United States
Environmental Protection
Agency
Office of the Administrator
Washington, DC 20460
Mail Code 1807
EPA 100-R-00-037
January 2001
www.epa.gov/opei
Project XL Progress Report
New York State Department of
Environmental Conservation (NYSDEC)
In 1995, the U.S. Environmental Protection Agency (EPA) embarked on a series of innova-
tive initiatives in an effort to test new ways 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 spon-
sors to test regulatory, policy, and procedural alternatives that will produce data and experi-
ences to help the Agency make improvements in the current system of environmental protec-
tion. 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 January 2001, EPA has
reached its goal of 5 0 proj ects in the implementation phase. EPA Proj ect XL Progress
Reports provide overviews of the status of XL proj ects that are implementing Final Proj ect
Agreements (FPAs). The progress reports are available on the Internet via EPAs Proj ect XL
Web site at http://www.epa.gov/Project XL. Hard copies may be obtained by contacting the
Office of Policy Economics and Innovation's (formerly the Office of Reinvention) Proj ect XL
general information number at 202-260-5754. Additional information on Proj ect XL is
available on the Web site or by contacting the general information number. The information
and data presented in the January 2001 Progress Report is current as of December 2000.
Background
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 environ-
ment. The NYSDEC is responsible
for the administration and enforce-
ment of statewide regulations govern-
ing the disposal, transport, and
treatment of hazardous wastes in an
environmentally sound manner. Under
the Resource Conservation and
Recovery Act (RCRA), producers of
sufficient amounts of hazardous waste
at remote locations must transport the
Major Milestones
May 8, 1996
NYSDEC XL Proposal
Submitted
July 12, 1999
Final Project Agreement
Signed
January 10,2000
EPA Rule Effective Date
January 10, 2005
Termination of FPA
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NYSDEC XL Project 1-31-01
waste directly to permitted treatment, storage, and disposal facilities (TSDFs) if it exhibits at least one of the
following characteristics: ignitability; corrosivity; toxicity; orreactivity. The majority of hazardous waste gener-
ated 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, poly chlorinated
biphenyl (PCB) contamination is also possible.
The responsible utility is 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 on-site vandalism is greatly increased,
posing a risk to human health and the environment. RCRA regulations generally do not allow the shipment to, or
consolidation of, hazardous waste at off-site facilities other than a permitted or interim-status TSDF or other
designated facility. The NYSDEC proj ect would allow public utilities (electric, telephone, and oil and gas)
located in New York State to consolidate hazardous wastes generated at remote locations (e.g., manholes). The
proj ect would allow the utilities to consolidate 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).
The Experiment
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 consolidate the 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 commer-
cial hazardous waste TSDFs. Pending approval by EPA and NYSDEC (which includes ensuring that the
company has no current compliance issues), any company that operates wholesale or retail oil and gas pipelines
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 and NYSDEC expect this XL proj ect to result in superior environmental performance in New York State,
while providing cost savings to participating utilities, by:
• reducing the risk of accidental hazardous waste releases at remote locations where no staffed facilities exist;
• 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 regulatory
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 environ-
mentally beneficial projects.
The Flexibility
The NYSDEC is working with EPA, New York State utilities, and the community to achieve superior environ-
mental 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.
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NYSDEC XL Project 1-31-01
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.
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, particu-
larly 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, PCB contamination is also
possible.
RCRA regulations generally do not allow the shipment to, or consolidation of, hazardous waste at off-site
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 consolidating 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 hazard-
ous materials will remain in effect.
Reporting: Under current regulations, each remote location that generates more than 100 kilograms of hazard-
ous 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 trans-
ported 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 duplicated 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 proj ect. Expected savings should result from reductions in report production,
paperwork, labor, vehicle trips, and storage costs.
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NYSDEC XL Project
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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 project 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 project 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
proj ect 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 projects 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 utility-wide burden-reduction strategy for remote genera-
tors of hazardous waste. EPA and NYSDEC may also benefit from a reduction in administrative and financial
resources as a result of this XL proj ect. The purpose of this proj ect is to test 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 environmental initia-
tives. These new initiatives will be documented by the utilities according to established FPA guidelines and
tracked by EPA and NYSDEC.
Project Commitment Summary
This table and the environmental performance section that follows summarize progress in meeting commitments
described in the FPA for the NYSDEC XL proj ect.
Commitment
Status
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.
Pending resolution of Petition for Review.
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.
Pending resolution of Petition for Review.
New York State utilities must remain in compliance
with all applicable Federal and state laws governing
hazardous waste storage, transport and disposal.
Ongoing.
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NYSDEC XL Project
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Commitment Status
New York State Utilities Commitments
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.
N/A. No New York State utilities have regis-
tered to participate (designated one or more
UCCFs).
To be completed following proj ect implementa-
tion.
To be completed following proj ect implementa-
tion.
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
UCCFsforupto90days.
Final rule (40 Code of Federal Regulations Part
262) was promulgated on July 12, 1999 and
became 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.
NYSDEC will prepare and submit to EPA Region
2 a statewide Project XL annual Progress Report
within 1 80 days following the end of each project
(calendar) year.
Adopted February 23, 2000.
In progress.
To be completed following proj ect implementa-
tion.
To be completed annually following project
implementation.
N/A. There are no active participants.
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NYSDEC XL Project 1-31-01
Environmental Performance
This section summarizes progress in meeting the environmental performance described in the FPA for
NYSDEC. Two important steps in the initial phase of the project have been completed. First, EPA issued 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 UCCFs for up to 90 days. This rule became effective Janu-
ary 10,2000. Subsequently, NYSDEC issued an enforcement directive on February 23,2000, which allows
the state to proceed with the implementation of the XL proj ect until it publishes its own state rule. This directive
is valid for one year. On October 7,1999, the Atlantic States Legal Foundation and other parties filed a Petition
for Review of EPA s final Proj ect XL Rule for New York State Public Utilities in the U. S. Court of Appeals for
the District of Columbia Circuit. EPA is currently exploring the option of settlement with these petitioners.
NYSDEC is accepting requests from the utilities to participate in the proj ect. No information regarding perfor-
mance measures will be available until after the utilities begin participating. Once results from the proj ect are
realized, they will be documented under the following sections:
Utility Participation: Participation in this XL proj ect 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.
NYSDEC will collect data on the number of utilities participating in the XL proj ect by industry and 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 tonnage of hazardous waste
generated at remote locations, along with the number of remote locations statewide that generated between 100
and over 1,000 kilograms of hazardous waste during a generation event.
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. Types of
data collected will include 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 project, as well as a summary of the
innovative environmental programs into which select utilities are reinvesting these savings (e.g., environmental
compliance, remediation, pollution prevention 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 KeySpan Energy acted as the lead representatives 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 oppor-
tunity 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 the utility's response to each received comment or
question. The Outreach Plan stipulates that each parti cipants's annual Project XL Progress Report be made
available to any and all interested parties.
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NYSDEC XL Project 1-31-01
Six-Month Outlook
The key focus areas for continued successful implementation of the FPA over the next six
months will be the following.
• EPA is currently exploring the option of settlement with the Atlantic States Legal Foundation
and other parties who filed a Petition of Review of EPAs final Proj ect XL Rule for New
York State Public Utilities.
• New York State public utilities beginning the Proj ect XL implementation process, including
initiating public outreach and submitting notifications of intentto participate to NYSDEC.
Project Contacts
• Phil Flax, U.S. EPARegion 2, (212) 637-4143.
• Nancy Birnbaum, U. S. EPA, Office of Policy, Economics, and Innovations, (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) 338-7141.
• Dennis Harkawik Outside Counsel to Key Span Energy (oil and gas utilities), Jaeckle
Fleischmann and Jugel, LLP, (716) 843-3848.
Information Sources
The information sources used to develop this progress report include (1) theDecember 1999
Project XL Progress Report—New York State Department of Environmental Conserva-
tion (EPA-R-00-0017) and (2) the Final Rule adopted by EPA on July 12,1999.
Glossary
Baseline: The measure by which future environmental performance can be compared.
Biennial Reporting System (BRS) Database: A national system that collects data on the genera-
tion, management, 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 Proj ect Agreement (FPA): The FPA outlines the details of the XL project and each party's
commitments. The project's sponsors, EPA, state agencies, tribal governments, other regulators,
and direct participant stakeholders negotiate the FPA.
Hazardous Waste: Byproducts 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—that are the subject of regulatory concern and
activities.
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NYSDEC XL Project 1-31-01
Multimedia: Several environmental media, such as air, water, and land.
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 non-flammability,
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 1 kilogram of acutely hazardous waste per month; this includes standards for becoming a
conditionally exempt small-quantity generator.
Toxicity Characteristic: One of four criteria (i.e., ignitability, corrosivity, reactivity, and toxicity) used to define
wastes as hazardous. If the wastes are hazardous they are therefore subj ect to regulation under Subtitle C of the
Resource Conservation and Recovery Act (RCRA) due to their potential 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 Commission, 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 transport and
disposal, and mitigate the costs and inefficiencies associated with piecemeal transfer of the waste.
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