United States
         Environmental Protection
              Office of the Administrator
              Washington, DC 20460
              Mail Code 1802
                     EPA 100-R-00-017
                     December 1999
         Project XL  Progress  Report
         New York State Department  of
         Environmental Conservation (NYSDEC)
         On March 16,1995, the Clinton Administration announced a portfolio of reinvention initia-
         tives to be implemented by the U.S. Environmental Protection Agency (EPA) as a part of its
         efforts to achieve greater public health and environmental protection at a more reasonable
         cost. Through Project XL, which stands for excellence and Leadership, EPA enters into
         specific proj ect agreements with public or private sector sponsors to test regulatory, policy,
         and procedural alternatives that will produce data and experiences to help the Agency make
         improvements in the current system of environmental protection. The goal of Proj ect XL is to
         implement 50 proj ects that will test ways of producing superior environmental performance
         with improved  economic efficiencies, while increasing public participation through active
         stakeholder processes. As of October 1999,15 XL projects are in the implementation
         phase and 3 5 XL proj ects are under development. EPA Proj ect XL Progress Reports
         provide overviews of the status of XL proj ects that are implementing Final Proj ect Agree-
         ments (FPAs).  The progress reports are available on the Internet via EPAs Proj ect XL web
         site at http://www.epa.gov/Project XL. Or, hard copies may be obtained by contacting the
         Office of Reinvention's Project XL general information number at 202-260-7434. Additional
         information on Proj ect XL is available on the web site or by contacting the general informa-
         tion number.


         The New York State Department of Environmental Conservation (NYSDEC) was created
         on July 1,1970 to bring together in a
         single agency all state programs directed
         toward protecting and enhancing the
         environment. The NYSDEC is respon-
         sible for the administration and enforce-
         ment of statewide regulations governing
         the disposal, transport, and treatment of
         hazardous wastes in an environmentally
         sound manner. The NYSDEC proj ect
         would allow public utilities (electric,
         telephone, and oil and gas) located in
         New York State to consolidate hazard-
Major Milestones
    May 8, 1996
NYSDEC XL Proposal
   July 12, 1999
Final Project Agreement
  January 10,2000
EPA Rule Effective Date
 January 10, 2005
Termination of FPA

NYSDEC XL Project                                                                     12-31-99
   ous wastes generated at remote locations (e.g., manholes). The proj ect would allow the utilities to con-
   solidate the waste at a utility-owned central collection facility (UCCF) for up to 90 days before transport
   and disposal, rather than having to transport such wastes piecemeal directly to permitted treatment,
   storage, and disposal facilities (TSDFs). This proj ect is designed to minimize unnecessary paperwork and
   more efficiently use time and labor resources. It will also increase public safety by requiring and facilitating
   the expeditious removal of hazardous wastes that cannot be properly secured and that can create traffic
   hazards in urban areas. Public utilities should realize considerable direct-cost savings from the more
   efficient use of transportation from centrally consolidating hazardous wastes and a consequent reduction in
   the number of lengthy trips by waste-transporting vehicles. The NYSDEC proj ect will eliminate the need
   to report remote locations under separate identification numbers and will allow the participating utilities to
   biennially report waste generated at separate remote locations. This will bring about a significant reduction
   in paperwork and savings in time and labor, both for public utilities and environmental  regulatory agencies,
   which can then redirect such resources to other environmental needs.

   Pending approval by EPA and NYSDEC, any company that operates wholesale or retail oil and gas pipe-
   lines, or that provides electric power or telephone service and is regulated by New York State's Public
   Service Commission, or the New York Power Authority, is eligible for inclusion in this XL proj ect. EPA
   expects this XL proj ect to result in superior environmental performance in New York State, while provid-
   ing cost savings to participating utilities, by
   •  reducing the risk of accidental hazardous waste releases at remote locations where no staffed facilities
   •  allowing the consolidation of similar waste at UCCFs, thereby reducing the number of vehicle trips
     required to transport hazardous wastes from remote locations to TSDFs;
   •  reducing the need for human resources, time, and paperwork, which in turn will allow utility and regula-
     tory agency resources to focus instead on high-priority environmental issues; and
   •  requiring each participating utility to reinvest one-third of its direct cost savings into one or more new
     environmentally beneficial projects.

   The Experiment

   The NYSDEC proj ect aims to minimize unnecessary paperwork and increase public safety by facilitating
   and requiring the expeditious removal of hazardous wastes that cannot be properly secured and that can
   create traffic hazards in urban areas. The NYSDEC proj ect would allow public utilities located in New
   York State to take the hazardous wastes generated at remote locations (e.g., manholes) and consolidated
   that waste at UCCFs for up to 90 days before transport and disposal, rather than having to transport such
   wastes in a piecemeal manner to permitted commercial hazardous waste TSDFs.

   The Flexibility

   The NYSDEC is working with EPA, New York State utilities, and the community to achieve superior
   environmental performance and to dispose of remotely generated hazardous waste in  a more flexible, cost-
   effective manner. As an incentive to achieving superior environmental performance, NYSDEC is being
   offered regulatory flexibility in the area of hazardous waste management.
   The statutory program, and the EPA office administering the program, that is affecting the NYSDEC XL
   proj ect is the Resource Conservation and Recovery Act (RCRA) program, administered by EPAs Office of
   Solid Waste.

 NYSDEC XL Project                                                                     12-31-99
Hazardous Waste Consolidation: Under RCRA, producers of sufficient amounts of hazardous waste at
remote locations must transport the waste directly to a permitted TSDF. The maj ority of hazardous waste
generated at remote locations is the direct result of contaminated sediments accumulating at utility access
points. In the case of electric power and telephone systems, the remote locations involved are usually
access manholes, service boxes, and street vaults, which often contain sediments that fail the Toxicity
Characteristic (TC) for lead, particularity in urban areas.  In the case of oil and gas pipelines, the waste may
consist of pipeline condensate which collects in "drip" pipes downstream of pressure-regulating systems
and which commonly exhibits ignitability and fails the TC for benzene. For electric power systems and oil
and gas pipelines, polychlorinated biphenyl (PCB) contamination is also possible.

Prior to the implementation of the XL proj ect, the responsible utility was required to transport all quantities
of hazardous waste-no matter how small-directly to a TSDF for disposal. Authorization from a TSDF
must be obtained before hazardous waste can be included in the manifest, often resulting in a delay in the
removal of waste from the remote location.  During this delay period, the possibility of either an accidental
release of the waste or onsite vandalism is greatly increased, posing a risk to human health and the environ-
ment. RCRA regulations generally do not allow the shipment to, or consolidation of, hazardous waste at
offsite facilities other than a permitted or interim-status TSDF or other designated facility. Currently, utilities
are allowed to accumulate hazardous waste without RCRA permits at the remote location where it is
generated for up to 90 days (or, under certain circumstances, 180 days) prior to transporting the waste to a
TSDF. The FPA between EPA, NYSDEC, and New York State public utilities expresses the parties'
intention to allow participating public utilities to consolidate hazardous waste generated at remote locations
at designated UCCFs for up to 90 days, subj ect to specified requirements. At staffed, secured UCCFs, the
utilities could safely consolidate compatible types of hazardous wastes collected from different remote
locations to ensure that the most efficient transportation and storage methods are employed.  By consolidat-
ing hazardous wastes at UCCFs, the number of vehicle trips from remote locations to often distant TSDFs
could be greatly reduced, thereby reducing mobile source emissions. Storing wastes at fully staffed and
approved UCCFs will also greatly diminish the possibility of hazardous waste spillage or seepage at remote
locations, from either accident or vandalism. Under this XL proj ect, all other applicable Federal and state
regulations governing collection, transport, and storage of hazardous materials will remain in effect.

Reporting: Under current regulations, each remote location that generates more than 100 kilograms of
hazardous waste in a single month is issued its own EPA identification number. Each location must open a
record file, both in state-only databases and in the Federal database Resource Conservation and Recovery
Information System (RCRIS). In addition, the responsible utility must prepare a Hazardous Waste Report/
Biennial Report for each of the remote locations that generate more than 1,000 kilograms in a single month,
including manholes and drip pipes.  The RCRA-authorized state processes each report and enters the data
into state databases, and EPA enters it into the Biennial Report System (BRS) database.

Following the implementation of this XL proj ect, hazardous waste generated at remote locations that is
transported to a UCCF can be accounted for in a combined Biennial Report from the utility. The utility,
therefore, avoids having to submit a Biennial Report for each remote location. Unstaffed remote locations
will use the same EPA identification number as the designated UCCF to which the wastes are transported.
A separate Biennial Report must still be prepared for hazardous waste sent from a remote location directly
to a permitted TSDF. This regulatory flexibility will streamline the reporting process, resulting in a reduction
in duplicative paperwork and cost savings to the EPA, NYSDEC, and the utilities.

Environmental Stewardship: Under the XL agreement, each utility must reinvest one-third of its direct
savings into other environmental enhancement or pollution prevention activities that go beyond what is

  legally required and that were not previously planned. Savings will be estimated by comparing the costs
  incurred before and after the implementation of the project. Expected savings should result from reduc-
  tions in report production, paperwork, labor, vehicle trips, and storage costs.

  Promoting Innovation and System Change

  Proj ect XL provides EPA opportunities to test and implement approaches that protect the environment and
  advance collaboration with stakeholders. EPA is continually identifying specific ways in which XL proj ects
  are helping to promote innovation and system change. The innovations and system changes emerging from
  the NYSDEC XL proj ect are described below.
  Alternative Handling of Wastes—Statewide Regulatory Flexibility. The NYSDEC proj ect seeks to
  enable innovative management practices to safely and effectively deal with the problems associated with the
  generation of hazardous wastes at remote locations. These new management practices can benefit utilities
  across the country facing similar problems with the remote generation, transportation, and secure storage of
  hazardous wastes. This proj ect provides the opportunity to examine whether immediate transport of
  hazardous waste to central collection facilities reduces accidental releases and risks to human health and
  the environment. Also, this project tests the effectiveness of regulatory flexibility within and across industry
  sectors (electric, telephone, and oil/natural gas) throughout an entire state.
  Administrative Burden Reduction. A number of XL proj ects are testing different approaches to reducing
  the administrative permitting and reporting requirements imposed by Federal, state and local regulatory
  agencies. The NYSDEC pilot proj ect serves as a test bed for a utilitywide burden-reduction strategy for
  remote generators of hazardous waste. EPA and NYSDEC may also benefit from a reduction in adminis-
  trative and financial resources as a result of this XL proj ect. This XL proj ect's foundation is testing the
  environmental and economic feasibility of this administrative change.
  Environmental Stewardship—Cost Savings Reinvestment. As part of the final FPA, a portion of the
  cost savings incurred by the utilities as a result of regulatory flexibility will be reinvested in new environmen-
  tal initiatives. These new initiatives will be documented by the utilities according to established FPA guide-
  lines and tracked by EPA and NYSDEC.

  Project Commitment Summary

  This table and the environmental performance section that follows summarize progress in meeting commit-
  ments described in the FPA for the NYSDEC XL proj ect.
                               New York State Utilities Commitments
   Utilities must identify to local governments and
   communities those facilities they intend to designate
   as UCCFs, and must solicit public comment on the
   proposed plan.
To be completed after January 10, 2000.
   Eligible utilities wishing to participate in this XL pilot
   must submit to NYSDEC and EPA a formal notifica-
   tion of intent to enter into the proj ect.
To be submitted after January 10,2000.

Commitment Status
New York State Utilities Commitments
New York State utilities must remain in compliance
with all applicable Federal and state laws governing
hazardous waste storage, transport and disposal.
Participating utilities must submit an annual Proj ect
XL Progress Report to NYSDEC and EPA within
90 days after the end of a proj ect (calendar) year.
Utilities must maintain and make available for
inspection for a period of 3 years copies of (1) all
manifests for hazardous wastes transported to or
from the UCCF; (2) the UCCF's annual Hazardous
Waste Reports; and (3) any PCB test results for
hazardous wastes brought to the UCCF from
remote locations.
Each participant must reinvest one-third of its direct
savings into other environmental remediation or
pollution prevention activities; these savings and
reinvestments must be clearly identified in the annual
Proj ect XL reports.
First report due March 3 1 , 200 1 .
To be completed following proj ect implementa-
tion in January 2000.
To be completed following proj ect implementa-
tion in January 2000.
EPA Commitments
EPA will issue a final rule providing regulatory
flexibility under RCRA that will allow New York
State utilities to consolidate hazardous waste
generated at remote locations at designated
Final rule (40 Code of Federal Regulations Part
262) was promulgated on July 1 2, 1 999 and will
become effective on January 10, 2000.
NYSDEC Commitments
NYSDEC may initiate implementation of this
proj ect through the adoption of an interim Enforce-
ment Directive (ED).
NYSDEC must propose and promulgate a specific
state rule allowing for the change in state regulations
governing hazardous waste management.
NYSDEC must review and approve the applica-
tions submitted by utilities to redesignate their
facilities as UCCFs.
NYSDEC must conduct RCRA inspections at each
designated UCCF at least once per New York
State Fiscal Year during the term of the FPA.
Will be adopted following the effective date of
the Federal rule (after January 1 0, 2000).
Must be promulgated within one year after the
adoption of the ED.
To be completed following proj ect implementa-
tion in January 2000.
To be completed annually following project
implementation in January 2000.

                                      NYSDEC Commitments
   NYSDEC will prepare and submit to EPA Region
   2 a statewide Project XL annual Progress Report
   within 180 days following the end of each proj ect
   (calendar) year.
First report due June 30,2001.
  Environmental Performance

  This section summarizes progress in meeting the environmental performance described in the FPA for
  NYSDEC. No information regarding performance measures will be available until after proj ect implemen-
  tation begins in January 2000. Anticipated results will be displayed in three subsections.
  Utility Participation: Participation in this XL project is open to all public utilities that provide telephone,
  electric power, or oil and gas services within New York State. Utilities that wish to participate must notify
  local governments and communities of their intent to designate specific UCCFs and must solicit public
  comment. This section will include a graph detailing the number of utilities participating in the XL Proj ect
  by industry. The section will also include the number of remote locations statewide for which hazardous
  waste was handled during the preceding proj ect year.
  Hazardous Waste Consolidation: Superior environmental performance will be achieved by allowing
  utilities to store hazardous waste for up to 90 days at UCCFs before transport and disposal. The FPA
  stipulates that each participating utility must submit an annual Progress Report that includes the total ton-
  nage of hazardous waste generated at remote locations, along with the number of remote locations state-
  wide that generated between 100 and over 1,000 kilograms of hazardous waste during a generation event.
  This information will be graphically represented in this section.
  Cost Savings/Reinvestment Highlights: Both New York State public utilities and Federal and state
  regulatory agencies will realize cost savings as a direct result of Proj ect XL regulatory flexibility. These cost
  savings will be the result of significant reductions in paperwork, transportation and storage costs, and labor
  costs. An estimate of the monetary value, on a utility wide basis (electric power, telephone, and oil and gas)
  of the direct savings realized by participation in this proj ect will be graphically displayed in this section.
  Also included will be a summary of the innovative environmental programs into which select utilities are
  reinvesting these savings (e.g. environmental compliance, remediation, pollution prevent!on activities).

  Stakeholder Participation

  The organizations directly involved in negotiating the FPA included NYSDEC, EPA, and the utility industry
  in New York State. Bell Atlantic, Consolidated Edison, and Key Span Energy acted as the lead represen-
  tatives for the telephone, electric power, and oil  and gas pipeline industries, respectively. The development
  of the FPA was accomplished through implementation of the Public Participation and Outreach Plan, which
  provided the opportunity for participation by potential industrial participants, environmental organizations,
  and the general public. This Outreach Plan also provides for public participation in the designation and
  approval of eligible UCCFs. Before a facility can be designated as a UCCF, the responsible utility must
  notify local community members of its intentions by publishing an advertisement in a local newspaper, along
  with two additional means of community notification outlined in the FPA. Utilities must furnish NYSDEC
  and local governments with a list of all public comments received during the comment period, along with

 NYSDEC XL Project                                                                    12-31-99
the utility's response to each received comment or question. The Outreach Plan stipulates that each
participants's annual Proj ect XL Progress Report be made available to any and all interested parties.

Six-Month Outlook

The key focus areas for continued successful implementation of the FPA over the next six months will be the
• NYSDEC's issuance of an enforcement directive and pursuit of a final state rule that will allow regulatory
  flexibility in the area of remotely generated hazardous waste consolidation.
• New York State public utilities beginning the Proj ect XL implementation process, including initiating public
  outreach and submitting notifications of intent to participate to NYSDEC.

Project Contacts
• Phil Flax, EPA Region II, (212) 637-4143.
• Nancy Birnbaum, EPA/XL HQ, (202) 260-2601.
• LawrenceNadler, NYSDEC, (518)485-8988.
• EricDessen, Consolidated Edison Company (electric power utilities), (212)460-4889.
• John Quatrale, Bell Atlantic (telephone utilities),  (212) 3 3 8-7141.
• Dennis Harkawik (General Counsel), Key Span Energy (oil and gas utilities), (716) 843-3848.

Information Sources

The information sources used to develop this progress report include (1) the FPA for the NYSDEC XL
project, and (2) the Final Rule adopted by EPA on July 12,1999. The information sources are current
through July 1999.
Baseline: The measure by which future environmental performance can be compared.

Biennial Reporting System (BRS) Database: A national system that collects data on the generation, manage-
ment, and minimization of hazardous waste. BRS captures detailed data on the generation of hazardous
waste from large-quantity generators and data on waste management practices from treatment, storage, and
disposal facilities.

Final Project Agreement (FPA): The FPA outlines the details of the XL project and each party's commit-
ments. The project's sponsors, EPA, State agencies, Tribal governments, other regulators, and direct
participant stakeholders negotiate the FPA.

Hazardous Waste: By-products of society that can pose a substantial or potential hazard to human health or
the environment when improperly managed. They either possess at least one of four characteristics
(ignitability, corrosivity, reactivity, or toxicity), or appear on special EPA lists.

Manifest: An invoice of materials carried on a truck or train.

Media: Specific environments-air, water, soil-which are the subject of regulatory concern and activities.

Multi-media: Several environmental media, such as air, water, and land.

NYSDEC XL Project                                                                     12-31-99
   Polychlorinated Biphenyls (PCBs): Mixtures of synthetic organic chemicals with the same basic chemical
   structure and similar physical properties, ranging from oily liquids to waxy solids. Due to their nonflamma-
   bility, chemical stability, high boiling point and electrical insulating properties, PCBs were used in hundreds
   of industrial and commercial applications including electrical, heat transfer, and hydraulic equipment; as
   plasticizers in paints, plastics and rubber products; in pigments, dyes and carbonless copy paper; and in
   many other applications.

   Remote Location: A location within a utility's right-of-way network that is not permanently staffed.

   Resource Conservation and Recovery Act (RCRA): RCRA gives EPA the authority to control hazardous
   waste from the "cradle-to-grave." This includes the generation, transportation, treatment, storage, and
   disposal of hazardous waste. RCRA also promotes resource recovery techniques and methods to reduce
   the generation of hazardous waste. RCRA focuses only on active and future facilities and does not
   address abandoned sites.

   Resource Conservation and Recovery Information System (RCRIS): A national program management and
   inventory system of RCRA hazardous waste handlers. RCRIS captures identification and location data for
   all handlers and a wide range of information on TSDFs regarding permit/closure status, compliance with
   Federal and state regulations, and cleanup activities.

   Right-of-way Network: A fixed, integrated network of above-ground or underground conveyances,
   including land, structures, fixed equipment, and other appurtenances, controlled or owned by a utility, and
   used for the purpose of conveying its products and services to customers.

   Small-quantity Generator - A generator that produces less than 1,000 kilograms of hazardous waste at a
   site per month or less than one kilogram of acutely hazardous waste per month; this includes standards for
   becoming a conditionally exempt small-quantity generator.

   Toxicity Characteristic: The criteria used to define wastes as hazardous and which are therefore subj ect to
   regulation under Subtitle C of the Resource Conservation and Recovery  Act (RCRA) due to their poten-
   tial to leach significant concentrations of specific toxic constituents.

   Treatment, Storage, and Disposal Facility (TSDF): Permitted facilities engaged in the treatment, storage,
   or disposal of hazardous waste.

   Utility: Any company that operates wholesale and/or retail oil and gas pipelines, or any company that
   provides electric power or telephone service and is regulated by New York State's Public Service Com-
   mission, or the New York Power Authority.

   Utility-owned Central Collection Facility (UCCF): A utility-owned facility within the utility's right-of-way
   network to which hazardous wastes generated by the utility at remote locations within the same right-of-
   way network, are brought. The UCCFs act as consolidation points for a utility's waste prior to its trans-
   port and disposal, and mitigate the costs and inefficiencies associated with piecemeal transfer of the waste.