Thus, given the evidence of past industrial recycling damage cases posing significant risks to human health and the environment, and the underlying perverse incentives of the recycling market to over-accumulate hazardous secondary materials intended for recycling ultimately resulting in discard of the materials, withdrawing the offsite recycling exclusion (Option 1) and replacing it with alternative Subtitle C recycling regulations (Option 2), as well as adding a re-manufacturing recycling exclusion (Option 6), may serve to reduce the future frequency and cleanup costs of environmental damage cases associated with industrial hazardous secondary materials recycling.  However, this RIA does not estimate the magnitude of this potential reduction.

8B.  Improved Environmental Compliance

The potential benefits of improved environmental compliance are not improved compliance rates per se, but the positive environmental and human health protection and risk reduction outcomes resulting from improved compliance.  This second potential environmental benefits category consists of four components:

      8B.1.  Clearer and More Specific Regulatory Standards Improve Environmental Compliance

There is evidence that clearer and less complicated regulations would improve environmental compliance by making it easier for industry to comply with and for regulators to enforce the provisions.  David B. Spence, using evidence from behavioral psychology, the courts, and elsewhere, concludes that regulated entities that intend to comply with environmental regulations may often inadvertently violate such regulations because they do not fully understand the regulatory requirements.  He cites the case of Rollins Environmental Services Inc. v. US EPA (937 F.2d 649), where the court determined that Rollins' violation of TSCA was based on "EPA's misleading imprecision, not Rollins' lack of acuity".

In the paper "Rational or Confused Polluters?  Evidence from Hazardous Waste Compliance" S. Stafford found the following: "In support of the complexity critique, the results show that larger facilities and facilities of multi-plant companies are less likely to violate, while facilities that are subject to more complex regulations are more likely to violate.  Also in support of the complexity critique, facilities learn from past inspections and facilities in states with programs directed toward reducing complexity are less likely to violate."  One specific case example provided in the Stafford article indicated: "... an analysis by the Colorado Department on Public Health and the Environment found that a number of facilities were frequently violating hazardous waste storage requirements because they were unaware of their regulatory status."

A number of the DSW revision options, including Options 3A, 3E, 4A, 4B, 7A, and 8D, should result in clearer and more specific regulatory requirements, which in turn should improve environmental compliance:

   * Option 3A codifying the word "contained," should improve environmental compliance because it reduces the need by the generator and the enforcement staff to interpret the provision.  The codification makes the provision more enforceable than the undefined term, while still providing the generator with some flexibility, including land-based storage.
   * Option 3E, by removing the tolling provision from generator exclusion, would eliminate a somewhat complicated provision that is difficult to explain and, therefore, could be difficult to enforce.
   * Option 4A applies the same codified standards of legitimate recycling to all recycled hazardous secondary materials.  This should provide greater clarity to recyclers and should make enforcement more straightforward and easier, thereby increasing environmental compliance.  Furthermore, Option 4A which codifies the legitimacy provision, should provide greater enforceability and clarity on legitimacy by providing the same legitimacy definition standard throughout the program.
   * Option 4B requires all four legitimacy factors be met to be considered a legitimate recycler, unless the facility submits a petition and receives approval from the implementing agency.  The state agencies will make these legitimacy determinations public and accessible on the internet.  This provision should make easier enforcement ensuring greater compliance.  The petition process will give the EPA oversight when any one of the four standards is not met; publishing the information online should increase consistency across state programs, which should also help improve compliance and enforcement.
   * Option 7A creates a "contained" standard that should be more enforceable than the undefined term, resulting in improved environmental compliance.
   * Option 8D makes clearer the status of hazardous secondary material in a unit from which a release to the environment occurred.  This revision should make the provision more enforceable and improve compliance because it should avoid the confusion of defining a "significant release" and instead make the regulatory status of the material in the unit based on the likelihood of the release occurring again in the future based on the elements in the definition of "contained".

   8B.2.  More Stringent Recordkeeping Provisions Improve Environmental Compliance

Although no studies were found indicating that recordkeeping improves environmental compliance, a study of OSHA's recordkeeping rules found that changes to the recordkeeping standard in 1995 and 2001 were responsible for a significant decline in the number of workplace injuries and illnesses observed from 1992-2003.  The observed declines corresponded with two major OSHA rule changes requiring recordkeeping.  The precipitous declines could not be explained by changes in employment, productivity, OSHA enforcement activity, reporting bias, and other factors which were adjusted for in the study.

Recordkeeping requirements in the 2011 DSW proposed revisions should increase awareness of overall regulatory requirements and also increase the likelihood of detecting noncompliance, both of which serve to promote compliance.  Options 3C, 4C, and 7C would use recordkeeping to improve environmental compliance:

   * Option 3C would require the speculative accumulation start date to be labeled on each container to ensure against speculative accumulation.   Without the labeled start date, the speculative accumulation provision would be difficult to enforce.
   * Option 4C would require documentation of legitimacy to the generator-controlled and transfer-based exclusions and the non-determination petition process.  This should ensure that recycling taking place under the exclusions would be examined closely and would not necessitate required documentation of legitimacy for all recycling.
   * Option 7C would also require recordkeeping for speculative accumulation, thereby making the provision more enforceable.

   8B.3.  Self-Reporting Requirements (e.g., Notification Requirements) Improve Environmental Compliance

A 1998 study by Ruhnka and Boerstler found that government incentives for corporate self-regulation are succeeding based on the number of Fortune 1000 implementing voluntary corporate codes of conduct.  An example of the type of government-private program outlined in the report is the EPA's national Environmental Performance Track Program.  Performance Track was a voluntary approach to recognize and drive environmental excellence among private and public facilities by encouraging facilities with strong environmental records to go above and beyond their legal requirements.  In partnership with EPA, members voluntarily set measurable goals to improve the quality of our nation's air, water, and land.  The Performance Track program ended in March 2009.  Based on results from 2000-2007 (the most recent year for which data are available), "Performance Track members reported that they collectively reduced their water use by 2.87 billion gallons, conserved more than 24,860 acres of land, and reduced greenhouse gas emissions by nearly 367,000 tons of carbon dioxide equivalent."   The members also prevented the generation of 1,261,006 tons of non-hazardous waste and 68,146 tons of hazardous waste.

A 2010 study on the Performance Track program by the RAND Corporation found that the program had mixed success and the study concluded that they "believe that the significant environmental challenges that the United States faces require that EPA continue to seek out new approaches that can complement and enhance traditional regulatory approaches."   The problem with the program was the lack of clarity in its purpose and the RAND report indicated "[t]he lack of specificity in the program concept, the deferment and non-implementation of the second component of the originally proposed program, and ambiguous announcements about the program's membership contributed to stakeholders developing different understandings and expectations for the program."  RAND Corporation recommended that future programs should strive for program concepts and expectations that are clear for all stakeholder groups, tightly focused on specific environmental programs, and protect the EPA's brand.  In defense of the Performance Track program, RAND found that " Performance Track members reported that the program's requirements to have and use EMSs, set continuous improvement goals, and increase community outreach led to beneficial changes in corporate culture, including improved employee engagement, morale, recruiting, and retention. EPA should continue to experiment with providing positive recognition and other strategies that encourage changes in corporate culture."

Options 2B, 3B, 5B and 7B would require biennial notification and would enable RCRA-authorized state government agencies and EPA regional offices to monitor environmental compliance at industrial facilities.  However, according to the October 2010 OECA review on industry compliance with EPA regulations, EPA regional office and RCRA-authorized state government agency inspections of industrial facilities for the purpose of enforcing RCRA Subtitle C regulations, only covered 3.14% of the 586,183 nationwide universe of RCRA-regulated industrial facilities (as of 2001).

      8B.4.  Increasing the Likelihood Of Detection and Potential Penalty for Non-Compliance Improves Environmental Compliance

Many studies have found that increasing penalties for non-compliance not only improve compliance of the facilities inspected, but act as a deterrent for all facilities in the area.  From the State-of-Science White Paper by Jay Shimshack: "Most recently, Glicksman and Earnhart [2007] analyzed both qualitative and quantitative evidence of specific deterrence for water discharges in the chemical industry.  The statistical database analysis examined how plants' composite BOD and TSS discharges responded to EPA/state enforcement actions. The survey component covered 267 of the 1003 originally solicited chemical facilities (a 27% response rate).  Glicksman and Earnhart [2007] established that inspections and fines both produced significant deterrence effects.  Nearly 75% of survey respondents reported that fines were an effective deterrent and approximately 87% reported that inspections definitely or probably effectively induced water pollution compliance.  Similarly, the statistical results indicated that both inspections and enforcement actions resulted in decreased aggregate conventional water pollution emissions."

Stafford studied the response of 8,411 hazardous waste-generating facilities to a rule change that significantly increased financial penalties for violation.  The 10 to 20 fold increase in potential fine magnitudes generated an approximately 15% reduction in regulated plants' violation probabilities.

Shimshack and Ward found that levying fines resulted in a significant reduction in the statewide water pollution violation rate in the year following the fines.  Nearly all of this was attributable to spillover effects, as the average deterrence impact on each of the other plants in a state was almost as strong as the impact on the sanctioned facility.  The authors also showed that general deterrence increased consistently with the amount of the penalty.  In other words, larger fines induced fewer subsequent violations by other plants in the state.  Other results included the finding that non-monetary enforcement responses like notices of violation alone had little influence on plant-level compliance.

Options 2, 3, 4, 5, and 7 of the 2011 DSW proposed revisions should help enforcement personnel more readily identify violations.  For example, the absence of required records and notifications can easily be identified and enforced.  Both the magnitude of penalties and the increased likelihood of detection should result in benefits of improved compliance.

8C.  More Specific Standards Result in Reduced Liability, Less Uncertainty for the Regulated Entity, and Lower Legal & Credit Costs

While more specific regulatory requirements are believed to improve environmental compliance, more specific standards are also expected to reduce facilities' liability, resulting in lower legal and other costs.  For example, one of the most frequently identified root causes of noncompliance was where the facility was unaware of the applicability of a regulation.  In another study of pulp and paper mills in Canada, Laplante, et al., found that the presence of clear and strong standards accompanied with a significant and credible penalty system does send appropriate signals to the regulated community which responds by lowering pollution emissions.

Clearer regulatory requirements should result in higher compliance rates.  In turn, higher levels of compliance should likely lower legal costs and potentially more favorable investment and credit markets.  For example analysts have examined the reaction of capital markets to the release of information pertaining to environmental performance.  Several studies have shown that capital markets react significantly to the release of information: upward when the information reveals a superior performance, and downward when a poor performance is revealed.  Moreover, in recent years, the importance of investor interest has increased and suppliers of financing, industrial equipment, and engineering services are increasingly reluctant to do business with firms experiencing problems with environmental regulations.

Options 3A, 3E, 4A, 4B, 7C, 8A and 8D would all reduce uncertainty for regulated entities.

   * Option 3A, codifying the word "contained" would create a specific standard with which entities must comply, therefore reducing regulatory uncertainty.
   * Option 3E, by removing the tolling provision from generator exclusion, would eliminate a somewhat complicated provision from the regulated entity perspective and, therefore, would make it easier for them to comply with the provisions.
   * Option 4A applies the same codified standards of legitimate recycling to all recycled hazardous secondary materials.  Both of these measures should make compliance more straight-forward and publishing the legitimacy determinations online should increase transparency and ensure consistency across state programs.  Furthermore, Option 4A, which codifies the legitimacy definition, should provide greater clarity and less uncertainty by having the same definition throughout the program.
   * Option 4B requires all four legitimacy factors be met to be considered a legitimate recycler, unless the facility submits a petition and receives approval from the implementing agency.  The state agencies will make these legitimacy determinations public and accessible on the internet.
   * Option 7A creates a "contained" standard that should provide greater clarity than the undefined term.
   * Option 8A adds regulatory definition of "contained" that specifies performance-based storage standards, but does not require full Subtitle C tank and container standards.  The performance-based standard both reduces uncertainty and maintains a workable standard.
   * Option 8D reduces regulatory uncertainty by clearly defining terms.

                                  Appendices

                                  Appendix A

       2007 Count of 6-Digit NAICS Code Industries Potentially Affected

                       2007 Count of Affected Industries
                          2007 non-duplicative count
                              2007 BR NAICS code
                              2007 TRI NAICS code
                              Code overlap count
                                       1
                                    111120

                                       2
                                    113110

                                       3
                                    115114

                                       4
                                    211111

                                       5
                                    211112

                                       6
                                    212210

                                       7
                                    212220

                                       8
                                    212221
                                    212221
                                    Overlap
                                       9
                                    212222
                                    212222
                                    Overlap
                                      10

                                    212231

                                      11
                                    212234
                                    212234
                                    Overlap
                                      12
                                    212299
                                    212299
                                    Overlap
                                      13
                                    212312

                                      14
                                    212391

                                      15
                                    213111

                                      16
                                    213112

                                      17
                                    213114

                                      18
                                    221110

                                      19
                                    221111

                                      20
                                    221112

                                      21
                                    221113

                                      22
                                    221119

                                      23
                                    221120

                                      24
                                    221121

                                      25
                                    221122

                                      26
                                    221210

                                      27
                                    221310

                                      28
                                    221320

                                      29
                                    221330

                                      30
                                    233310

                                      31
                                    234110

                                      32
                                    235910

                                      33
                                    235990

                                      34
                                    236118

                                      35
                                    236220

                                      36
                                    237310

                                      37
                                    237990

                                      38
                                    238320

                                      39

                                    311111

                                      40

                                    311119

                                      41
                                    311221
                                    311221
                                    Overlap
                                      42

                                    311222

                                      43

                                    311223

                                      44
                                    311225
                                    311225
                                    Overlap
                                      45

                                    311311

                                      46
                                    311312

                                      47

                                    311313

                                      48

                                    311411

                                      49

                                    311412

                                      50
                                    311423

                                      51

                                    311511

                                      52

                                    311512

                                      53

                                    311513

                                      54
                                    311514
                                    311514
                                    Overlap
                                      55

                                    311520

                                      56

                                    311611

                                      57

                                    311612

                                      58

                                    311613

                                      59

                                    311615

                                      60

                                    311712

                                      61

                                    311812

                                      62
                                    311822

                                      63

                                    311919

                                      64

                                    311920

                                      65
                                    311930
                                    311930
                                    Overlap
                                      66
                                    311942
                                    311942
                                    Overlap
                                      67
                                    311999
                                    311999
                                    Overlap
                                      68
                                    312111

                                      69

                                    312113

                                      70
                                    312120
                                    312120
                                    Overlap
                                      71

                                    312140

                                      72
                                    312221
                                    312221
                                    Overlap
                                      73

                                    312229

                                      74
                                    313111

                                      75
                                    313112

                                      76

                                    313210

                                      77
                                    313221

                                      78

                                    313230

                                      79
                                    313310

                                      80
                                    313311
                                    313311
                                    Overlap
                                      81
                                    313312
                                    313312
                                    Overlap
                                      82
                                    313320
                                    313320
                                    Overlap
                                      83

                                    314110

                                      84
                                    314912

                                      85

                                    314991

                                      86

                                    314992

                                      87
                                    314999
                                    314999
                                    Overlap
                                      88

                                    315992

                                      89
                                    316110
                                    316110
                                    Overlap
                                      90

                                    316211

                                      91

                                    316213

                                      92
                                    321110

                                      93
                                    321113
                                    321113
                                    Overlap
                                      94
                                    321114
                                    321114
                                    Overlap
                                      95
                                    321210

                                      96

                                    321211

                                      97

                                    321212

                                      98

                                    321213

                                      99
                                    321219
                                    321219
                                    Overlap
                                      100
                                    321910

                                      101
                                    321911
                                    321911
                                    Overlap
                                      102

                                    321912

                                      103
                                    321918
                                    321918
                                    Overlap
                                      104

                                    321991

                                      105
                                    321992

                                      106
                                    321999
                                    321999
                                    Overlap
                                      107
                                    322110
                                    322110
                                    Overlap
                                      108
                                    322120

                                      109
                                    322121
                                    322121
                                    Overlap
                                      110

                                    322122

                                      111
                                    322130
                                    322130
                                    Overlap
                                      112
                                    322210

                                      113
                                    322211
                                    322211
                                    Overlap
                                      114
                                    322212
                                    322212
                                    Overlap
                                      115
                                    322221
                                    322221
                                    Overlap
                                      116
                                    322222
                                    322222
                                    Overlap
                                      117
                                    322223

                                      118
                                    322224

                                      119
                                    322225

                                      120
                                    322226

                                      121

                                    322231

                                      122
                                    322232

                                      123
                                    322291
                                    322291
                                    Overlap
                                      124
                                    322299
                                    322299
                                    Overlap
                                      125
                                    323110
                                    323110
                                    Overlap
                                      126
                                    323111
                                    323111
                                    Overlap
                                      127
                                    323112
                                    323112
                                    Overlap
                                      128
                                    323113
                                    323113
                                    Overlap
                                      129

                                    323115

                                      130
                                    323119
                                    323119
                                    Overlap
                                      131

                                    323121

                                      132
                                    323122
                                    323122
                                    Overlap
                                      133
                                    324110
                                    324110
                                    Overlap
                                      134
                                    324121
                                    324121
                                    Overlap
                                      135
                                    324122
                                    324122
                                    Overlap
                                      136
                                    324191
                                    324191
                                    Overlap
                                      137
                                    324199
                                    324199
                                    Overlap
                                      138
                                    325110
                                    325110
                                    Overlap
                                      139
                                    325120
                                    325120
                                    Overlap
                                      140
                                    325131
                                    325131
                                    Overlap
                                      141
                                    325132
                                    325132
                                    Overlap
                                      142
                                    325180

                                      143
                                    325181
                                    325181
                                    Overlap
                                      144
                                    325188
                                    325188
                                    Overlap
                                      145
                                    325190

                                      146
                                    325191
                                    325191
                                    Overlap
                                      147
                                    325192
                                    325192
                                    Overlap
                                      148

                                    325193

                                      149
                                    325199
                                    325199
                                    Overlap
                                      150
                                    325210

                                      151
                                    325211
                                    325211
                                    Overlap
                                      152
                                    325212
                                    325212
                                    Overlap
                                      153
                                    325220

                                      154
                                    325221
                                    325221
                                    Overlap
                                      155
                                    325222
                                    325222
                                    Overlap
                                      156
                                    325310

                                      157
                                    325311
                                    325311
                                    Overlap
                                      158
                                    325312
                                    325312
                                    Overlap
                                      159

                                    325314

                                      160
                                    325320
                                    325320
                                    Overlap
                                      161
                                    325410

                                      162
                                    325411
                                    325411
                                    Overlap
                                      163
                                    325412
                                    325412
                                    Overlap
                                      164
                                    325413
                                    325413
                                    Overlap
                                      165
                                    325414
                                    325414
                                    Overlap
                                      166
                                    325510
                                    325510
                                    Overlap
                                      167
                                    325520
                                    325520
                                    Overlap
                                      168
                                    325610

                                      169
                                    325611
                                    325611
                                    Overlap
                                      170
                                    325612
                                    325612
                                    Overlap
                                      171
                                    325613
                                    325613
                                    Overlap
                                      172
                                    325620
                                    325620
                                    Overlap
                                      173
                                    325910
                                    325910
                                    Overlap
                                      174
                                    325920
                                    325920
                                    Overlap
                                      175
                                    325990

                                      176
                                    325991
                                    325991
                                    Overlap
                                      177
                                    325992
                                    325992
                                    Overlap
                                      178
                                    325998
                                    325998
                                    Overlap
                                      179
                                    326110

                                      180
                                    326111

                                      181
                                    326112
                                    326112
                                    Overlap
                                      182
                                    326113
                                    326113
                                    Overlap
                                      183
                                    326121
                                    326121
                                    Overlap
                                      184
                                    326122
                                    326122
                                    Overlap
                                      185
                                    326130
                                    326130
                                    Overlap
                                      186
                                    326140
                                    326140
                                    Overlap
                                      187
                                    326150
                                    326150
                                    Overlap
                                      188

                                    326160

                                      189
                                    326190

                                      190
                                    326191
                                    326191
                                    Overlap
                                      191
                                    326192
                                    326192
                                    Overlap
                                      192
                                    326199
                                    326199
                                    Overlap
                                      193
                                    326211
                                    326211
                                    Overlap
                                      194
                                    326220
                                    326220
                                    Overlap
                                      195
                                    326290

                                      196
                                    326291
                                    326291
                                    Overlap
                                      197
                                    326299
                                    326299
                                    Overlap
                                      198
                                    327111
                                    327111
                                    Overlap
                                      199
                                    327112
                                    327112
                                    Overlap
                                      200
                                    327113
                                    327113
                                    Overlap
                                      201

                                    327121

                                      202

                                    327122

                                      203

                                    327123

                                      204

                                    327124

                                      205
                                    327125
                                    327125
                                    Overlap
                                      206
                                    327210

                                      207
                                    327211
                                    327211
                                    Overlap
                                      208
                                    327212
                                    327212
                                    Overlap
                                      209
                                    327213
                                    327213
                                    Overlap
                                      210
                                    327215
                                    327215
                                    Overlap
                                      211
                                    327310
                                    327310
                                    Overlap
                                      212
                                    327320
                                    327320
                                    Overlap
                                      213

                                    327331

                                      214

                                    327332

                                      215

                                    327390

                                      216
                                    327420
                                    327420
                                    Overlap
                                      217
                                    327910
                                    327910
                                    Overlap
                                      218

                                    327991

                                      219

                                    327992

                                      220
                                    327993
                                    327993
                                    Overlap
                                      221
                                    327999
                                    327999
                                    Overlap
                                      222
                                    331110

                                      223
                                    331111
                                    331111
                                    Overlap
                                      224
                                    331112
                                    331112
                                    Overlap
                                      225
                                    331210
                                    331210
                                    Overlap
                                      226
                                    331220

                                      227
                                    331221
                                    331221
                                    Overlap
                                      228
                                    331222
                                    331222
                                    Overlap
                                      229

                                    331311

                                      230
                                    331312
                                    331312
                                    Overlap
                                      231
                                    331314
                                    331314
                                    Overlap
                                      232
                                    331315
                                    331315
                                    Overlap
                                      233
                                    331316
                                    331316
                                    Overlap
                                      234
                                    331319
                                    331319
                                    Overlap
                                      235
                                    331411
                                    331411
                                    Overlap
                                      236
                                    331419
                                    331419
                                    Overlap
                                      237
                                    331421
                                    331421
                                    Overlap
                                      238
                                    331422
                                    331422
                                    Overlap
                                      239
                                    331423
                                    331423
                                    Overlap
                                      240
                                    331491
                                    331491
                                    Overlap
                                      241
                                    331492
                                    331492
                                    Overlap
                                      242
                                    331510

                                      243
                                    331511
                                    331511
                                    Overlap
                                      244
                                    331512
                                    331512
                                    Overlap
                                      245
                                    331513
                                    331513
                                    Overlap
                                      246
                                    331520

                                      247
                                    331521
                                    331521
                                    Overlap
                                      248
                                    331522
                                    331522
                                    Overlap
                                      249
                                    331524
                                    331524
                                    Overlap
                                      250
                                    331525
                                    331525
                                    Overlap
                                      251
                                    331528
                                    331528
                                    Overlap
                                      252
                                    332111
                                    332111
                                    Overlap
                                      253
                                    332112
                                    332112
                                    Overlap
                                      254
                                    332114
                                    332114
                                    Overlap
                                      255
                                    332115
                                    332115
                                    Overlap
                                      256
                                    332116
                                    332116
                                    Overlap
                                      257
                                    332117
                                    332117
                                    Overlap
                                      258
                                    332211
                                    332211
                                    Overlap
                                      259
                                    332212
                                    332212
                                    Overlap
                                      260
                                    332213
                                    332213
                                    Overlap
                                      261
                                    332214
                                    332214
                                    Overlap
                                      262

                                    332311

                                      263
                                    332312
                                    332312
                                    Overlap
                                      264
                                    332313
                                    332313
                                    Overlap
                                      265
                                    332321
                                    332321
                                    Overlap
                                      266
                                    332322
                                    332322
                                    Overlap
                                      267
                                    332323
                                    332323
                                    Overlap
                                      268
                                    332410
                                    332410
                                    Overlap
                                      269
                                    332420
                                    332420
                                    Overlap
                                      270
                                    332430

                                      271
                                    332431
                                    332431
                                    Overlap
                                      272
                                    332439
                                    332439
                                    Overlap
                                      273
                                    332510
                                    332510
                                    Overlap
                                      274

                                    332611

                                      275
                                    332612
                                    332612
                                    Overlap
                                      276
                                    332618
                                    332618
                                    Overlap
                                      277
                                    332710
                                    332710
                                    Overlap
                                      278
                                    332721
                                    332721
                                    Overlap
                                      279
                                    332722
                                    332722
                                    Overlap
                                      280
                                    332810

                                      281
                                    332811
                                    332811
                                    Overlap
                                      282
                                    332812
                                    332812
                                    Overlap
                                      283
                                    332813
                                    332813
                                    Overlap
                                      284
                                    332911
                                    332911
                                    Overlap
                                      285
                                    332912
                                    332912
                                    Overlap
                                      286
                                    332913
                                    332913
                                    Overlap
                                      287
                                    332919
                                    332919
                                    Overlap
                                      288
                                    332990

                                      289
                                    332991
                                    332991
                                    Overlap
                                      290
                                    332992
                                    332992
                                    Overlap
                                      291
                                    332993
                                    332993
                                    Overlap
                                      292
                                    332994
                                    332994
                                    Overlap
                                      293
                                    332995
                                    332995
                                    Overlap
                                      294
                                    332996
                                    332996
                                    Overlap
                                      295

                                    332997

                                      296

                                    332998

                                      297
                                    332999
                                    332999
                                    Overlap
                                      298
                                    333111
                                    333111
                                    Overlap
                                      299
                                    333112
                                    333112
                                    Overlap
                                      300
                                    333120
                                    333120
                                    Overlap
                                      301
                                    333131
                                    333131
                                    Overlap
                                      302
                                    333132
                                    333132
                                    Overlap
                                      303
                                    333210
                                    333210
                                    Overlap
                                      304
                                    333220
                                    333220
                                    Overlap
                                      305
                                    333291
                                    333291
                                    Overlap
                                      306
                                    333292
                                    333292
                                    Overlap
                                      307
                                    333293
                                    333293
                                    Overlap
                                      308
                                    333294
                                    333294
                                    Overlap
                                      309
                                    333295
                                    333295
                                    Overlap
                                      310
                                    333298
                                    333298
                                    Overlap
                                      311
                                    333311

                                      312
                                    333312
                                    333312
                                    Overlap
                                      313

                                    333313

                                      314
                                    333314
                                    333314
                                    Overlap
                                      315
                                    333315
                                    333315
                                    Overlap
                                      316
                                    333319
                                    333319
                                    Overlap
                                      317

                                    333411

                                      318
                                    333412
                                    333412
                                    Overlap
                                      319
                                    333414
                                    333414
                                    Overlap
                                      320
                                    333415
                                    333415
                                    Overlap
                                      321
                                    333511
                                    333511
                                    Overlap
                                      322
                                    333512
                                    333512
                                    Overlap
                                      323
                                    333513
                                    333513
                                    Overlap
                                      324
                                    333514
                                    333514
                                    Overlap
                                      325
                                    333515
                                    333515
                                    Overlap
                                      326
                                    333516
                                    333516
                                    Overlap
                                      327

                                    333518

                                      328
                                    333610

                                      329
                                    333611
                                    333611
                                    Overlap
                                      330
                                    333612
                                    333612
                                    Overlap
                                      331
                                    333613
                                    333613
                                    Overlap
                                      332
                                    333618
                                    333618
                                    Overlap
                                      333
                                    333911
                                    333911
                                    Overlap
                                      334
                                    333912
                                    333912
                                    Overlap
                                      335
                                    333913

                                      336
                                    333921
                                    333921
                                    Overlap
                                      337

                                    333922

                                      338
                                    333923
                                    333923
                                    Overlap
                                      339
                                    333924
                                    333924
                                    Overlap
                                      340
                                    333991
                                    333991
                                    Overlap
                                      341
                                    333992
                                    333992
                                    Overlap
                                      342

                                    333993

                                      343

                                    333994

                                      344
                                    333995
                                    333995
                                    Overlap
                                      345
                                    333996
                                    333996
                                    Overlap
                                      346

                                    333997

                                      347
                                    333999
                                    333999
                                    Overlap
                                      348
                                    334110

                                      349
                                    334111
                                    334111
                                    Overlap
                                      350
                                    334112
                                    334112
                                    Overlap
                                      351
                                    334113

                                      352
                                    334119
                                    334119
                                    Overlap
                                      353

                                    334210

                                      354
                                    334220
                                    334220
                                    Overlap
                                      355
                                    334290
                                    334290
                                    Overlap
                                      356
                                    334310
                                    334310
                                    Overlap
                                      357
                                    334410

                                      358
                                    334411
                                    334411
                                    Overlap
                                      359
                                    334412
                                    334412
                                    Overlap
                                      360
                                    334413
                                    334413
                                    Overlap
                                      361
                                    334414
                                    334414
                                    Overlap
                                      362
                                    334415
                                    334415
                                    Overlap
                                      363

                                    334416

                                      364
                                    334417
                                    334417
                                    Overlap
                                      365
                                    334418
                                    334418
                                    Overlap
                                      366
                                    334419
                                    334419
                                    Overlap
                                      367
                                    334510
                                    334510
                                    Overlap
                                      368
                                    334511
                                    334511
                                    Overlap
                                      369
                                    334512
                                    334512
                                    Overlap
                                      370
                                    334513
                                    334513
                                    Overlap
                                      371
                                    334514
                                    334514
                                    Overlap
                                      372
                                    334515
                                    334515
                                    Overlap
                                      373
                                    334516
                                    334516
                                    Overlap
                                      374
                                    334517
                                    334517
                                    Overlap
                                      375
                                    334519
                                    334519
                                    Overlap
                                      376
                                    334612
                                    334612
                                    Overlap
                                      377
                                    334613
                                    334613
                                    Overlap
                                      378
                                    335110
                                    335110
                                    Overlap
                                      379
                                    335121
                                    335121
                                    Overlap
                                      380
                                    335122
                                    335122
                                    Overlap
                                      381
                                    335129
                                    335129
                                    Overlap
                                      382
                                    335211

                                      383

                                    335212

                                      384

                                    335221

                                      385
                                    335222
                                    335222
                                    Overlap
                                      386
                                    335224
                                    335224
                                    Overlap
                                      387

                                    335228

                                      388
                                    335311
                                    335311
                                    Overlap
                                      389
                                    335312
                                    335312
                                    Overlap
                                      390
                                    335313
                                    335313
                                    Overlap
                                      391
                                    335314
                                    335314
                                    Overlap
                                      392
                                    335910

                                      393
                                    335911
                                    335911
                                    Overlap
                                      394
                                    335912
                                    335912
                                    Overlap
                                      395
                                    335921
                                    335921
                                    Overlap
                                      396
                                    335929
                                    335929
                                    Overlap
                                      397
                                    335931
                                    335931
                                    Overlap
                                      398

                                    335932

                                      399
                                    335991
                                    335991
                                    Overlap
                                      400
                                    335999
                                    335999
                                    Overlap
                                      401
                                    336110

                                      402
                                    336111
                                    336111
                                    Overlap
                                      403
                                    336112
                                    336112
                                    Overlap
                                      404
                                    336120
                                    336120
                                    Overlap
                                      405
                                    336210

                                      406
                                    336211
                                    336211
                                    Overlap
                                      407
                                    336212
                                    336212
                                    Overlap
                                      408
                                    336213
                                    336213
                                    Overlap
                                      409
                                    336214
                                    336214
                                    Overlap
                                      410
                                    336310

                                      411
                                    336311
                                    336311
                                    Overlap
                                      412
                                    336312
                                    336312
                                    Overlap
                                      413
                                    336321
                                    336321
                                    Overlap
                                      414
                                    336322
                                    336322
                                    Overlap
                                      415
                                    336330
                                    336330
                                    Overlap
                                      416
                                    336340
                                    336340
                                    Overlap
                                      417
                                    336350
                                    336350
                                    Overlap
                                      418
                                    336360
                                    336360
                                    Overlap
                                      419
                                    336370
                                    336370
                                    Overlap
                                      420
                                    336390

                                      421
                                    336391
                                    336391
                                    Overlap
                                      422
                                    336399
                                    336399
                                    Overlap
                                      423
                                    336410

                                      424
                                    336411
                                    336411
                                    Overlap
                                      425
                                    336412
                                    336412
                                    Overlap
                                      426
                                    336413
                                    336413
                                    Overlap
                                      427
                                    336414
                                    336414
                                    Overlap
                                      428
                                    336415
                                    336415
                                    Overlap
                                      429
                                    336419
                                    336419
                                    Overlap
                                      430
                                    336510
                                    336510
                                    Overlap
                                      431
                                    336610

                                      432
                                    336611
                                    336611
                                    Overlap
                                      433
                                    336612
                                    336612
                                    Overlap
                                      434
                                    336990

                                      435
                                    336991
                                    336991
                                    Overlap
                                      436

                                    336992

                                      437
                                    336999
                                    336999
                                    Overlap
                                      438
                                    337110
                                    337110
                                    Overlap
                                      439
                                    337121
                                    337121
                                    Overlap
                                      440
                                    337122
                                    337122
                                    Overlap
                                      441
                                    337124
                                    337124
                                    Overlap
                                      442
                                    337127
                                    337127
                                    Overlap
                                      443
                                    337211
                                    337211
                                    Overlap
                                      444

                                    337212

                                      445
                                    337214
                                    337214
                                    Overlap
                                      446
                                    337215
                                    337215
                                    Overlap
                                      447

                                    337920

                                      448
                                    339110

                                      449
                                    339111
                                    339111
                                    Overlap
                                      450
                                    339112
                                    339112
                                    Overlap
                                      451
                                    339113
                                    339113
                                    Overlap
                                      452
                                    339114
                                    339114
                                    Overlap
                                      453
                                    339115
                                    339115
                                    Overlap
                                      454
                                    339910

                                      455
                                    339911
                                    339911
                                    Overlap
                                      456
                                    339912
                                    339912
                                    Overlap
                                      457
                                    339913

                                      458
                                    339914
                                    339914
                                    Overlap
                                      459
                                    339920
                                    339920
                                    Overlap
                                      460
                                    339941
                                    339941
                                    Overlap
                                      461
                                    339942

                                      462

                                    339943

                                      463

                                    339944

                                      464
                                    339950
                                    339950
                                    Overlap
                                      465
                                    339990

                                      466
                                    339991
                                    339991
                                    Overlap
                                      467
                                    339992
                                    339992
                                    Overlap
                                      468
                                    339993
                                    339993
                                    Overlap
                                      469
                                    339995
                                    339995
                                    Overlap
                                      470
                                    339999
                                    339999
                                    Overlap
                                      471
                                    421120

                                      472
                                    421490

                                      473
                                    421620

                                      474
                                    421830

                                      475
                                    421930

                                      476
                                    422690

                                      477
                                    422720

                                      478
                                    423110

                                      479
                                    423120

                                      480
                                    423310

                                      481
                                    423320

                                      482
                                    423410

                                      483
                                    423450

                                      484
                                    423490

                                      485
                                    423690

                                      486
                                    423710

                                      487
                                    423830

                                      488
                                    423930

                                      489
                                    423990

                                      490
                                    424210

                                      491
                                    424610

                                      492
                                    424690

                                      493
                                    424710

                                      494
                                    424950

                                      495
                                    425120

                                      496
                                    446110

                                      497
                                    447110

                                      498
                                    447190

                                      499
                                    452990

                                      500
                                    453998

                                      501
                                    454110

                                      502
                                    454111

                                      503
                                    481111

                                      504
                                    481112

                                      505
                                    481211

                                      506
                                    482110

                                      507
                                    482111

                                      508
                                    483112

                                      509
                                    483210

                                      510
                                    483211

                                      511
                                    484110

                                      512
                                    484121

                                      513
                                    484122

                                      514
                                    484220

                                      515
                                    484230

                                      516
                                    485111

                                      517
                                    485112

                                      518
                                    485113

                                      519
                                    485990

                                      520
                                    486110

                                      521
                                    486210

                                      522
                                    486910

                                      523
                                    488111

                                      524
                                    488119

                                      525
                                    488190

                                      526
                                    488210

                                      527
                                    488320

                                      528
                                    488390

                                      529
                                    488490

                                      530
                                    488990

                                      531
                                    488999

                                      532
                                    492110

                                      533
                                    493110

                                      534
                                    493190

                                      535
                                    511110

                                      536
                                    511140

                                      537
                                    512110

                                      538
                                    512120

                                      539
                                    512191

                                      540
                                    512199

                                      541
                                    531120

                                      542
                                    531312

                                      543
                                    531390

                                      544
                                    532120

                                      545
                                    532299

                                      546
                                    532411

                                      547
                                    532412

                                      548
                                    541330

                                      549
                                    541380

                                      550
                                    541420

                                      551
                                    541512

                                      552
                                    541620

                                      553
                                    541710

                                      554
                                    541720

                                      555
                                    541940

                                      556
                                    541990

                                      557
                                    551114

                                      558
                                    561210

                                      559
                                    561439

                                      560
                                    561499

                                      561
                                    561790

                                      562
                                    561990

                                      563
                                    562110

                                      564
                                    562111

                                      565
                                    562112

                                      566
                                    562119

                                      567
                                    562210

                                      568
                                    562211

                                      569
                                    562212

                                      570
                                    562213

                                      571
                                    562219

                                      572
                                    562910

                                      573
                                    562920
                                    562920
                                    Overlap
                                      574
                                    562998

                                      575
                                    611110

                                      576
                                    611210

                                      577
                                    611310

                                      578
                                    611519

                                      579
                                    611610

                                      580
                                    611699

                                      581
                                    611710

                                      582
                                    621111

                                      583
                                    621112

                                      584
                                    621491

                                      585
                                    621511

                                      586
                                    621512

                                      587
                                    622110

                                      588
                                    622210

                                      589
                                    622310

                                      590
                                    711212

                                      591
                                    712190

                                      592
                                    713110

                                      593
                                    713930

                                      594
                                    713990

                                      595
                                    811111

                                      596
                                    811120

                                      597
                                    811121

                                      598
                                    811191

                                      599
                                    811211

                                      600
                                    811219

                                      601
                                    811310

                                      602
                                    811490

                                      603
                                    812310

                                      604
                                    812320

                                      605
                                    812331

                                      606
                                    812332

                                      607
                                    812921

                                      608
                                    812922

                                      609
                                    814110

                                      610
                                    921120

                                      611
                                    921140

                                      612
                                    921190

                                      613
                                    922120

                                      614
                                    922140

                                      615
                                    922190

                                      616
                                    923110

                                      617
                                    924110

                                      618
                                    926110

                                      619
                                    926120

                                      620
                                    926130

                                      621
                                    927110

                                      622
                                    928110

                                    Count =
                                      546
                                      378
                                      302
                                 (49% overlap)
Note: Jointly-shaded NAICS codes indicate those NAICS codes specifically queried in the TRI database to represent the 32 pre-2008 RCRA industrial recycling exclusions.

                                  Appendix B
                    Calculation of Cost Adjustment Factors

The five Exhibits below (i.e., Appendix Exhibits B1 to B7) present five examples of how the cost adjustment factors applied in Chapter 5 of this RIA were calculated.  The cost adjustment factors are used to modify the cost estimates assuming a 100% rate of adoption (i.e., rate of 2008 DSW exclusion notification) to reflect the "13% base case" or the "74% upper bound" adoption scenarios applied  in this RIA, and applying either a 7%, 3%, or 0% discount rate.  The following information is presented in the Exhibits:

   * The first column in each exhibit represents the year of the analysis up through 2064.
   * The second column in each exhibit is a count of the year included in the analysis.
   * The third column indicates the number of facilities operating under a DSW exclusion notification in that year.
         o Exhibit B1: The lower bound assumes that 21 facilities file a DSW exclusion notification per year under Exclusions 1 and 2 of the 2008 DSW rule for the baseline savings adjustment factor beginning in 2009.
         o Exhibit B2: The lower bound assumes that 21 facilities x (4,656 Exclusion 2 facilities/4,933 Exclusion 1&2 facilities) = 19.8 facilities file a DSW exclusion notification per year under Exclusion 2 of the 2008 DSW rule for the baseline savings adjustment factor beginning in 2009.
         o Exhibit B3: The lower-bound count of facilities increases by 18.9 facilities per year because Option 2, Requirement 2C, (reclamation plan) only affects transfer-based exclusions under Exclusion 2 of the 2008 DSW final rule which represent approximately 90% of the affected facilities (4,455 Exclusion 2 facilities minus re-manufacturing facilities/4933 Exclusion 1 and 2 facilities x 21 facilities notifying per year).
         o Exhibit B4: The count of facilities includes 246 (5%) of the total of 4,933 notifying and non-notifying facilities filing a legitimacy petition.
         o Exhibit B5: The count of facilities includes 4,686 (95%) of the total of 4,933 facilities submitting legitimacy documentation.
         o Exhibit B6: The upper bound estimate of facilities that file a DSW exclusion notification per year under Exclusions 1 and 2 of the 2008 DSW rule for the baseline savings adjustment factor.  21 facilities are assumed to adopt per year beginning in 2009 through 2014. Between 2015 and 2018, 25% of the 3,655 facilities in 44 states assumed to adopt the rule notify each of these years.
         o Exhibit B7: The upper-bound count of facilities increases by 18.9 facilities per year in years 2009 through 2014 because Option 2, Requirement 2C, (reclamation plan) only affects transfer-based exclusions under Exclusion 2 of the 2008 DSW final rule which represent approximately 90% of the affected facilities (4,455 Exclusion 2 facilities minus re-manufacturing facilities/4933 Exclusion 1 and 2 facilities x 21 facilities notifying per year).  Between 2015 and 2018, 25% of the 3,655 facilities in 44 states assumed to adopt the rule notify each of these years times of which 90% are Exclusion 2 affected facilities.
   * The 4[th] column in each exhibit is either the aggregate savings or costs for each year which is calculated by multiplying the number of notifying facilities by the average savings/facility or average costs/facility.
   * The 5[th], 6[th] and 7[th] columns in each exhibit estimate the aggregate or total present worth savings or costs over the 2011 through 2064 period of analysis using either a 7%, 3%, or 0% discount rate.
   * The bottom rows of each exhibit present the following numbers/factors that are used in the cost analysis in Chapter 5 of this RIA:
         o Total present worth savings or costs are annualized to create an annual baseline cost savings estimate or an annual compliance cost estimate over the period of analysis (labeled as "Annualized Savings" or "Annualized Costs").
         o "Average Number of Facilities" affected per year over the 50-year period of analysis (2015-2064) is calculated.
         o "Percent of Facilities Notify" factor is derived by dividing the "Average Number of Facilities" by the total number of "Exclusion 1 and/or 2 Affected Facilities" multiplied by 100%.

                              Appendix Exhibit B1
Lower Bound  -  Exclusion 1 & 2 Baseline Savings Adjustment Factor Calculation
                                     Year
                                 Analysis Year
                        Number of Notifying Facilities
    Aggregate Annual Savings (Number of Facilities x Avg. Savings/facility)
                     Aggregate Present Value Savings @ 7%
                           Aggregate PV Savings @ 3%
                           Aggregate PV Savings @ 0%
                                     2011
                                      -4
                                      63
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
                                     2012
                                      -3
                                      84
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
                                     2013
                                      -2
                                      105
                                                                             $0
                                                                             $0
                                                                             $0
                                                                             $0
                                     2014