United States
Environmental Protection
Agency
Issue No. 18
January 10,1983
Page 69
•SEPA TIMES
A PURI TCAT ION FOR EPA EMPLOYEES
Personnel
Medicare Coverage for
Federal Employees
Under the provisions of
Pub lie Law 97-248 ex-
tending Medicare cover-
age to Federal employ-
ees, the portion of the
Social Security Tax
(FICA) which is de-
posited in the Hospital
Insurance Trust Fund
will be deducted from
wages paid to l-ederal
employees beginning
with the first pay peri-
od in January.
In 1983, the hospital
insurance tax for
employees is 1.3% on
annual wages, up to the
maximum wage base
covered by Social
Security. That amount
for 1983 is $35,700. The
Federal government will
pay an amount equal to
that of the employee.
The chart listed below
reflects the deduction
to be made from the
gross biweekly pay of GS
employees. Deductions
for Merit Pay employees
will be individually
calculated on the basis
of gross salary.
By being taxed for hos-
pital insurance, Federal
employees will earn
actual Federal Quarters
of Coverage (FQCs), just
as employees taxed for
Continued on back page
EPA Announces Policy for
Areas Failing to Meet Air Standards
A top Agency official has disclosed that EPA will
enforce the law with maximum flexibility in dealing
with areas that have failed to attain the national
ambient air quality standards by the deadline in the
Clean Air Act.
The standards, set originally by the Agency in 1971 to
protect human health, were to be met by December 31,
1982. The Act provided extensions to the end of 1987
for carbon monoxide and ozone, under certain circum-
stances .
"The current Act mandates the imposition of sanctions
if these deadlines are not met," EPA Assistant Admin-
istrator Kathleen M. Bennett said. "However, we are
committed to enforcing the law with the maximum flex-
ibility allowed by the statute in order to preserve
the envirormental goals of our national air quality
orogram and to minimize economic disruption."
Under the policy announced today, EPA will divide
areas currently designated "nonattainment" into two
tiers. The first tier includes areas where there is a
high probability of actual attainment, even though a
State may not have yet applied for redesignation as
"attainment." The second tier includes a^eas the
Agency believes cannot make such a demonstration.
The Agency wants to ensure broad public participation
in the process of reviewing attainnent status, con-
sidering plans for achieving attainment, and proposing
sanctions. For each area in the second tier--an area
believed not to have achieved the standards—the
Agency will publish a notice in the Federal Register
within the next several weeks proposing to find the
area in nonattainment and describing the sanction
required by the statute. After thorough consideration
of the comments received and a full analysis of the
public record developed through this process, tl
Agency will take final action.
LPA will encourage the States to apply promptly for
redesiqnation for any area currently listed as non-
attainment for which the States can demonstrate that
the area is meeting the standards.
Continued on back page

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70
Olin Corporation Agrees to
Cleanup at Redstone Arsenal
EPA has announced that all claims against
the Olin corporation for DDT contamination
of river waters near Redstone Arsenal in
Alabama will be settled when Olin signs a
formal agreement to pay for a cleanup and
citizen-compensation program.
The agreement must still be formally
approved by the Department of Justice.
The agreement will be formalized in a
consent decree to be lodged with the
District Court in the near future.
DDT was manufactured at Redstone from 194/
to 1971 by Olin and the predecessor lessee
of the site, the Calabama Chemical Company.
"Terms of the EPA-Olin agreement have been
worked out over many months," EPA Deputy
Administrator John W. Hernandez said,
following a civil enforcement action filed
in December 1980 by the Department of
Justic- cn behalf of the agency and the
Department of the Army.
"I am delighted to announce this particular
settlement," he stated. "Widespread DDT
pollution was one of the national concerns
leading to the formation of EPA. The Agency
banned DDT's use in 1972. The contaminated
area is near Triana--a community of some
1,000 residents.
"Known as the Redstone Arsenal area," Dr.
Hernandez said "it is one of 418 hazard-
ous waste disposal sites targeted for top
priority action under EPA's Superfund program.
01 in-financed cleanup at this site will aug-
ment the $121 million already provided by
private parties for remedial work at these
Superfund sites."
in addition to paying for whatever the
cleanup may cost, Olin will also pay an
additional $24 million to assist residents
of the contamirated area. This amount
includes a $19 million trust fund to be
established for health care and fur
meeting personal injury claims, and
various non-environmental concerns. Olin
will pay the other $5 million to the
Federal government for medical monitoring
of the citizens and other related medical
projects.
Chandler Named to New Post
Nathan Chandler has been selected as EPA's
agricultural ombudsman. EPA Administrator
Anne M. Gorsuch said that Chandler will
help to improve communications between the
agricultural community and the Agency.
A forme'r Commissioner of Agriculture for
the State of Massachusetts from 1969 to
1975, Chandler joined EPA in 1975 to
serve'as agricultural consultant to then-
Adm'nistrator Russell E. Train. Chandler
is a former vice president of the National
Association of State Departments of
AgricuIture.
In his new post, Chandler will remain on
the immediate staff of Dr. John A.
Todhunter, Assistant Administrator for
Pesticides and Toxic Substances.
The remedial work to be carried out by
Olin will involve cleaning up DDT residue
in the sediment of the Huntsville Spring
Branch-Indian Creek tributary of the
lennessee River. Results of samples taken
from fish which inhabit the tributary
indicate that DDT concentrations may range
from five to 100 times the Food and Drug
Administration's maximum safe level
allowable 'or fish sold in interstate
commerce. In the proposed settlement,
Olin will cgree to attain (within 10 years
after completion of the initial remedial
contruction) and maintain the FDA's
maxirrum level of five parts per million
DDT in edible fish in all of affected
regions of the Huntsville Spring Branch-
Indian Creek tributary.
The government s suit U.S. v. 01 in
Corporation, filed in the Northern
District of Alabama, alleged that the
existence of approximately 837 tons of
DDT in these bodies of water violates
portions of the Clean Water Act, the
Comprehensive Environmental Response,
Compensation, and Liability Act or
"Superfund Act," the Resource Conservation
and Recovery Act,and the Rivers and Harbors Ac
Hernandez announced that the EPA-Olin
agreement will also settle related suits
against Olin by the State of Alabama and
three groups of private citizens.
The EPA Times is published every two weeks by EPA's Office
Washington, D.C. 20460, to provide current information for
punched with three holes for binding for future reference.
of Public Affairs, A-107,
all EPA employees. It is

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EPA Updates Estimates of
Sewage Construction Needs
EPA has released the 1982 Needs Survey, the
|st estimate available of the nationwide
Jsts of compliance with the goals of the
1982 construction grant amendments to
the Clean Water Act.
The backlog of currently unmet wastewater
treatment and interceptor sewer needs for
our existing sewered population is estimated
to be $35.4 billion; total existing and
proposed treatment and interceptor needs,
including growth to the year 2000, are
estimated at $57.3 billion.
These totals cover the Federal, State, and
local share of constructing secondary and
advance treatment facilities, including
outfall sewers; correcting infiltration/
inflow (leakage) problems; and construct-
ing new interceptor sewers.
EPA's Needs Survey is conducted and sub-
mitted to Congress every two years. It
provides a comprehensive estimate of the
cost of constructing all needed publicly
owned treatment works to meet the goals of
the Clean Water Act. Prior Needs Surveys
ive served as a basis for Congressional
allotment of construction grant funds to the
States. The latest survey reaffirms that
meeting the water quality goals of the Act
will require a substantial investment.
These water quality initiatives of the 1982
Needs Survey are in response to the growing
need to target limited construction grants
dollars to facilities resulting in the
greatest water quality and public health
improvements and to the Co^'ressional
mandate of the 1981 constru :ion grant
ame";c"ments for a survey reflecting water
qua Iity needs.
The EPA Survey estimates that the overall
municipal wastewater treatment construction
needs for the existing population is $92.6
billion, or about /8 percent of an estimated
$118.4 billion needed to serve the nation
in the year 2U0U.
Their totals include the above construc-
tion categories plus major rehabilitation
of sewers, construction of new col lector
¦ewers, and control of combined sewer
overflows. They do not reflect the
Federal grant eligibility limitations
imposed by the 1982 amendments.
71
Medicare Payroll Deductions
Below is a chart showing the grade/step
breakdown of the biweekly rates for deduction
provided by the U.S. Office of Personnel
Management.
Grade Bl-
and weekly
step rate
Grade Bl-
and weekly
step rate
Grade Bi-
and weekly
step rate
1-1 $4.34
6-4 $8.20
11-4 $13.48
1-2 4.48
b-8 8.25
10-8 13.76
1-3 4.63
7-1 8.28
11-5 13.«8
1-4 4.77
6-5 8.44
10-9 14.13
2-1 4.88
5.9 8.47
11-6 14.30
1-5 4.92
7-2 8.56
10-10 14.50
2-2 4.99
5-10 8.69
12-1 14.68
1-6 5.00
6-6 8.69
11-7 14.71
1-7 5.15
7-3 8.83
11-8 15.11
2,-3 5.16
6-7 8.94
12-2 15.17
1-8 5.28
7-4 9.11
11-9 15.53
1-9 5.29
8-1 9.17
12-3 15.66
2-4 5.29
6-8 9.19
11-10 15.93
3-1 5.32
7-5 9.38
12-4 16.15
2-5 5.36
6-9 9.44
12-5 16.64
1-1U 5.43
8-2 9.47
12-6 17.14
3-2 5.50
7-6 9.6b
13-1 17.46
2-6 5.51
6-10 9.68
12-7 17.63
2-7 5.67
8-3 9.78
13-2 18.04
3-3 5.68
7-7 9.93
12-8 18-12
2-8 5.82
8-4 10.09
12-9 18-61
3-4 5.86
9-1 10.13
13-3 18.63
4-1 5.97
7-8 10.21
12-10 19-09
2-9 5.98
8-5 10.39 '
13-4 19.22
3-5 6.03
9-2 10.46
13-5 19.79
2-10 6.14
7-9 10.48
13-6 10.37
4-2 6.1b
8-b 10.70
14-1 20.63
3-6 6.21
7-10 10.76
13-7 20.96
4-3 6.38
9-3 10.81
14-2 21.33
3-7 6.39
8-7 11.UO
13-8 21.54
3-8 6.56
9-4 11.14
14-3 22.02
4-4 6.57
10-1 11.15
13-9 22.12
5-1 6.69
8-8 11.30
14-4 22.70
3-9 6.74
9-5 11.48
13-10 22.70
4-5 6.77
10-2 11.52
14-5 23.39
5-2 6.91
8-9 11.62
14-6 24.08
3-10 6.92
9-b 11.81
15-1 24.27
4-6 6.97
10-3 11.90
14-7 24.76
5-3 7.13
8-10 11.92
15-2 25.08
4-7 7.17
9-7 12.16
14-8 25.46
5-4 7.35
11-1 12.25
15-3 25.90
4-8 7.36
10-4 12.27
14-9 26.15
6-1 7.45
9-8 12.49
15-4 26.71
4-9 7.57
10-5 12.65
14-10 26.83
5-5 7.58
11-2 12.b7
15-5 27.51
b-2 7.70
9-9 12.82
15-6 28.32
4-10 7.77
10-6 13.01
16-1 28.48
5-6 7.80
11-3 13.07
15-7 28.75
6-3 7.95
9-10 13.17
ES-1 28.48
5-7 8.02
10-7 13.38
ES-2 29.26

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72
PERSONNEL (continued)
the fu11 FICA earn
Social Security Quarters
of Coverage (SSOCs) for
Social Security benefit
purposes. However,
since Federal employees
pay only the hospital
insurance portion of
FICA, they receive FQCs
for Medicare ourposes
only. The FQCs may be
used alone or in com-
bination with SSQCs to
establlsh an indiv-
idual's insured status
for Medicare purposes.
FQCs will not be cred-
ited if the employee
already has a suffi-
cient number of SSQCs.
An individual who is
insured for Medicare
purposes throuqh FQCs
must also meet the other
requirements in the law
in order to receive
Medicare payments. He/
she must be: 1) age 65,
or 2) disabled for 29
months, or 3) receiving
dialysis or have had a
transplant for treatment
of end stage renaI disease.
The law provides that an
individual who performs
service in Federal
employment duririg and
before January 1982 wi11
receive deemed FQCs for
each quarter prior to
January 1983 which was
not otherwise credited
with an SSQC. Those who
retire by January 8,
1983, will not have to
pay any portion of the
1.3% salary tax. Those
who are in pay status
after January 9 will have
to pay the one^month 1.3%
salary tax, regardless of
the number of days worked.
Those retiring before
January 8--the end of the
current leave year--will
also be able to collect
for their accumulated and
accrued annual leave.
AIR STANDARDS (continued)
Under the Clean Air Act, areas failing to meet the
attainment deadline are subject to a ban on the
construction or modification of major sources emitting
the pollutant which the area has failed to adequate!)
control, and may be subject to a suspension of certain
Federal grant funds.
In announcing EPA's policy on nonattainment areas,
Mrs. Bennett said: "The Clean Air Act remains in
immediate need of updating to deal with the realities
environmental managers face in the 1980's. Additional
State and Federal flexibility is needed to avoid the
imposition of arbitrary deadlines and mandatory
sanctions currently required by the Act. In carrying
out these requirements, we will keep two primary goals
in mind: to focus on real air quality problems and envi-
ronmental objectives, and to deal with States as partners,
not as adversaries, in environmental management.
"Our current policy represents these aims. We cannot
interpret the law in a way that would clearly rewrite
years of legislative and legal history, and ignore the
Act's mandatory sanctions. We hope that the public
¦"ill participate actively in our review of these
actions as we attempt to deal with this difficult problem."
iHe Office of Personnel
"anagement is publishing
a pamphlet entitled
vqdicare for Federal
Vnplbyees which should
be avai1 able for al1
employees by the end of
January.
(A chart showing the Medicare
deduction rates for various
pay grades is carried on
page 71.)
Higher Pay for
Federal Executives
President Reagan has recently
signed legislation for Federal
executives which raised the
pay rate ceiling for members
of the Cabinet, Senior txecu-
tive Service, and General
Schedule employees, effec-
tive December 18, 1982.
The new salary le-els for
Executive Schedule positions
are:
executive Level 1: $80,100
Executive Level 2: $69,800
Executive Level 3: $68,400
Executive Level 4: $67,200
Executive Level b: 563,800
Senior Executive service
salary
rates are:
ES-1
$56,945
ES-2
$59,230
ES-3
$bl,515
ES-4
$63,800
ES-5
$b5,bOO
ES-6
$67,200
For al I General Schedu le
positions previously limited
to the pay cap of $57,500,
the salary ceiling is raised to
$63,800, which corresponds to
the new Executive Level 5 rate.
These grade levels with their
new salary rates are:
GS-15/7
$58,261
GS-15/8
$59,2b1
GS-15/9
$61,49/
GS-15/10
$63,115
GS-16/1
$5fa,94b
GS-16/2
$58,843
GS-16/3
$60,741
GS-16/4
$62,639
GS-lb/5 thru 9
$63,800
GS -17
$63,800
GS-18
$63,800

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