ratio.   Combined with the  very  low criteria for some pollutants, this
caused  the exceedances  to be  fairly insensitive to  industrial flow characteris-
tics.   The example below  serves to illustrate  the problems.

                                E SAMPLE   1
         Cadmium has an  aquatic life  chronic  toxicity of  25 ug/1.  The model
         projects a cadmium  contribution of 3 ug/1  from  non-industrial sources
         of which  50  percent  (1.5  ug/1)  will pass through  a  secondary POTW.
         Consequently, any POTW with  a dilution  ratio  of  60  to  1  (1.5  ug/1
         t 0.025 ug/1), or less  will exceed the cadmium  limit  if no industries
         are present.   Pretreatment  in any  cities  in this dilution  range  will
         not prevent the discharge from causing exceedance.
                                    E X AMPLE
         Conversely, at  POTWs with  very  large  stream dilution  ratios  even a
         large industrial flow  with no pretreatment may  not  cause a violation.
         Using cadmium, a POTW with  10 percent  of  its  flow from metal finishing
         operations would  expect  influent  cadmium levels  to  increase  by   24
                                                                          .JRB Associates*

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                                      2-35

        ug/1,  with 12 ug/1  passing  through the plant.   Added to the  1.5  ug/1
        effluent concentration from non-industrial sources,  an exceedance would
        be caused only  if  the dilution ratio  for  that  POTW was  less  than 540
        to 1 (13.5 ug/1 * 0.25 ug/1).  The median dilution ratios at  the 703
        municipalities for which flow data were available is only 110.
        Consequently, for  a signficant  number of  POTWs with  small  or large
        dilution ratios, the level of pretreatment has no effect  on the number
        of exceedances.

     To increase the sensitivity  somewhat, the model  also indicates POTWs that
exceed 50 percent and 25 percent  of  the  water  quality criteria.  These numbers
implicity assume that the POTW is not the  only discharger on a stream, and set
the other sources of pollutant equal to  the POTW  concentration or three  times
the POTW concentration  respectively.

     The model is much  more sensitive to pretreatment options where it predicts
absolute values, such as POTW  influent concentration, effluent  concentration or
sludge concentrations.   These values  are directly  calculated from  the  input
conditions and  can be used to indicate the absolute and percentage differences
between pretreatment options.  These results and sensitivities  are discussed in
more detail in Appendix C-4.

2.3       Benefits Investigation

2.3.1     Introduction

     In  this  report  the benefits of pretreatment  are  described  both  qualita-
tively and  quantitatively. Three quantitative measures  of  water related  bene-
fits are: 1) changes in effluent pollution loadings resulting from pretreatment;
2)  improvements  in water quality  as  indicated  by  the  elimination  of exceedances
of  federal  water quality criteria; and 3) dollar  values of  water based recrea-
tion activities,  such as boating, fishing, and swimming  which could be expected
to  occur given  improved  water  quality.  This section  briefly describes  the
methods  used  to monetize recreation benefits.  The assumptions of  the approaches
                                                                         •JRB Associates-

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                                      2-36
used, and their limitations  are also discussed.  The  resales of  the analysis
are given in Chapter  4.  A more detailed discussion of the estimation techniques
is provided in Appendix E.

2.3.2     Approaches to Benefits Estimation

Methodology

     A methodology that could  be used within the tine  and resource conataints
of this  study  was  developed  for monetizing the  benefits of pretreacment.  This
methodology was  used to  estimate  recreation benefits  for  17  municipalities
in which the model estimates that exceedances of federal water quality criteria
are all eliminated as a result of pretreatment.  Benefits associated with boat-
ing, fishing,  and  swimming  are monetized for each  of  these cases by combining
local information  on affected  stream area and its  capacity for recreation use,
with estimates of  the  values attached to  the different  forms of  recreation by
Individuals.  These values, or benefits  "factors" were developed (in conjunction
with EPA)  from several national and  case specific  studies of the benefits of
water pollution control.

     Two different  approaches  to estimating  benefits  were used  for each case
where exceedances  are  eliminated.   One approach estimates  total  user benefits
resulting  from boating and fishing  which are assumed to  occur  only after  all
exceedances  are  eliminated.   This  is done by  first estimating  the  number of
individuals  that  could participate in these  activities  (based on the full  use
capacity of  the area  of  water  made cleaner and  on the  number  of  recreation
days available In a year), and  then multiplying the number  of participants by
the  value  per  person per day of  activity.  The estimates of fishing and  boating
capacity are made using recreation  planning  standards  adopted by the State of
Ohio in  its  State  Comprehensive  Recreation Plan.

     The other approach monetizes the user  benefits associated with achieving
                                                                         •JRB Associates*

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                                      2-37
water of swimmable (and therefore boatable  and fishable) quality.  These esti-
mates are made  by  estimating the number of  households  living  in the county or
counties containing  or  adjoining the  affected area of  water,  and multiplying
that number by  the value  per household of  having swimmable water nearby.  This
approach differs from the above approach in two  ways.   First,  while the other
method only measures fishing and boating benefits, this method measures fishing,
boating, and  swimming benefits.  Second, while the  first  approach attempts to
estimate use  capacity  based on  the   area  of  water  available,  this approach
measures benefits based  on  the  population  available  to recreate in  or  on the
water, without  considering whether the  area of  water  available is  sufficient
to support the  local population.  Neither  approach  measures non-user benefits,
which include  existence,   or option  value, and  aesthetics.   Assumptions  and
limitations of  these approaches  are discussed next.

Assumptions and Limitations

     The approaches  used   here  monetize  only  user  recreation  benefits.   But
health effects, and reduced water treatment costs  may be  significant  for toxics,
and non-user benefits from cleaner water can be a substantial fraction of total
benefits.  This limitation contributes  to an underestimation of  total benefits.

     The underlying  assumption  basic  to  both  approaches  is  that  recreation
uses are achieved only in  cases where all exceedances are eliminated by pretreat-
ment.  Implicit in this assumption is  a base case scenario in which  no recrea-
tion uses of  water  occurs if one or more of the  federal water quality criteria
(regardless of  which criteria)  is exceeded on  the segment  of water  affected by
the POTW.  Achieving recreation uses   is thus assumed to be a threshold effect.
In general,  this  assumption  probably leads  to  overstated benefits,  as   some
boating, fishing, or swimming may occur in areas  having  exceedances.

     Another assumption  common  to  both estimation methods  is  that the  POTW
is the only  source  of  pollution discharges.  And as a  result,  all benefits of
                                                                            •JRB Associates.

-------
                                      2-38
cleaner water are  attributed  to  cleaner POTW effluents.   While this assumption
contributes to an  overestimation of benefits in  those  cases where exceedances
are eliminated,  it does  not  capture  the contribution  of  POTWs  to  attaining
uses where pretreatment alone does not eliminate all exceedances.

     Finally, the accuracy of the estimates of total benefits is limited to the
accuracy of the estimates of affected stream area,  population, number of recrea-
tion days available,  and  the  national  benefits  factors,  which may or  may not
reflect local  recreation  values.  Other  assumptions  and  limitations  are dis-
cussed in Appendix E.

Testa of Reliability

     Both of  the approaches  described above have been  tested  by applying them
to three  EPA case  studies which  used  significantly  more  complex estimation
techniques to monetize recreation benefits.   Comparison of  the results indicates
that the  use  of simple benefits  factors,  planning standards,  and population
estimates produces  monetized  benefits  in  the same  range as  those calculated
using the more  sophisticated methods  (see  Appendix E  Table E-6).  Of  course,
it is  uncertain  whether  the  performance  of the  simpler approaches  in these
cases is representative of their performance in general.

Use of Results

     The results for the  17 POTWs  can provide  a useful  indication of  whether
the aggregate benefits and costs  are roughly commensurate for  the POTWs analyzed,
but probably should not be relied on for making program tradeoffs.  Conclusions
for the individual cases studied  are likely to be valid in  those  instances where
benefits greatly exceeded  costs or  where  costs  greatly  exceeded  benefits.
                                                                           •JRB Associates-

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                                      3-1
     3. ASSESSMENT OF THE MEED FOR CONTROL OF INDUSTRIAL DISCHARGES TO POTWs

     This chapter summarizes findings on  problems experienced by POTWs receiving
industrial wastes.  Data  supporting this analysis were  drawn  from the studies
discussed in  Chapter 2  and presented in  Appendix B.   Modeling  results  from
Appendix C for two pretreatment  alternatives  are  also utilized for comparative
purposes to assess the  effectiveness  of  pretreatment  in controlling industrial
wastes.  These alternatives are:

       (1)  Current level of pretreatment in place;
       (2)  Estimated level  with the current 40 CFR  403 program including all
            categorical standards.

Appendices B  and  C should  be consulted for  information or additional details
on research  methodologies,  data sources,   assumptions,  and weaknesses  in the
analysis.

     The purpose  of  this  discussion is to quantify the need to control indirect
discharges of  toxic  pollutants.   To a large  extent  the  interpretation of this
analysis depends  on  statutory or regulatory triggers which define  the accepta-
bility of  levels  of toxic  discharges  to the environment.  Unfortunately, spe-
cific  toxic  limits for ambient  water  quality  are  not universally  accepted and
the development of sludge criteria is in  its  infancy.   As a  result, it is not
possible to  report  on the severity of an environmental  impact with confidence.
However, the  relative impacts can be compared among  options.  In addition, the
amount of  pollutants  which  pass  through  POTWs  to  the  environment  has been
calculated and are reported in this chapter.

      In  this  analysis  indicators  of  the magnitude  of  environmental  problems
are examined  and  estimates of  improvement  that  would be  afforded  by  pretreat-
ment  are made.  The  central emphasis  of  this analysis is on the  need to  control
toxic  pollutants  discharged to POTWs  by industry.  In addition,  the need  for a
general  S403-type program to establish the  impact of  industry on POTW operations
                                                                            •JRB Associates-

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                                      3-2
and Co control prohibited discharges is  addressed in this chapter.  The environ-
mental problems examined  in  this  section are principally  those  which the pre-
treatment program was  designed to  prevent,  namely: water quality degradation
from toxic  pass-through,  interference  and  by-passes,  operational  problems
caused by toxic interference, and contamination of sludges by toxic pollutants.
In addition,  qualitative results are  presented on  worker health  and safety,
air pollution,  and   groundwater  contamination  problems which  occur  at  POTWs
that receive  industrial wastes.

3.1  WATER POLLUTION

     The measures  of  water  pollution  detailed  in the  previous  chapter  are
NPDES violations and instances where water quality standards are exceeded.   In
this section,  documentation  of exceedances and  NPDES  violations are  evaluated
to determine  the  extent  and severity  of water  pollution problems  caused  by
industrial dischargers.   For several reasons the  data compiled on  exceedances
of water  quality criteria  should  be  viewed as  minimum  values.   First,  they
do not  include the  impact   of  by-passing of  raw waste  by the POTW on  water
quality.  This impact  ia potentially  severe.    Second,   the  data  on ambient
water  quality is  weak and no allowance is made in this analysis for  background
levels of  toxics.    One  would expect  additional  exceedances  of water quality
criteria without pretreatment if  background  levels of  toxics  could  be specified
accurately.   Thus,   the   normalization  assumptions  discussed  in  Section  2.3
 lead  to under-estimates  of  the number  of water  quality violations.

3.1.1     NPDES Permit Violators

      Priority pollutants from  industrial and  nonindustrial  sources  are  often
discharged  through  POTWs to  the  environment.   The release of  toxic pollutants
 in POTW effluents is  termed "pass  through"  and may cause the  facility to vio-
 late  its  NPDES permit,   or  cause  water quality  standards (which  protect  the
 use intended  for the  receiving  body)  to be  exceeded.   A  simple way to measure
 the need for pretreatment   is to  count violations  of NPDES permit  limits  and
                                                                           •JR8 Associates-

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                                      3-3
water quality  standards  for  POTWs  with  and  without  pretreatment  in place.
Unfortunately, very  few POTWs have  toxic  limits in  their  NPDES permits.  The
132 Study (representative  of  the 2,000  POTWs  requiring pretreatment programs)
revealed that 87  percent  of POTWs do not  have metals limits and 85 percent do
not have toxic  limits  in  their  NPDES permits.  Accordingly,  NPDES violations
are not  a good  indicator of toxic pass-through problems at POTWs.  Because the
number of POTWs  in the 132 Study  that  have NPDES  permit  limits specified for
metal and toxic  pollutants is  so  small,  an  analysis of  violations  for  these
pollutants is not significant.  However,  because  94  percent  of  the  POTWs in
the 132  Study have NPDES  permit limits  specified  for conventional pollutants,
the analysis  of  violations for  these pollutants is  signficant.   Of the  POTWs
with limits  for  conventional  pollutants specified  in their  permits, 40 percent
report violations  for  these  pollutants.   The  average  frequency of violations
for these POTWs  is reported as occurring 39 percent of the  time.

     The 77  POTW  Study,   which  focused  on POTWs  treating  less  than 5 mgd,
indicates that  66 percent experience permit violations,  and almost two  thirds
of these  violations   are  attributed  to   industrial  contributions.  Many of the
plants violated  monthly  as well as  daily discharge  limits.   This finding  is
corroborated  by  data in the  O&M File that show 60 percent of POTWs  reporting
O&M problems  associated with  industrial waste  were in violation of NPDES per-
mits.  Violation of  conventional limits may be  indicative of upset and  inter-
ference  problems which are likely to cause reduced incidental  removal  and high
amounts  of pass-through of toxics  at these POTWs.

3.1.2     Exceedances of  Water Quality  Criteria

     There is little data on  the water quality  impacts  of POTWs in the litera-
ture.  In  this  project the POTW  model was  used  to  simulate  the  interaction
among  industrial users, POTWs, and receiving bodies.  The analysis was conducted
on the 665 POTWs for which the stream flow data is complete.  Results were scaled
up to  cover 1,839 POTWs out of the population of 2,000 POTWs  estimated by EPA and
the  States to need pretreatment programs.   (The remaining  161 POTWs were  found
                                                                           •JRB Associates-

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                                      3-4
to have no flow according to Che Needs  Survey—attributable either to file er-
ror or that  the plant  is currently under  construction—and  were  therefore ex-
cluded from this analysis.   For the same reason the  703 POTWs  for  which we had
stream flow  data  were  scaled  down to  665.) Nine  toxic  metals,  cyanide, and
total organics were modelled in the project.  The model uses the POTW-to-stream
dilution ratio to calculate the concentration of each pollutant  in  the receiving
water body discharged from the POTtf.  This concentration is compared to Federal
water quality criteria  as  a measure of water  quality  impacts.   Table 3-1 sum-
marizes the percentage of plants which  would violate the Federal water quality
criteria for each pollutant,  assuming the current level of pretreatment  in place.

3.1.2.1   Results of Modeling Analysis

     Results of this  analysis  are presented  in Table  3-1 for  two pretreatment
options:
        (1)  Current level of pretreatment  in place, and
        (2)  The  current  40  CFR 403  pretreatment  program with categorical
             standards.

     The data  shows that  nearly  half  of  the  POTWs  (46  percent or  845 out  of
1,839  plants) exceeded  100 percent  of  the  the cadmium criteria.  Data  set D  on
Table  3-1  compiles  these  data.  However,  few  POTWs  exceed the  criteria  for
many of the  other  pollutants.   In every case that  another criteria is  exceeded,
the cadmium  value is also exceeded.  The exceedances in Data set D were  calcu-
lated  assuming  that background levels of  pollution  are  zero and  that  the POTW
is discharging  into pristine waters.   In short, the POTW is the sole  source  of
water  pollution.

     Perhaps a  more  realistic  way to measure  the impact of indirect  users  is
to tabulate  the  number of POTWs exceeding 50 percent of  the water quality cri-
teria. This approach assumes that other  sources  are accounting  for  a level  of
pollution  equal  to half of each criteria.   If  the marginal  contribution  of  the
POTW is at or above  the remaining portion  of  the criteria, then  an  exceedance
will  occur.   Data set  C  compiles  the results of modeling   this  assumption.
                                                                            •JRB Associates*

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                                          3-5

             TABLE 3-1.   MODEL INDICATORS OF WATER QUALITY VIOLATIONS

 (A)   AVERAGE PERCENT OF AQUATIC WATER QUALITY CRITERIA USAGE BY POTWs
 (Based on Chronic Aquatic Life Criteria Values and Mean Annual Stream Flow)

                       With Current Amount          With Full
                    of Pretreatment in Place      Precreatment
 Silver (Ag)                   127                     120
 Cadmium (Cd)                 972                     732
 Chromium (Cr)                   7                       2
 Copper (Cu)                    26                      12
 Mercury (Hg)                   6                       5
 Nickel (Hi)                     5                       1
 Lead  (Pb)                      25                      19
 Zinc  (Zn)                       7                       3
 Cyanide (Cn)                  58                      20

 (B)   PERCENT OF  POTWS EXCEEDING 25% OF AQUATIC LIFE WATER QUALITY CRITERIA

 Silver (Ag)                    39                      38                1
 Cadmium (Cd)                  66                      62                4
 Chromium (Cr)                   6                     0.8                5
 Copper (Cu)                    18                      11                7
 Mercury (Hg)                   5                       41
 Nickel (Ni)                     4                     0.3                4
 Lead  (Pb)                      18                      16                2
 Zinc  (Zn)                       7                       34
 Cyanide (Cn)                   25                      16                9

 (C)   PERCENT OF  POTWS EXCEEDING 50% OF AQUATIC LIFE WATER QUALITY CRITERIA

 Silver (Ag)                    29                      28                1
 Cadmium (Cd)                   57                      53                4
 Chromium (Cr)                   3                     0.2                3
 Copper (Cu)                    12                       66
 Mercury (Hg)                    2                       20
 Nickel (Ni)                     2                      0.2                2
 Lead  (Pb)                      11                      10                1
 Zinc  (Zn)                       2                       1                 1
 Cyanide (Cn)                   18                      10                8

 (D)   PERCENT OF  POTWS EXCEEDING 100% of AQUATIC LIFE WATER QUALITY CRITERIA

 Silver (Ag)                    19                       18                 1
 Cadmium (Cd)                   46                       43                 3
 Chromium (Cr)                   2                        02
 Copper (Cu)                     7                        34
Mercury  (Hg)                    1                      0.3                 1
Nickel (Ni)                     1                        0                 1
Lead  (Pb)                       6                        5                 1
Zinc  (Zn)                       1                      0.2                 1
Cyanide  (Cn)                   11                        6                 5
                                                                     •JRB Associates*

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                                      3-6
Almost 60 percent of the POTWs would violate the cadmium criteria.  Additionally,
a few other  criteria are  becoming important  (silver  at  29 percent and cyanide
at 18 percent).

     If the  background  level  is assumed to be 75  percent  of the water quality
criteria, then POTWs  contributing 25 percent  or more will cause exceedances.
Data set B shows that two-thirds of the POTWs  will exceed  the cadmium  criteria,
and 40 percent will exceed  the  silver criteria.  In addition to cyanide (at 25
percent) and  copper (at  18  percent),  lead  is also being exceeded  routinely  (at
18 percent) under this assumption.

     Data set A  shows  the average  percentage  of the water quality criteria  for
each pollutant attributed  to  the POTWs  modeled.  Not  surprisingly,  the largest
values,  for cadmium and silver,  in data set A are greater than 100  percent.   The
values reflect  the  low criteria  for these  parameters.   The  data  shows  that
chromium, mercury,  nickel,  and zinc  criteria  are  not  likely  to be  exceeded
because, at  an average POTW,  other sources  would  have to  contribute  more  than
90 percent  of the  water quality  criteria  to cause exceedances  for  these  para-
meters.

     The model was  also used to  measure  the  impact  that  categorical  standards
would have  on  reducing water  quality exceedances   from  their current  level.
Table 3-1  includes  these data.  The  improvement is not dramatic.   Categorical
standards only reduce by a few percent the  number  of POTWs with exceedances.
Assuming pristine  conditions,  exceedances  at  only  61  POTWs  were  eliminated
entirely.   The reason  for  so  few reductions  in exceedances is that  the  water
quality  criteria for the pollutants are relatively low.  When industry pretreats
at  these POTWs,  the residual pollutant levels  in  the POTW effluent  contributed
by  non-domestic  sources are  still high  enough  to cause the criteria  to  be ex-
ceeded.   Generally, the dilution ratio (stream  flow  to POTW flow) at the POTWs
causing  exceedances is low.  However, as  discussed  in the next subsection, the
 fact that  an exceedance is not eliminated does not  mean  that  pretreatment has
 not  had  a beneficial effect on water quality.
                                                                            -JRB Associates.

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                                      3-7
3.1.2.2   Explanation of Results

     The five critical  variables  which determine whether POTW discharges would
cause water quality criteria exceedances are:

       1) Toxics contribution  from  industrial  and  non-industrial  sources  to
          POTW influent
       2) POTW removal efficiency
       3) Stream flow and dilution ratio
       4) Background (ambient) water quality applicable
       5) Water quality criteria

Each of  these  variables  can  significantly  affect  the  number  of exceedances.
However, because of  the actual  range of their values,  some  variables are more
critical than others.  For example,  POTW removal  efficiency  is not  very critical
because (in  the  model)  constant  efficiencies were assumed  for  each  type  of
treatment (primary,  secondary  and   tertiary).   The  removal across treatment
types for copper is  representative.  It  varies  by a factor of about 4; from 82
percent for  tertiary  treatment  to  19  percent   for  primary treatment.   This
variation is hardly  signficant  when  compared  to  the  variation  in dilution
ratio.

     Dilution ratio  is  an  index  of POTW  flow to stream flow  below the POTW.
These ratios can vary  greatly.   For the 665 POTWs the range  is  from 1 to 1 up
to 30,000 to 1.  Clearly, the dilution ratio can  cause water quality  to vary by
several orders  of  magnitude.   Accordingly,  it  is   a major  determinant  of
exceedances.

     The value of  the water quality criteria also has  a  signficant impact on
exceedances.  Table  3-2  lists  the  aquatic  life  criteria   for  the  pollutants
analyzed in  this study.   Notice  that the  value  for nickel  is about 4 thousand
times larger than  for  cadmium.   Obviously,  exceedances for cadmium are more
likely than  for  any of the other pollutants.  The  data on Table  3-1 discussed
                                                                           •JRB Associates.

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                                    3-8
                   TABLE 3-2.   THRESHOLD DILUTION RATIOS
Pollutant

   Ag
   As»
   Cd
   Cr
   Cu
   Hg
   Ni
   Pb
   Zn
   Cn
 Aquatic Life
Water Quality
  Criteria
   (ug/1)

      0.12
    440.0
      0.025"
     44.0
      5.6
      0.2
     96.0"
      3.8"
     47.0
      3.5
                 The Critical**
Mean POTW         Ratio Based
 Effluent          on Medium
 (ug/l)0     Effluent Concentrations

    1.0               8/1
    1.0              None
    3.0              120/1
   33.0               1/1
   38.0               7/1
    0.13              1/1
   56.0               1/1
   12.0               3/1
   145.0               3/1
   151.0              43/1
  9 SOURCE:  40 POTW Study
09 Critical dilution  ratio':  The  ratio  at  or  below  which  a water quality
   exceedance would be  expected to  occur at half  of the POTWs.
  « The  acute number is  presented  since  there  is no  chronic water quality
   criteria value  for arsenic.
" Based on hardness  of 100  mg/1  CaC03.
                                                                         •JR8 Associates.

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                                      3-9
in the previous  section bears  this  out.   The most  exceedances occurred  for
cadmium.

     Water quality criteria can be used to calcuate a "critical" dilution ratio
for each contaminant.  This is done by dividing the criteria into the mean POTW
effluent concentration  of  the contaminant.  Table  3-2  lists critical dilution
ratios using mean effluent concentrations from the 40 POTW Study.  As expected,
the highest value  is  for cadmium.  This means that even at a dilution as large
as 120 to 1 that cadmium exceedances are expected.  Since the critical dilution
ratios are  calculated using  mean effluent  values, half the  plants  facing the
critical dilution  ratio  should  exceed the criteria.  Again,  the data from the
model presented in the previous subsection supports this analysis.  The average
dilution ratio  for the  665 POTWs is  110  to  1.  This is close  to the critical
dilution ratio for cadmium (120 to 1),  and nearly  half of the POTWs (46 percent)
violate the cadmium criteria.

     Critical dilution  ratios can probably be used  as  a preliminary method  Co
spot likely water  quality  problems  caused by POTWs.  The only data it requires
is stream  flow  and the  applicable water quality criteria.

     Although nearly  half  of the POTWa modeled  cause water  quality  to  be ex-
ceeded, very few (only  61) had  their  exceedances  eliminated  through categorical
standards.  The  reason  for  this  is  that  the contribution  of  pollutants  from
nonindustrial sources plus the  residual discharge from industry are often  suf-
ficient to  trigger exceedances.

     Table  3-3  lists  the mean contribution of pollutants from industrial and non-
industrial  sources in POTW influents.  Clearly, most of the contribution  is from
industry.   However,  domestic  sources alone will cause an exceedance if the water
quality criteria  is   low.  For  example,  the removal efficiency  for  cadmium  by
POTWs  at  secondary treatments is  50Z so that  non-industrial  sources  contribute
an average of 1.5 mg/1  of cadmium to  receiving  bodies  (.50 x 3.0 mg/1).  The
                                                                            •JR8 Associates-

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                                     3-10
       TABLE 3-3.  RELATIVE CONTRIBUTION OF INDUSTRIAL  AND  NON-INDUSTRIAL
                           SOURCES TO POTW INFLUENTS
                                Influent Concentration
Pollutant

   Ag

   Cd
   Cr
   Cu
   Hg
   Ni
   Pb
   Za
   Ca
Mean
Non-Industrial
Sources
(ucr/1)
5.Q
3.0
50.0
61.0
0.3
21.0
49.0
175.0
41.0
Average*
Influent
Concentration
JRB Associates.

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                                      3-11
threshhold dilution  ratio  for non-industrial sources  Co  trigger an exceedance
for cadmium is 60 to 1.  Over 25  percent  of the POTWs modeled would exceed the
cadmium criteria just from non-domestic sources.

     The above analysis does  not  mean that  industrial pollution control is not
important.  It does mean that  at  many municipalities  in the nation, other pol-
lution control programs, in addition to controls on  industrial users, are needed
to meet water quality goals.

3.1.2.3   Characteristics of POTWs Causing Exceedances

     From the previous discussion one would expect  to  find exceedances at POTWs
with low dilution  ratios  and large industrial  flows.   Table  3-4 supports this
premise.

              TABLE 3-4.  DISTRIBUTION OF POTWS BY  DILUTION RATIOS
PERCENT OF POTWS IN EACH DILUTION RANGE
                                     Dilution Ratios	
                  0^5050-100100-200200-500500-1000
All POTWs         36.8     10.5        10.2       13.6       8.3
POTWs Currently   52.0     22.2        19.3        5.2       1.3
with Exceedance

The cable lists  the  percentage  of firms in a range of dilution ratios for all
POTWa as  well  as for the  POTWs currently estimated  to have  exceedances.   Not
surprisingly, POTWs  with  exceedances  are   concentrated  in  the  low dilution
ratio range.  Very  few  of these POTWs have  dilution ratios greater than 200  to
1 (the  average  for POTWs with  exceedences  is  110  to  1).  Conversely, the dis-
tribution of  all POTWs  is more uniform across  the dilution  ratio ranges.   It
is highest  at  the  lower  end of  the   range  and  nearly constant  in the middle
ranges.  At  the  upper  range,  the concentration  is again  high,  indicative  of
the overriding effect that dilution has  on  exceedances.  None  of  the plants  in
this range showed any exceedances.
                                                                           • JRB Associates*

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                                      3-12
3.1.2.4   Limitations of Che Results

     A number  of  inherent weaknesses  in  the analysis  need  consideration when
examining the significance of these findings.  First, limitations in industrial
raw waste-load data prevented the measure of toxic organics violations although
they are probably occurring.  Second, the modelling exercise forces averages to
be employed  for  such variables  as  industrial  influent and  stream flow.  Also
data on the  ambient  water quality of receiving  streams was incomplete  so that
variation in background levels  of pollutants could not be accurately assessed.
In actuality,  industrial  slug  loads and low flow  stream conditions make addi-
tional water quality exceedances  possible.   Nonetheless,  these  model  results
are useful for comparative purposes.

3.1.3     Effluent Improvement Comparisons

     Several data sources demonstrate  that  industrial users constitute  a major
source of toxic  pollutant contributions to POTWs.   Table 3-5  shows the  percen-
tage of  improvement in POTW effluent  quality  experienced  (or  projected)   fo'r
cities with  and without precreatmenc.   These data  were taken from case  studies
of six municipalities  and from  a  comparison of effluents  from  cities  without
pretreatment programs  to  similar  cities  with  pretreatment programs  from  the
40 POTW  Study.   As  would be expected, pretreatment  significantly reduces-  the
concentrations of toxic pollutants  in POTW  effluent  for all  but two parameters.
An anomaly in  the data occurs for cyanide and copper, which  increased  in  concen-
tration.

3.1.4     Bypass (and Overflow)

     Bypass  occurs when flow to  a POTW  is  diverted either before  it reaches  the
treatment works  or within the  treatment  works,  and  is subsequently  discharged
to receiving waters with only  partial treatment  or with no  treatment.  These
events may be  intentional or unintentional, usually resulting from a combination
                                                                            -JR8 Associates.

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                                      3-13

                                   TABLE 3-5
     PERCENT IMPROVEMENT IN POTW EFFLUENT QUALITY WITH PRETREATMENT PROGRAM
Pollutant
Parameter

Silver (Ag)
Arsenic (As)
Cadmium (Cd)
Chromium (Cr)
Copper (Cu)
Mercury (Hg)
Nickel (Ni)
Lead  (Pb)
Zinc  (Zn)
Cyanide (Cn)

Total Metals

Toxic Organics
POTW Study(l)     Model

     0               6
    NA              26
    33              26
    33              81
    (7)             57
    NA              29
    (9)             74
    59              21
    51              U7
    16              NA

    26              63

    75              70
  Selected
Case Studies

     NA
     66
     53
     62
    (56)
     65
     28
     74
     64
    (30)

     36

     99
Mean

1.5
 36
 39
 58
 -2
 49
 32
 49
 52
 -7

 40

 82
 (1)   percent  improvements are derived from different cities with and without
      pretreatment  programs.

                   Data Sources:   Appendices B-4,  B-5, and C-3
                                                                            •JRB Associates.

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                                      3-14
of sewer  overflows,  precipitation, equipment  failure,  or in  some instances,
industrial overloads.  Even though the bypass may not  have been caused by indus-
try, the industrial toxics which are present in the POTWs  influent at the time of
bypass are discharged  directly  into the environment  without  treatment.  Thus,
the occurence of bypass may cause toxics pass-through.

     Bypassing does  not  significantly  increase the yearly amount of pollutants
entering receiving bodies.   A calculation using the data  reported above verifies
this conclusion.  The maximum bypassing (10 hours  per month of  all raw wastewater
by 35 percent of  the POTWs) would  increase  pollutions loads  by only 3 percent
per year.  Since this loading occurs over short durations,  they  are  acute rather
than chronic  occurences.   Acute water quality  criteria  are much higher values
than chronic  criteria.   As a  result,  only  the  most  extreme  by-passing events
will cause acute  water quality standards  to be exceeded.  Moreover, bypassing
is often  necessitated  by heavy rain fall  which overloads the sewers.  Accord-
ingly, industrial  wastes which  are bypassed  are  diluted by  runoff which mini-
mizes their impact on  stream water  quality.

     Information  from  Che O&M Data Base shows the occurrence of bypass at POTWs.
Figure 3-1 shows  that monthly bypasses occur across  the  full spectrum of  POTW
flow categories and  levels of treatment.  Overall, 35 percent  of POTWs in the
O&M File  receiving industrial wastes experienced monthly  bypass (33 percent  of
all POTWs  in  the  data base had monthly bypass).   A majority of these  bypasses
last  for  less than 10  hours,  with durations  reported   ranging from  1 to over 24
hours per bypass.

3.2   INTERFERENCE AND  UPSETS

      Another  major  problem  is interference  with  the  operation  of  treatment
plants  resulting   from industrial  waste  contributions.   Interference occurs
when  high volumes  or concentrations  of  pollutants  inhibit  or interfere  with
the normal  operation  of  POTW processes,  thereby hindering  adequate  treatment
of domestic  and industrial wastes coming  into the plant.  Upsets  are an extreme
                                                                           •JRB Associates.

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                                     3-1.    PERCENTAnK OF POTWs KKI'OKTING  MONTHLY

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                                                                                                            n
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-------
                                      3-16
type of interference  where slug  loads  of pollutants destroy  plant  functions,
and cause wastewater influent to passthrough untreated.

     There is documentation on Che prevalence of interference upsets, and opera-
tions and maintenance (O&M) problems at POTWs caused by industrial wastes.  The
77 POTW Study reported a  high incidence  of interference  upsets attributable
to the food  and  electroplating industries.  The O&M  data  base reveals that 72
percent of the 330  POTWs  receiving industrial waste  report  an O&M problem as-
sociated with  that  waste.   Thirty-eight  percent   of the  330  POTWs  reported
treatment process equipment failure as the O&M problem,  and 42 percent reported
sludge handling equipment failure as the problem.

     O&M problems associated with industrial waste have no apparent correlation
to POTW average daily flow.  While most of the 330 POTWs reporting O&M problems
receive less  than 5 MGD,  most of  the  POTWs  in the O&M data  base also receive
less than 5 MGD average flow.

     The data  from  the  O&M file are bolstered  by  results  of the 77 POTW Study
which report that one-quarter of POTWs experienced one or more types of process
upsets.  Of those sustaining  upsets, 84  percent claimed that industrial wastes
contributed to  the  upsets.   Additionally,  45  percent  of  the  municipalities
examined in  the  literature case  studies  reported  that the  key  motivation  for
implementing  a  pretreatment  program was  the need to  protect POTW operations
and equipment from  industrial slug loads.  (The  132 study reported POTW protec-
tion as  the motivation at  27  percent  of  the plants.)  Prohibited discharge
standards are  the  principal  mechanism  within the  Pretreatment Program  for
control of  interference.   These  standards  are locally set  and  vary greatly
from municipality to  municipality,  depending on local  conditions.  No attempt
was made to forecast  the effectiveness of  pretreatment  in eliminating  interfer-
ence in the modeling  effort,  because EPA does not have extensive  verified  data
on conventional pollutants from the categorical  industries.
                                                                            •JRB Associates.

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                                      3-17
3.3  SLUDGE CONTAMINATION

     Few regulations for  control of the disposal  of  contaminated sludges have
been promulgated, so it is difficult Co assess the constraints that cities will
be faced with  in disposing of their sewage  sludges.   Under current guidelines
all municipal sludges may be treated as non-hazardous wastes.

     Sludge contamination  results  from the  incidental removal  of toxic  pollu-
tants from Che POTW  wastevaeer  influent  in the course  of treatment.   Munici-
palities already  face   limited  choices  and high  costs   in disposing  of POTW
residuals.  The  contamination of  these  sludges  with  high  concentrations  of
heavy metals and other  toxic  chemicals can further constrain sludge management
options.  Increased  toxicity  levels in  municipal  sludge  may preclude cheaper
disposal options such as use as a fertilizer or a soil conditioner.  In  addition,
improper handling of contaminated sludges  may  lead  to  the  leaching  of toxic
pollutants into  groundwacer,  the introduction  of  metals  into  the  food  chain,
and hazardous air emissions from sludge  incineration.

     The 40 POTW study showed  that virtually  all of  the metal priority pollutants
removed by Che POTW  collect in the  resulting sludge stream.  The concentration
factors in both  primary, secondary and combined  sludges vary  greatly,  depending
on the  solids content  and other  factors,  but metals usually  ranged between
10 and  1,000.   Volatile  priority  pollutants that  were  frequently present  and
sufficiently above their detection  limits  had  concentration factors of between
less than one and 10.   The non-volatile  organic  priority  pollutants had concen-
tration factors  between the two other  groups.

     Several priority  pollutants  which were   reported  below  their  detection
limits in  most  POTW influents  regularly  were  quantified in  sludge   streams.
Pollutants exhibiting this  tendency include antimony,  arsenic, silver,  selenium,
phenanthracene/anthracene and pyrene.   For example,  arsenic was  measured above
its detection limit  in  15 percent of all influent  samples,  but  in 94 percent of
                                                                            .JRB Associates*

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                                      3-18
all sludge screams.  Table  3-6 presents concentration values  for metals which
the 40 POTW  study  found  to accumulate  in municipal  sludges.   It suggests that
the ranges of toxicity in municipal  sludges are  considerable.   Table 3-7 shows
that the 2,000 POTW model produced similar concentrations for toxics in munici-
pal sludge.  Table  3-7  also demonstrates the effectiveness  of  pretreatment  in
reducing toxicity  levels  for most  heavy metals  and  toxic organics  in sewage
sludge.  For instance,  pretreatment reduces  total metals  in sludge by 52 percent
and total organics by 67 percent.

     Dramatic improvements in sludge quality have been recorded by cities which
have implemented pretreatment  programs.  For  example,  in Muncie,  Indiana,  a
city with a large contribution of metal  platers,  sludge concentration (mg/kg-dry
basis) of chromium went  from 2,000 before pretreatment to  9.5 after pretreatment.
Copper went  from 1,750 to 700; nickel from 8,500  to 150,  and zinc from 5,800 to
2,700.  Table 3-8  compares the  percent  of  improvement  for  sludge  realized by
selected case study  cities  against those predicted by our  model.  The results
are remarkably consistent.

     Results of the  77 POTW  study further indicate the extent  of contamination
of categorical POTW  sludge.  Table 3-9  indicates  that 25 percent of  these small
POTWs were either  known1 or  suspected to have contaminated  sludges.  Of those
identified as having contaminated  sludge,  87   percent  of  the municipalities
attribute  this  contamination  to industry  and   67  percent  reported that this
contamination affected  their  disposal  options.   Contamination  is  not clearly
defined by the POTWs, but  this  analysis assumes  it to be the presence of heavy
metals in  those sludges that have been  analyzed   for pollutants.  Contamination
findings might  even be  higher  given  the  high percentage of municipalities
which have  not  analyzed  sludges  for   the  presence  of  priority   pollutants.

     Several  factors affect the  selection  of disposal  methods  at  the munici-
pality level.
                                                                            •JRB Associates*

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                                 3-19
                              TABLE 3-6
         CONCENTRATION OF SELECTED METALS  IN  SECONDARY  SLUDGE
                     FROM  40 POTW STUDY   (mg/kg)
                        Range            Average             Median

Cadmium                 1 -  1622             157                 14
Chromium              125 -  1762             730                422
Copper                150 -  3160             894                553
Nickel                 13 -  803              240                121
Zinc                  420 -  8468            2874               2167
Lead                   40 -  1169

                             Metal  mg/kg
SOURCE:  Federal Register
                                                                        •JRB Associates.

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                                      3-20
                                   TABLE 3-7
                  SLUDGE QUALITY WITH AND WITHOUT PRETREATMENT
                             FROM MODELING EXERCISE
AVERAGE POTW SLUDGE QUALITY (mg/tcg dry wt)
                               Without
                             Pretreatmenc
                    With
                Pretreatmenc
                  Percent
                Improvement
  Silver (Ag)
  Cadmium (Cd)
  Chromium (Cr)
  Copper (Cu)
  Mercury (Hg)
  Nickel (Hi)
  Lead  (Pb)
  Zinc  (Za)
  Total Metals
  Cyanide (CJJ)
  Toxic Organics
  32
  26
 831
 563
 1.3
 181
 147
 923
2704

 913
  32
  21
 222
 274
 1.0
  60
 132
 547
1296

 306
 OZ
19%
73Z
51Z
23Z
67Z
10Z
41Z
52Z

67Z
                                                                             •JRB Associates*

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                               3-21
                            TABLE 3-8
     PERCENT IMPROVEMENT IN SLUDGE WITH PRETREATMENT PROGRAM


Pollutant
Parameter            Case Studies            Model            Mean

Arsenic (As)               MA                  00
Cadmium (Cd)               20                  28              24
Chromium (Cr)              74                  75              75
Copper (Cu)                51                  50              51
Mercury (Hg)                -                  13               7
Nickel (Ni)                75                  68              72
Lead (Pb)                  71                   5              38
Zinc (Zn)                  51                  35              43

Total Metals               49                  51              50

Total Organics             NA                  70              70


              Data Sources:  Appendices B-5 and C-3.
                                                                     -JRB Associates-

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                                     3-22
                                   TABLE 3-9
           REPORTED INCIDENTS OF SLUDGE CONTAMINATION AT THE 77 POTWS
         Sludge    Contami-
         Needs     nation
         Analysis  Suspected
                                 Known Contarn.
                                 Reportedly
                                 Caused by
                                 Industry
                           Contain.    Practice
                           Affects    Land
                           Disposal   Spread
                           Method     of Sludge
if of
POTWS
22
15
13
                                                   10
                                         27
% of
Total
(77)
29%
7. of POTWs  -
Experi-
encing
Problem
Listed
          23%
        of POTWS
        that need
        analysis
19%
                                    17%
              87%
           of POTWs
           with known
                             13%
               67%
            of POTWs
            with known
                           35%
           contamination  contamination
                              Source:  Appendix B-3
                                                                     •JRB Associates.

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                                      3-23
     Landfilling:  Currently, 85  percent  of municipalities  dispose  of  their
sludges by landfilling.  Landfilling is regulated by  §4004  of the  RCRA Regula-
tion.  The following  issues  affect  the future  use  of landfilling as  a  sludge
disposal alternative:
       • Typically, landfilling costs are ?80/ton dry solids.
       • Increased  land costs  and   public  opposition to  siting  of landfills
         could decrease their use.
       • Increase landfill costs  by  forcing contaminated sludge to be disposed
         in §3000 secured RCRA landfills.   This  could  have as much as a ten-fold
         effect on the cost of sludge disposal.

     Landspreading;  As  a disposal  alternative  for  municipal sludge,  land-
spreading has  seen  decreased  use   in  recent  years.   The  following  factors
influence the use of landspreading for municipal sluge disposal:

       • Landspreading  today  typically costs ?60/ton  dry solids.
       • Cadmium criteria prohibits many municipalities from using landspreading
         as an alternative.
       • Public opinion is typically adverse Co landspreading.
       • .Decreased  land  availability  and  increased   land  costs  could  hamper
         future use of  this  alternative.

     Incineration;  Incineration/pyrolysis  handles  one million tons of sludge
per  year from the 2,000 municipalities which are subject to  the General Pretreat-
ment Regulations.   The following  factors  could potentially  influence the  use
of incineration  as  a municipal  sludge disposal  alternative.
       •  The  typical  cost  of  incineration   today   is  $150/ton dry solids.
       •  High  fuel  costs,   particularly  where sludges  are  laden  with heavy
          metals, have  already  forced many municipalities  to go back to land-
          filling  as  a  disposal method.
       •  Localities,  such a Phildelphia,  have no alternative  to incineration
          since  land availability is poor and shipping costs are high.  In time,
          these  restraints   could  force   other municipalities to   incinerate
          despite  fuel  costs.
                                                                           •JRB Associates-

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                                      3-24
       •  New technology  is  being developed  (starved-air)  which would appreci-
          ably lower incineration costs in the future.

     Sludge handling coats  vary  significantly  among the  various  disposal op-
tions.  They range from $60/ton for landspreading to $150/ton for incineration.
Excluding a low cost disposal option because  of sludge contamination, can have
a very significant impact on municipal sludge management costs.

3.4  ENVIRONMENTAL AND HEALTH CONSIDERATIONS

     Three additional  areas  of  concern in  a discussion  of  environmental and
health considerations  as  they  relate  to  industrial discharge  to  POTWs are
worker health  and safety,  air  pollution  and groundwater  contamination.  Un-
fortunately, they have  received little attention  in the technical literature.
However, a  few case studies  have demonstrated  the importance of  these  three
subject areas in assessing industrial discharges to wastewater  treatment  facil-
ties.

3.4.1     Worker Health and Safety

     Exposure of  POTW  workers  to airborne  chemical hazards  is  the  principal-
occupational health  concern  related  to  municipal wastewater  treatment.  The
major source  of these  constituents  are volatile  organic compounds  discharged
to the public sewer  from  industrial sources.

     In a  recent  study of 40 POTW  facilities,  volatile organic compounds were
measured in  the wastewater influent.  Table  3-10  shows the average  concentra-
tions and  detection frequencies  of 11  compounds  that  are commonly found  in
POTW  influent.  An  attempt was  made to compare the presence of these  compounds
to airborne   compounds  which  typcially   cause health   and   safety   problems.
Table 3-11  briefly  describes  the  airborne concentrations  of these  compounds  in
POTWs.  It  also  shows the  applicable  exposure  criteria,  toxicological  char-
acteristics,  physical  properties  and  industrial  sources  of  these  chemicals.
                                                                           •JRB Associates.

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TABLE 3-]0
	 Avern -e rnnrpnlrarlnns of 11 Compounds 	 , 	 	 	 . 	
(Concern rations (
Volatile Organic Lom|.ui.nd Actually T| v
benzene 	 1°

chloroform 	 5 10



1.2-dlcliloroelliune 	 10

ethyl benzene 	 100

melliyl chloride 	 100


mechlene chloride SO1
perctilorocthylene 5 100


toluene 37 100
I.I. l-irlUiloioeihone 180 350

crlchloroelhylenu 20 SO1

vinyl chloride 	 5



3) ,
CO ',. , , .1 IV II.,. I...I.I 1 ln.ll .'...
> J
j/j 'at Jll C mm llg
? 3dl 25 C rail UK
n ppm) Heal Ih KfftrlH
P^l' UM .1 1 -at nlc Sysirmlc uculu
1 skin Irrlcanc CNS dtpreasunt

SO liver damage
CNS effects



5 eye and reuplra- naicoclc effects
tory Irritant
100 eyus, nose, 	
throat "and bkln
Irritant
100 	 CNS depressant


SOO 	 narcotic
100 olid eye, none CNS depressant
and throat auiy cause hepa-
Irrllant tic Injury
200 eye, respiratory CHS depressant
and skin Irritant
350 eye and dermal narcotic
Irritant
100 eye. nose and CNS depressant
throat Irritant
1 skin Irritant CNS depressant







Phyilc.il P
CD runic VI'2
carcinogen of 75mm
blood forming
tissue
has caused can- 160mm
cer in humans
when adminis-
tered at high
doses
bJnun

7.1mm

CNS effects 4. But in


350mm
	 |4nm


22mm
	 100mm

58mio

atrniig coupe la- 2600mm1
t Ion with CNS,
respiratory.
hepatic, and
lymphatic LUII-
cer in hiinuius



ropertleb
ludublrlal Use
UP
176F Solvent, const ItnenL
of motor fuels

I42F Solvent In pharmaceutical
manufacture



IB3P Solvent, an tl -knock
compound
277P Solvent, ant I -knock
compound

-12F extractant, solvent
used in organic chemical
manufacture U>
M
I04F solvent <-"
250F solvent, dry cleaning


231 F feed for chemical
production, solvents
fuel constituent
16SF Industrial solvent

1B8F degreaslng solvent

6.98F used In the muimf.icLure
of polyvlny Ichlurlde ,
solvent, and chemical
aunufactnrliiB 1 uterine -
rt 1 ur ft
ai ate




n '•Somi.u: NIDSII. Interim He-ports 1 k 2. Health Hazards Reports, I9HI. Unpuhl Islied
'l(IO in HOO |i|ih LiuiLuiit rat Inns ULTU measured
1 1 I'. . 1. I . i'n
above the aural Inn hasln of a UWTP. Source:

Pursiin.il ciiuvurs.it Inn. I'nul Manner - KrA/MUKI.



-------
                                      3-26
                                   TABLE 3-11

                 VOLATILES WITH HIGHEST INFLUENT CONCENTRATIONS
                                    Average               Percent of Time
Organic Compound                   (in ug/1)                 Detected

Benzene                              585                        14.4
Chloroform                           516                        94.1
1,2-Dichloride                       223                        87.3
Methylchloride                       218                        97.9
Methlene Chloride                    727                        94.9
Perchloroethylene                     77                        92.4
Toluene                               46                         7.2
1,1,1-Trichloroethane                 21                        13.1
Trichloroethylene                     21                        59.3
Vinyl Chloride                        17                        90.3
                           SOURCE:  EPA 40 POTW Study
                                                                            •JRB Associates.

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                                      3-27
Recently in Louisville, Kentucky, a catalytic converter of an automobile ignited
explosive gases  in  a manhole  causing significant damage to the sewer.  This is
only an  example  of what  types  of accidents  can occur  with the  presence of
volatile organics  in   a  wastewater  treatment  facility.  There  are  also  case
histories of sewer workers who have been overcome in manholes by toxic volatile
pollutants, even after protecting  themselves  against  normal sewer gas hazards.
(See Appendix B6-1)

     Heavy mecals  such as lead, mercury,  cadmium,  chromium,  and  nickel,   from
industrial sources  are also contained  in  the  wastewaters  which reach the POTW.
In the  aeration  basin of  a typical  sewage treatment  plant,  the  heavy metals
may be  absorbed  onto  particulate  natter  and  emitted to  the  air  as aerosols.
These metal-containing aerosols can be inhaled  by workers  during POTW opera-
tions.  The  toxicological  properties  and  exposure  criteria  for  heavy metals
commonly found in POTW influent are shown  in Table 3-12.  The general provisions
of the 403 program  are meant to control some of these problems.

3.4.2     Air Pollution

     Approximately  400 POTWs incinerate or  pyrolyze 1,067,432  tons of municipal
sludge per  year.   This  number  is  continually  'increasing  as  landfill  space
decreases and  incinerator  technology  expands  and  becomes  more  versatile in
meeting  the municipalities' needs.

     During the  combustion of  municipal  sludges, emissions  to the  atmosphere
occur in the  form  of  particulates, toxic  organics and metals.  The majority of
the sludge  which  is   incinerated  is  generated   at   secondary  level treatment
facilities.  These  plants generally  remove  75  percent of toxic metal pollutants
which accumulate in the sludge.   In the  incineration  or pyrolytic process,  a
number of chemical  processes can occur, allowing  for  emission  to the  atmosphere
of many  complex organmetallic and hydrocarbon compounds.   Many of these emis-
sions are known  health hazards.
                                                                            .JRB Associates.

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                                                                         TABLE   3-12

                                                          Exposure Criteria  for  Heavy Metals
CuiicLMicr.il liinu
M..lnls nrl,,.illy
miMiurcd TL
(In mB/m3)
V PKI.
r.,ilmluD I.S7 x 10 .OS .lu.Mi : 0.2
fume. O.I
Chromium 3 x 10* 0.5 O.I
Copper 2.1 x 10"* 0. 1
fume: 0.1
dusti 1.0
II u
local-ill ui e
nsplr.iiury
irrli'int
Iracheo-
bronchlal
irrll.int
akin irritant
n 1 1 h B f r .• r t a

n-s|ilr»iory
Injury, lung
djnage
clumilc
SII-.|ICClud
t.arL inikgun,
kldnuy damage
Industrial
IKe
priiLi * 1 1 VL*
coal Ing u|>|>! led
by elcclropl.il Ing
	 carcinogen of
lung and nasal
Liivlty (hexa-
valent ihromlum
form only)
respiratory tract
Irritant
___
electrical
Industry, pesti-
cides
                               Lead
                               Nickel
                               Silver
                                              6.1 x I0~
                                                1 x 10'3
                                                           O.li
                                                           1.0
                                                           0.01
                                                                       0.05
                                                                       1.0
                                                                       0.01
                                                                                skin bcnsltlzer
grayish pigmenta-
tion of akin  dnd
membranes
 kidney damage,  battery manufac-
 CNS damage     lure, antiknock
                compound

carcinogen of   electroplating,
nasal cavity.   met.il working
lungs, paranasal
sinus

      	       photographic
                films.  Jewelry,
                catalysts
                                                             ro
                                                             CO
                                *Theee measurements were taken at an activated sludge plant.
                                Source: Hortlirop.  el ol, 1980.  Health Effects of Aerosols Emitted  from an Activated Sludgu Plant.  Vkisteualer  Aerosols
                                    and Disease,  EPA Health Effects Research Laboratory.  EPA-600/9-80-028.
00
>
&
o
n

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                                      3-29
     As time progresses a number of things are occuring which will only increase
the atmospheric loading of air pollutants.  These items are:

       •  Increase in the number of POTWs that are incinerating
          their sludge
       •  Increase in POTWs that meet secondary treatment; this
          results in a proportional increase of toxics in municipal
          sludge.

Air pollution is not considered in the model although the amount of volatiliza-
tion of organics is calculated.

3.4.3     Groundwater

     Fifty percent  of the  nation's groundwater  is used  as  a  drinking water
source.  Contamination  of these  groundwater  sources  has become  an increased
concern in recent years.   Wastewater treatment facilities  are  often sources of
groundwater contamination.  Approximately  five percent of the  total  volume of
flow which  passes  through a  POTW is  estimated to exftitrate,  much of it to
groundwater sources.  Exfiltration  accounts  for approximately  750 million gal-
lons per day from broken pipes and cracked liners in holding ponds.

     The rate  and  manner  in  which a  pollutant moves from the source  to the
groundwater depends  on  several complex  physical processes.  However,  many of
the metals  and organics  found  in wastewater  generally migrate  more   rapidly
through soil to a groundwater source.

     POTWs as  a  source of  groundwater contamination  becomes  more critical in
light of the  trend  of  industries  to discharge more wastewater  to POTWs while
POTWs are  not  increasing  their  capacity to handle these  increased  volumes or
to remove  toxic  pollutants.    Overall,   however,   little   attention  has  been
given to this  problem and data does not  exist to  quantify the extent to which
industrial pretreatment  will  mitigate groundwater  contamination.   Groundwater
impacts are not considered in the modeling exercise.
                                                                            •JRB Associates*

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                                      3-30
3.5  SUMMARY  —  The  Need  for  Control  of  Industrial  Discharges  to  POTWs

     The extent  of  upseta  and  NPDES  violations  at  POTWs  indicate  a  need
for municipalities  to  identify and  survey  wastewater  sources and  take  other
measures to  characterize  their operational  and environmental  problems.   This
need is evident for several reasons.

     First, a significant  number of the POTWs experience upset and bypass prob-
lems on a  persistent  basis.  The  following  findings  demonstrate this problem:

     •  The  O&M  file  reports  that  72  percent  of POTWs  receiving  industrial
        wastes experience  operation and  maintenance problems  associated  with
        that waste.
     •  The 77 POTW Study  reports  that 84  percent of POTWs experiencing process
        upsets do  so because of industrial discharge to the  POTW.
     •  In the  literative  case studies, 43  percent  of  the  municipalities cite
        protection of  the  POTW as the  key motivation  for   implementing a pre-
        treatment  program.

     Second, in  many  instances  POTWs do  not  know  if  pollutants  are passing
through the plant  or what  causes  interferences  episodes.  Moreover, many plants
have not   measured contamination  levels  of  their  sludges.   Likewise,  until
recently very  few POTWs had  precisely  identified  the  industries discharging
to  their treatment facilities. The  132 Study indicates that 36 percent of  the
POTWs had  not  conducted an  industrial  waste  survey  (IWS).   Of those that  had
conducted  an IWS,  73 percent  reported  that they have  taken action  toward estab-
lishing a  formal  pretreatment program  in accordance with  the federal regula-
tions.  A  majority of  cities  which have  conducted  an  IWS  completed  it within
the last   three  years,  suggesting that  federal pretreatment  program was  the
motivation.

     The  132  Study contains other data  suggesting that  many municipalities  and
POTWs have not examined the extent of environmental  problems at POTWs.  Sixty-
 six percent of  the POTWs studied do not monitor for heavy metals in their  influ-
                                                                            •JR8 Associates.

-------
                                      3-31
ent and  69  percent do ooc monitor  for the presence oŁ toxic organics.  The  77
POTW Study  reinforces these findings.  Sixty-eight percent  of  these  POTWs  have
no industrial  monitoring programs.   Of those  that  do monitor,  only  12  percent
monitor  for  metals and 1 percent  for toxic organics.   Finally,  30  percent  do
not have knowledge of the quality of  their sludge.

     These  two findings  indicate that many POTWs without  pretreatment programs
are potentially  subject  to industrial -  related  problems, yet do not know the
source or  extent  of  their problems.  These  findings  indicate the  need for  a
program, like  the General Provisions of  the 403  program, which  provides  a
system  for  identifying industrial dischargers  through waste surveys,  monitoring
and control  of problem discharges.

     Toxic  discharges from many POTWs are  significant, based on  the  results  of
the modeling  exercises.    Key  findings   about  toxics  from  the model  are:

      •   Almost half  of  Che  POTWs  exceed  water quality standards for at  least
         one pollutant assuming  the POTW   is the  only discharge to the  stream.
      •   Exceedances   of  water  quality criteria  for   cadmium  and silver  occur
         with the  greatest  frequency  but  cyanide,  lead,   and  copper  can  also
         present water quality problems.
      •   The impact of the discharge  from POTWa on  stream water quality depends
         on local water quality conditions, stream  size and the impact of other
         dischargers  to that stream.

      The number of water quality exceedances  reported by the model  represent a
minimum number that  would  be anticipated  from POTW discharges because  of the
 assumptions used  in  developing  the model.  The lack  of data on  ambient stream
quality,  dilution ratios  and the presence of other dischargers to stream segments
also serve  to  decrease the  occurance of  exceedances  estimated by  the model.
                                                                            •JRB Associates-

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                      4.   ANALYSIS OF  PRETREATMENT OPTIONS

     This  chapter  evaluates a  wide  range  of  pretreatment  options designed  to
address  the key findings  in Chapter  3.  These  findings are:
           •    In  the absence of any additional pretreatment  requirements,
               POTWs are  relatively  significant  dischargers  of  toxics,  con-
               tributing  about  60%  of the  total discharge  of toxics  by in-
               direct and direct discharges.
           •    in  the absence of any additional pretreatment  requirements,
               toxic water  quality problems resulting  from POTW effluent  dis-
               charges for  at  least  one  of  the  nine pollutants  analyzed are
               expected for about  46%  of  the POTWs  and 19%  for  at least two
               pollutants.
           •    in  almost  all cases where water quality problems are expected,
               POTWs are  likely to need more  toxic  effluent reduction than can
               be  achieved  by  categorical pretreatment  standards  for industry
               alone; and
           •    upsets, bypass, interference and sludge contamination are
               site-specific problems with site-specific solutions.

     All of the options analyzed (except for the  no  program option — guidance
only) use  the same mechanism to identify, prevent or remedy problems of upset,
bypass, interference and sludge contamination.   Each option requires municipal-
ities to  implement basic  industrial  waste  control  programs along  the lines
envisioned in  the  General Provisions of  the   403  Regulations  (hereinafter
referred to as  the "basic" 403 program requirement).   The basic 403  program
calls for  a  minimal  and  flexible  effort  by localities  to  identify  Industrial
users,  develop effluent limits  for problem discharges and  perform permitting,
monitoring and enforcement  activities  to  reduce  Industrial discharges  harmful
to the  POTW or the environment.

     The options differ in their strategy for reducing the pass-through of indus-
trial toxic pollutants into the POTWs'  receiving  waters.  The  most  significant
                                                                    •JRB Associates.

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                                      4-2
difference between the options with  regard to  reducing pass-through is whether
they are "targeted" or "untargeted."   "Targeted"  options  require controls only
where they are needed to achieve water quality;  and "untargeted"  options require
uniform controls  regardless of  the  status of local  water  quality problems.
This analysis  has quantified  the  cost  and environmental  differences  between
targeted and untargeted  options.  To quantify  the differences,  the POTW model
was used to estimate the cost of each option to industry and to  municipalities.
In addition,  the POTW model  was  used  tp  quantify  a  number  of indicators of
environmental  benefits,  including  the amounts  of  toxic pollution  removed and
the extent to  which each  option may  reduce water quality violations.  Finally,
some of the benefits associated  with  the  options have been  monetized.

     There are other  differences  between  the options  that  can have  a  less
significant effect  on  cost  or  environmental   impacts,   but   have  important
programmatic implications.  These  differences  include whether  the control point
is at  the  industrial  level  or  at  the  POTW,  whether  the  requirements  are
technology-based or  water  quality-based,  the  level   of   federal   involvement
and  the  reliance on  local  initiative.  The  significance  of  these  differences
among  the  options is  qualitatively  discussed.   However,  it  was not possible
within the  time  frame  and  resources  of this  study to quantify the cost and
environmental  impacts  of these  differences.   For example,  it was not possible
to quantify  the  potential  cost savings  associated with  regulating the  POTW
instead of  regulating  the  industries  discharging  into  the  POTW.   This  cost
saving is  likely  to  be  small  compared  to the  cost  savings   associated  with
targeting  requirements.

     This  chapter also identifies key implementation  and  design issues.   These
 include issues  regarding the  technical  feasibility of developing  technology-
based  toxic limits for  POTWs,  water quality  waivers  and water quality-based
 limits.   It was  not feasible within the time and  resource constraints  of this
 study  to  develop approaches for overcoming the problems identified.
                                                                     •JRB Associates.

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                                      4-3
      Finally, there are additional variations  to the options  that were not ana-
lyzed.  This does not mean that these potential improvements are not important,
but rather that they were less significant considerations from either an impact
or a programmatic standpoint  than  the  design parameters  identified above.  For
example, two additional  potential  improvements for the  options  that are based
on categorical  standards include:  removal credits  allowing industry  to meet
less stringent  pretreatment  standards  to  the extent  that  the  POTW provides
removal; and  equivalency waivers   (or  grandfathering)   for those  POTWs whose
existing program  is designed differently  from  federal requirements  but  has
essentially the  same effect.   While both  of  these potential improvements will
likely result  in  coat  savings to  either  industry or to POTWs, they are  likely
to be  small compared to  the  cost differences  between  targeted  and untargeted
options.  Further,  these modifications are adjustments  to  the existing program
rather than program alternatives.

     This chapter is organized as  follows:
      • Section  1   describes   the   key  design  choices   for  the   options.
      • Section  2 describes the options that have been analyzed.
      • Section  3 discusses  the key  differences  and similarities between  the
        options.
      • Section  4  presents the  environmental  impact of each  of   the  options.
      • Section  5 presents  the options' costs  and coat-effectiveness.
      • Section  6 discusses  the benefits  of the options.
       • Section  7   discusses  feasibility  and  design  issues  of  the  options.
       • Section  8 discusses  other  considerations such as administrative issues.
                                                                    •JRB Associates*

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                                      4-4
4.1  KEY DESIGN CHOICES

     There are  four  key  design  choices  for  the  options  analyzed  in  this
report:
       • Targeted vs. untargeted requirements
       • Technology based-standards versus water quality based standards
       • Regulation of industry vs. regulation of POTWs
       • Presumptive federal requirements vs. back-up federal requirements

These design  features are  introduced  below and  discussed  in  greater detail
later in this chapter.

4.1.1     Targeted Versus Untargeted Requirements

     Targeted options require control actions only  where  there are water quality
problems, whereas options that are untargeted require control actions regardless
of local environmental conditions.  All options with water quality-based stan-
dards are  targeted.  Options  with  technology-based standards  are untargeted
unless  they include  a water quality waiver.

     By definition,  targeted  options  should be more  cost-effective than untar-
geted  options.  However,  targeted  options may be technically more difficult  and
expensive to  implement  and may require greater federal  Involvement than do  un-
targeted options.   As a  result,  targeted options  may not be  as effective in
the  near  term as untargeted options.

4.1.2     Technology Based-Requirements Versus  Water Quality-Based  Requirements

     Technology-based requirements are typically  uniform  for  categories  of
dischargers and require that  certain  control levels be achieved regardless of
 the  water  quality  of the  receiving waters.  If  the objective  is to  achieve
water  quality,  then these standards can result in  overcontrol  or undercontrol.
                                                                     •JRB Associates.

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                                     .4-5
In cases  where the  full control  levels  are  not necessary  to achieve  water
quality, overcontrol  can be  avoided by  providing for  waivers.  However,  in
cases where  there is  undercontrol, technology-based  requirements  alone  will
be inadequate to achieve the desired water quality.

     Ideally, water quality-based standards should never overcontrol or under-
control.  However,  they are  typically  more  difficult  to  develop,  requiring
more resources  and expertise  than  technology  based-standards.   In addition,
they may require more time to be effective.

4.1.3     Regulation of Industry Versus Regulation of POTWs

     Regulation of the  POTW  provides the opportunity for the  POTW to meet its
effluent limitations  (whether  water quality-based or  technology-based)  in the
most cost-effective  manner.   this   could  include the  reduction  of pollution
discharges from nonindustrlal  sources,  the  enhancement  of POTW treatment capa-
bilities, the use of categorical pretreatment standards for industrial sources,
and the  use of  economic approaches  such as  effluent  charges  for industrial
dischargers.

     Direct federal  regulation  of  industry   reduces  the  options  that  POTWs
may consider  in addressing  their  water quality  problems.   Therefore,  federal
regulation of  POTWs   should  be  more cost-effective  than  directly  regulating
individual industries.  However, as discussed  later in  this  chapter,  regulations
for POTWs  can be  technically  more  difficult  to  develop than regulations for
industry.
4.1.4     Presumptive Versus Back-up Federal Requirements

     Presumptive federal  requirements  establish specific  effluent limitations
and deadlines.   Federal  back-up  requirements  allow  POTWs  to  identify  and
solve their  problems without  federal intervention,  but provide  for specific
                                                                   •JRB Associates.

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                                      4-6
federal intervention if the problems  remain after a set period  of  time.   With
guidance, there  is  only   information  provided  with  no  presumptive  federal
requirement and no federal back-up.

4.2  OPTIONS EVALUATED

     Nine options  are  evaluated in this  report.   These options  were selected
to represent the  most  important combinations of the key design  features.  The
starting point for each of  the  options (except for Guidance Only) is the basic
403 program.  The options differ  ia the way  they deal with the pass-through
of industrial toxic discharges is dealt with.

     The options  and the  circumstances  in  which  each option is  best   suited
are described below.

4.2.1.    The Existing Program

     This option  requires full implementation of  the  existing program as des-
cribed  in  Chapter 1  and  assumes  for  the purposes of  analysis, that this has
been accomplished.  Two thousand (2000) municipalities are  required  to implement
a  basic 403 program to control industrial  wastes  and must  apply  and enforce
categorical pretreatment  standards  for  all  34  industries discharging  any  of
the  129 priority  pollutants.  Under this option, municipalities are  assigned  the
lead  role  in implementing and enforcing  pretreatment  standards.  NPDES  States
may  also play  a  substantial role if  they  chose.  Otherwise, the  federal govern-
ment will oversee compliance efforts.  While the administration of this approach
 is shared  by all  levels  of government,  the federal government  is  responsible
 for the development  and   promulgation of  technology-based  toxic  pretreatment
 standards  for  industry,  thereby  creating  national  uniformity.  However,  the
 pretreatment requirements may  be reduced  where municipalities apply for  removal
                                                                    -JRB Associates.

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                                      4-7
credits for industry where POTW removal efficiencies are high enough to protect
water and sludge quality.   [For purposes of  this  analysis,  the  impact oŁ removal
credits on the cost to industry or  on water quality was not evaluated.]  Thus,
the key differentiating feature of  this  option  is  the  control of pass-through
of toxics  by nationally  uniform,  technology-based standards  applied  to  all
indirect dischargers within  industrial categories  by all POTWs receiving regu-
lated wastes.

     This approach is most applicable if it  is believed  1) that uniform indus-
trial performance  standards  are  needed because  toxic pollutants from  industry
are a  significant  problem to  any POTW  receiving  them, and  2)  that the pass-
through of  toxic  pollutants should  be  reduced regardless  of  the  status  of
local water  quality.

4.2.2     The Existing Program. But Reduced  Scope

     This  option requires  the  basic 403 program  for the 2000  municipalities but
categorical  standards  would  be developed only for  selected industries.  Alter-
natively,  effluent limits might  be developed for  selected problem  pollutants
such as  specific  heavy  metals (cadmium  was  shown to  be the major  cause  of
water  quality exceedances  in Chapter  3)  or  cyanide.  Categorical standards for
the  remaining industries would be published as guidance.  While  the administra-
tive scheme  would  be the same  as   the  existing  program,  the  administrative
burden would be  reduced   for  all  three  levels of  government.   This  interim
analysis  has focused  on  the  impact  of  using categorical standards for  metal
finishers only  because metal finishers  typically account for  over 56 percent  of
the  metals loadings to POTWs.

       The rationale for  this option is  identical to Option 1,  but a majority  of
 the  toxic problems at POTWs are attributed to discharges  from the metal finishing
 industry. Thus, by regulating that  industry  alone, much  of  the environmental
 problems  caused by indirect  dischargers  could be abated.
                                                                     •JR8 Associates*

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                                      4-8
4.2.3     Technology-Based Limits for POTWs

     In addition to requiring basic 403 programs  to protect  POTWs from industry-
caused problems, this  option  controls pass-through of  toxic  pollutants by the
application of  technology-based  performance  standards  to  POTWs.   The essence
of this option  is  to impose toxic limits  on  the end-of-pipe effluent of POTWs
while allowing  municipalities  to  select  any  control  strategy  they  wish  in
order to comply with the applicable limits.  These toxic limits for POTWs would
be inserted  as  a  condition  in the  POTW NPDES  permit.   Categorical standards
would be published  as  guidance.   POTWs  could use the guidance to impose indus-
trial effluent  limits  that would assure  compliance with the toxic limits in its
NPDES permit.  These limits could be established in two ways:  1) the development
of case-by-case toxic  effluent limitations equivalent to the  effect of  applying
categorical  standards  or 2) the development of national, uniform toxic  effluent
limitations.  (For  quantitative analysis,  this analysis assumes that POTW  toxic
limits would be set to  be equivalent to  applying  categorical standards.)   If
limits were  not met after a  fixed  period of time, a  federal back-up program
 (such as  the existing  program) could  become effective.

     This  option  shifts the responsibility for  controlling  toxics entirely  to
POTWs while  enhancing  local flexibility.  For example,  if  a municipality wished,
 it could  meet  its  toxic  limits by  installing  advanced   wastewater  treatment
 technologies instead of  regulating  industrial discharges,  or it  could implement
 user charges for industry instead of using categorical pretreatment  standards.
However,  given  the increased responsibilities placed with municipalities,  finan-
 cial incentives and/or  technical assistance  to POTWs  may  be  needed to  make
 this type of program effective.

      This strategy relies  once again  on  a national and uniform means of reducing
 toxics  from  POTWs  but  rejects  the  rationale  that  categorical  pretreatment
 standards are the most efficient means  to control  toxic  discharges from POTWs.
                                                                    .JRB Associates-

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                                      4-9
Instead, it is believed  that  municipalities are best situated  to  design cost-
effective solutions and that  other  sources  of toxic pollutants  coning to POTWs
are important.   It also  assumes that  federally  toxic  limits  for POTWs  are
feasible to develop.

4.2.4     Water Quality-Based Limits for POTWs

     This option parallels the preceding option  but utilizes  a different basis
for establishing  effluent limits  on  POTWs.   Municipalities  are  required  to
acquire basic 403  program capabilities to  prevent industry-related operational
and environmental  problems,   but  would  only  be  subjected to  toxic discharge
standards where  water  quality standards are violated.  As with the technology-
based performance  standard approach,  principle  responsibility for  the pass-
through of  toxic pollutants  from  POTWs would  be placed  with  those POTWs and
site-specific solutions  for  toxics  reduction could  be  pursued either  at the
treatment works  or by regulating  industry.   Limits  based  on  either   federal
water quality  criteria or State water quality  standards  (where available for
toxics) would be used to  derive limits for specific POTWs  in their NPDES permits.
Control of  toxics  would  be required at  fewer POTWs,  but when necessary, would
impose  first-line  responsibility on  the POTW as  in the  previous option.  If
State water  quality  standards were  employed,  the  State role  in determining
levels  of  toxic  treatment to  be  achieved would be  significantly  increased.  The
federal role would  again be as back-up, enforcing categorical  pretreatment stan-
dards where POTW compliance  is inadequate, and potentially providing financial
and  technical assistance.

     This  option would  be  most  applicable    1)   if  uniform  technology-based
requirements  are not  believed to  be the best approach  for  solving most  water
quality problems and  2} as in the previous option, the POTW is believed to be
the  best   control  point  and  is  expected  to institute  whatever  pretreatment
measures  (or  any  other  steps) that are appropriate and  cost-effective.  How-
ever,  it  is also believed that  a  federal  back-up may be  needed in  some cases.
                                                                    •JRB Associates.

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                                      4-10
4.2.5     Pretreatment Required To Address Documented Problems

     This option is  essentially  the  403  Regulations  without mandatory categor-
ical pretreatment  standards  or  other  control  requirements.   Municipalities
vill be required to  develop basic 403 programs  to  determine whether they have
any problems and to implement a locally designed  toxic pretreatment program only
where necessary to eliminate  documented problems at  the  FOTU.   These problems
would include  the  problems typically  addressed  by  the  basic 403  program but
will emphasize  violation  of  water  quality standards.   However,  no specific
control technique for  toxics  would  be mandatory.   If the  municipality  is  not
successful in  correcting its  particular problems within  a  specific period of
time, the municipality  could  be required to implement categorical pretreatment
standards.

     This option would be most applicable where the problems  to be addressed are
believed to be  variable and as  a result,  uniform requirements  of any type are
not considered  to be the best solution  in mast  cases.   As  in Option 4,  it is
believed that  locally  designed  programs are the best way  to address problems
and that  municipalities have  sufficient  resources  to address  their problems.
Unlike Option  1, it  is  not believed that presumptive requirements  are  neces-
sary, although it is felt  that  federal intervention  as a  back-up may be needed
to ensure that the required steps are taken.

4.2.6     Guidance Only

     The 403 Regulations and categorical standards would serve as guidance with
no further federal involvement.   This  option is most  applicable where munici-
palities have  the  motivation and  resources to  solve  their  own  problems,  and
only require guidance to do so.
                                                                    •JRB Associates.

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4.2.7     Waivers

     The use of waivers  is  not a stand-alone approach, but is used in conjunc-
tion with the other options.  The use of waivers (instead of changes in regula-
tions or the development of more complex regulations)  is especially appropriate
where the problems to be addressed are not believed to be widespread.

     There are a number of different types of waivers that could be considered.
The existing program  includes  two major waiver  mechanisms  for industrial dis-
chargers: 1} removal credits allow industrial dischargers to meet less stringent
pretreatment levels to the  extent that complementary  removals are achieved by
the POTW and 2)  variances from pretreatment requirements are provided in those
instances where  the  industrial  discharger  is  fundamentally  different  (from a
pretreatment standpoint) than the other firms  in the  same industrial category.
Additional waivers for some or all of the requirements of the existing program
(or any  other  option) could be granted where  POTWs  show that:  1)  additional
measures are not needed to achieve water quality or 2) the existing POTW program
is equivalent to the national program.

    This study has evaluated waivers that apply  in  those cases where the munici-
pality demonstrates that the full requirements  are not needed to achieve water
quality.  These waivers  would be most  applicable  for  options with technology-
based requirements  (such  as Options 1, 2,  and  3)  and, as shown  later in this
chapter, have significant  cost implications.  This study  includes  Options 1, 2
and 3 with  waivers as three separate  options  in  addition to  the  six options
described above*
4.3  SIMILARITIES AND DIFFERENCES BETWEEN THE OPTIONS

     Many of these options  will have similar effects and costs, differing pri-
marily in terms  of  their administration or  the  degree of federal involvement.
                                                                    .JRB Associates.

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                                      4-12
As a result, it was  only  accessary to specifically model Che environmental and
cost impacts of some of Che options because Che same outputs  could be used to
fully or partially  characterize  the  impacts of  the remaining  options.   This
section highlights the key  similarities  and differences among the options, and
the extent to which some options could be considered to have equivalent effects
for the purpose of using model outputs.

4.3.1     The Basic 403 Program

     The basic 403 program  (the general provisions of the 403 regulations with-
out categorical standards)  is the  starting point  for  every  option excepC for
guidance.  There are two  reasons  for this.  First,  the general provisions are
the only means by which some problems  are specifically addressed  in  the options.
These problems, described in Chapter 3,  include: upsets, bypass,  sludge disposal
problems, worker  health and safety.  The basic  403  program  also encourages
municipalities to  address  toxic  problems  resulting from  pass  through.   The
general provisions of the 403 regulations appeared  to be the most cost-effective
approach to these problems  since  they only require that problems be identified
and that locally designed solutions be implemented.

     Second, many of the  options  contain a federal  back-up that allows federal
implementation and  enforcement  of  national standards  if the  POTW  fails  to
solve its problems or if  it fails  to  implement or enforce a required national
program.  The  current 403  regulations include provision  for federal back-up.
However, if  federal  back-up is not  desired,  any  option  could be revised  to
exclude it.  Similarly, mechanisms  other than the  403 regulations could be  used
to provide federal back-up  if  it  is desired.

4.3.2     Comparison of Key Design Features

     Table 4-1  provides a   summary  listing of the options  that  are analyzed
in  this  report.  Waivers have been  added to Options  L,  2,   and 3 to provide
three additional  options   (lb,  2b,  and  3b)   for  a   total  of  nine  options.
                                                                    •JRB Associates.

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        OPTION
                                          4-13
                                      TABLE  4-1
                              SUMMARY  OF OPTIONS  ANALYZED
                                             TYPE OF     CONTROL      FEDERAL
                                TARGETED*    STANDARD *    POINT      REQUIREMENTS
L.a   Existing Program

l.b.   l.a. with waiver
2.a   Existing Program,
        Reduced Scope{

2.b.  2.a. with waiver
3.a.  Tech-Based Limits
       for POTW

3.b.  3.a. with waiver
4.    Water Quality Limits
        for POTW
      Local Program for
        Documented Problems
      Guidance Only
 NO       TECH-BASED   INDUSTRY   PRESUMPTIVE

YES       TECH-BASED   INDUSTRY   PRESUMPTIVE
                                   NO
YES
                                   NO
YES
                                            TECH-BASED   INDUSTRY   PRESUMPTIVE
TECH-BASED   INDUSTRY   PRESUMPTIVE
TECH-BASED     POTW     PRESUMPTIVE*



TECH-BASED     POTW     PRESUMPTIVE*
YES         WQ-BASED     POTW     PRESUMPTIVE*
YES
                                  YES
  WQ-BASED      POTW    BACK-UP OR NONE
             N/A
                                                            N/A
                            NONE
         Targeted programs require action only where  there is a local need.

         Technology-based or water quality-based standards.

         Controls metal  finishes only.  Assume all POTWs have metal finishes.

         Could  also  include federal  back-up,  such as  categorical pretreatment  standard
         for  industry, if the  presumptive requirements  are act met.
                                                                        •JRB Associates.

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                                      4-14
     As can be seen la Table 4-1,  the options cover a vide range of combinations
of Che  key  design  choices.  Nevertheless,  as  discussed  below,  many  of  the
options can have   similar   costs  and  environmental  impacts  even  though  they
differ in terms of the key design features.

4.3.2.1    Option 1 versus Option 3

     Option 1 (Che existing program) would be equivalent  to Option 3 (technology
based toxic standards for POTHs), except that Option 3 transfers responsibility
to the POTW,  Increases  the POTW's implementation costs, but  allows localities
the opportunity  to develop  local,  cost-effective  solutions.   Both  of these
options could  achieve controls  in  excess of  those  needed  to achieve water
quality standards; similarly both  of  these options could be inadequate to  achieve
water quality  standards.    If  Option  1  (the  existing  program) were  combined
with a waiver that allowed substitution of equivalent  programs,  then  Option 1
would be entirely  equivalent  to Option 3  (this  type  of waiver has been termed
"grandfathering").

4.3.2.2   Option 4 versus Option 5

     Option. 4 addresses all of the problems covered  in the  other options, but
uses the presumptive  application  of  limitations to  ensure that  water  quality
standards are  met.   Option 5  (pretreatment   to  address documented  problems)
also addresses  all of the problems, but  relies on local initiative  to solve
the problems  and  provides  for a  federal  back-up if the municipality  falls to
take adequate steps.

4.3.2.3    Options I  & 3 versus Option 445

     Option 1 (the existing program) and Option  3 (technology based toxic stan-
dards for POTUs)  with water-quality  waivers  would be  equivalent  to  Option 4
                                                                    •JRB Associates*

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                                      4-15
(water quality standards for POTWs) in those cases  where the categorical stan-

dards are more than adequate to allow POTWs to achieve water quality standards;

where technology-based  standards  are  inadequate  to  achieve  water  quality

standards, then Option  4 would  be more  stringent.   If water  quality waivers

are not provided  for in conjunction  with Options  1  and 3  then  these options

will be more  stringent  than Option 4 where they provide  controls  in excess of

those needed to achieve water quality.


4.3.3     Costs and Environmental Impacts


     This study has  estimated  the costs  associated with the implementation of

categorical standards and  water  quality  waivers (Options  1,  la,  2,  and  2a).

It was not  feasible  within the time  and  resource  constraints of this study to

estimate the  cost of achieving reductions beyond  categorical standard levels.

Nevertheless, the  costs  associated with  full  categorical standards (Options  1
and la) represent a useful upper  or lower bound for the other options  depending

on the option analyzed:

       • The  untargeted  options  (Options 1 and  3,  but  not 2)  are  represented
         by the   costs  and  environmental  Impacts  of  categorical  standards
          (Option  1).  However,  the  cost  estimates  are probably  upper  bounds
         for Option  3,  since it is expected that POIUs will be able to achieve
         their requirements at a  lower cost.
              of  the  targeted  options (Options Ib, 3b, 4, 5  and  6,  but not 2a)
         are  represented by the costs and environmental  impacts  for categorical
         standards (Option  Ib).  However,  the costs  estimates are upper bounds
         for  Option  3a  since  it is expected that POTWs will be  able  to achieve
         their requirements at  a  lower cost.  The cost  estimates are likely  to
         be lower  bounds  for  the  water  quality-based requirements (Options  4,
         5 and 6)  since,  as  shown in Chapter 3,  the control levels needed  to
         attain  water  quality  for  some  pollutants  often  exceed  the control
         levels  achieved  by  categorical  standards.   However,  option  5   (and
         Option  6) may  be further limited  by the costs  associated  with  cate-
         gorical standards  (Option Ib), since they are assumed to be  the federal
         back-up where  municipalities fail to  take  adequate action to   solve
         their problems.
                                                                     .JRB Associates.

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                                      4-16
4.4  ENVIRONMENTAL EFFECTS OF THE OPTIONS

     This section  describes  Che  environmental  effects  of  the  options.   As
discussed in Chapter 2,  the results for the 2000 POTWs are currently based on
modeling the impacts of the options  on  1839 POTWs.  The remaining 161  POTWs were
not included because all  of the available information showed that  they either
had no industrial contribution or that they discharged into other POTWs.  Thus,
the results for  the  1839  POTWs should reasonably represent the total impacts.

     This section  focuses  on the  impact  of the options  on the  pass-through
of pollutants  and  the  resulting  effects  on  water  quality  as  measured  by
exceedances.

4.4.1     Bypasses. Interference and Upsets

     The impact  of  the options on  reducing  the  number  or severity  of bypasses
and upsets has not been quantified  in  the model.  Chapter 3 provided  a detailed
discussion of the prevalence  of  these  problems  and  their  significance.  All of
the options,  except for  guidance,  ensures that these problems are  dealt with
because  they all include  the  basic  403 program.

4.4.2     Removal of Pollutants

     The environmental effects  that  have been  quantified  include:  pounds of
toxic  organlcs  and toxic metals removed, percent reduction of  toxic  pollutants
in POTW  effluent,  and the  percent  reduction of  toxic contaminants in  effluent
sludge.  These  estimates are  shown in Table 4-2.  Available in  Chapter  3  are
additional  data  on  incremental  consumption  of water  quality  criteria and  a
comparison  of BAT  removals  with  POTW  efficiencies.
                                                                      •JRB Associates.

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                                          4-17
                                       TABLE 4-2
        OPTION
l.a   Existing Program

l.b.  l.a. with waiver
 IMPACT  OF THE OPTIONS ON ENVIRONMENTAL RESIDUALS

                                              PERCENT        PERCENT
                    ANNUAL TONS REMOVED     IMPROVEMENT    IMPROVEMENT
           POTWs                          IN POTW EFFLUENT   IN POTW
	     AFFECTED    ORGANICS     METALS   ORGANICS  METALS   SLUDGE
           1839       36,435       25,820      702      63%      562

            846}      16,760       11,877      702      632     <56
2.a   Existing Program,
        Reduced Scope         1839

2.b.  2.a. with waiver         846}
                          0

                          0
18,733

 8,617
0

0
 46

<46
 28

<28
3.a.  Tech-Based Limits
       for POTW               1839      36,435

3.b.  3.a. with waiver         846}     16,760
                                 25,820      70       63       56

                                 11,877     <70      <63      <56
4.    Water Quality Limits
        for POTW               846}
                       N/A
  N/A      N/A
       N/A
         N/A
5.    Local Program for
        Documented Problems    846}}   <16,760
                                <11,877      <70
                    <63
                <56
6.    Guidance Only
           1839    0-36,435    0-25,820      0-70     0-63      0-56
  N/A    Not Available

    }    Assuming no ambient concentration of toxic pollutants.

   }}    Only includes those options that have water quality problems.
         Does not include those POTWs that have upset or bypass problems, but no chronic
         water problem.
                                                                             -JRB Associates-

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                                      4-18
     The numbers of POTWs affected strongly  influences  the volumes of pollutants
removed and the  total  coat of treatment.  Where  the  application of the option
does not depend  on vater  quality conditions, then all  1839 of  the POTWs are
affected.  If requirements  only  apply where  there  are water quality problems,
then the number  of  POTWs affected is  reduced to  the model estimate  of 346.
These estimates  are  based on  the numbers of  exceedances  as discussed in more
detail in Chapter 3 and  later  in  this section.

     All of the  uniform  national  programs have the largest impacts on  reducing
the volume of pollutants discharged into waterbodies.   This is primarily because
the requirements  apply  to more  POTWs  than  do  the  other options.   Option  2
(categorical pretreatment  standards  for metal finishers  only) has a relatively
significant impact  on  the  reduction  of  toxic metal  discharges as  well  as  an
reducing toxic organic discharges.  The uniform,  national programs also  signi-
ficantly improve  (on  a  percentage  basis)  the  quality  of the  ?OTW  effluent
discharge and the quality of  the  sludge.

     While  the  options  significantly  affect the  volume  of  the  pass-through
of  toxic pollutants, the importance of these reductions depends on the  resulting
impacts to  water quality.  In the following  subsection, the immediate impacts
to  water quality have  been analyzed using exeedences  as  an indicator.   However,
there can  be  important water  quality impacts even where  there  are  no  immediate
exceedances because  the  reduction in  pollutant  discharge can  lower ambient
pollutant  levels,  facilitating   the  attainment  of  water  quality objectives
downstream.  In  addition,  exceedances  are  thresholds, and  (as discussed later
in  this  chapter)  there  can  be  benefits  associated with reducing  pollution
even where there are  no  exceedances  or  where exceedances  persist in  spite  of
controls.

4.4.3      Effectiveness  In Reducing Water Quality Violations

     As  discussed in  Chapter 2, an  exceedance  is  a  rough  indicator  of  the
possibility that there may be a  water quality violation  for  a pollutant.  The
                                                                      •JRB Associates'

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                                      4-19
baseline analysis indicates  that  there could be 846  POTWs  currently that have
at least one exceedance.  The  estimate of 846  is  low because it does not take
into account ambient levels of  toxics in the receiving water or the contribution
to water quality degradation due to upsets or bypass at the POTW.  In addition,
the normalizing  assumptions used  in  modeling  industrial discharge loadings
and POTW  removal efficiencies  also tend  to  minimize the  estimate  of  water
quality exceedances.

     Table 4-3  shows the  reduction in  the  number  of exceedances  due  to the
application of  each of  the  options.  About  61  exceedances  are eliminated by
most of the options, except for Option 2 (the existing program with  categorical
standards for  metal finishing only)  where 50  exceedances  are eliminated.  It
is not known how effective Option 4 (water  quality-based  limits tor POTWs) would
be.  At least  61 violations would  be  eliminated  through  this option; however,
there are  limits to the extent that  exceedances  can be  reduced through more
stringent controls  on industry  because in  many   cases non-industrial sources
are significant  contributors.   Since  the  federal back-up for Option 5 is the
application of  categorical pretreatment standards,  it is assumed that munici-
palities will  reduce at  least 61 of the  exceedances  (as in Option 1).

     Sensitivity analysis  was performed for a  broad range  of  factors, such
as changes  in  ambient   conditions  and  federal  water quality  criteria.  Even
under sensitivity analysis,  the  ability  of the  options to reduce the number of
exceedances remained stable,  indicating  that  where water  quality problems
exist they are generally severe.

4.5  COST, COST-EFFECTIVENESS AND  BENEFITS

     This  section  first  summarizes  the  cost  of  the options  to  industry  and  to
POTWs and  then  examines the cost-effectiveness of  the  options.  The benefits
that are  obtained from  eliminating exeedences  are also  discussed.   It was not
practical  to   include analysis  of  economic  impacts  (such  as industrial  plant
closures)  in  this  report because of data limitations.
                                                                      •JRB Associates.

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                                       4-20
                                   TABLE  4-3
             EFFECTIVENESS OF THE OPTIONS IN REDUCING  EXCEEDANCES}
                        (Based on a  total of 1,839  POTWs)
         OPTION
                                  INITIAL)}
                                EXCEEDANCES
            EXCEEDANCES
             ELIMINATED
EXCEEDANCES
 REMAINING
l.a   Existing Program

l.b.  l.a. with waiver
                                    846

                                    846
                 61

                 61
   785

   785
2. a   Existing Program,
        Reduced Scope

2.b.  2.a. with waiver
                                    846

                                    846
                 50

                 50
   796

   796
3.a.  Tech-Based Limits for
        POTW

3.b.  3.a. with waiver
                                   846

                                   846
                 61

                 61
   785

   785
4.    Water Quality Limits
        for POTW
                                   846
                                                                      <785
5.    Local Program for
        Documented Problems
                                   846
                            »785
6.
Guidance Only
846
                                                         0-846
    }  An exceedance is defined to be when a POTW causes at least one water
       quality criteria to be surpassed.  POTWs causing more than one criteria
       to be exceeded are still counted only once.

   }}  It is assumed that there is no ambient concentration of toxic pollu-
       tants.  If there is an ambient concentration of toxic pollutants, then
       the number of initial exceedences will be higher.  For example, if
       other sources of pollution account for 50% of the aquatic lifewater
       of quality criteria, then the initial exceedeaces would increase
       from 846 (46%) to 1048 (572).  See Table 3-1.

    {  Assumed to be limited to the effectiveness of the federal back-up
       (Option la).  However, the actual effectiveness could be as high
       as for Option 4 depending on the steps taken by the POTWs.
                                                                    •JRB Associates.

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                                      4-21
4.5.1     Cost

     Table 4-4 shows  the  total annual compliance cost to  industry  as a result
of each option.  The industrial cost is divided into two components:  the addi-
tional cost of pretreatment and the cost of disposing of the additional hazard-
ous waste that is generated.  The total cost depends significantly on  Che number
of POTWs  affected  by each  option.   Excluding  the  Guidance Option,  the total
annual cost  ranges  from about  0.5  billion  dollars for categorical  standards
for metal finishers including water  quality  waivers  to about  1.9 billion dollars
for the existing program.

     The  total municipal  cost contains two components: the  program development
cost  (a  one-time cost) and  the  annual cost  of  operating  the program.  Sludge
disposal  costs  for  the  POTWs are  not affected  by the improvement  in sludge
quality because  municipal  sludges are  not  now subject to federal regulations
that  require more costly disposal.  If  there  were sludge criteria that  resulted
in more expensive disposal,  then  some  of  the options could  lower the POTW  cost
(and  possibly  the  net  total  cost  for both  POTWs  and  industry),  potentially
significantly  affecting the  relative cost-effectiveness of the options.

4.5.2    Cost-Effectiveness

      Some observations about  the  cost-effectiveness of  the options can  be  made
based on  two series  of assumptions  regarding  the  effectiveness of the options:
      • First,  each of  the options (other  than Option 6, guidance only)  includes
       the  general  provisions of  the  403  program  that provide  for  addressing
       problems  of  upsets,  bypass, and  passthrough.  If  it  can  be  assumed
       that each of  the  eight  options  is  equally effective  In  implementing
       these provisions,  then these  nonqualified  environmental  benefits  are
       not  a factor  in differentiating among  the  options.
      • Second, the most relevant environmental difference between the  options
       that can  be measured is their effectiveness in reducing exceedances.   Use
       of this measure involves two assumptions:  L)  that the benefits of reducing
                                                                      •JRB Associates*

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                                         4-22
                                     TABLE  4-4

                  TOTAL COST OF THE OPTIONS FOR  POTWS  AND  INDUSTRY
                             ( Millions  of 1981 dollars)
                          (Based on a total  of  1,839  POTW3)
	OPTION	

l.a   Existing Program

l.b.  l.a. with waiver
2.a   Existing Program,
        Reduced Scope

2.b.  2.a. with waiver
3.a.  Tech-Based Limits
        for POTW

3.b.  3.a. with waiver
ANNUAL
POTW

DEVELOPMENT
35-91
16-55
35-91
16-55
35-91
16-55
COST

ANNUAL
51-101
23-46
51-101
23-46
51-101
23-46
INDUSTRY
PRE-
TREATMENT
1,292
594
725
334
<1,292
<594
COST

SLUDGE
485
223
252
116
<485
<223

TOTAL ANNUAL
COST
1,829-1,878
841-864*
1,027-1,077
472-495*
<1, 829-1, 878
<841-864*
4.    Water Quality
        Limits for POTW
16-55
23-46
                                                         >594     >223      >841-864*
5.    Local Program for
        Documented Problems)?   16-55
            23-46
              <594     <223      <841-864*
6.    Guidance
 0-55
                                            0-46
             0-594    0-223
                                                                               0-864*
    #  Assumed to be limited to the cost of the federal backup.  Actually, the costs
       could be higher depending on the local programs.

   ?//  The extent of local action in the absence of a federal backup is not known.
       While the range reflects a maximum cost equivalent to the existing program
       with waivers (l.b.), the cost could be higher depending on local action.

    *  Assumes no ambient toxic pollutant levels.
                                                                           •JRB Associates.

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                                      4-23
       pollution discharges where there are  no  water quality problems are in-
       significant and 2)  that the  benefits of  reducing  pollution discharges
       even where there  are  water  quality  problems are  insignificant  unless
       the exceedance is eliminated.

Under these assumptions, the most cost-effective option would be  the option with
the lowest  cost  per exceedance  eliminated.   Thus,  those  options  that require
uniform action irrespective of local conditions  (untargeted  options) are likely
to be  less  cost-effective than those  options that  take local  conditions into
account (targeted  options).   This  conclusion is  most apparant for  Option  La
(the existing program) which  requires  about one half of the POTWs  to  implement
categorical standards even though they have  no  exceedances; the result is that
it costs  twice  as  much  as Option  Ib (the  existing program with  waivers)  to
have the  same effect on exceedances.  The  cost per exceedance eliminated  for
all of the  options  based on categorical standards  is shown below.

             COST PER EXCEEDAHCE ELIMINATED  FOR  CATEGORICAL STANDARDS
                              (Millions of Dollars)

                              ALL INDUSTRIES         METAL FINISHING  ONLY
        UNTARGETED             30    -  31                20.5 -  21.5
        TARGETED  (WAIVERS)    13.8  -  14.2               9.4 -   9.9

On this  basis,  Option 2a, categorical standards for metal  finishing  only  with
water  quality waivers  appears to  be  most   cost-effective  of the  options  that
 rely  on  categorical standards.

      It  is   not  possible  in  this  report  to analyze  the  cost-per-exceedance
 of the water quality-based options  because  it is not known how many exceedances
 would be eliminated  or what the  total  cost would be.    Presumably, however,
 the costs would  be in  line  with the  benefits  because the  States  would  always
 have the option of  downgrading the  designated stream use if  the  costs outweighed
 the benefits of attaining water quality  standards.
                                                                      •JRB Associates'

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                                      4-24
     The costs  per  exceedance eliminated for  categorical  standards may appear
to be high because  the costs  of all of the FOTWs affected have been loaded onto
the smaller  number  of POTWs  where  exceedances are  actually eliminated.  This
is illustrated  in Table  4-5A which allocates  the  total costs  for each option
into three categories: cases where there are no exceedances in the first place,
cases where  there are exceedances but they are not  eliminated  and cases where
exceedances are  eliminated.   As  shown in  the table, the actual  mean cost per
exceedance eliminated is about 5 million  dollars, and the median cost  is 350,000
dollars.  Table 4-SB shows the effect that ambient levels of toxics can have on
the elimination  exceedances   and  on  the incidence  of   cost  across  the  three
categories.  For an ambient   level  of 50%,  the  number  of  initial exceedences
would Increase  to 57% from 462 and the  number of  exceedances  eliminated would
increase to about 80 from 61.  The importance  of reducing POTW toxic discharges
increases as the ambient levels come down to  the aquatic water quality criteria.
     Tables 4-5 A  and B  raise  three  important questions:  1)  to  what extent
should costs  be borne  in  cases  where  there  are  no immediate  water quality
problems, 2)  to what extent  should costs  be  borne  in  cases where  there are
immediate water quality problems,  but where the problems persist  in  spite of
control measures and  3)  is it worth  the cost  to  eliminate  the  exceedances at
all?  These  questions are  discussed  in the  following  section  on  benefits.

4.6  LOCAL BENEFITS OF PRETREATMEST

     This report monetizes some benefits of the pretreatment program.  Analysis
was first limited  to recreation benefits,  which  past  studies have  indicated
are most Important.  Because it was  not  clear  how to relate degrees of recrea-
tion activity to ambient toxics levels,  the analysis  was  next limited to cases
in which all exceedances of federal water quality criteria for toxics were elim-
inated by control options.   The basic assumption is that eliminating exceedances
makes valuable  recreation  uses  feasible.   Finally,  analysis was limited  to  a
                                                                     -JRB Associates-

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                                      4-25
                                  TABLE 4-SA

 COST OF THE OPTIONS  FOR  POTWS  EXPERIENCING  DIFFERENT  WATER QUALITY PROBLEMS*
                          ( Millions  of  1981  dollars)
                                                  TOTAL  ANNUAL COST FOR POTWS WITH

l.a
l.b.
2. a
2.b.
3. a.
3.b.
OPTION
Existing Program
l.a. with valver
Existing Program,
Reduced Scope
2. a. with waiver
Tech-Based Limits
for POTW
3. a. with waiver
TOTAL ANNUAL
COST
1,829-1,878
841-864
1,027-1,077
472-495
<1, 829-1, 878
<84 1-864
NO
EXCEED ANCES
988-1,014
0
555-582
0
<988-l,014
0
EXCEEDANCES
REMAINING
531-548
531-548
218-236
218-236
<53l-548
<531-548
EXCEEDANCES
ELIMINATED
310-316
310-316
254-259
254-259
<310-316
O10-316
4.    Water Quality
        Limits for POTW
>841-864
            >531-548
                                                                           <310-316
5.    Local Program for
        Documented Problems)?  <841-864
6.    Guidance Only 9$
   0-864
 0


N/A
<531-548


   N/A
<310-316


   N/A
    *  Assumes no ambient toxic pollutant levels.

    $  Assumed to be limited to the cost of the federal backup.  Actually, the costs
       could be higher depending on the local programs.

    #  The extent of local action in the absence of a federal backup is not known.
       While the range reflects a maximum cost equivalent to the existing program
       with waivers (l.b.), the cost could be higher depending on local action.
                                                                        •JRB Associates*

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                                     4-26
                                  TABLE 4-5B

 COST OF THE OPTIONS FOR POTWS EXPERIENCING DIFFERENT WATER QUALITY PROBLEMS*
                         (Millions of 1981 dollars)
                      (Based on a total of 1,839 POTWs)
         OPTION
                                           	TOTAL ANNUAL COST FOR POTWS WITH
                            TOTAL ANNUAL         NO       EXCEEDANCES    EXCEEDANCES+
                                COST        EXCEEDANCES    REMAINING      ELIMINATED
l.a   Existing Program       1,829-1,878     787-808        629-649        413-421

l.b.  l.a. with waiver        1042-1070         0           629-649        413-421
2.a   Existing Program,
        Reduced Scope

2.b.  2.a. with waiver
                             1,027-1,077

                               472-495
                   a/a

                   a/a
a/a

a/a
a/a

a/a
3.a.  Tech-Based Limits
        for POTW

3.b.  3.a. with waiver
«1,829-1,878    <707-808

 <1042-1070          0
                                                           <629-649       <413-421

                                                           <629-649       <413-421
      Water Quality
        Limits for POTW
                             >1042-1070
                                                           >629-649
                                              <413-421
      Local Program for
        Documented Problems? <1042-1070
6.     Guidance Only##
                                 0-1070
                    0


                  N/A
                                                           <629-649
N/A
            <413-421
N/A
    *  Assumes no ambient toxic pollutant level of 50Z of aquatic life vater
       quality criteria.

    #  Assumed to be limited to the cost of the federal backup.  Actually, the costs
       could be higher depending on the local programs.

   H  The extent of local action in the absence of a federal backup is not known.
       While the range reflects a maximum cost equivalent to the existing program
       with waivers (l.b.), the cost could be higher depending on local action.

    +  About 80 exceedances eliminated, with an assumed average cost of $5 million
       per exceedance.

  n/a  Not Available.
                                                                        •JRB Associaies.

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                                      4-27
     Subsectioa 4.6.1. below discuss the kinds of benefits that exist, but were
not studied in  the  cases  examined in this  project.   Subsection 4.6.2 presents
the results of  benefits analysis  for  the  cases  and categories of benefits that
were examained.  These  benefits  measures  are compared  to  costs for  the same
cases.

4.6.1     Benefits of Control That Were Not Analyzed

     Toxics control is likely to produce benefits in Che cases where no exceed-
ances are indicated by the FOTW model, and  in cases where controls do not elim-
inate exceedances.   Because no  attempt  is made here  to measure  or monetize
benefits in these cases, it is not known whether these benefits are significant
enough to warrant  the costs  of  control  in these cases.  The  significance of
four factors that affect benefits in these  cases is discussed below.

     Toxics control will produce  benefits other than recreation benefits; these
other kinds of  benefits  are neglected in this analysis.   Examples of neglected.
benefits include  health  effects,  effects  on treatments costs  when  water is
withdrawn for  use,  and  the value placed  on cleaner water by  those who do  not
actually use  that  water for  recreation  ("nonuser"  benefits).   Health effects
and aonuser  benefits may be significant  in the case  of toxic discharges.  If
water is used  for drinking, health effects  will always matter; if not  they will
be more  significant  when  water  is  useable for  recreation.   Nonuser benefits
are likely to be more significant when high levels of water quality are already
being achieved,  because  small  improvements  in  very polluted  water  are  not
likely to be highly  valued  by local residents.

     Another class  of benefits  that is neglected here are those  that  accrue in
stream reaches  other than  the  single  ones  examined  for each  POTW.   Even if
exceedances are not eliminated  in the stream reach  examined, control may  con-
tribute  to  their elimination in  down  stream segments.  Alternatively, control
where there  are  no  exceedances  nay prevent  the  creation  of  exceedances by
                                                                      -JRB Associates.

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                                      4-28
subsequent dischargers.  la either  case,  control may  create recreation oppor-
tunities in stream segments that were  not examined.  This  class of benefits is
likely to be  significant.   The existence  of exceedances  is  strongly affected
by stream and POTW  flow,  which  suggests  that  background ambient  levels  may
have a  significant  effect  on the  ability   of  treatment  program  to eliminate
exceedances in the real  world.  The neglect of  downstream benefits  extends to
categories of benefits other than recreation as well.

     Recreation benefits  that are  not  monetized here  exist  in  cases  where
exceedances do not occur or are not eliminated.  This analysis treats recrea-
tion as  a threshold phenomena, when in fact  changes  in  toxic concentrations
that do  not  cross thresholds may  induce  changes in  recreation levels  or in
the enjoyment  people  receive from  their  activities.   Some types  of  boating
occur to  a   significant  extent  in  water  where toxics  concentrations exceed
federal standards; the level  of  this  activity   is  probably affected  to   some
degree by toxics  concentrations.   Fishing  may also  occur  in water with toxics
exceedances, although  the  enjoyablity  of the experience may be limited if  some
species are  not  present,  are not  edible,  or  are edible  only  after unusually
careful preparation.   This   effect  is  probably  most  important   for waters
where exceedances  remain.  Once  all  federal  standards have been  met,  it is
less likely  that  improvements in  water quality  will contribute significantly
to  recreation values.

     Finally, pretreatment programs produce benefits  that  are  unrelated to the
discharge of  toxic pollutants into receiving waters.   By preventing upsets,  pre-
treatment reduces discharges  of  conventional pollutants.  This  may  create  sig-
nificant  benefits, because local  authorities may prevent  certain uses  of water
where such uses cannot always be safely  undertaken:   it is simpler  to ban swim-
ming, for example,  than  to  prevent it only  when  an  upset caused  pollution
event occurs.
                                                                     -JRB Associates.

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                                      4-29
4.6.2     Benefits Where Exceedences Are Eliminated

     A benefits analysis, described  in  Chapter 2 aad Appendix E, was performed
for the majority  of  the  POTWs  where exceedances were eliminated.  As discussed
in Chapter 2,  adequate  information was  available to  analyze  the water quality
impacts for 665  of  the  1839 POTWs  modeled.  The model results  were scaled up
by the factor  1839/665.  For the  665 POTWs,  exceedances were eliminated for 22
POTWs.  Due to anomalies, the  benefits analysis  was  performed for 17 of the 22
POTWs and compared to  the  cost of the existing  program (Option  1)  for each of
the 17 POTWs.

     Two different approaches  were  used to estimate the  recreation benefits
for boating,  fishing and swimming.  The  first approach looks to capacity for
boating and  fishing  use,  but  ignores  the  number  of  potential users  in the
vicinity of  the  stream  reach  affected  by  the POTW.   (This  approach fails to
measure swimming  benefits, but these benefits  are believed  to be  small relative
to boating and fishing benefits in most  cases.)  The second approach looks to
population in  the counties contiguous to  the affected stream  reach,  but ignores
the capacity of the  reach to support this volume of potential users.
                                    \
     Because the  first  approach presumes  maximum use  and  the second adequate
capacity, regardless of  demand, each will overstate  benefits in some  situations.
Therefore, the table below also reports  aggregate benefits  based  on  the lower of
the two  estimates for  each  stream  reach,  as  well  as  reporting the  aggregate
estimates reached using each  approach separately.  The total annual costs and
total annual benefits are shown below in  millions of  1981 dollars:

 TOTAL COST       BENEFIT ESTIMATE  1    BENEFIT ESTIMATE 2     BENEFIT ESTIMATE  3
	     (based  on capacity)   (based on  population)   (lower  of 1 or 2)
  $ 86 - 88            $ 43 -  82               $  84 -  114             $  33  -  55

     It is  likely  that the  best  estimate  of the  value of benefits  is  provided
by Benefit  Estimate 3, although  this  may  still be an over-estimation.   While
                                                                      .JRB Associates.

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                                      4-30
aggregate costs appear to  be  greater than aggregate benefits  If  this estimate
is used, the precision of the costs and benefits estimation methods is probably
not sufficient to strongly support such a conclusion.

     For Benefit  Estimate  3,  costs  and benefits were  substantially identical
(i.e., within a factor of 2 of  each  other)  in only  three of 17 cases.  In five
of the  remaining cases  costs  substantially  exceeded  benefits,  and  in eight
cases benefits  substantially  exceeded  costs.   In five  cases  differences were
greater than an  order of magnitude —  and in all five  oE these cases benefits
exceeded costs.   These cases  of very  large  differences between  benefits and
costs may  indicate  that a  water quality-based  option  that results  in higher
costs than  categorical standards to eliminate  exceedances  may be justified in
a number  of the  785-796  cases where  categorical   standards  were inadequate.
There is also  support for an inference that  the downgrading of the designated
uses for some  stream segments may be necessary where the costs for eliminating
water quality problems substantially exceed the  benefits  to be  gained.
4.7  FEASIBILITY ISSUES FOR IMPLEMENTING THE OPTIONS

     The  options  have been  discussed in  terms  of  their effectiveness,  their
costs,  their  cost-effectiveness and  their  benefits.   However, there are  addi-
tional  considerations  regarding  the feasibility  and  detailed  design  of  the
options that could effect the practicality or the attractiveness of the  options.
For  example,  waivers  based  on  water quality can be  difficult  to design  and
cumbersome to  administer;  categorical toxic effluent  limits  may  not be  feasible
to develop;  water quality standards  for  toxics  are difficult to  develop  as  is
determining the required effluent limitations needed  for direct dischargers to
achieve the standards; and implementing Option  5  (Local  Program for Documented
Problems) will require  the  development  of effective  procedures   for  federal,
State,  and local  interaction.  Other implementation  issues  include: the way in
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                                      4-31
which it would be determined that a local program is equivalent to the national
program to qualify  for  a "grandfather" or "equivalence" waiver  and  the design
of removal credits.

     These feasiblity and design  issues  have  not been analyzed in this report.
However several  of the  more  significant  issues are discussed  briefly below:
water quality waivers for toxics,  POTW toxic effluent limitations, water quality
standards for toxics and design  issues  for Option 5 (Local Program for Documented
Problems).

4.7.1     Water Quality Waiver  Systems For Toxics

     Any waiver  system  must  be  able to determine when adequate levels of water
quality have been  achieved, i.e., when waivers for toxics can be granted without
adversely affecting the environment.   As  indicated below,  although much has
been learned,  information  on toxics and toxic effects continues to be  limited.
In addition,  available  methods  for determining  the  effects  of  toxic  pollutants
on water  quality  are imprecise  at  best.   More  rigorous  techniques  are not
likely  to be  readily  available  for  several more  years.

4.7.1.1   Possible Approaches for a Waiver System

     There  are several  methods that  could be  used to waive  technology-based
requirements  for toxics where they  are determined to be unnecessary  to  achieve
desired water quality levels.  All would  require time and  substantial  EPA and
State  resources  to properly  administer.

     Methods  for measuring  the effects of  a waiver  on water quality  include
performing  a  waste load allocation  (considered to be the most rigorous nodeling
approach),  mixing  zone  calculations,  and bioassay  testing.  The baseline  used
 to determine   whether or  not  waivers  should be  granted  could  be  either the
 achievement of State-specified  water  quality standards, or where State standards
                                                                      -JRB Associates.

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                                      4-32
are not yet  In  place,  federally-specified water quality  criteria.  Regardless
of the baseline, there will  likely  be  very difficult economic and equity deci-
sions to be  made  regarding the allocation of limited waivers among dischargers
on a stream segment.

4.7.1.2   Current State of the Art

     There is still only limited information concerning toxic pollutants, their
effects over  time,  and their  effects  in  combination with  one  another.  This
makes it extremely  difficult and costly to  perform  waste load allocations for
toxic pollutants.   While  waste  load allocations  are viewed as  the  best, most
comprehensive analysis  of  toxic effects,  EPA estimates  that  it will  be   at
least 3-5 years before these models are  readily  available for use for  toxics.
Even then  their reliability  will  be  questionable  and  they may  be  unable  to
take into  account  long term or synerglstic  effects of  the toxic pollutants.
The inadequacy  of  data on toxics means that the  results  of mixing zone  calcu-
lations are  also  extremely  uncertain.   While  bioassay   tests  can  provide  a
check of an  effluent's acute or immediate toxicity,  they  are unable  to  measure
long term  or  chronic  toxicity and  provide  no  indication of  a pollutant's
effects downstream.

     Few States have  water quality  standards in place  for  toxics,  and,   in
general, States appear reluctant to develop  toxic standards.   While  there  are
federal water quality criteria  in  place  for most toxics, most  States have  not
adopted them.  Therefore,  while  it  is  likely that waivers could  be  applied  to
more pollutants if federal criteria were  used,  waivers would be  more  restric-
 tive than  they would  be if based on State standards.

     Therefore, waivers may be difficult  to  apply   in the  near term in order
 to avoid  the installation of controls where they  are not  needed because of  the
 difficulty  of making  that determination.
                                                                      •JRB Associates*

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                                      4-33
4.7.2     Technology-based Toxic Limits for POTWs

     As described  earlier  in this  chapter,  technology-based toxic  effluent
limits for POTWa  could be developed in  two  ways:  1) the  development  of case-
by-case toxic effluent  limitations  equivalent  to the effect  of applying cate-
gorical standards  or 2)  the  development  of  national,  uniform toxic  effluent
limitations.  Issues  regarding  the feasibility of  these  two approaches  is
discussed below.

     Under the  first  approach,  the permit writer would develop toxic effluent
limits based on the type of POTW treatment system, amount and  type of industrial
contribution, and recommended industrial pretreatment limitations.   As  a  result,
the toxic effluent limits determined by  the  permit writer  would be the  same as
those attained  by  the POTW  following  the application of categorical standards.
This approach would require the development of categorical  standards, completion
of industrial surveys  and estimates of the removal efficiency  of the POTW.  The
major shortcoming of this option is the additional resoucres required to  develop
the 2,000 effluent limitations and the  degree of dependence on the permit  writer.
If it can be assumed  that generating these POTW  limitations would be equivalent
to developing a direct discharge permit,  it  could  require an  additional 32-80
fulltime employees  over and  above EPA's current resource commitments  to pre-
treatment.  Based  on EPA estimates, this  could  cost an additional $1.6-4 mil-
lion/year  (400  permits per  year X 20-50  person-days  per  permit X $50,000  per
person per year/250  person  days  per year).
     Technically,  the second approach  is  far  more difficult to  implement  than
 the first approach.   There is only  limited  data  available to  develop different
 effluent limits that  reflect  the type of  POTW  treatment  and  the  amount  and
 type of  industrial  contribution.   Available  data  indicate that  the  influent
 to POTWs is highly variable and  does not appear to be  reliably  related to the
                                                                      •JRB Associates.

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                                      4-34
presence of  industrial  dischargers alone.   As  a  result,  even tf  better data
were available,  it  would still  be difficult to categorize  POTWs  according to
their ability  to  reliably  meet effluent limitations  Eor  all toxic pollutants.
Because of variability  and  Inconsistent occurences,  national  limits  for toxic
organics do  not  appear  to  be feasible  at all.   Effluent  limits  for  certain
heavy metals (chromium, copper, nickel,  lead,  zinc  and cadmium) may be possible:
of the  six heavy metals, high concentrations  of  chromium,  nickel  and  cadmium
in POTW  effluents can  be  traced  to industrial  dischargers.   Siace  national
limits would be  set  so that all  POTWs in a  category  could  achieve them, it is
likely that  the  effluent limits  would be  set "high"  and  would  in  actuality
only effect POTWs with high discharges from metals-related Industries.

4.7.3     Water Quality-Based Approaches For Toxics

     The options  represent  several passible  strategies  Eor reliance  on water
quality considerations  in  establishing effluent  limitations for  toxic pollu-
tants.  The  success  of  these approaches  depend  on  the  state  of the  art in
developing water  quality-based effluent limits  and technical capability of the
States to administer the program.  These issues  are extensions of the problems
associated with granting water quality waivers.

     In addition  to  the requirement that States have the technical capability
to administer such programs, there are two key factors that determine the feas-
ibility of using a  water quality-based approach for  toxics:   knowing how ouch
control ia needed (or  when to stop  controlling); and  knowing  how to allocate
control requirements among  dischargers.   Traditional water  quality approaches
rely on  threshold ambient  levels and the use  of  models to determine the level
of control that  is necessary and how this level of control should be distributed
among sources.  This approach  is potentially adaptable to toxics  as models and
data are improved,  but it may require  several years  before there Is adequate
improvement.  However, this delay may not be  so  significant  when  compared wich
the delays that  are  occurring in  the  development  of technology-based require-
ments for some Industries under  the present program.
                                                                     •JRB Associates.

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                                      4-35
     As an alternative to traditional approaches, effluent charges or a market-
able permit system could  be  used to induce or allocate  controls  among sources
and bioassay monitoring could be used  to  determine  when  to stop requiring fur-
ther reductions.  Although bioassay monitoring does not provide complete assur-
ance that all  toxic  effects  have been accounted for,  it may  be  an acceptable
measure for the  short term  until  more rigorous techniques (e.g.,  vaste load
allocations) are  readily  available.  In  this  way,  steady  reductions  of toxic
pollutants can be achieved without complex modeling.

4.7.4     Design Variations for Option 5

     Each of the options requires careful  analysis of a number  of design consid-
erations.  This discussion uses  Option  5,  Fretreatment  Required To Address Docu-
mented Problems, as  an  example  of  the number  of ways in  which a basic option
can be designed.  The key design decisions are:  Che  criteria for  identifying
problems, and the local/federal interaction and  extent of federal involvement.

     Documented problems are most easily  specified as  violations of  permit con-
ditions.  These could include NFDES permit  violations  and violations of avail-
able State water quality standards.  As new water quality standards  are adopted
by the  State,  the POTW  would be  responsible  for  achieving  them.   Additional
problems, such  as  violations  of   sludge  criteria  could  also  be included.
These criteria could  be very specific or  they could be stated  in general terms.

     Where problems  are  identified, the  POTW  could be  required  to  notify EPA
immediately.  The POTW  could also  be required to submit a plan for addressing
the problem.  The plan  would include specific actions to be taken  by the POTW
and specific  milestones.   The  plan could  be subject to  EPA comment;  as  an
alternative the  plan could  be  subject  to  EPA approval.   As  an  additional
alternative, the POTW could  be  required  to notify  EPA  if the problem  is not
solved by a. specific  time in the future.
                                                                     •JRB Associates.

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                                      4-36
     If the  problems  are  aot  resolved  according  co  the  schedule  submitted
by the POTW  (or  by the deadline established  by the  federal  government), then
the POTW could be required to  submit  a  new plan, as above,  for remedying the
problem.  If there is a federal back-up,  EPA  could elect to activate the back-
up requirements.   The  federal  back-up  requirements  could  be categorical pre-
treatment standards or  other requirements  developed  on a  case-by-case basis.

4.8  OTHER CONSIDERATIONS

     This section briefly discusses administrative considerations, effectiveness
issues and statutory constraints.

4.8.1     Administrative Considerations

     The different resource  implications and  impacts  to  local and State govern-
ments  of the water quality-based options have not  been  analyzed  in  this report.
However, as  the  federal role declines,  there  is  increasing  reliance  on  local
and  State  governments.   While  a   uniform,  national program  may be less  cost-
effective overall on a national basis,  the costs to individual municipalities
and  States  for developing  individual programs could be  higher.

     The results  of the analysis to date do not provide clear direction regarding
the  most  administratively desirable  approaches  for  federal  roles in  options
that reflect local water quality conditions.  There are basically  two  types  of
federal Involvement for these options.  The first type is exemplified by Options
 Ib,  2b, and 3b, where federal requirements are imposed presumptively but waivers
from those  requirements  are  allowed.   The second type is exemplified by Options
4 and 5 where the local  program is presumed to  be adequate but federal require-
ments stand ready as a back-up if the local  program fails to achieve the required
goals within an adequate timeframe.  Administratively, the first type is easiest
 to administer if  the number of waivers is  relatively  small and  the second type
                                                                      •JRB Associates.

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                                      4-37
is easier Co administer if  che  number  of local programs needed is small*  How-
ever, Che model  results  iadicate  that  about  half of  Che POTWs  would either
require variances or local programs.  Thus, 1C  is unclear from an administrative
standpoint which type  of  federal   involvement  vould be  easiest  to  implement
based on this criteria.

4.8.2     Effectiveness

     Moat of the options are either federally driven or assumed  to  have a Federal
back-up that ensures that action will  be taken on the part of POTWs to address
their problems.  The options  could be designed without a  Federal backup.  The
question of  whether or not a  federal back-up is  needed  is  not specifically
addressed in this  study.  However,  the findings from the  study of 132 munici-
palities reported  earlier  in this  document indicates  that  the primary reason
for che  controls  now  in  place at  POTWs  is federal  (or  State)  requirements.

     The issues  regarding feasibility  that have been raised in this  scudy are
important when considering the effectiveness of the options.  These feasibility
issues are primarily  related to timing  and resource requirements  rather than
the absolute effectiveness of che options.

4.8.3     Economic Efficiency/Maximizing Net Benefits

     Conceptually,  the targeted options are likely to come closer to maximizing
net benefits Chan the untargeted options because they only apply la Chose cases
where controls are needed  to  achieve  water quality  standards.   In  addition,
where the cost of  achieving the water quality  standards exceeds  the  benefits,
the designated uses can be  downgraded  until local decision-makers believe that
che costs and potential benefits have  been brought into an acceptable balance.
In these cases, che requirements of che targeted approaches would automatically
be adjusted to reflect the new water quality standards.
                                                                    •JRB Associates.

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