Economic Assessment of the Potential Costs, Benefits, and Other Impacts of the Improvements to the Hazardous Waste Generator Regulatory Program, As Proposed

                                         June 2015

ACKNOWLEDGEMENTS
The U.S. Environmental Protection Agency recognizes Industrial Economics, Inc. (IEc), for the overall organization and development of this report. Phuc Phan, Jim O'Leary, and Rachel Horton provided guidance and review.
Table of contents

EXECUTIVE SUMMARY

Chapter 1  |  INTRODUCTION
Overview  1-1
Background and Need for Regulatory Action  1-1
Summary of the Proposed Rule  1-2
Report Organization  1-7

Chapter 2  |  POTENTIALLY IMPACTED UNIVERSE
Introduction  2-1
Universe of Facilities Affected by the Proposed Rule  2-1
	Estimating the Number of LQGs  2-2
	Estimating the Number of SQGs  2-3
	Estimating the Number of CESQGs  2-4
Hazardous Waste Generation of Potentially Affected Facilities  2-10
	LQG Hazardous Waste Generation  2-11
	SQG Hazardous Waste Generation  2-20
	CESQG Hazardous Waste Generation  2-22
	Aggregate Generation of Hazardous Waste Among Facilities Potentially Affected by the Rule  2-23
Management of Hazardous Waste  2-24

Chapter 3  |  ASSESSMENT OF COSTS
Introduction  3-1
Estimating Costs as a Range  3-1
Cost Methodology  3-3
	General Assumptions  3-3
	Methods for Assessing  Costs of Rule Provisions  3-6
Results  3-48
Analytic Limitations  3-56

Chapter 4  |  ASSESSMENT OF BENEFITS
Introduction  4-1
Monetized Benefits  4-1
	Drip Pad and Containment Building Requirements for SQGs  4-2
	Intra-organizational Transfers of Hazardous Waste from CESQGs to LQGs  4-5
	Generators that Temporarily Change Generator Status Due to an Episodic Event  4-13

Non-Quantified Benefits  4-17
	Intra-organization Transfers of Hazardous Waste from CESQGs to LQGs  4-18
     Documentation of Negative or Non-Hazardous Waste Determinations  4-19
     SQG Re-Notification  4-20
     Marking and Labeling of Containers for SQGs and LQGs  4-20
     LQG Closure Conditions  4-21
     Strengthening of the Preparedness, Prevention, and Emergency Response Conditions
      for LQGs  4-21
     Generators that Temporarily Change Generator Status Due to an Episodic Event  4-22
     Transfer Facility Requirements  4-22
     Biennial Reporting Requirements  4-22
     Prohibitions on Storage of Restricted Waste  4-22
     Special Requirements for Ignitable and Reactive Wastes (Voluntary)  4-23

Chapter 5  |  SUMMARY OF REGULATORY BENEFITS and COSTS

Chapter 6  |  EQUITY CONSIDERATIoNS AND OTHER IMPACTS
Regulatory Planning and Review  6-1
Regulatory Flexibility  6-2
Employment Impact Analysis  6-10
Unfunded Mandates Analysis  6-11
Federalism Analysis  6-12
Tribal Governments Analysis  6-13
Energy Impact Analysis  6-14
Environmental Justice Analysis  6-15
Children's Health Protection Analysis  6-15
Joint Impacts of Rules  6-16

Executive Summary
This document presents EPA's analysis of the costs, benefits, and economic impacts of the proposed Hazardous Waste Generator Improvements Rule.  This proposed rule has the dual purposes of enhancing protection of human health and the environment and improving the efficiency of the hazardous waste generator standards.  EPA is publishing this Economic Assessment (EA) in conjunction with the proposed rule and invites comments from the public on the data, methods, assumptions, and conclusions presented herein.  The net benefits of the proposed rule are summarized in Exhibit ES-1.  Further detail on the costs and benefits of the proposed rule is provided in the executive summary below.
exhibit ES-1. Net Benefits of the proposed rule
                            REGULATORY REQUIREMENTS
                            3 PERCENT DISCOUNT RATE
                               ($2012, MILLIONS)
                            7 PERCENT DISCOUNT RATE
                               ($2012, MILLIONS)
                               ANNUALIZED COSTS
                             ANNUALIZED BENEFITS
                                 NET BENEFITS
                               ANNUALIZED COSTS
                        ANNUALIZED BENEFITSNET BENEFITS
Mandatory Provisions of the Proposed Rule
                                 $5.2 - $12.0
                                $0.035 - $0.035
                              ($5.2)  -  ($12.0)
                                 $5.5 - $11.9
                                $0.035 - $0.035
                              ($5.4)  -  ($11.9)
Voluntary Provisions of the Proposed Rule
                                  $0.8 - $5.4
                                 $6.2 - $12.2
                                  $5.4 - $6.7
                                  $0.8 - $5.5
                                 $6.2 - $12.2
                                  $5.4 - $6.7
Mandatory and Voluntary Provisions of the Proposed Rule Combined
                                 $6.0 - $17.4
                                 $6.2 - $12.2
                                $0.2  -  ($5.2)
                                 $6.3 - $17.4
                                 $6.2 - $12.2
                              ($0.03)  -  ($5.2)
Notes:
   1. Due to limitations in the available data, benefits associated with several provisions of the proposed rule could not be monetized. Net benefits for these provisions are therefore presented as negative. These negative values, however, do not reflect the benefits that EPA was unable to monetize. In excluding these benefits, the negative values in the exhibits underestimate the net benefits associated with the rule's mandatory and voluntary provisions.
Ranges are presented to reflect the low-end and high-end scenarios described later in this report. Numbers in parentheses indicate a net cost, as opposed to a net benefit.
Background and Need for Regulatory Action
Under the statutory authority of the Resource Conservation and Recovery Act (RCRA), EPA originally promulgated the hazardous waste generator regulatory program in 1980.  Since that time, the basic regulatory framework of the program has remained intact except for a limited number of major changes.
Over the course of the last 30 years, the Agency has become aware of ambiguities and gaps in the regulations, which, if corrected, could make the program more effective in protecting human health and the environment.  For example, the current regulations do not require small and large quantity generators (SQGs and LQGs) to document situations where they generated a solid waste, as defined at 40 CFR 262.11, that is not a hazardous waste.  However, generators often fail to accurately make a hazardous waste determination which can lead to the mismanagement of hazardous waste.  In addition, current regulations do not require that hazardous waste container labels include information on the specific hazards of container contents or what risk these wastes could pose to human health and the environment when such waste is being accumulated on-site.
EPA has also become increasingly aware of certain inflexibilities in the generator regulations over the last 30 years.  For example, some generators, particularly those located in urban environments, may find it infeasible to meet the requirement that containers holding ignitable or reactive waste be placed at least 15 meters (~50 feet) back from the facility's property line.  In addition, current regulations require that a conditionally exempt small quantity generator (CESQG) or SQG that experiences a one-time generation event resulting in the generation of more than 1,000 kilograms of hazardous waste in a calendar month comply with the regulatory requirements for LQGs.  Requiring CESQGs or SQGs that rarely exceed their normal regulatory status to meet the full LQG requirements as a result of such episodic events may be burdensome.
To address these shortcomings in the current generator regulations, EPA is proposing several specific changes to the hazardous waste generator program.  These improvements are relatively minor on an individual basis, yet address a wide range of issues.  In aggregate, the proposed changes to the program are expected to significantly improve regulatory efficiency and provide further protection of human health and the environment.
Summary of the Proposed Rule
EPA is proposing several changes to the hazardous waste generator regulations.  Specifically, EPA proposes to (1) revise different components of the hazardous waste regulatory program; (2) address gaps in the current regulations; (3) provide greater flexibility for hazardous waste generators to manage their hazardous waste in a cost-effective manner; (4) reorganize the hazardous waste generator regulations to improve their usability among regulated facilities; and (5) make technical corrections and conforming changes to address inadvertent errors, remove obsolete programs, and improve the readability of the regulations.
Some provisions of the proposed rule represent substantive changes to the requirements with which hazardous waste generators must comply, while others are simply revisions or minor corrections unlikely to affect the activities of most individual generators.  This EA focuses on the former, as these provisions are more likely to result in costs, benefits, and/or other economic impacts.  These specific provisions are summarized below.  While the majority of the requirements are mandatory, three provisions of the rule are intended to provide greater flexibility to certain classes of hazardous waste generators and are thus voluntary.  For a detailed discussion of all the changes that EPA is proposing to the generator regulations, please refer to the Preamble to the proposed rule.
   1. Documentation of negative or non-hazardous waste determinations: The proposed rule would require that SQGs and LQGs maintain records of all hazardous waste determinations, including determinations where a solid waste, as defined by 40 CFR 261.2, is not a RCRA hazardous waste.  Under current regulations, generators must document and maintain records when they determine that they have generated a hazardous waste, but no such documentation requirement exists for negative determinations.
   2. SQG re-notification: To ensure that regulatory agencies have information on facilities generating hazardous waste, EPA is proposing that SQGs re-notify EPA of their hazardous waste generation activities every other year, similar to the existing requirement for LQGs.  For each re-notification, a facility need only review its previous notification and either make changes if necessary or confirm that the information remains accurate.
   3. Marking and labeling of containers, drip pads, and containment buildings for SQGs and LQGs: Current regulation requires that SQGs and LQGs label containers with the words, "Hazardous Waste."  While this wording provides some information regarding a container's contents, it does not indicate the specific hazards associated with these contents or the risks that a waste may pose to human health and the environment.  EPA is therefore proposing that SQGs and LQGs mark containers with (1) the words "Hazardous Waste"; (2) other words that identify the contents of the containers (e.g., paint solvent waste); and (3) an indication of the hazards of a container's contents (e.g., the applicable hazardous waste characteristic).  Similarly, EPA is also proposing that SQGs and LQGs mark areas near drip pads and containment buildings with the words "Hazardous Waste" and use their inventory logs to document (1) the date the waste was first placed on the drip pad on in the containment building; (2) the contents of the waste; and (3) an indication of the associated hazards (e.g., the applicable hazardous waste characteristic).
   4. LQG closure conditions: EPA is proposing to strengthen the closure regulations for LQGs that accumulate hazardous wastes in containers in satellite accumulation areas (SAAs) or central accumulation areas (CAAs).  Specifically, EPA proposes that if the generator cannot demonstrate that any contaminated soils can be practicably removed or decontaminated, then the generator must close the waste accumulation unit(s) and perform post-closure care in accordance with the closure and post-closure care requirements that apply to landfills (§ 265.310). In addition, for the purposes of closure, post-closure, and financial responsibility, such a waste accumulation unit is then considered to be a landfill, and the generator must meet all of the requirements for landfills specified in subparts G and H of part 265.
Also related to closure, EPA is proposing to require LQGs to notify EPA or their authorized state within 30 days prior to closure.  EPA is also proposing that such generators subsequently notify within 90 days after closure that they have either clean closed or, if they cannot clean close, that they have closed as a landfill.
   5. Strengthening of the preparedness, prevention, and emergency response conditions: EPA is proposing to require that all LQGs and SQGs maintain records documenting their emergency response arrangements with local emergency management authorities.  This documentation must include a certified letter or any other documentation that confirms such arrangements actively exist.  In addition, to improve the ability of emergency response teams to respond to an emergency, EPA is proposing that all new LQGs submit an executive summary of their contingency plans to emergency management authorities.  While EPA is not proposing to require that existing LQGs develop an executive summary of their contingency plan, it is taking comment on expanding this requirement to all LQGs.
   6. Transfer facility requirements: EPA is proposing to change the marking and labeling requirements for transporters storing hazardous waste at a transfer facility to be consistent with the proposed requirements for generators.  Thus, all hazardous waste stored by these facilities must be marked with (1) the words "Hazardous Waste"; (2) other words that identify the contents of the containers (e.g., paint solvent waste); and (3) an indication of the hazards of a container's contents (e.g., the applicable hazardous waste characteristic).
   7. Biennial Reporting Requirements: EPA is proposing two substantive changes to the biennial reporting requirements for LQGs.  First, the Agency is proposing that LQGs report all of the hazardous waste that they generate for the entire reporting year, not just waste for the month(s) during which they were LQGs.  Current regulation at the Federal level is unclear on this issue, and a limited number of states currently require LQGs to report the amount of hazardous waste generated for only those months that they were LQGs.  Second, EPA is proposing that LQGs report all hazardous waste generated during the reporting year, regardless of whether the waste was transported off-site during the reporting year.  Although the current EPA Biennial Report (BR) instructions state that generators should report the total quantity of hazardous waste generated during the reporting year, Federal regulations do not specifically address cases where a generator generates hazardous waste during the reporting year but ships it off-site during the next calendar year.
   8. Prohibitions on storage of restricted waste: Consistent with the proposed marking and labeling requirements for SQGs and LQGs, EPA is proposing to require that containers holding hazardous waste restricted from land disposal be marked with (1) the words "Hazardous Waste", (2) other words that identify the contents of the containers, and (3) an indication of the hazards of a container's contents.
   9. Drip pad and containment building requirements: Under the existing regulations, EPA has consistently interpreted the requirements for LQGs that accumulate hazardous waste on drip pads or in containment buildings for 90 days or less without a permit or interim status to also apply to SQGs.  Therefore, SQGs that use drip pads or containment buildings must comply with the LQG 90-day accumulation limit (as opposed to the SQG 180-day accumulation limit) as well as the requirements that apply to LQGs for personnel training, development of a full contingency plan, and biennial reporting.  Under the proposed rule, EPA believes a more effective and efficient approach is to require SQGs that accumulated hazardous waste on drip pads or in containment buildings to comply with the 90-day accumulation limit, but to otherwise comply with the less stringent requirements for SQGs.
   10. Intra-organizational transfers of hazardous waste from CESQGs to LQGs (voluntary): To afford greater flexibility to CESQGs, EPA is proposing to allow CESQGs to voluntarily send their hazardous waste to an LQG under the ownership of the same organization, provided that both the CESQG(s) and LQG comply with certain conditions related to labeling, transportation, notification, reporting, and recordkeeping.
   11. Generators that temporarily change generator status due to an episodic event (voluntary): To provide greater flexibility to CESQGs and SQGs that generate much of their hazardous waste on an episodic basis, EPA is proposing to allow a CESQG or an SQG to voluntarily maintain its existing regulatory status in the event of a planned or unplanned episodic event in which the facility generates a quantity of hazardous waste in a calendar month that would otherwise elevate the facility to a more stringent regulatory status.  To avail itself of this provision, an SQG or CESQG would be subject to various conditions related to the frequency of episodic generation events, notification and recordkeeping related to these events, the accumulation of hazardous waste generated during these events, and the management of this waste.
   12. Special requirements for ignitable and reactive wastes (voluntary): Current regulation requires that LQGs must locate containers holding ignitable or reactive waste at least 15 meters from the facility's property line.  In urban environments, LQGs may find it impossible to meet this requirement due to the relatively small footprint of many properties in these areas.  To provide flexibility to LQGs, EPA is proposing to allow LQGs to voluntarily apply for a facility-specific waiver from their local fire department if they are unable to meet the hazardous waste accumulation property line requirement.
Potentially Impacted Universe
The proposed rule may affect a wide range of facility types across a number of industries.  For an individual facility, the cost impact of the proposed rule will depend, in part, on its generator status under RCRA (i.e., LQG, SQG, or CESQGs).  Therefore, to assess the rule's cost impacts, this EA estimates the distribution of potentially affected facilities across generator status categories.  Based on data from EPA's BR database, the Agency's RCRAInfo database, and a limited number of states, Exhibit ES-2 describes the total number of LQGs, SQGs, and CESQGs by state.  As indicated in the exhibit, EPA estimates that between 353,000 and 543,000 hazardous waste generators are in operation in the U.S. and its territories, more than 80 percent of which are CESQGs.
For the facilities represented in Exhibit ES-2, the impacts of the rule will depend, in part, on the amount of hazardous waste that they generate on an annual basis.  Based on data from the 2011 BR database and select states, Exhibit ES-3 presents the average generation of hazardous waste on a per-facility level for LQGs, SQGs, and CESQGs.  For both the tonnage of hazardous waste generated and number of waste streams generated, the exhibit presents both the median and mean values from the available data.  In addition, due to the limited data available on SQG and CESQG waste generation and the variability of generation quantities within these categories, the exhibit also presents the interquartile range for SQG and CESQG hazardous waste generation.
EXHIBIT ES-2: UNIVERSE OF FACILITIES POTENTIALLY AFFECTED BY THE PROPOSED RULE BY STATE AND GENERATOR STATUS
                                   STATE[A]
                                Number of LQGs
                                      [B]
                                Number of SQGs
                               Number of CESQGs
                          TOTAL NUMBER OF GENERATORS
LOW-END
                                      [C]
                                   High-End
                                      [D]
                                    Low-End
                                      [E]
                                   High-End
                                      [F]
                                    Low-End
                                      [G]
                                   High-End
                                      [H]
Alabama
                                                                            223
                                                                          1,226
                                                                          1,226
                                                                          3,390
                                                                          3,390
                                                                          4,839
                                                                          4,839
Alaska
                                                                             27
                                                                             96
                                                                            143
                                                                            617
                                                                            941
                                                                            740
                                                                          1,111
Arizona
                                                                            210
                                                                            511
                                                                            770
                                                                          1,774
                                                                          1,774
                                                                          2,495
                                                                          2,754
Arkansas
                                                                            123
                                                                            256
                                                                            318
                                                                          1,646
                                                                          3,650
                                                                          2,025
                                                                          4,091
California
                                                                          1,223
                                                                          5,915
                                                                          5,915
                                                                         21,000
                                                                         21,000
                                                                         28,138
                                                                         28,138
Colorado
                                                                            107
                                                                            434
                                                                            482
                                                                          2,791
                                                                          3,175
                                                                          3,332
                                                                          3,764
Connecticut
                                                                            278
                                                                            756
                                                                          1,092
                                                                          4,862
                                                                          8,249
                                                                          5,896
                                                                          9,619
Delaware
                                                                             49
                                                                            155
                                                                            218
                                                                            997
                                                                          1,454
                                                                          1,201
                                                                          1,721
District of Columbia
                                                                             23
                                                                             36
                                                                             74
                                                                            232
                                                                            682
                                                                            291
                                                                            779
Florida
                                                                            279
                                                                          3,800
                                                                          3,800
                                                                         19,350
                                                                         19,350
                                                                         23,429
                                                                         23,429
Georgia
                                                                            334
                                                                            900
                                                                          1,288
                                                                          5,788
                                                                          9,911
                                                                          7,022
                                                                         11,533
Guam
                                                                              8
                                                                              3
                                                                              8
                                                                             19
                                                                            237
                                                                             30
                                                                            253
Hawaii
                                                                             31
                                                                            122
                                                                            165
                                                                            692
                                                                            692
                                                                            845
                                                                            888
Idaho
                                                                             19
                                                                             79
                                                                             89
                                                                            508
                                                                            586
                                                                            606
                                                                            694
Illinois
                                                                            641
                                                                          2,958
                                                                          4,897
                                                                         19,021
                                                                         32,226
                                                                         22,620
                                                                         37,764
Indiana
                                                                            503
                                                                            790
                                                                          1,156
                                                                          5,080
                                                                         14,926
                                                                          6,373
                                                                         16,585
Iowa
                                                                            128
                                                                            471
                                                                            675
                                                                          3,029
                                                                          4,442
                                                                          3,628
                                                                          5,245
Kansas
                                                                            170
                                                                            480
                                                                            680
                                                                          3,087
                                                                          5,045
                                                                          3,737
                                                                          5,895
Kentucky
                                                                            269
                                                                            355
                                                                            469
                                                                          2,283
                                                                          7,982
                                                                          2,907
                                                                          8,720
Louisiana
                                                                            331
                                                                            705
                                                                          1,068
                                                                          4,534
                                                                          9,822
                                                                          5,570
                                                                         11,221
Maine
                                                                             52
                                                                            304
                                                                            304
                                                                            949
                                                                            949
                                                                          1,305
                                                                          1,305
Maryland
                                                                            132
                                                                            974
                                                                          1,780
                                                                          3,917
                                                                         11,714
                                                                          5,023
                                                                         13,626
Massachusetts
                                                                            402
                                                                          2,683
                                                                          2,683
                                                                         12,559
                                                                         12,559
                                                                         15,644
                                                                         15,644
Michigan
                                                                            342
                                                                          1,486
                                                                          2,194
                                                                          9,556
                                                                         14,438
                                                                         11,384
                                                                         16,974
Minnesota
                                                                            320
                                                                          1,366
                                                                          1,366
                                                                         21,743
                                                                         21,743
                                                                         23,429
                                                                         23,429
Mississippi
                                                                            128
                                                                            210
                                                                            286
                                                                          1,350
                                                                          3,798
                                                                          1,688
                                                                          4,212
Missouri
                                                                            282
                                                                          1,279
                                                                          1,727
                                                                          8,225
                                                                         11,365
                                                                          9,786
                                                                         13,374
Montana
                                                                             41
                                                                             55
                                                                             77
                                                                            354
                                                                          1,217
                                                                            450
                                                                          1,335
Navajo Nation
                                                                              1
                                                                              6
                                                                              6
                                                                             30
                                                                             39
                                                                             37
                                                                             46
Nebraska
                                                                             64
                                                                            226
                                                                            273
                                                                          1,453
                                                                          1,899
                                                                          1,743
                                                                          2,236
Nevada
                                                                             68
                                                                            196
                                                                            280
                                                                          3,187
                                                                          3,187
                                                                          3,451
                                                                          3,535
New Hampshire
                                                                            100
                                                                            201
                                                                            201
                                                                          1,818
                                                                          1,818
                                                                          2,119
                                                                          2,119
New Jersey
                                                                            575
                                                                            850
                                                                            850
                                                                          9,000
                                                                          9,000
                                                                         10,425
                                                                         10,425
New Mexico
                                                                             39
                                                                            156
                                                                            236
                                                                          1,003
                                                                          1,553
                                                                          1,198
                                                                          1,828
New York
                                                                          1,471
                                                                          1,983
                                                                          3,255
                                                                         12,752
                                                                         43,650
                                                                         16,206
                                                                         48,376
North Carolina
                                                                            437
                                                                          1,169
                                                                          1,786
                                                                          7,518
                                                                         12,967
                                                                          9,124
                                                                         15,190
North Dakota
                                                                             19
                                                                             62
                                                                             78
                                                                            399
                                                                            564
                                                                            480
                                                                            661
Ohio
                                                                            716
                                                                          2,041
                                                                          3,240
                                                                         13,125
                                                                         21,322
                                                                         15,882
                                                                         25,278
Oklahoma
                                                                            179
                                                                            379
                                                                            502
                                                                          2,437
                                                                          5,312
                                                                          2,995
                                                                          5,993
Oregon
                                                                            181
                                                                            235
                                                                            285
                                                                          1,511
                                                                          5,371
                                                                          1,927
                                                                          5,837
Pennsylvania
                                                                            671
                                                                          2,721
                                                                          4,293
                                                                         17,498
                                                                         28,251
                                                                         20,890
                                                                         33,215
Puerto Rico
                                                                             80
                                                                             96
                                                                            115
                                                                            617
                                                                          2,374
                                                                            793
                                                                          2,569
Rhode Island
                                                                             65
                                                                            700
                                                                            700
                                                                          2,100
                                                                          2,100
                                                                          2,865
                                                                          2,865
South Carolina
                                                                            257
                                                                            485
                                                                            722
                                                                          3,119
                                                                          7,626
                                                                          3,861
                                                                          8,605
South Dakota
                                                                             33
                                                                            182
                                                                            256
                                                                            979
                                                                          1,685
                                                                          1,194
                                                                          1,974
Tennessee
                                                                            334
                                                                            442
                                                                            710
                                                                          2,842
                                                                          9,911
                                                                          3,618
                                                                         10,955
Texas
                                                                          1,006
                                                                          1,471
                                                                          2,164
                                                                          9,460
                                                                         29,852
                                                                         11,937
                                                                         33,022
Trust Territories
                                                                              1
                                                                              3
                                                                              5
                                                                             19
                                                                             33
                                                                             23
                                                                             39
Utah
                                                                            111
                                                                            174
                                                                            205
                                                                          1,119
                                                                          3,294
                                                                          1,404
                                                                          3,610
Vermont
                                                                             39
                                                                            185
                                                                            250
                                                                          1,157
                                                                          1,645
                                                                          1,381
                                                                          1,934
Virgin Islands
                                                                              2
                                                                              6
                                                                              5
                                                                             33
                                                                             59
                                                                             41
                                                                             66
Virginia
                                                                            219
                                                                          1,274
                                                                          2,029
                                                                          6,499
                                                                         13,352
                                                                          7,992
                                                                         15,600
Washington
                                                                            412
                                                                            532
                                                                            604
                                                                         22,315
                                                                         22,315
                                                                         23,259
                                                                         23,331
West Virginia
                                                                             98
                                                                            280
                                                                            376
                                                                          1,801
                                                                          2,908
                                                                          2,179
                                                                          3,382
Wisconsin
                                                                            394
                                                                          1,227
                                                                          1,227
                                                                          9,323
                                                                          9,323
                                                                         10,944
                                                                         10,944
Wyoming
                                                                             15
                                                                             75
                                                                             99
                                                                            445
                                                                            651
                                                                            535
                                                                            765
TOTAL
                                                                         14,262
                                                                         45,762
                                                                         59,702
                                                                        292,912
                                                                        469,378
                                                                        352,936
                                                                        543,342
EXHIBIT ES-3: PER FACILITY GENERATION OF HAZARDOUS WASTE, BY FACILITY TYPE
                                generator type
                 Hazardous Waste Generated Per Facility (Tons)
                 Average Number of Waste Streams Per Facility
LQG
                           Median: 21.4
Mean: 2,421
                              Median: 5
Mean: 17
SQG
                                  Median: 1.5
                                   Mean: 2.6
                                   Median: 4
                                    Mean: 8
CESQG
                           Median: 0.20
Mean: 0.31
                                   Median: 2
                                    Mean: 4
Sources:
LQG estimates derived from the 2011 Biennial Report (BR) database.  SQG estimates reflect data from the States of Maine and Washington, as well as the limited SQG-specific data included in the 2011 BR database.  CESQG estimates are based on data from Maine, New Jersey, and Washington, as well as data from the 2011 BR database.

Exhibit ES-4 reports the aggregate hazardous waste generation of facilities potentially affected by the proposed rulemaking.  In total, this EA estimates that between approximately 353,000 and 543,000 facilities may be affected by the proposed rule.  Due to uncertainty regarding the hazardous waste generation of SQGs and CESQGs, this EA bounds these generation quantities using the median and mean values reported above.  Using this approach, facilities in the affected universe, in aggregate, generate between 34.65 and 34.82 million tons of hazardous waste per year.  While there is uncertainty about the actual number of SQG and CESQG facilities as well as their hazardous waste generation, the vast majority of hazardous waste (approximately 99 percent) is generated by LQGs.  Therefore, in terms of volume, the difference between the low-end and high-end scenarios contemplated in this EA is approximately 167,000 tons of hazardous waste or less than 1 percent of all hazardous waste managed by facilities in the affected universe.

EXHIBIT ES-4: AGGREGATE ANNUAL HAZARDOUS WASTE GENERATION BY GENERATOR STATUS (TONS)
                                   SCENARIO
                                      [A]
                                     LQGs
                                    SQGs[1]
                                   CESQGs[2]
                                     TOTAL

                            NUMBER OF FACILITIES[B]
                   TOTAL HAZARDOUS WASTE GENERATED(TONS)[C]
                            NUMBER OF FACILITIES[D]
                   TOTAL HAZARDOUS WASTE GENERATED(TONS)[E]
                            NUMBER OF FACILITIES[F]
                   TOTAL HAZARDOUS WASTE GENERATED(TONS)[G]
                            NUMBER OF FACILITIES[H]
                   TOTAL HAZARDOUS WASTE GENERATED(TONS)[I]
Low-end Estimate
                                    14,262
                                  34,522,000
                                    45,762
                                    70,000
                                    292,912
                                    59,000
                                    352,936
                                  34,651,000
High-end Estimate

                                    59,702
                                    152,000
                                    469,378
                                    144,000
                                    543,342
                                  34,818,000
Notes:
   1. For SQGs, the low-end estimate assumes each facility generates, on average, approximately 1.54 tons/year of hazardous waste (the median). The high-end estimate assumes that SQGs generate, on average, approximately 2.60 tons/year of hazardous waste (the mean).
   2. For CESQGs, the low-end estimate assumes each facility generates, on average, approximately 0.20 tons/year of hazardous waste (the median). The high-end estimate assumes that CESQGs generate, on average, approximately 0.31 tons/year of hazardous waste.

Assessment of Costs
To assess the costs of the proposed rule, this EA estimates the unit costs (e.g., disposal cost per ton of waste) associated with each provision of the rule and applies these values to the number of facilities affected by each rule provision.  To address uncertainties regarding the number of facilities in the regulated universe, the amount of hazardous waste that they generate, and several of the cost-related inputs used in the analysis, this EA presents both low-end and high-end estimates of the costs associated with the proposed rule.  The low-end cost estimates reflect low-end estimates of (1) the number of facilities in the regulated universe, (2) the number of waste streams per facility, and (3) the annual generation of hazardous waste among regulated facilities.  The low-end estimates also reflect the low-end assumptions regarding any cost-related inputs for which a range of data inputs were available.  Similarly, the high-end cost estimates developed in this EA reflect the high-end estimates for these variables.
Exhibit ES-5 reports the total annualized costs of the proposed rule by provision for both the mandatory and voluntary provisions of the rule.  These costs are reported on an undiscounted basis as well as under discount rates of both 3 and 7 percent.  As the exhibit shows, the most significant costs under the mandatory provisions of the proposed rule are associated with the marking/labeling requirements.  Among the voluntary provisions, estimated costs are highest for the proposed intra-organizational transfer provision.
Exhibit ES-6 presents the distribution of the total costs of the rule across the three RCRA generator categories (i.e., LQGs, SQGs, and CESQGs) for the mandatory and voluntary provisions combined.  As the exhibit shows, the aggregate costs of the rule are higher for SQGs and CESQGs, which significantly outnumber LQGs in the potentially affected universe.  However, on a per facility basis, the costs of the proposed rule are highest for LQGs.  Specifically, on a per-facility basis, the average annualized incremental costs of the rule (for mandatory and voluntary provisions combined) are between $1 and $13 for CESQGs, between $80 and $170 for SQGs, and between $162 and $401 for LQGs (using a 7 percent discount rate).  While all generators are subject to the proposed rule, only a subset would incur costs depending on each provision of the rule.  Therefore, the average costs reported may not be reflective of the actual costs that an individual facility may experience.

     EXHIBIT ES-5.TOTAL ANNUALIZED COSTS OF THE PROPOSED RULE BY PROVISION ($2012)
                                  REQUIREMENT
                              LOW IMPACT SCENARIO
                             HIGH IMPACT SCENARIO

                        ANNUALIZED COSTS(UNDISCOUNTED)
                  ANNUALIZED COSTS(USING A 3% DISCOUNT RATE)
                  ANNUALIZED COSTS(USING A 7% DISCOUNT RATE)
                        ANNUALIZED COSTS(UNDISCOUNTED)
                  ANNUALIZED COSTS(USING A 3% DISCOUNT RATE)
                  ANNUALIZED COSTS(USING A 7% DISCOUNT RATE)
MANDATORY PROVISIONS OF THE PROPOSED RULE
Negative Determinations
                                                                       $374,000
                                                                       $386,000
                                                                       $403,000
                                                                     $1,100,000
                                                                     $1,130,000
                                                                     $1,180,000
Re-notification
                                                                       $737,000
                                                                       $748,000
                                                                       $762,000
                                                                       $946,000
                                                                       $960,000
                                                                       $978,000
Labeling
                                                                     $3,020,000
                                                                     $3,160,000
                                                                     $3,370,000
                                                                     $6,120,000
                                                                     $6,270,000
                                                                     $6,480,000
Closure
                                                                        $28,800
                                                                        $28,800
                                                                        $28,800
                                                                     $1,840,000
                                                                     $1,340,000
                                                                       $988,000
Emergency Response Preparedness
                                                                       $414,000
                                                                       $416,000
                                                                       $420,000
                                                                       $804,000
                                                                       $807,000
                                                                       $811,000
Transfer Facility
                                                                       $192,000
                                                                       $192,000
                                                                       $192,000
                                                                       $549,000
                                                                       $549,000
                                                                       $549,000
BR Requirements
                                                                       $290,000
                                                                       $294,000
                                                                       $299,000
                                                                       $918,000
                                                                       $931,000
                                                                       $949,000
Prohibitions on Storage
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
Drip Pads and Containment Buildings
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
SUB-TOTAL: Mandatory Rule Provisions
                                                                     $5,050,000
                                                                     $5,220,000
                                                                     $5,480,000
                                                                    $12,300,000
                                                                    $12,000,000
                                                                    $11,900,000
VOLUNTARY PROVISIONS OF THE PROPOSED RULE
Intra-organizational Transfers
                                                                       $547,000
                                                                       $562,000
                                                                       $584,000
                                                                     $4,250,000
                                                                     $4,280,000
                                                                     $4,320,000
Episodic Generation
                                                                       $208,000
                                                                       $208,000
                                                                       $208,000
                                                                     $1,070,000
                                                                     $1,070,000
                                                                     $1,070,000
Ignitable and Reactive Waste
                                                                            $50
                                                                            $50
                                                                            $50
                                                                        $82,900
                                                                        $88,000
                                                                        $95,700
SUB-TOTAL: Voluntary Rule Provisions
                                                                       $755,000
                                                                       $771,000
                                                                       $793,000
                                                                     $5,400,000
                                                                     $5,440,000
                                                                     $5,490,000
MANDATORY AND VOLUNTARY PROVISIONS OF THE PROPOSED RULE COMBINED
TOTAL: Mandatory and Voluntary Provisions Combined
                                                                     $5,810,000
                                                                     $5,990,000
                                                                     $6,270,000
                                                                    $17,700,000
                                                                    $17,400,000
                                                                    $17,400,000
Notes:
All cost estimates are rounded to three significant digits and may not sum due to rounding.
     EXHIBIT ES-6.TOTAL ANNUALIZED COSTS OF THE PROPOSED RULE BY GENERATOR STATUS (MANDATORY AND VOLUNTARY PROVISIONS COMBINED, $2012)
                               GENERATOR STATUS
                              LOW IMPACT SCENARIO
                             HIGH IMPACT SCENARIO
                         NUMBER OF AFFECTED FACILITIES
                        ANNUALIZED COSTS(UNDISCOUNTED)
                  ANNUALIZED COSTS(USING A 3% DISCOUNT RATE)
                  ANNUALIZED COSTS(USING A 7% DISCOUNT RATE)
                         NUMBER OF AFFECTED FACILITIES
                        ANNUALIZED COSTS(UNDISCOUNTED)
                  ANNUALIZED COSTS(USING A 3% DISCOUNT RATE)
                  ANNUALIZED COSTS(USING A 7% DISCOUNT RATE)
MANDATORY PROVISIONS OF THE PROPOSED RULE
LQG
                                                                         14,262
                                                                     $1,470,000
                                                                     $1,620,000
                                                                     $1,840,000
                                                                         14,262
                                                                     $4,920,000
                                                                     $4,590,000
                                                                     $4,490,000
SQG
                                                                         45,762
                                                                     $3,580,000
                                                                     $3,600,000
                                                                     $3,630,000
                                                                         59,702
                                                                     $7,350,000
                                                                     $7,390,000
                                                                     $7,440,000
CESQG
                                                                        292,912
                                                                         $2,600
                                                                         $2,600
                                                                         $2,600
                                                                        469,378
                                                                         $9,760
                                                                         $9,800
                                                                         $9,860
SUB-TOTAL
                                                                        352,936
                                                                     $5,050,000
                                                                     $5,220,000
                                                                     $5,480,000
                                                                        543,342
                                                                    $12,300,000
                                                                    $12,000,000
                                                                    $11,900,000
VOLUNTARY PROVISIONS OF THE PROPOSED RULE
LQG
                                                                         14,262
                                                                       $431,000
                                                                       $446,000
                                                                       $468,000
                                                                         14,262
                                                                     $1,150,000
                                                                     $1,180,000
                                                                     $1,230,000
SQG
                                                                         45,762
                                                                        $27,300
                                                                        $27,300
                                                                        $27,300
                                                                         59,702
                                                                       $322,000
                                                                       $322,000
                                                                       $322,000
CESQG
                                                                        292,912
                                                                       $297,000
                                                                       $297,000
                                                                       $297,000
                                                                        469,378
                                                                     $3,930,000
                                                                     $3,930,000
                                                                     $3,930,000
SUB-TOTAL
                                                                        352,936
                                                                       $755,000
                                                                       $771,000
                                                                       $793,000
                                                                        543,342
                                                                     $5,400,000
                                                                     $5,440,000
                                                                     $5,490,000
MANDATORY AND VOLUNTARY PROVISIONS OF THE PROPOSED RULE COMBINED
LQG
                                                                         14,262
                                                                     $1,900,000
                                                                     $2,070,000
                                                                     $2,310,000
                                                                         14,262
                                                                     $6,070,000
                                                                     $5,770,000
                                                                     $5,720,000
SQG
                                                                         45,762
                                                                     $3,610,000
                                                                     $3,630,000
                                                                     $3,650,000
                                                                         59,702
                                                                     $7,670,000
                                                                     $7,710,000
                                                                     $7,760,000
CESQG
                                                                        292,912
                                                                       $300,000
                                                                       $300,000
                                                                       $300,000
                                                                        469,378
                                                                     $3,940,000
                                                                     $3,940,000
                                                                     $3,940,000
TOTAL
                                                                        352,936
                                                                     $5,810,000
                                                                     $5,990,000
                                                                     $6,270,000
                                                                        543,342
                                                                    $17,700,000
                                                                    $17,400,000
                                                                    $17,400,000
Notes:
All annualized cost estimates are rounded to three significant digits and may not sum due to rounding.
     Assessment of Benefits
The proposed Hazardous Waste Generator Improvements Rule may yield a variety of benefits as generators change several of their waste management practices to comply with the proposed rule requirements.  These benefits reflect the rule's focus on enhancing protection of human health and the environment and improving the efficiency of the RCRA hazardous waste generator standards.  Ideally, this EA would quantify and monetize each of the rule's benefits.  However, only some categories of benefits are quantifiable.  For the majority of benefits, sufficient data are not available to support a detailed quantitative analysis.  For example, quantifying benefits associated with improved emergency response due to more detailed container labeling would require data on the annual number of emergencies at generator sites, the current risks associated with these incidents, the extent to which more detailed labeling would affect the procedures of emergency responders, and the reduction in risk associated with these changes.  Detailed data on these items are not readily available.
For those benefit categories for which detailed data are available, this EA quantifies and monetizes benefits.  In instances where quantitative data are not available, this EA provides a qualitative characterization of benefits.
Monetized Benefits
The available data support the monetization of one mandatory provision (drip pad and containment building requirements for SQGs) and two voluntary provisions of the proposed rule (the intra-organizational consolidation of CESQG waste at an LQG and the flexibility afforded SQGs and CESQGs that cross the threshold to a more stringent regulatory status due to episodic generation events).  The benefits associated with each of these provisions are as follows:
Drip Pad and Containment Building Requirements for SQGs: The additional flexibility afforded SQGs that accumulate hazardous waste on drip pads or in containment buildings for 90 days or less without a permit or interim status to comply with the LQG 90-day accumulation limit (as opposed to the SQG 180-day accumulation limit), but to otherwise comply with the less stringent requirements for SQGs, would result in a cost savings associated with no longer being subject to the LQG requirements for personnel training, emergency response preparedness, and biennial reporting.
Intra-organizational Transfers: Allowing CESQGs to send their hazardous waste to an LQG under the ownership of the same organization may result in a net cost savings from reduced management costs related to both disposal and transportation.  With respect to disposal, organizations would realize a cost-savings associated with managing waste quantities in bulk.  Specifically, industry sources estimate that stand-alone CESQG facilities incur an average cost premium of approximately 10 percent to dispose of their hazardous waste relative to LQGs.  Organizations consolidating CESQG waste to LQGs may also reduce the costs they incur shipping hazardous waste to treatment, storage, and disposal facilities (TSDFs) due to the higher transport costs typically incurred by CESQGs on a per-ton basis compared to LQGs.
This provision of the proposed rule would also lead to cost savings for the limited number of organizations that transfer hazardous waste from CESQGs that they own and/or operate to LQGs within the organization.  Under the proposed rule, LQGs owned by these organizations would no longer need to obtain a RCRA storage permit or financial assurance (assuming that they do not receive hazardous waste from SQGs, other LQGs, or CESQG facilities owned by other organizations) and would avoid the costs associated with these items.
Episodic Generation: As noted above, EPA would allow a CESQG or SQG to retain its existing regulatory status in the event of a planned or unplanned episodic event that would otherwise elevate the facility to a more stringent status.  This provision would result in a cost savings for CESQGs and SQGs that avoid the cost increase associated with such a change in generator status.  These costs are related to the RCRA generator requirements for training, inspections, manifests, contingency plan updating, and biennial reporting.
Exhibit ES-7 reports the estimated monetized benefits of the proposed rule for one of the mandatory provisions of the rule and two of the voluntary provisions of the rule.  Due to limitations in the available data, benefits associated with several mandatory provisions and one voluntary provision of the rule could not be monetized.  As indicated in the exhibit, the estimated benefits of the other voluntary provisions range from $6.2 to $12.2 million per year.  Of the provisions for which benefits are monetized, benefits are greatest for the episodic generation provision of the rule.  Approximately two-thirds of the avoided costs associated with this provision reflect personnel training that generators would no longer need to provide their staff as a result of the rule.  The benefits realized by individual facilities under this provision, however, would vary depending on their baseline generator status and the specific change in generator status they would avoid under the rule.

Exhibit ES-7.  Summary of monetized benefits
                                  REQUIREMENT
                              ANNUALIZED BENEFIT
                                (UNDISCOUNTED)
                              ANNUALIZED BENEFIT
                          (USING A 3% DISCOUNT RATE)
                              ANNUALIZED BENEFIT
                          (USING A 7% DISCOUNT RATE)
LOW IMPACT ESTIMATE
Drip Pads and Containment Buildings (Mandatory)
                                                                        $34,700
                                                                        $34,800
                                                                        $34,800
Intra-organizational Transfers (Voluntary)
                                                                     $2,440,000
                                                                     $2,450,000
                                                                     $2,450,000
Episodic Generation (Voluntary)
                                                                     $3,750,000
                                                                     $3,750,000
                                                                     $3,760,000
TOTAL
                                                                     $6,230,000
                                                                     $6,230,000
                                                                     $6,240,000
HIGH IMPACT ESTIMATE
Drip Pads and Containment Buildings (Mandatory)
                                                                        $35,200
                                                                        $35,200
                                                                        $35,300
Intra-organizational Transfers (Voluntary)
                                                                     $4,490,000
                                                                     $4,490,000
                                                                     $4,490,000
Episodic Generation (Voluntary)
                                                                     $7,650,000
                                                                     $7,660,000
                                                                     $7,680,000
TOTAL
                                                                    $12,200,000
                                                                    $12,200,000
                                                                    $12,200,000

Non-Monetized Benefits
In addition to the monetized benefits presented above, the proposed rule may yield a variety of other non-quantifiable benefits.  By rule provision, these benefits include the following:
CESQG Consolidation: Because LQGs are subject to more stringent waste handling requirements than CESQGs, transferring waste from CESQGs to LQGs within the same organization would improve the oversight and management of hazardous waste generated by CESQGs.  In addition, to the extent that consolidating CESQGs currently dispose of their hazardous waste in Subtitle D landfills, the consolidation of CESQG waste to an LQG would divert the waste to more environmentally protective disposal at a Subtitle C facility.
Documentation of non-hazardous waste determinations: This proposed requirement would result in benefits associated with more efficient facility inspections and more appropriate and accurate waste determinations.  With respect to the former, the documentation required of SQGs and LQGs under the rule would provide facility inspectors with supporting information for negative determinations, allowing them to more easily and efficiently assess the reasonableness of potentially questionable determinations.   In addition, requiring documentation for negative determinations would also provide SQGs and LQGs with an incentive to make more accurate determinations, as the documentation would make their determination processes more open to facility inspectors.  These improved determination processes may reduce the volume of hazardous waste inappropriately identified and managed as non-hazardous waste.
SQG and LQG re-notification: The data made available to EPA through re-notification would be more accurate and up-to-date than EPA's current generator data, allowing the Agency to observe changes in facilities' operations over time.  Using this information, EPA can conduct more precise and meaningful reviews of waste generation activity.  Similarly, the information collected through re-notification would help EPA and the states target their outreach, enforcement, and compliance assistance efforts.
Marking and labeling of containers for SQGs and LQGs: Including more detailed information on container labels would help increase awareness of a container's contents among the various individuals in the waste management chain, which may in turn prevent improper treatment, transportation, and disposal of hazardous waste.  The more detailed information that EPA proposes for display on container labels would also enhance the ability of emergency responders to limit adverse impacts from exposure to hazardous materials.
LQG Closure: The proposed closure requirements for LQGs would ensure the containment of any contaminants left in place after the closure of an LQG storing waste in containers. In addition, the proposed notification requirements for LQG closure would (1) provide regulatory authorities with knowledge of the location and specifics of hazardous waste sites planned for closure; (2) allow the authorities to confirm that the unit is properly closed in compliance with the applicable closure regulations; and (3) allow the authorities to monitor the unit during the post-closure period, alerting regulators in cases where generators may have abandoned the site or closed it improperly, or where other complications may have developed at the site.
Strengthening of the preparedness, prevention, and emergency response conditions for LQGs. EPA's proposal that new LQGs prepare and submit an executive summary of their contingency plan would allow first responders to more easily discern the layout of a facility, the location of hazardous wastes, what those wastes are, and what chemicals to use (or not use) near those wastes.  To the extent that first responders are able to respond more quickly and effectively based on this information, this provision of the proposed rule may prevent lethal outcomes and injuries among fire fighters, other first responders, and facility employees, and may also reduce exposure risk for local populations and ecosystems.
Episodic generation: In addition to the cost savings associated with avoided SQG- or LQG-specific activities (as estimated above), this provision of the rule may result in additional cost savings associated with facilities maintaining a more consistent RCRA generator status over time.  Changing status from one month to the next imposes an administrative burden on facilities as they re-visit the requirements for different generator status categories and implement measures to ensure compliance.  If facilities are able to maintain a more consistent generator status over time, they would not need to re-visit the generator requirements as frequently or make as many changes to their internal controls to ensure compliance with RCRA.
Transfer facility requirements: EPA is proposing to change the marking and labeling requirements for transporters storing hazardous waste at a transfer facility to be consistent with the proposed requirements for generators.  As discussed above, including this information on the container would alert facility workers of the container's contents and its potential hazards, which may help prevent the improper treatment of this material.  Displaying this information on the containers may also help first responders limit exposure to local populations and ecosystems in the event of a fire or other emergency.
Biennial reporting requirements: The enhanced requirements that EPA is proposing for biennial reporting would make the BR more complete and consistent, allowing the Agency and the states to base their policy, programmatic, and enforcement decisions on more reliable hazardous waste generation and management data.
Prohibitions on storage of restricted waste: The proposed labeling requirements for waste restricted from land disposal would result in benefits similar to those described above for generator labeling.
Special requirements for ignitable and reactive wastes: Facilities able to obtain a waiver from the prohibition on locating containers holding ignitable or reactive waste less than 15 meters (50 feet) from a facility's property line may avoid costs associated with relocation or the reconfiguration of their facilities.
Comparison of Costs and Benefits
Exhibits ES-8 and ES-9 present the net benefits of the proposed rule based on discount rates of 3 percent and 7 percent, respectively.  The exhibits present net benefits separately for the mandatory and voluntary provisions of the rule and also examine net benefits for the mandatory and voluntary provisions combined.
As indicated above, benefits could not be monetized for many of the rule's mandatory provisions.  Net benefits for these provisions are therefore presented as negative.  These negative values, however, do not reflect the benefits presented in Chapter 4 that EPA was unable to monetize.  In excluding these benefits, the negative values in the exhibits represent underestimates of the net benefits associated with the rule's mandatory provisions.
For the voluntary provisions of the rule, this EA estimates positive net benefits ranging from $5.4 to $6.7 million per year based on discount rates of both 3 and 7 percent.  For both the low impact and high impact scenarios, the positive net benefits for these provisions reflect the net benefits associated with the episodic generation provisions.  As discussed above, organizations that opt into this provision are expected to experience cost savings associated with reduced transportation and hazardous waste disposal costs.  The net benefits of this provision are also expected to be much higher under the high impact scenario than the low impact scenario.  This difference reflects the assumption in this EA (stated in Chapter 4) that 50 percent of episodic generators would meet the rule conditions for taking advantage of this provision (i.e., no more than one episodic event per year, which lasts no more than one calendar month) under the low impact scenario while all episodic generators are assumed to meet these conditions under the high impact scenario.

EXHIBIT ES-8. NET BENEFITS OF THE PROPOSED RULE (3% DISCOUNT RATE)
                                  REQUIREMENT
                               LOW-END SCENARIO
                               HIGH END SCENARIO
                               ANNUALIZED COSTS
                              ANNUALIZED BENEFITS
                                 NET BENEFITS
                               ANNUALIZED COSTS
                              ANNUALIZED BENEFITS
                                 NET BENEFITS
MANDATORY PROVISIONS OF THE PROPOSED RULE
Negative Determinations
                                                                      $386,000
                                 Not monetized
                                      --
                                                                    $1,130,000
                                 Not monetized
                                      --
Re-notification
                                                                      $748,000

                                                                      $960,000

Labeling
                                                                    $3,160,000

                                                                    $6,270,000

Closure
                                                                       $28,800

                                                                    $1,340,000

Emergency Response Preparedness
                                                                       $416,000

                                                                       $807,000

Transfer Facility
                                                                      $192,000

                                                                      $549,000

BR Requirements
                                                                      $294,000

                                                                      $931,000

Prohibitions on Storage
                                                                            $0

                                                                            $0

Drip Pads and Containment Buildings
                                                                             $0
                                                                        $34,800
                                                                        $34,800
                                                                             $0
                                                                        $35,200
                                                                        $35,200
SUB-TOTAL: Mandatory Rule Provisions
                                                                    $5,220,000
                                                                       $34,800
                                                                   ($5,190,000)
                                                                   $12,000,000
                                                                       $35,200
                                                                  ($12,000,000)
VOLUNTARY PROVISIONS OF THE PROPOSED RULE
Intra-organizational Transfers
                                                                      $562,000
                                                                    $2,450,000
                                                                    $1,880,000
                                                                    $4,280,000
                                                                    $4,490,000
                                                                      $212,000
Episodic Generation
                                                                      $208,000
                                                                    $3,750,000
                                                                    $3,540,000
                                                                    $1,070,000
                                                                    $7,660,000
                                                                    $6,600,000
Ignitable and Reactive Waste
                                                                           $50
                                                                  Not monetized
                                                                          ($50)
                                                                       $88,000
                                                                  Not monetized
                                                                      ($88,000)
SUB-TOTAL: Voluntary Rule Provisions
                                                                      $771,000
                                                                    $6,200,000
                                                                    $5,430,000
                                                                    $5,440,000
                                                                   $12,200,000
                                                                    $6,720,000
MANDATORY AND VOLUNTARY PROVISIONS OF THE PROPOSED RULE COMBINED
TOTAL: Mandatory and Voluntary Provisions Combined
                                                                    $5,990,000
                                                                    $6,230,000
                                                                      $240,000
                                                                   $17,400,000
                                                                   $12,200,000
                                                                   ($5,230,000)
Notes:
All estimates are rounded to three significant digits and may not sum due to rounding.
EXHIBIT ES-9. NET BENEFITS OF THE PROPOSED RULE (7% DISCOUNT RATE)
                                  REQUIREMENT
                               LOW-END SCENARIO
                               HIGH END SCENARIO
                               ANNUALIZED COSTS
                              ANNUALIZED BENEFITS
                                 NET BENEFITS
                               ANNUALIZED COSTS
                              ANNUALIZED BENEFITS
                                 NET BENEFITS
MANDATORY PROVISIONS OF THE PROPOSED RULE
Negative Determinations
                                                                       $403,000
                                 Not monetized
                                      --
                                                                    $1,130,000
                                 Not monetized
                                      --
Re-notification
                                                                       $762,000

                                                                      $960,000

Labeling
                                                                     $3,370,000

                                                                    $6,270,000

Closure
                                                                        $28,800

                                                                    $1,340,000

Emergency Response Preparedness
                                                                       $420,000

                                                                       $807,000

Transfer Facility
                                                                       $192,000

                                                                      $549,000

BR Requirements
                                                                       $299,000

                                                                      $931,000

Prohibitions on Storage
                                                                             $0

                                                                            $0

Drip Pads and Containment Buildings
                                                                             $0
                                                                        $34,800
                                                                        $34,800
                                                                             $0
                                                                        $35,300
                                                                        $35,300
SUB-TOTAL: Mandatory Rule Provisions
                                                                     $5,480,000
                                                                       $34,800
                                                                   ($5,440,000)
                                                                   $11,900,000
                                                                       $35,300
                                                                  ($11,900,000)
VOLUNTARY PROVISIONS OF THE PROPOSED RULE
Intra-organizational Transfers
                                                                      $584,000
                                                                    $2,450,000
                                                                    $1,880,000
                                                                     $4,320,000
                                                                     $4,490,000
                                                                      $173,000
Episodic Generation
                                                                      $208,000
                                                                    $3,760,000
                                                                    $3,540,000
                                                                     $1,070,000
                                                                     $7,680,000
                                                                     $6,610,000
Ignitable and Reactive Waste
                                                                           $50
                                                                  Not monetized
                                                                          ($50)
                                                                       $95,700
                                                                  Not monetized
                                                                      ($95,700)
SUB-TOTAL: Voluntary Rule Provisions
                                                                       $793,000
                                                                     $6,200,000
                                                                    $5,410,000
                                                                     $5,490,000
                                                                    $12,200,000
                                                                     $6,690,000
MANDATORY AND VOLUNTARY PROVISIONS OF THE PROPOSED RULE COMBINED
TOTAL: Mandatory and Voluntary Provisions Combined
                                                                    $6,270,000
                                                                    $6,240,000
                                                                      ($28,000)
                                                                   $17,400,000
                                                                   $12,200,000
                                                                   ($5,210,000)
Notes:
All estimates are rounded to three significant digits and may not sum due to rounding.

Equity Considerations and Other Impacts
As required by applicable statutes and executive orders, this EA examines equity considerations and other regulatory concerns associated with the proposed rule.  Specifically, this EA considers the following (discussed further in Chapter 6):
   * Regulatory planning and review: Pursuant to the terms of Executive Order 12866, as amended by Executive Order 13563, the Agency has determined that this proposed rule is not a significant regulatory action.
   * Regulatory flexibility: The average per-facility cost impacts developed in this EA suggest that the proposed rule would not have significant economic impacts on a substantial number of small entities.
   * Unfunded mandates: Signed into law on March 22, 1995, the Unfunded Mandates Reform Act (UMRA) requires federal agencies, unless otherwise prohibited by law, to assess the effects of their regulatory actions on state, local, and tribal governments and on the private sector, to determine whether any proposed rulemaking may result in "any Federal mandate that may result in the expenditure by state, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year."  Based on the magnitude of the proposed rule's estimated cost impacts, EPA does not expect the rule to result in annual expenditures exceeding $100 million for either the private sector or state, local, and tribal governments in the aggregate.
   * Federalism: The proposed rule is not expected to result in substantial direct compliance costs for hazardous waste generators owned by state and local governments.
   * Tribal governments: The estimated costs of the rule for tribal entities suggest that the rule would not impose a substantial burden on tribal governments.
   * Environmental justice: EPA does not expect that the proposed rule would result in disproportionately high or adverse impacts for minority or low-income populations.  Overall, the Agency anticipates that the rule would reduce any adverse effects associated with the management of hazardous waste, thus benefiting minority and low-income populations.
   * Children's health protection: The rule is not expected to result in a disproportionate adverse health impact on children.
   * Energy Impacts: The proposed rule is not expected to have a significant adverse effect on energy supply, distribution, or use.  In addition, no measurable adverse impacts are expected on energy prices or foreign supplies.
   * Employment impacts: Insufficient data are available to quantify the potential impact of the proposed rule on employment.  The economics literature suggests, however, that the costs imposed on directly regulated sectors may raise production costs and put some specific jobs at risk, while at the same time, environmental regulation may create jobs in the regulated sector or other sectors, such as the environmental protection sector.
   * Joint impacts of rules: Some of the hazardous waste generators regulated by the provisions of the proposed rule are also subject to RCRA requirements for TSDFs.  Combined, the proposed changes to the generator standards and the existing regulations for TSDFs would ensure that the management of waste by facilities subject to both sets of regulations is protective of human health and the environment.

CHAPTER 1  |  Introduction
Overview
This document presents EPA's analysis of the costs, benefits, and economic impacts of the proposed Hazardous Waste Generator Improvements Rule.  This proposed rule has the dual purposes of enhancing protection of human health and the environment and improving the efficiency of the hazardous waste generator standards.  EPA is publishing this Economic Assessment (EA) in conjunction with the proposed rule and invites comments from the public on the data, methods, assumptions, and conclusions presented herein.
Background and Need for Regulatory Action
Under the statutory authority of the Resource Conservation and Recovery Act (RCRA), EPA originally promulgated the hazardous waste generator regulatory program in 1980.  Since that time, the basic regulatory framework of the program has remained intact except for three major changes.  First, pursuant to the Hazardous and Solid Waste Amendments (HSWA) of 1984, the Agency established regulations in 1986 that distinguished between generators generating more than 100 kilograms and less than 1,000 kilograms of hazardous waste in a calendar month (small quantity generators, or SQGs) and generators generating 100 kilograms or less in a calendar month (conditionally exempt small quantity generators, or CESQGs).  Prior to the 1986 rule, CESQGs did not exist as a separate generator class, and all facilities generating less than 1,000 kilograms of hazardous waste in a calendar month were subject to the same requirements.  Second, and also as a result of HSWA, EPA established Land Disposal Restriction (LDR) regulations.  The Agency's LDR program established treatment standards for hazardous wastes, and specified requirements that generators, transporters, and owners or operators of treatment, storage, and disposal facilities (TSDFs) that manage restricted wastes destined for land disposal must meet.  Third, EPA modified the Uniform Hazardous Waste Manifest regulations in 2005 to standardize the content and appearance of the manifest form, make the forms available from a greater number of sources, and adopt new procedures for tracking certain types of hazardous waste shipments.
Over the course of the last 30 years, the Agency has become aware of ambiguities and gaps in the regulations, which, if corrected, could make the program more effective in protecting human health and the environment.  For example, the current regulations do not require small and large quantity generators to document situations where they generated a solid waste, as defined at 40 CFR 262.11, that is not a hazardous waste. However, generators often fail to accurately make a hazardous waste determination which can lead to the mismanagement of hazardous waste. In addition, current regulations do not require that hazardous waste container labels include information on the specific hazards of container contents or what risk these wastes could pose to human health and the environment when such waste is being accumulated on-site.
EPA has also become increasingly aware of certain inflexibilities in the generator regulations over the last 30 years.  For example, some generators, particularly those located in urban environments, may find it infeasible to meet the requirement that containers holding ignitable or reactive waste be placed at least 15 meters (~50 feet) back from the facility's property line.  In addition, current regulations require that a CESQG or SQG that experiences a one-time generation event resulting in the generation of more than 1,000 kilograms of hazardous waste in a calendar month comply with the regulatory requirements for large quantity generators (LQGs).  Requiring CESQGs or SQGs that rarely exceed their normal regulatory status to meet the full LQG requirements as a result of such episodic events may be burdensome.   To address these shortcomings in the current generator regulations, EPA is proposing several specific changes to the hazardous waste generator program.  These improvements are relatively minor on an individual basis yet address a wide range of issues. In aggregate, the proposed changes to the program are expected to significantly improve regulatory efficiency and provide further protection of human health and the environment.
Summary of the Proposed Rule
EPA is proposing several changes to the hazardous waste generator regulations.  Specifically, EPA proposes to (1) revise different components of the hazardous waste regulatory program; (2) address gaps in the current regulations; (3) provide greater flexibility for hazardous waste generators to manage their hazardous waste in a cost-effective manner; (4) reorganize the hazardous waste generator regulations to improve their usability among regulated facilities; and (5) make technical corrections and conforming changes to address inadvertent errors, remove obsolete programs, and improve the readability of the regulations.
Some provisions of the proposed rule represent substantive changes to the requirements with which hazardous waste generators must comply, while others are simply revisions or minor corrections unlikely to affect the activities of most individual generators.  This EA focuses on the former, as these provisions are more likely to result in costs, benefits, and/or other economic impacts.  These specific provisions are summarized below.  While the majority of the requirements are mandatory, three provisions of the rule are intended to provide greater flexibility to certain classes of hazardous waste generators and are thus voluntary.  This section first describes the mandatory provisions of the rule, and then discusses the voluntary provisions.  For a detailed discussion of all the changes that EPA is proposing to the generator regulations, please refer to the Preamble to the proposed rule.
   1. Documentation of negative or non-hazardous waste determinations: The proposed rule would require that SQGs and LQGs maintain records of all hazardous waste determinations, including determinations where a solid waste, as defined by 40 CFR 261.2, is not a RCRA hazardous waste.  Under current regulations, generators must document and maintain records when they determine that they have generated a hazardous waste, but no such documentation requirement exists for negative determinations.
   2. SQG re-notification: To ensure that regulatory agencies have information on facilities generating hazardous waste, EPA is proposing that SQGs re-notify EPA of their hazardous waste generation activities every other year, similar to the existing requirement for LQGs.  For each re-notification, a facility need only review its previous notification and either make changes if necessary or confirm that the information remains accurate.
   3. Marking and labeling of containers, drip pads, and containment buildings for SQGs and LQGs: Current regulation requires that SQGs and LQGs label containers with the words, "Hazardous Waste."  While this wording provides some information regarding a container's contents, it does not indicate the specific hazards associated with these contents or the risks that a waste may pose to human health and the environment.  EPA is therefore proposing that SQGs and LQGs mark containers with (1) the words "Hazardous Waste"; (2) other words that identify the contents of the containers (e.g., paint solvent waste); and (3) an indication of the hazards of a container's contents (e.g., the applicable hazardous waste characteristic).  Similarly, EPA is also proposing that SQGs and LQGs mark areas near drip pads and containment buildings with the words "Hazardous Waste" and use their inventory logs to document (1) the date the waste was first placed on the drip pad on in the containment building; (2) the contents of the waste; and (3) an indication of the associated hazards (e.g., the applicable hazardous waste characteristic).
   4. LQG closure conditions: EPA is proposing to strengthen the closure regulations for LQGs that accumulate hazardous wastes in containers in satellite accumulation areas (SAAs) or central accumulation areas (CAAs).  Specifically, EPA proposes that if the generator cannot demonstrate that any contaminated soils can be practicably removed or decontaminated, then the generator must close the waste accumulation unit(s) and perform post-closure care in accordance with the closure and post-closure care requirements that apply to landfills (§ 265.310). In addition, for the purposes of closure, post-closure, and financial responsibility, such a waste accumulation unit is then considered to be a landfill, and the generator must meet all of the requirements for landfills specified in subparts G and H of part 265.
Also related to closure, EPA is proposing to require LQGs to notify EPA or their authorized state within 30 days prior to closure.  EPA is also proposing that such generators subsequently notify within 90 days after closure that they have either clean closed or, if they cannot clean close, that they have closed as a landfill.
   5. Strengthening of the preparedness, prevention, and emergency response conditions for LQGs: To improve the ability of emergency response teams to respond to an emergency, EPA is proposing that all new LQGs submit an executive summary of their contingency plans to emergency management authorities.  While EPA is not proposing changes to the preparedness and emergency response requirements for existing LQGs, it is taking comment on expanding this requirement to all LQGs.
   6. Transfer facility requirements: EPA is proposing to change the marking and labeling requirements for transporters storing hazardous waste at a transfer facility to be consistent with the proposed requirements for generators.  Thus, all hazardous waste stored by these facilities must be marked with (1) the words "Hazardous Waste"; (2) other words that identify the contents of the containers (e.g., paint solvent waste); and (3) an indication of the hazards of a container's contents (e.g., the applicable hazardous waste characteristic).
   7. Biennial Reporting Requirements: EPA is proposing two substantive changes to the biennial reporting requirements for LQGs.  First, the Agency is proposing that LQGs report all of the hazardous waste that they generate for the entire reporting year, not just waste for the month(s) during which they were LQGs.  Current regulation at the Federal level is unclear on this issue, and a limited number of states currently require LQGs to report the amount of hazardous waste generated for only those months that they were LQGs.  Second, EPA is proposing that LQGs report all hazardous waste generated during the reporting year, regardless of whether the waste was transported off-site during the reporting year.  Although the current EPA Biennial Report (BR) instructions state that generators should report the total quantity of hazardous waste generated during the reporting year, Federal regulations do not specifically address cases where a generator generates hazardous waste during the reporting year but ships it off-site during the next calendar year.
   8. Prohibitions on storage of restricted waste: Consistent with the proposed marking and labeling requirements for SQGs and LQGs, EPA is proposing to require that containers holding hazardous waste restricted from land disposal be marked with (1) the words "Hazardous Waste", (2) other words that identify the contents of the containers, and (3) an indication of the hazards of a container's contents.
   9. Drip pad and containment building requirements: Under the existing regulations, EPA has consistently interpreted the requirements for LQGs that accumulate hazardous waste on drip pads or in containment buildings for 90 days or less without a permit or interim status to also apply to SQGs.  Therefore, SQGs that use drip pads or containment buildings must comply with the LQG 90-day accumulation limit (as opposed to the SQG 180-day accumulation limit) as well as the requirements that apply to LQGs for personnel training, development of a full contingency plan, and biennial reporting.  Under the proposed rule, EPA believes a more effective and efficient approach is to require SQGs that accumulated hazardous waste on drip pads or in containment buildings to comply with the 90-day accumulation limit, but to otherwise comply with the less stringent requirements for SQGs.
   10. Intra-organization transfers of hazardous waste from CESQGs to LQGs (voluntary): To afford greater flexibility to CESQGs, EPA is proposing to allow CESQGs to send their hazardous waste voluntarily to an LQG under the ownership of the same organization, provided that both the CESQG(s) and LQG comply with certain conditions.  The CESQG conditions are as follows:
      (a) A participating CESQG must label containers with the words "CESQG Hazardous Waste," other words that identify the contents of the containers, and an indication of the hazards of a container's contents (e.g., the applicable hazardous waste characteristic).
      (b) CESQGs must comply with all applicable Department of Transportation regulations when sending their hazardous waste to an LQG.
      The proposed conditions for LQGs receiving hazardous waste from one or more CESQGs controlled by the same organization include the following:
      (a) LQGs must submit a notification to EPA or their authorized state identifying the names, addresses, and contact information for the CESQGs that will be transferring hazardous waste to the LQG.
      (b) LQGs must maintain records of all hazardous waste received from CESQGs that include the name, address, and contact information for each CESQG, as well as a description (i.e., quantity and hazardous waste codes) of each waste shipment received.
      (c) LQGs must mark shipments from CESQGs with the date the hazardous waste was received from the CESQG.
      (d) LQGs must manage all incoming CESQG hazardous waste in compliance with the regulations applicable to their LQG status.
      (e) Hazardous waste received from CESQGs must be included in the receiving LQG's BR submissions.
   11. Generators that temporarily change generator status due to an episodic event (voluntary): To provide greater flexibility to CESQGs and SQGs that generate much of their hazardous waste on an episodic basis, EPA is proposing to allow a CESQG or an SQG to voluntarily maintain its existing regulatory status in the event of a planned or unplanned episodic event in which the facility generates a quantity of hazardous waste in a calendar month that would otherwise elevate the facility to a more stringent regulatory status.  To avail itself of this provision, an SQG or CESQG would be subject to the following conditions:
      (a) Limit of one episodic event per calendar year;