FINAL REPORT Economic Assessment of the Association of Battery Recyclers Proposed Rule Prepared for:

U. S. Environmental Protection Agency, Office of Solid Waste and Emergency Response Economics, Methods and Risk Analysis Division 401 M Street S. W. Washington, D. C. 20460 Prepared by:

DPRA Incorporated 332 Minnesota Street, Suite E 1500 St. Paul, Minnesota 55101 June 27, 2003 TABLE OF CONTENTS 1.0 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 2.0 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 2.1 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2.2 Scope of Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 2.3 Organization of Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 3.0 Methodology and Data Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 3.1 Analytical Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 3.1.1 Baseline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 3.1.2 Alternative Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 3.1.3 Cost and Benefit Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 3.1.4 Distributional Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 3.2 Data Collection Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3.2.1 Data Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3.2.2 Methodology For Identifying Inside Industry Group Recovery Management Quantities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3.2.3 Methodology For Identifying Outside Industry Group Recovery Management Quantities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 16 3.2.4 Methodology For Identifying Disposed Management Quantities That Potentially May Be Recovery Onsite . . . . . . . . . . . . . . . . . . . . . . . . . 3 18 3.3 Limitations of Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 24 4.0 Baseline Metal, Solvent, and Other Recovery Management . . . . . . . . . . . . . . . . . . . . 4 1 4.1 On Site Recovery Quantity in 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1 4.2 Off site Recovery Quantity Transferred within Same Industry Group ( 4 Digit NAICS Code) in 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 4.3 Export Recovery Quantity in 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6 4.4 Potential Additional Recovery Quantity from 1997 . . . . . . . . . . . . . . . . . . . . 4 10 4.5 Off Site Recovery Quantity Transferred Outside Industry Group in 1999 ( Selected NAICS Codes) with On Site Recovery Potential . . . . . . . . 4 16 4.6 Disposal Quantity in 1999 with On Site Recovery Potential ( Selected Waste Types and SIC Codes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 18 4.6.1 Off Site Disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 18 4.6.2 On Site Disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 19 4.7 Summary of Management Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 23 5.0 Cost Impact Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1 5.1 Types of Cost Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1 5.2 Baseline Cost Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1 5.3 Post Regulatory Cost Components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 TABLE OF CONTENTS ( continued)

5.4 Annualization Methodology of Before Tax Compliance Costs . . . . . . . . . . . . 5 8 5.5 Example Cost Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 9 5.6 Unit Cost and Cost Function Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 12 5.7 Summary of Breakeven Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 38 5.8 Summary of Potential Cost Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 40 6.0 Economic Impact Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1 6.1 Major Industries Impacted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1 6.1.1 Basic Chemical Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1 <IP_ADDRESS> Petrochemical Industry Profile . . . . . . . . . . . . . . . . . . . . . . . . . 6 2 <IP_ADDRESS>.1 Production and Shipment Values . . . . . . . . . . . . . . . . 6 2 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . . 6 2 <IP_ADDRESS>.3 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . . 6 3 <IP_ADDRESS> Other Organic Chemical Industry Profile . . . . . . . . . . . . . . . . . 6 3 <IP_ADDRESS>.1 Production and Shipment Values . . . . . . . . . . . . . . . . 6 3 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . . 6 4 <IP_ADDRESS>.3 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . . 6 4 <IP_ADDRESS> Other Inorganic Chemical Industry Profile . . . . . . . . . . . . . . . . 6 4 <IP_ADDRESS>.1 Production and Shipment Values . . . . . . . . . . . . . . . . 6 5 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . . 6 5 <IP_ADDRESS>.3 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . . 6 5 <IP_ADDRESS> Inorganic Dye and Pigment Industry Profile . . . . . . . . . . . . . . . 6 6 <IP_ADDRESS>.1 Production and Shipment Values . . . . . . . . . . . . . . . . 6 6 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . . 6 6 <IP_ADDRESS>.3 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . . 6 7 <IP_ADDRESS> Cyclic Crudes and Intermediates Industry Profile . . . . . . . . . . . 6 7 <IP_ADDRESS>.1 Shipment Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . . 6 8 <IP_ADDRESS>.3 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . . 6 8 6.1.2 Resin, Synthetic Rubber, and Artificial and Synthetic Fibers and Filaments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 9 <IP_ADDRESS> Plastic Material and Resin Manufacturing Industry Profile . . . . 6 9 <IP_ADDRESS>.1 Production and Shipment Values . . . . . . . . . . . . . . . . 6 9 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . 6 10 <IP_ADDRESS>.3 Typical Products . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 10 <IP_ADDRESS>.4 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . 6 11 6.1.3 Pharmaceutical and Medicine Manufacturing . . . . . . . . . . . . . . . . . . . 6 11 <IP_ADDRESS> Pharmaceutical Preparation Industry Profile . . . . . . . . . . . . . 6 11 <IP_ADDRESS>.1 Shipment Values . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 11 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . 6 12 TABLE OF CONTENTS ( continued)

<IP_ADDRESS>.3 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . 6 13 6.1.4 Nonferrous Metal ( except Aluminum) Production and Processing Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 13 <IP_ADDRESS> Primary Smelting and Refining of Copper Industry Profile . . . 6 13 <IP_ADDRESS>.1 Production and Shipment Values . . . . . . . . . . . . . . . 6 13 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . 6 14 <IP_ADDRESS>.3 Typical Products . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 14 <IP_ADDRESS>.4 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . 6 14 <IP_ADDRESS> Other Nonferrous Metal Primary Smelting and Refining Industry Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 15 <IP_ADDRESS>.1 Production and Shipment Values . . . . . . . . . . . . . . . 6 15 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . 6 15 <IP_ADDRESS>.3 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . 6 16 <IP_ADDRESS> The Secondary Smelting, Refining and Alloying of Copper Industry Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 16 <IP_ADDRESS>.1 Production and Shipment Values . . . . . . . . . . . . . . . 6 16 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . 6 17 <IP_ADDRESS>.3 Typical Products . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 17 <IP_ADDRESS>.4 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . 6 18 <IP_ADDRESS> Other Nonferrous Metal Secondary Smelting, Refining, Alloying Manufacturing Industry Profile . . . . . . . . . . . . . . . . . . . . . . . 6 18 <IP_ADDRESS>.1 Production and Shipment Values . . . . . . . . . . . . . . . 6 18 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . 6 19 <IP_ADDRESS>.3 Typical Products . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 19 <IP_ADDRESS>.4 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . 6 20 6.1.5 Coating, Engraving, Heat Treating, and Allied Activities . . . . . . . . . . 6 20 <IP_ADDRESS> Plating and Polishing Industry Profile . . . . . . . . . . . . . . . . . . 6 20 <IP_ADDRESS>.1 Production and Shipment Values . . . . . . . . . . . . . . . 6 20 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . 6 21 <IP_ADDRESS>.3 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . 6 21 6.1.6 Semiconductor and Other Electronic Component Manufacturing . . . . 6 21 <IP_ADDRESS> Plating and Polishing Industry Profile . . . . . . . . . . . . . . . . . . 6 21 <IP_ADDRESS>.1 Production and Shipment Values . . . . . . . . . . . . . . . 6 22 <IP_ADDRESS>.2 Industry Size and Market Share . . . . . . . . . . . . . . . 6 22 <IP_ADDRESS>.3 Average Facility Size . . . . . . . . . . . . . . . . . . . . . . . 6 23 6.2 Facility Level Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 23 6.3 Distributional Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 25 7.0 Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1 7.1 Qualitative Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1 TABLE OF CONTENTS ( continued)

7.2 Quantitative Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2 8.0 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 Appendix A Co Proposal Option for the Regulatory Modification to the Definition of Solid Waste for the Association of Battery Recyclers Notice of Proposed Rulemaking Appendix B Review of Recycled Waste Quantities by Manufacturing Industries Appendix C Limitation on Use of Reclaimed Product Appendix D Memorandum: Recoverable Waste Type Analysis for the Economic Assessment of the Association of Battery Recyclers Proposed Rulemaking Appendix E Memorandum: Analysis of Market Changes between 1997 and 1999 Appendix F State Hazardous Waste Generation Taxes and Fees Appendices G through V Example Cost Calculations Appendix W Methodology for Estimating Residual Generation and Management Appendix X Analysis of Metals Containing and Organic Liquid Disposal Quantities 1 1 1.0 EXECUTIVE SUMMARY Under the current Resource Conservation and Recovery Act ( RCRA) regulations, secondary materials ( i. e., materials that are neither classified as virgin materials nor primary materials) may be solid wastes and also hazardous wastes when recycled depending on the type of material ( e. g., sludge, spent material, or byproduct) and the type of recycling ( e. g., burning for energy recovery, use constituting disposal, and reclamation). Currently, the Environmental Protection Agency ( EPA) is revising these regulations to respond to concerns articulated in the U. S. D. C. Circuit Court of Appeals decisions concerning the Agency's legal authority to regulate certain secondary materials being recycled under RCRA. The most recent in a series of D. C. Circuit decisions addressing RCRA jurisdiction over secondary materials being recycled is Association of Battery Recyclers, Inc., et al., Petitioners vs. U. S. Environmental Protection Agency No. 98 1368, April 21, 2000 ( ABR). The Court held in ABR that EPA could not regulate secondary materials from the mineral processing industry under RCRA that are stored on land for any period of time. The Court reasoned that EPA had not demonstrated that such materials are " discarded" within the statutory meaning of the term. The Court vacated the regulatory language in 40 CFR 261.4( a)( 17) that established RCRA jurisdiction over these materials. Finally, the Court expressed displeasure that EPA had again classified materials as " solid wastes" for its Subtitle C regulatory program that were not discarded, but rather " destined for reuse or recycling in a continuous process by the generating industry itself."

EPA is revising its definition of solid waste regulations in response to the series of D. C. Circuit opinions. These revised regulations will change how certain secondary materials ( i. e., spent materials, listed sludges and listed byproducts) being recycled are classified under the Subtitle C regulatory program. In response to these regulatory changes, some RCRA regulated entities who currently recycle secondary materials will realize cost savings from the change. Other RCRA regulated entities who currently land dispose, incinerate, or recover energy from hazardous waste will be induced to recycle their waste to obtain lower material management costs resulting from the change in regulatory jurisdiction.

Executive Order No. 12866 requires that regulatory agencies determine whether a new regulation constitutes a significant regulatory action. The Agency is proposing to exclude from RCRA jurisdiction, all hazardous secondary materials recycled in a continuous process within the generating industry. This extends to both recycling done on site as well as recycling completed off site from the generating facility when the off site facility is in the same generating industry as the facility that generated the material. The estimated costs and potential economic impacts of this proposal to exclude recovered materials if reclaimed on site or off site within the same Industry Group ( i. e., 4 digit North American Industry Classification System ( NAICS)) indicate this action is not a significant regulatory action as defined by the Executive Order. The action will result in a potential savings to generators of $ 178 million annually and will have an decreased annual effect on the economy of $ 100 million or more. The rule does not have an adverse affect 1 2 on the economy, a sector of the economy, productivity, competition, jobs, the environment, health or public safety.

Currently under RCRA, spent materials, listed sludges, and listed by products are solid wastes if reclaimed ( 40 CFR 261.2( a)( 3)), while, sludges and by products exhibiting a characteristic of hazardous waste are not solid wastes. The proposed regulation would exclude the former group of materials from the definition of solid waste if they are reclaimed on site or off site within the same industry group ( 4 digit NAICS code).

A total of 1,749 plants recovering approximately 1,570,000 tons either on site or within the same Industry Group may benefit from the exclusion from RCRA jurisdiction. Metals recovery, solvents recovery, and other recovery account for 678,000 tons, 280,000, and 613,000 tons, respectively. The plant counts and quantities will be higher if small quantity generators are included.

Excluding metal, solvent, and other wastes that are reclaimed on site or within the same Industry Group from the Definition of Solid Waste will make it more economical for generators and within industry off site reclaimers to recover the values from these wastes. Savings to generators are expected to result from several factors. First, generators will benefit from reduced manifesting, pre transport, and record keeping and reporting requirements under 40 CFR Part 262 of RCRA. Second, given that the excluded quantities are no longer considered hazardous if recovered, the generator status of the facility may switch from being a large quantity generator to a small or conditionally exempt small quantity generator. Small and conditionally exempt small quantity generators have fewer administrative requirements than large quantity generators under Part 262 of RCRA. Finally, if wastes are no longer considered a listed hazardous waste if reclaimed either on site or within the same Industry Group, residuals from the recovery processes may no longer be hazardous under the " Derived from Rule." The management of these residuals may shift from Subtitle C to Subtitle D disposal if they do not test characteristically hazardous. In addition, with the wastes no longer being defined as hazardous waste if recovered, generators ( firms) may no longer need to pay hazardous waste generation taxes and fees. Reductions in hazardous waste taxes and fees are not social cost savings, but, a reduction in transfer costs to States. Reductions in taxes and fees may influence the individual firm's waste management decisions ( e. g., reclamation) and are included when appropriate in the analysis. Table 1 1 1 3 presents the cost savings and costs for generators recovering wastes on and off site. Total cost savings are estimated to be $ 178 million per year. For facilities recovering waste on site and within the same industry group, total cost savings are estimated to be approximately $ 34 million per year ($ 27 million for on site recovery facilities and $ 7 million for facilities recovering within the same industry group). Approximately $ 63 million per year in additional cost savings are included for generators who currently recover wastes off site outside their industry group now finding it more economical to construct on site recovery facilities post rule. A break even cost estimate was conducted to determine if it was economically feasible for these generators to recover their waste on site. In addition, approximately $ 80 million per year in additional cost savings are included for generators who currently dispose five selected waste types now finding it more economical to construct on site recovery facilities post rule. A break even cost estimate was conducted to determine if it was economically feasible for these generators to recover their waste on site For reclaimers, savings are expected to result from no longer needing to renew their RCRA container storage and tank storage permits. The number of within industry off site reclaimers impacted by the proposed regulations has not been determined. The estimated savings from not renewing RCRA permits ranges from $ 14,953 to $ 29,906 every 10 years for metal reclaiming facilities. For facilities reclaiming solvents or acids, the estimated savings ranges from $ 14,786 to $ 29,573 every 10 years. This barrier will no longer exist for those generators making the decision to reclaim wastes on site.

Annualized cost savings for affected facilities vary greatly depending upon the amount of waste recycled and whether the amount recycled represents 100 percent of their total waste. In cases where the waste recycled is equivalent to all waste generated, the total savings is greater because of the elimination of nearly all administrative costs associated with RCRA regulations. Because of these variations impacts were examined for average facilities in terms of sales volumes and cost savings. Cost reductions as a percent of total sales were no more than 0.1 percent for the major industries examined. Impacts in terms of profitability increases were estimated to range from approximately 0.2 to over 2.9 percent.

Additionally, increased reclamation of metal, solvent and other waste will result in a net benefit to both society and the environment. Some of the expected potential benefits include lessening the future burden on landfill capacity; conserving scarce metal resources which provides environmental benefits in terms of energy savings, reduced volumes of waste, reduced disturbances to land, and reduced pollution; and lessening the dependance of the United States on foreign metal supplies and increasing recovery of strategic metals such as chromium.

The total estimated recovered metal value is $ 590 million. Plants affected by this rulemaking reported recovering 597,000 tons of metal bearing waste. Assuming that these wastes contain 20 percent recoverable metals valued at an average of $ 4,770 per ton ( the average price for copper, chromium, and nickel), the estimated metal value for total recovery is nearly $ 569 million per year. This proposed rule encourages these plants to continue recovering these metals and 1 4 maintaining these benefits. Additionally facilities will be encouraged to recycle additional wastes as a result of the rule. As a proxy for this effect it was assumed that facilities that reported recovering wastes in 1997 but not in 1999 would resume recycling as a result of the rule. Based on this scenario over 3,000 tons of metal bearing waste would be recovered, with an expected value of approximately $ 2.9 million per year. In addition, facilities that dispose three waste types ( 48,235 tons of emission control dust  K061, 19,108 tons of metal containing liquids from the printed circuit board industry, and 10,869 tons of spent catalyst from the petroleum refining industry  K171/ K172) were estimated to find it more economical to switch to on site recovery post rule and be of sufficient quality for recovery. In the analysis, it is assumed that recovered emission control dust wastes contain 15 percent recoverable zinc at $ 643 per ton of zinc, metalcontaining liquids contain 0.02 percent copper at $ 1,397 per ton of copper, and spent catalysts contain five percent molybdenum at $ 23,940 per ton of molybdenum. The estimated metal value from these disposed wastes is $ 17.7 million. This proposed rule may encourage these new benefits.

The total estimated recovered solvent value is $ 290 million. The rule will affect the current recovery of approximately 268,000 tons of solvent waste valued at over $ 277 million. Further the rule will encourage additional recycling. As described above, a proxy for this effect is the assumption that facilities that reported recovering wastes in 1997 but not in 1999 would resume recycling as a result of the rule. The incremental recovery of solvent given this assumption is nearly 12,000 tons of solvent with a total value of almost $ 13 million per year.

The total estimated recovered acid and fluoride value is $ 122 million. The rule will affect the current recovery of approximately 270,000 tons of acid wastes valued at $ 60 million. Further the rule will encourage additional recycling. As described above, a proxy for this effect is the assumption that facilities that reported recovering wastes in 1997 but not in 1999 would resume recycling as a result of the rule. The incremental recovery of acid given this assumption is nearly 17,000 tons of acids, with a total value of almost $ 3.7 million per year. In addition, facilities that disposed two waste types ( 71,698 tons of spent aluminum potliner, K088, and 254,109 tons of spent pickle liquor from the steel works industry) were estimated to find it more economical to switch to on site recovery post rule and be of sufficient quality for recovery. In the analysis, it is assumed that these recovered spent aluminum potliner wastes contain two percent recoverable fluoride at $ 1,240 per ton and the spent pickle liquor contains 74 percent recoverable acids at $ 298 per ton. The estimated metal value from these disposed wastes is $ 57.8 million. This proposed rule may encourage these new benefits. 1 5 Table 1 1. Estimated Incremental Costs for Generators Reclaiming Wastes On Site, Reclaiming Wastes Off Site Within Industry Group, Shifting from Off Site Reclamation Outside Industry Group to On Site Reclamation, and Shifting from Disposal to On Site Reclamation by Cost Item ( 2002$/ year)

Cost Item Estimated Incremental Costs On Site Reclamation Waste Reclamation and Residual Management ($ 1,222,000)

Waste Characterization Testing ($ 3,729,000)

Manifesting ($ 575,000)

Loading $ 153,000 Salvage Revenue ($ 16,898,000)

Hazardous Materials Training ($ 3,392,000)

Manifest Training ($ 521,000)

BRS/ General Administrative Duties ($ 615,000)

One Time Contingency Planning ($ 1,018,000)

One Time Notification of Exclusion $ 704,000 On site Reclamation Subtotal ($ 27,113,000) Table 1 1. Estimated Incremental Costs for Generators Reclaiming Wastes On Site, Reclaiming Wastes Off Site Within Industry Group, Shifting from Off Site Reclamation Outside Industry Group to On Site Reclamation, and Shifting from Disposal to On Site Reclamation by Cost Item ( 2002$/ year)

Cost Item Estimated Incremental Costs 1 6 Off Site Reclamation Within Industry Group Waste Reclamation and Residual Management ($ 931,000)

Waste Characterization Testing ($ 418,000)

Manifesting ($ 114,000)

Loading $ 328,000 Recovery Transportation ($ 1,274,000)

Salvage Revenue ($ 4,439,000)

Hazardous Materials Training ($ 426,000)

Manifest Training ($ 76,000)

BRS/ General Administrative Duties ($ 79,000)

One Time Contingency Planning ($ 124,000)

One Time Notification of Exclusion $ 188,000 Off site Reclamation Within Industry Group Subtotal ($ 7,365,000) Table 1 1. Estimated Incremental Costs for Generators Reclaiming Wastes On Site, Reclaiming Wastes Off Site Within Industry Group, Shifting from Off Site Reclamation Outside Industry Group to On Site Reclamation, and Shifting from Disposal to On Site Reclamation by Cost Item ( 2002$/ year)

Cost Item Estimated Incremental Costs 1 7 Shifting from Off Site Reclamation Outside Industry Group to On Site Reclamation Waste Reclamation and Residual Management ($ 43,422,000)

Waste Characterization Testing ($ 15,265,000)

Manifesting ($ 2,352,000)

Loading $ 1,077,000 Recovery Transportation ($ 2,003,000)

Salvage Revenue $ 0 Hazardous Materials Training ($ 728,000)

Manifest Training ($ 132,000)

BRS/ General Administrative Duties ($ 139,000)

One Time Contingency Planning ($ 209,000)

One Time Notification of Exclusion $ 90,000 Shifting from Off Site Reclamation Outside Industry Group to On Site Reclamation Subtotal ($ 63,083,000) Table 1 1. Estimated Incremental Costs for Generators Reclaiming Wastes On Site, Reclaiming Wastes Off Site Within Industry Group, Shifting from Off Site Reclamation Outside Industry Group to On Site Reclamation, and Shifting from Disposal to On Site Reclamation by Cost Item ( 2002$/ year)

Cost Item Estimated Incremental Costs 1 8 Shifting from Disposal to On Site Reclamation Waste Disposal, Reclamation and Residual Management $ 18,080,500 Waste Characterization Testing ($ 22,893,000)

Manifesting ($ 3,527,000)

Loading $ 1,762,000 Recovery Transportation $ 0 Salvage Revenue ($ 73,026,000)

Hazardous Materials Training ($ 385,000)

Manifest Training ($ 41,000)

BRS/ General Administrative Duties ($ 66,000)

One Time Contingency Planning ($ 142,000)

One Time Notification of Exclusion $ 135,000 Shifting from Disposal to On Site Reclamation Subtotal ($ 80,102,500)

Total Incremental Costs ($ 177,663,500) Table 1 1. Estimated Incremental Costs for Generators Reclaiming Wastes On Site, Reclaiming Wastes Off Site Within Industry Group, Shifting from Off Site Reclamation Outside Industry Group to On Site Reclamation, and Shifting from Disposal to On Site Reclamation by Cost Item ( 2002$/ year)

Cost Item Estimated Incremental Costs 1 9 Estimated Reduction in State Government Program Rents from Reduced Hazardous Waste Tax Collection for Each Category of Generators ( 2002$/ year)

On site Reclamation ($ 2,118,000)

Off site Reclamation Within Industry Group ($ 32,000)

Off Site Reclamation Outside Industry Group Switching to On Site Reclamation ($ 172,000)

Off Site Disposal Switching to On Site Reclamation ($ 4,651,000)

Total State Tax Costs ($ 6,973,000)

Note: Numbers in parentheses, "( )", represent negative costs that reflect revenues or cost savings. 2 1 2.0 INTRODUCTION Under the current Resource Conservation and Recovery Act ( RCRA) regulations, secondary materials ( i. e., materials that are neither classified as virgin materials nor primary materials) may be solid wastes and also hazardous wastes when recycled depending on the type of material ( e. g., sludge, spent material, or byproduct) and the type of recycling ( e. g., burning for energy recovery, use constituting disposal, and reclamation). Currently, the Environmental Protection Agency ( EPA) is revising these regulations to respond to concerns articulated in a series of decisions by the U. S. D. C. Circuit Court of Appeals concerning the Agency's legal authority to regulate, as hazardous wastes, certain secondary materials being recycled under RCRA. The most recent D. C. Circuit decision addressing RCRA jurisdiction over secondary materials being recycled is Association of Battery Recyclers, Inc., et al., Petitioners vs. U. S. Environmental Protection Agency No. 98 1368, April 21, 2000 ( ABR). The Court held in ABR that EPA could not regulate secondary materials from the mineral processing industry under RCRA that are stored on land for any period of time. The Court reasoned that EPA had not demonstrated that such materials were" discarded" within the statutory meaning of the term. The Court vacated the regulatory language in 40 CFR 261.4( a)( 17) that established RCRA jurisdiction over these materials. Finally, the Court expressed displeasure that EPA had again classified materials as " solid wastes" for its Subtitle C regulatory program that were not discarded, but rather " destined for reuse or recycling in a continuous process by the generating industry itself."

EPA is revising its definition of solid waste regulations in response to the series of D. C. Circuit opinions. These revised regulations will change how certain secondary materials ( i. e., spent materials, listed sludges and listed byproducts) being recycled are classified under the Subtitle C regulatory program. In response to these regulatory changes, some RCRA regulated entities who currently recycle secondary materials will realize cost savings from the regulatory change. Other RCRA regulated entities who currently land dispose, incinerate, or recover energy from hazardous waste will be induced to recycle their waste to obtain lower material management costs resulting from the change in RCRA regulation.

The Agency is proposing to exclude from RCRA jurisdiction, all hazardous secondary materials recycled in a continuous process within the generating industry. This extends to both recycling done onsite as well as recycling completed off site from the generating facility when the off site facility is in the same generating industry as the facility that generated the material. This economic assessment presents a cost and economic impact analysis corresponding to the rule to exclude metal, solvent, and other wastes ( e. g., acid) from the Definition of Solid Waste if reclaimed on site or within the same Industry Group ( 4 digit NAICS code). The expected effect of this regulatory modification include conformity with the D. C. Circuit Court opinion and increased reclamation of values from metal, solvent and other wastes on site or within the same Industry Group. 2 2 Executive Order No. 12866 ( 58 FR 51735, October 4, 1993) requires that regulatory agencies determine whether a new regulation constitutes a significant regulatory action. A significant regulatory action is defined as an action likely to result in a rule that may:

Have an annual effect on the economy of $ 100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or state, local, or tribal governments or communities;

Create a serious inconsistency or otherwise interfere with an action taken or planned by another agency;

Materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or

Raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in Executive Order 12866.

This analysis is designed to address the first and third factors listed above. To accomplish this, EPA estimated the costs and potential economic impacts of this regulatory modification on generators of metal, solvent and other wastes recovered either on site and off site within the same industry group; generators who will find it more economical to recover these wastes on site instead of at facilities outside their industry group; generators who will determining it more economical to recover these wastes on site instead of primarily off site disposal; and State hazardous waste program budgets from reduced rents collected through taxes and fees to determine if it is a significant regulatory action as defined by the Executive Order.

2.1 Purpose This economic assessment evaluates the costs and benefits of relieving particular regulatory burdens on generators and within industry off site reclaimers of these wastes. EPA is proposing to allow metal bearing, solvent and other types of waste that are reclaimed either on site or off site within the same Industry Group ( 4 digit NAICS code) be excluded from the Definition of Solid Waste under RCRA.

This analysis estimates how generators reclaiming their waste and within industry off site reclaimers may economically benefit from the regulatory modification. Estimates of the cost effects of the regulation were determined on both a model plant and industry wide basis. 2 3 2.2 Scope of Study Data from the 1999 and 1997 Biennial Reporting System ( BRS) databases were used to complete this analysis. A total of 1,749 plants recovering approximately 1,570,000 tons either on site or within the same Industry Group may benefit from the exclusion from RCRA jurisdiction. These totals include plants that recovered wastes off site outside their Industry Group where it was determined it was economically feasible to construct an on site recovery facility. The total also includes five waste types currently disposed where it was determined it is economically feasible to constuct an on site recovery facility and the waste itself was of sufficient quality for recovery.

Industries most heavily impacted by this proposed rule include basic chemical manufacturing ( NAICS 3251), nonferrous metal ( except aluminum) production and processing ( NAICS 3314), steel product manufacturing from purchased steel ( NAICS 3312), pharmaceutical and medicine manufacturing ( NAICS 3254), paint, coating, and adhesive manufacturing ( NAICS 3255), sawmills and wood preservation ( NAICS 3211).

It should be noted that small quantity generators ( SQGs, i. e., generators who generated less than 1,000 kilograms of hazardous waste in a calendar month) are not required to complete a Biennial Report. Therefore, the BRS data used in this analysis under represents the total number of plants, affected by the rule.

The main regulatory option will allow generators of metal, solvent, and other types of waste being reclaimed either on site or off site within the same industry group to be excluded from the Definition of a Solid Waste and RCRA jurisdiction. The Main Option is the subject of the main report. Other regulatory options considered are presented in Appendix A, B and C.

Appendix A presents a Co Proposal Option. Under the Appendix B presents the Manufacturing Sector Option. Under this option only reclaimed wastes in the manufacturing sector ( NAICS codes 31 through 33) will be granted the exclusion from the Definition of Solid Waste. 2 4 Appendix C presents the Restricted Product Use Option. Under this option the recovery material has to be the primary good ( i. e., main product) manufactured by that industry to be granted the exclusion from the Definition of Solid Waste.

2.3 Organization of Report The remainder of this report is divided into seven sections. Section 3 presents the analytical methodology, data collection methodology, and limitations of the analysis. Section 4 presents the total hazardous waste generation and reclamation practices impacted by the proposed rule. Section 5 presents the cost impact analysis of the proposed regulation. Section 6 documents the economic impacts. Section 7 summarizes the potential qualitative benefits of the regulation. Section 8 presents the references used in the analysis. 1 Office of Management and Budget, " Economic Analysis of Federal Regulations under Executive Order 12866," January 11, 1996.

3 1 3.0 METHODOLOGY AND LIMITATIONS 3.1 Analytical Methodology This economic assessment follows the guidelines spelled out in the Office of Management and Budget, " Economic Analysis of Federal Regulations Under Executive Order 12866," January 11, 1996. The economic assessment identifies and assesses the costs of the baseline and alternative approach. An estimate of the incremental cost or benefit ( cost savings) of the proposed rule is determined based on production cost estimates at a seven percent real discount rate. Finally, an evaluation of the distribution of costs and benefits across populations and industry groups is presented.

3.1.1 Baseline The baseline is the assessment of the way the world looks absent the proposed regulation. 1 Baseline in this economic assessment is a measure of current reclamation practices and associated administrative burdens under RCRA by generators of hazardous waste. Baseline reclamation practices were determined in this assessment using data reported by large quantity generators of hazardous waste in EPA's 1999 and 1997 Biennial Report databases.

3.1.2 Alternative Approach The alternative approach ( i. e., Main Option) in this assessment, as discussed previously, responds to a series of judicial decisions. This economic assessment evaluates the costs and benefits of relieving particular regulatory burdens on generators and within industry off site reclaimers of these wastes if they are no longer regulated under RCRA Subtitle C if reclaimed. EPA is proposing to allow metal bearing, solvent and other types of waste that are reclaimed either on site or off site within the same Industry Group ( 4 digit NAICS code) to be excluded from the Definition of Solid Waste under RCRA Subtitle C. Other alternative approaches considered are presented in Appendix A, B and C.

3.1.3 Cost and Benefit Estimates Costs are measured as the opportunity cost of the resources used or the benefits forgone or gained as a result of the regulatory action. Opportunity costs include, but are not limited to, private sector compliance costs and government administrative costs. Opportunity costs also include losses in consumers' or producers' surpluses, discomfort or inconvenience, and loss of 2 Ibid.

3 Ibid.

4 Ibid.

5 Ibid.

3 2 time. 2 This economic assessment does not calculate losses in consumers' or producers' surpluses, discomfort or inconvenience. It does estimate reductions in private sector compliance costs and gains in time from fewer administrative compliance costs.

All costs calculated are incremental. They represent the changes in costs that would occur if the regulatory option is implemented compared to the baseline. Future costs that would be incurred even if the regulation is not promulgated, as well as costs that already have been incurred ( sunk costs), are not part of the incremental costs. 3 Goods and services are valued at their market prices in this economic assessment. Increases or decreases in health and safety risks have not been evaluated to estimate the cost or benefits of these goods that are indirectly traded in markets.

Constant dollar costs and benefits are discounted to present value to determine overall net benefits of the proposed rule. Benefits and costs are estimated in real dollars ( i. e., corrected for inflation). This economic assessment follows the basic guidance on discount rates for regulatory analyses provided in OMB Circular A 94. The seven percent discount rate specified in the guidance approximates the opportunity cost of capital, which is the before tax rate of return to incremental private investment. This discount rate reflects the rates of return on low yielding forms of capital, such as housing, as well as the higher rates of return yielded by corporate capital. 4 3.1.4 Distributional Effects The distributional effects describes the net effects of the regulatory alternative across the population and economy. 5 In this economic assessment certain industrial groups may receive more benefits than other groups because they reclaim more waste. In addition, larger businesses may achieve more benefits than smaller businesses from economies of scale allowing more on site reclamation and exclusions from the Definition of Solid Waste. Finally, certain states charge hazardous waste generation taxes and fees ( i. e., transfer payments). With the proposed regulation to exclude wastes that are reclaimed from the Definition of Solid Waste, these wastes are no longer defined as hazardous waste and thus may not incur a hazardous waste generation tax or fee. As a result, there may be state geographic distributional effects on generators through reduced transfer payments. At the same time, certain state government hazardous waste programs may have reductions in program revenues from collected taxes and fees. Transfer payments are not treated as social costs when estimating the total costs and benefits of the proposed rule because they reflect redistribution of income/ wealth and not the social value of a good or service ( i. e., resource). State taxes and fees are included in the economic impact analysis. 3 3 3.2 Data Collection Methodology 3.2.1 Data Source The U. S. EPA 1999 and 1997 Hazardous Waste Report census of large quantity generators ( LQGs) of hazardous waste and RCRA permitted treatment, storage, and disposal facilities ( TSDs) were used to compile a database of all hazardous wastes generated that have the potential to become excluded from RCRA Subtitle C jurisdiction under the proposed rulemaking if the waste is reclaimed. The Hazardous Waste Report is also referred to as the Biennial Report because LQGs of hazardous waste and all TSDs are required to report their hazardous waste generation and management practices every two years. The 1999 and 1997 Biennial Reports were used instead of the 2001 Biennial Report because the 2001 database has yet to be developed.

3.2.2 Methodology for Identifying Within Industry Group ( Same 4 Digit NAICS Code) Recovery Management Quantities The following steps were taken to develop a data sets of same NAICS code hazardous waste recovery in the United States and recovery in other countries:

1. Initial Data Downloaded from Databases: 1999 data for all hazardous wastes generated by LQGs and managed on site or off site in metal recovery ( M011 M019), solvent recovery ( M021 M029), and other recovery ( M031 M039) system types were included in the initial database. Metals recovery includes high temperature metals recovery, retorting, secondary smelting, and other metals recovery ( e. g., ion exchange, reverse osmosis, and acid leaching). Solvents recovery includes fractionation/ distillation, thin film evaporation, solvent extraction, and other solvent recovery. Other recovery includes acid regeneration and other recovery ( e. g., waste oil recovery and nonsolvent organics recovery).

Similar data were downloaded for the 1997 database; however, only those records that reclaimed metal, solvent, or other values in 1997, but, not in 1999 were kept. These facilities may switch back to reclamation given the more favorable economic conditions produced by the proposed regulation given they have reclaimed these wastes in the past.

2. Exclusion of Origin Code 4 Records from Analysis: The data were then sorted and all waste streams originating from a transfer location, origin code 4, were eliminated and not included in the database to be used for the rule making to avoid double counting waste quantities. The definition of origin code 4 is " the hazardous waste received from off site and not recycled or treated on site" ( 1999 Hazardous Waste Report Forms and Instructions, pg. 13). Tables 3 1 and 3 2 present the total number of records and total onsite and off site management quantity changes when origin code 4 waste streams were removed from the database. The number of records included in the database went from 18,917 to 14,509 with the exclusion of the origin code 4 records for the 1999 data and 3 4 from 5,094 to 4,728 for the 1997 data. The total generation quantity does not change because these records reflect wastes that were received from off site and NOT generated by the facility. The instructions for the 1999 Biennial Report form related to origin code 4 records are not to report the waste being generated. They are only required to report how the waste is managed. Therefore, the on site and off site recovery management quantities changed when origin code 4 records were removed.

With the exclusion of origin code 4 records, the on site recovery management quantity went from approximately 5.5 million tons to 1.9 million tons in the 1999 data and reduced by approximately 1,600 tons in the 1997 data.

Six ( 6) records accounted for 3.6 million tons of the on site management quantity reduction in 1999. These records were examined to determine if any reporting or data entry error may have caused these wastes to be erroneously reported as origin code 4 wastes. Of the six origin code 4 records reviewed, 99.9% of the reduction is attributed to one record. The record ( EPA ID VA1210020730) indicates 392,745.29 tons of " DNT contaminated wastewater" was generated. Managed totals were reported as 3,589,180 tons by system type M011 ( metals recovery) and 392,745.3 tons by system type M081 ( biological treatment). In comparison to 1997 BRS Data, the generated total appears correct. However, the M011 system type appears to have been entered in error. Also, the origin code should have been reported as 1, as the waste is managed on site. Of the remaining five records, four records appeared to have erroneous on site managed totals duplicating reported shipped totals. The erroneous on site managed totals were removed. The remaining waste stream appears to have been mislabeled as origin code 4 instead of 1, based on comparison to 1997 BRS data and reported managed totals. Adjusting origin code 4 records in the data provides a better data set from which do conduct the economic analysis for this rulemaking.

TABLE 3 1 Summary of 1999 Total Hazardous Waste Metal Recovery, Solvent Recovery and Other Recovery Generation and Management Quantities ( Tons)

Database Including Origin Code 4 Database Excluding Origin Code 4 Total number of records ( waste streams) 18,917 14,511 Total generation quantity of all records 4,596,678 4,596,678 On site recovery management quantity of all records 5,520,660 1,928,745 TABLE 3 1 Summary of 1999 Total Hazardous Waste Metal Recovery, Solvent Recovery and Other Recovery Generation and Management Quantities ( Tons)

Database Including Origin Code 4 Database Excluding Origin Code 4 3 5 Off site recovery management quantity of all records* System 1 System 2 System 3 System 1 System 2 System 3 1,069,065 126,568 34,383 975,763 119,393 34,335 Data Source: 1999 Biennial Report Origin Code 4: The hazardous waste received from off site and not recycled or treated on site. Limitation: Only includes quantities generated by large quantity generators. * Generators can report multiple off site system types ( e. g., System 1, System 2, System 3) used for each waste if needed. A close estimate of the total off site recovery management quantity is the sum of the three systems.

TABLE 3 2 Summary of 1997 Total Hazardous Waste Metal Recovery, Solvent Recovery and Other Recovery Generation and Management Quantities ( Tons)

Database Including Origin Code 4 Database Excluding Origin Code 4 Total number of records ( waste streams) 5,094 4,728 Total generation quantity of all records 555,514 555,514 On site recovery management quantity of all records 130,705 129,101 Off site recovery management quantity of all records* System 1 System 2 System 3 System 1 System 2 System 3 146,779 10,591 748 141,360 10,578 748 Data Source: 1997 Biennial Report Origin Code 4: The hazardous waste received from off site and not recycled or treated on site. Limitation: Only includes quantities generated by large quantity generators. * Generators can report multiple off site system types ( e. g., System 1, System 2, System 3) used for each waste if needed. A close estimate of the total off site recovery management quantity is the sum of the three systems.

3. Identification of Statistical Outliers for QA/ QC: Following the removal of all appropriate origin code 4 records, an analysis of statistical outliers was conducted on the reported 3 6 total waste generation, on site recovery management quantities, and off site recovery management quantities. Up to six different off site management locations may have been reported for one waste. The statistical analysis only was conducted on the first three reported off site management locations given they comprised nearly all of the reported off site recovery management quantity.

For each generation and management quantity data item ( i. e., total generation, on site management, off site management system 1, off site management system 2, and off site management system 3) the sum, mean, and standard deviation were computed. In a " normal" distribution of the data, two standard deviations above and below the mean quantity capture and account for 95% of the total quantity. The generation and management distributions are not normal, but skewed to the right. However, those records with reported generation or management quantities greater than two standard deviations above the mean were still identified as statistical ` outliers' and subject to QA/ QC in this analysis. A 1999 data record was identified as an outlier for the total generation quantity if it exceeded 28,981 tons. On site management outliers have reported quantities greater than 47,741 tons. Similarly, off site management system 1, system 2, and system 3 outliers have reported quantities greater than 1,656 tons, 2,067 tons, and 2,397 tons, respectively.

Table 3 3 presents the number of records identified as outliers and the percentage of the total quantity these records represented. In 1999, the 17 total generation outlier records account for 62% of the total generation quantity. The five on site management outlier records account for 64% of the total on site management quantity. For the off site management records there are overlap between management system 1, 2, and 3 quantities exceeding the second standard deviation quantity which explains why 97 records are identified as offsite outliers, while 106 records are indicated in the Table 3 3. Of the total quantity managed off site, 65% of the total off site quantity is represented by the outlier records.

For the 1997 data a more abbreviated QA/ QC was conducted. All records with total estimated incremental costs between pre and post rule exceeding $ 500,000 were reviewed. A total of 15 records were reviewed. 3 7 TABLE 3 3 Identification of 1999 Hazardous Waste Metal Recovery, Solvent Recovery and Other Recovery Generation and Management Outlier Records and Quantities ( Tons)

Location/ Type of Generation Total Generation On site Management Off site Management System 1 System 2 System 3 # Outlier Records Identified 17 5 86 15 5 Sum of Outlier Records Quantity 2,841,423 1,234,293 616,909 85,796 26,769 Sum of All Records Quantity ( no origin code 4) 4,596,678 1,928,745 975,762 119,393 34,335 Outlier Quantity as Percentage of Total Quantity 62% 64% 63% 72% 78%

65% ( total for all Off site Management)

Data Source: 1999 Biennial Report Outlier Identification: Included records that are over two standard deviations above the mean. Note: Analysis excludes records with origin code equal 4 (" the hazardous waste received from off site and not recycled or treated on site") Limitation: Only includes quantities generated by large quantity generators.

4. QA/ QC of Identified Statistical Outliers: the outlier records were evaluated for the issues identified below:

 Is there mass balance between the total generation quantity and the quantities managed on and off site?  Is the reported unit of measure consistent with other waste streams reported in 1999 and in the 1997 Biennial Report?  For off site management quantities, did the facility receiving the waste report a similar quantity?  Did the facility report generating or managing a similar quantity and type of waste in 1999 and in the 1997 Biennial Report?  Did the facility report a different origin codes in 1999 and in the 1997 Biennial Report?  Did the facility report a different ( non recovery) system type codes in 1999 and in the 1997 Biennial Report?  Is the waste stream the result of a new remediation activity or one time generation activity? 3 8 If the reported generation and management quantities were not grossly different ( i. e., within a factor of two), the reported quantities were not modified. Tables 3 4 and 3 5 present the records that were modified as a result of DPRA's analysis.

A summary of the QA/ QC issues and modifications are as follows:

 Shipping Disconnect  A valid receiver ( i. e., facility showing receipt of any wastes streams) did not report a similar waste stream as reported shipped by the facility. No similar waste stream was reported in 1997. The modification involved removal of the waste stream from the database.

 Mass Balance Issues  Reported generation differs from reported on site management/ shipping totals. Two situations arose from the mass imbalance.

1.) The generation total exceeded a single management/ shipping total by a factor greater than two. Form WR volumes and 1997 BRS data were reviewed for comparing management/ shipping totals. Appropriate generation/ on site management/ shipping totals were modified.

2.) On site management and shipping totals were being double counted. That is, the on site management and shipping totals were identical, and the total was double the reported generated total. Removal of one of the totals ( management or shipping) was determined based on review of 1999 BRS WR data, comparison to 1997 BRS data, determination if the facility has a TDR permit, and comparison to other waste streams generated at the facility.

 Leachate Contaminated Groundwater Reported as Generated  As explained in the special instructions section of the 1999 BRS instructions for ground water contaminated by leachate: " Groundwater contaminated by RCRA hazardous waste is not considered a solid waste and is, therefore, not classified as a hazardous waste." The quantity should not be reported in the generation total. However, management of the waste must be reported. As such, a managed or shipped total must be reported for contaminated ground water. Waste streams with reported generated totals of contaminated ground water were modified ( i. e., generated totals were deleted). In addition, one facility, CAD981653553, reported 774,546 tons of solvent waste ( contaminated groundwater) being recovered onsite This one facility ( quantity) skewed the on site recovery profile across NAICS codes accounting for 40 percent of the total on site quantity. Since it is unlikely to be impacted in a negative way by the proposed rule, it has been excluded from the data analysis. The associated SIC code was 9223, correctional institutions, and the current solvents recovery method is by fractionation/ distillation.

 Origin  Waste streams with reported management/ generation totals but with an origin code of 4 were reviewed and modified. Two issues were identified from these facilities. 3 9 1.) The reported origin code appeared accurate. This determination was based on a lack of a treatment, disposal, or recycling ( TDR) permit, no generation quantity reported, and other waste streams at the facility were reported with origin code 4. The waste streams were modified by removing the on site managed total and retaining the shipped total.

2.) The reported origin code appeared inaccurate. This determination was based on a reported quantity in the generation total when origin code 4 is an indicator that the waste was not generated on site and comparisons with 1997 BRS data and other reported facility waste streams. These waste streams were modified by changing the origin code to 1.

 Unit of Measure  For one facility the unit of measure ( UOM) was modified from short tons to pounds. This modification is based on the UOM reported in 1997 BRS and the totals reported by the facility receiving the waste for management.

 System Code  One facility system code was modified from M021 to M121. The modification was based on 1997 BRS data for the waste stream. The waste stream was effectively removed as the system code is outside the scope of the proposed rule.

For the QA/ QC of the 1997 BRS data, six facilities were contacted directly to verify their 1997 data, with four responses. Based on the information received, all six facilities were removed. Two facilities were removed as the reported waste stream is no longer generated. One facility currently sells the formerly reported waste stream. One facility indicated the process is a " closed loop" system, negating any reporting requirements. No information was available for the current process solvent use as the process was reported to have changed. One facility is assumed to be closed. The final facility was removed based on the other facility discussions, generally indicating large metal/ solvent/ acid recycling facilities that did not report similar wastes generated in 1999 have discontinued or switched the generation process.

TABLE 3 4 Modified 1999 BRS Facility Waste Streams EPA ID Number Comments GM Form Page Shipping Disconnect CAT080033681 Receiver not showing as received; No similar ` 97 waste stream. Removed waste stream due to lack of correlating data to its generation. 11 IND000717959 Receiver not showing waste received. No similar ` 97 waste stream. Removed waste stream due to lack of correlating data to its generation. 6 TXD055330997 Mass balanced. No comparable 1997 BRS data. Receiver did not report this waste as received. Cannot determine if UOM error. Removed waste stream due to lack of correlating data to its generation. 8 TABLE 3 4 Modified 1999 BRS Facility Waste Streams EPA ID Number Comments GM Form Page 3 10 Mass Balance MID047153077 Mass not balanced. 1997 BRS data reported similar generation total to 1999 BRS data. Modified onsite managed total to match generated total. 2 TXD008092793 Mass not balanced. No comparison of 1997 BRS data to 1999 BRS data. Management of waste limited to one type ( M032). Increased managed total to match generated total. 6 CTR000004457 Mass not balanced. Shipped total similar to 1997 BRS data. Generated value approx 13.2 times greater than ` 99 shipment total and approx. 21 times greater than ` 97 generated total. 1999 BRS data did not include WR for shipped waste. Modified generated total to equal shipped total. 1 VA1210020730 DNT Contaminated Wastewater. Generation did not equal managed total. Origin for waste stream is 4, whereas same waste stream in 1997 BRS Data was 1. 1997 BRS data generated and managed total was 806,853 tons and managed onsite by M081. Assumed generated total is correct and managed onsite by M081. Removed second reported managed ( M011) quantity. Modified Origin from 4 to 1. 20 MID980615298 Mass not balanced. Management and shipments equal to each other ( 334 tons M029), 1997 BRS data showed similar waste streams were generated and shipped. 1999 BRS data had receivers for similar wastes. Removed onsite management total listed with system type M061. As this modification did not effect the population scope, no change to the totals was required. 9 OHD004206264 Mass not balanced. Facility does not have a TDR permit. Generated total matches shipped total. 1997 BRS data reported similar waste streams, without managed totals. 1999 BRS data managed total system type is M031. Removed managed total, effectively removing this record from scope of project. 1 Leachate Contaminated Groundwater MID047153077 Groundwater remediation waste. Mass balanced. Management total comparable to 1997 BRS data. No generated total in 1997 BRS data due to leachate exclusion. Generation total removed due to leachate exclusion ( management total retained). 1 CAD9816535532 Remediation derived waste. Not reported as generated due to " Leachate Generation" rule ( not considered a solid waste). Managed total is required and was reported. Removed record from scope of project. 10 Origin NYD013277454 Mass not balanced. Origin 4 stated. No generation reported. Managed quantity equal to shipped quantity. 1997 BRS data showed similar waste stream shipped only. Facility is not permitted for treatment. Removed reported onsite managed ( M029) quantity. 4 NYD048148175 Mass not balanced. No generated total. Managed total equals shipped total. No 1997 BRS waste stream comparable for facility. All facility waste streams are reported as origin 4 and shipped off site. Facility is not permitted for treatment. Removed onsite managed ( M012) total. 13 TABLE 3 4 Modified 1999 BRS Facility Waste Streams EPA ID Number Comments GM Form Page 3 11 NYD077444263 Mass not balanced. Origin 4 stated. No generated total reported. Managed total equal to shipped total. All facility waste streams are reported as origin 4. Facility is not permitted for treatment. No 1997 BRS waste stream comparable for facility. Removed onsite managed ( M012) total. 55 CAD008252405 Mass not balanced. Shipped total equals generated total. 1997 BRS data indicated origin 4 waste stream with no onsite generation with a similar mass shipped to 1999 BRS Data. Removed reported onsite managed ( M022) quantity 7 TX5360310283 Mass balanced. Origin 4 stated. Managed total reported, no shipped total. Other site waste streams were origin 1. No 1997 BRS waste stream comparable for facility. Modified waste stream by using managed total as generated total and changed origin from 4 to 1. 4 Unit of Measure PAD004338091 Mass balanced. UOM in 1997 BRS data was lbs ( not tons). Shipped and managed by M077, with similar received total. Modified UOM for generated and managed to lbs. 1 System Code KYD006371314 Mass not balanced. 1997 BRS data reported similar generated total, though management was by M121, not M021 as reported in 1999 BRS. Modified system type code from M021 to M121, essentially removing the management and generation total from the analysis. 11 TABLE 3 5 Modified 1997 BRS Facility Waste Streams EPA ID Number Comments GM Form Page IAD065218737 Facility reports the waste stream is currently sold. The waste stream is classified as a revenue source and not a solid waste. Treatment or recovery of the waste stream onsite is not likely in the foreseeable future. 6 IND006050967 One process generating the waste was removed. Further review by the facility indicated the recovery process is a " closed loop" system. Therefore, reporting of the waste stream is not required. No information regarding the quantity of the solvent used/ recycled was available. 26, 30, 35, 43, 44 MAD001016302 No response. 22, 23 NHD058537960 The reported waste solvent has been removed from the process. 14, 23 OKD074274333 Contact information was not current. No phone number was found for the business. Assumed business is closed. 3, 15 WAD980833099 The reported solvent has been removed from the process along with an equipment upgrade. The solvent is no longer necessary. 7, 13 3 12 5. Remove Records Already Excluded Under Definition of Solid Waste: Waste streams for industry groups with current exclusions from the Definition of Solid Waste were removed from the database. Wastes where oil was recovered was excluded for SICs 1311, 1321, 1381, 1382, 1389, 2911, 4612, 4613, 4922, 4923, 4789, 5171, and 5172 ( 40 CFR 261.4( a)( 12)( ii)).

By products exhibiting a characteristic of hazardous waste are not solid wastes when reclaimed ( 40 CFR 261.2( c)( 3)), therefore are excluded from RCRA. Wastes with the words " solder" or " dross" in their waste description, that are within the following physical and chemical characteristics of inorganic solids: ° Other " dry" ash, slag, or thermal residue ( Form Code B304); ° Metal scale, filings, or scrap ( Form Code B307); or ° Other waste inorganic solids ( Form Code B319); and are within the hazardous waste characteristic of lead ( EPA Code D008) were removed from the database since lead solder dross is a by product of the smelting process.

Sludges exhibiting a characteristic of hazardous waste are not solid wastes when reclaimed ( 40 CFR 261.2( c)( 3)), therefore are excluded from RCRA. Spent carbon organic solid wastes ( Form Code B404) within the source codes for " Remediation Derived Waste" ( A61 A69) and " Pollution Control or Waste Treatment Processes" ( A71 A89) were removed from the database, since wastes generated from pollution control devices are defined under RCRA as " sludge".

Tables 3 6 and 3 7 present the new generation and management totals as a result of the QA/ QC conducted on the origin code 4 records and outlier records and removal of records already excluded under the Definition of Solid Waste. The 1999 total generation quantity ( 4.2 million tons) reported for these records does not equal the sum of the on site management quantity ( 0.8 million tons) and off site management quantities ( 1.0 million tons) because the remaining quantity is managed in non recovery system types ( e. g., incineration and landfill). This also is true for the 1997 data.

TABLE 3 6 Summary of Modified 1999 Total Hazardous Waste Metal Recovery, Solvent Recovery and Other Recovery Generation and Management Quantities ( Tons)

Database Including Origin Code 4 Database Excluding Origin Code 4, Outliers, and Currently Excluded Industry Groups Total number of records ( waste streams) 14,117 3 13 Total generation quantity of all records 4,233,621 On site recovery management quantity of all records 818,374 Off site recovery management quantity of all records* System 1 System 2 System 3 892,997 114,970 34,331 Data Source: 1999 Biennial Report Origin Code 4: The hazardous waste received from off site and not recycled or treated on site. Limitation: Only includes quantities generated by large quantity generators. * Generators can report multiple off site system types ( e. g., System 1, System 2, System 3) used for each waste if needed. A close estimate of the total off site recovery management quantity is the sum of the three systems.

TABLE 3 7 Summary of Modified 1997 Total Hazardous Waste Metal Recovery, Solvent Recovery and Other Recovery Generation and Management Quantities ( Tons)

Database Including Origin Code 4 Database Excluding Origin Code 4, Outliers, and Currently Excluded Industry Groups Total number of records ( waste streams) 5,094 4,660 Total generation quantity of all records 555,514 On site recovery management quantity of all records 130,705 27,544 Off site recovery management quantity of all records* System 1 System 2 System 3 146,779 10,591 748 Data Source: 1997 Biennial Report Origin Code 4: The hazardous waste received from off site and not recycled or treated on site. Limitation: Only includes quantities generated by large quantity generators. * Generators can report multiple off site system types ( e. g., System 1, System 2, System 3) used for each waste if needed. A close estimate of the total off site recovery management quantity is the sum of the three systems.

6. Main Option  Only Include Off site Transfers Within the Same Industry Group ( 4 Digit NAICS): In the Association of Battery Recyclers ( ABR) Decision, the Court said that EPA overreached its authority by regulating mineral processing materials that were not 6 Warski, Kristine. SIC vs. NAICS: Understanding the Difference, Miller Brooks Inc.

7 Ibid.

8 U. S. Department of Commerce, US Census Bureau, Development of NAICS, http:// www. census. gov/ epcd/ www/ naicsdev. htm.

3 14 " discarded" by being " disposed of, thrown away or abandoned, but rather were " destined for beneficial reuse or recycling in a continuous process by the generating industry itself." EPA is proposing to revise its Subtitle C regulations by generally giving up control over materials reclaimed within the generating industry as solid wastes. Consequently, the Agency needs to establish, among other things, a definition for " generating industry."

The Agency's preference is to use existing, well defined, widely used industry classification system as the basis for identifying " industries" for this rule. The North American Industry Classification System ( NAICS), which was developed by the Department of Commerce as an update of the Standard Industrial Classification ( SIC) system appears to be an appropriate choice.

The Standard Industrial Classification ( SIC) was originally developed in the 1930' s to classify industries by activities and to promote the comparability of establishment data. Over the years, the SIC codes were revised periodically to reflect the changes in the economy. It was last updated in 1987 when approximately 20 new service industries were added to the SIC and a few new industries were added to manufacturing to reflect technological changes occurring in that sector. 6 Since 1987, world economies have rapidly changed, bringing SIC codes under much criticism. A major change in the system was needed; thus the creation of NAICS ( North American Industrial Classification System).

NAICS industries can be identified by as much as a 6 digit code, in contrast to the 4 digit SIC code. This allows for additional detail and flexibility in designating sub sectors as new sub industries emerge. The International NAICS agreement fixes only the first 5 digits of the code. The sixth digit, where used, identifies subdivisions of NAICS industries that accommodate user needs in individual countries. Thus, 6 digit US codes may vary from counterparts in Canada or Mexico, but at the 5 digit level, they are standardized. 7 The nomenclature of the groupings within the system is different in NAICS. NAICS calls the highest level of aggregation in the system a sector; the SIC referred to this grouping as a division. Other changes have been made to the nomenclature as shown in Table 3 8.8 Table 3 8. NAICS vs. SIC: Structure and Nomenclature 1/ 3 15 NAICS SIC Structure Definition Number Structure Definition Number 2 digit Sector 18 Letter Division 8 3 digit Subsector 87 2 digit Major Group 67 4 digit Industry Group 290 3 digit Industry Group 360 5 digit NAICS Industry 654 4 digit Industry 1303 6 digit National 1086 N/ A N/ A N/ A 1/ The agricultural and public administration industries were excluded from this tally.

Source: U. S. Department of Commerce, US Census Bureau, Development of NAICS, http:// www. census. gov/ epcd/ www/ naicsdev. htm.

The Agency has selected the 4 digit NAICS to define the same " generating industry" ( i. e., industry group). The BRS 4 digit SIC data were cross walked into the 4 digit NAICS codes. Waste streams that are not transferred off site within the same 4 digit NAICS were eliminated from the database because they are not impacted by the proposed regulation. The resulting on site and off site recovery quantities for the 1999 and 1997 list of large quantity generators are presented in the Table 3 9 below. The plant counts and recovered quantities listed below will be higher if small quantity generators are included. The Biennial Report database does not include small quantity generators.

Table 3 9. Summary of Within Industry Group Affected Plants and Recovery Management Quantities No. of Plants Recovered Quantity ( tons)

1999 On site Recovery Management 849 818,348 1997 On site Recovery Management 253 27,544 1999 Off site Recovery Management Within Industry Group 249 59,436 1997 Off site Recovery Management Within industry Group 46 4,505 Total* 1,374 909,833 3 16 * Some plants are included in multiple 3.2.3 Methodology for Identifying Outside Industry Group Recovery Management Quantities Generators who recover values from wastes at off site recyclers outside their industry group ( 4 digit NAICS code) may additionally benefit from the rule because they may now choose to construct an on site recycling unit given a RCRA storage permit and other RCRA administrative activities are no longer required. Large facilities may recover large enough volumes to construct an on site recovery unit. Groups of facilities within the same industry group may achieve economies of scale. These facilities under baseline were not willing to permit a captive facility. Post rule they may be willing.

This data set was developed by starting with the list of generators recovering metal, solvent, and acid wastes off site developed in Step 5 of the previous section ( Table 3 6). This time the list of facilities transferring wastes off site within the same industry group ( 4 digit NAICS code) are removed from the list as opposed to last time in Step 6 above they were kept. Because of project resource constraints the analysis was limited to the 4 digit NAICS codes recovering the most quantity off site assuming they are most likely to achieve economies of scale. These eleven NAICS codes are identified in Table 3 10 with their recovery quantities. They account of 77 percent of the quantity currently recovered off site outside the same industry group. A breakeven cost analysis was conducted on this data set to determine which facilities may costeffectively construct on site recovery systems post rule.

Table 3 10. Summary of Outside Industry Group POTENTIALLY Affected Number of Plants and Offsite Recovery Management Quantities 4 Digit NAICS Code No. of Plants Recovered Quantity ( tons)

3312 Steel Product Manufacturing 119 471,434 3344 Semiconductor and Other Electronic Component Manufacturing 382 56,589 3252 Resin, Synthetic Rubber, and Artificial and Synthetic Fibers and Filaments Manufacturing 99 32,446 3359 Other Electrical Equipment and Component Manufacturing 67 32,543 3314 Non Ferrous Metal ( except Aluminum) Production and Processing 83 29,046 3241 Petroleum and Coal Products Manufacturing 112 28,547 3 17 3328 Coating, Engraving, Heat Treating and Allied Activities 417 25,069 3255 Paint, Coating and Adhesive manufacturing 156 23,181 3251 Basic Chemical Manufacturing 227 22,515 3362 Motor Vehicle Body and Trailer Manufacturing 74 18,069 3254 Pharmaceutical and Medicine Manufacturing 111 15,447 Subtotal ( included in analysis) 1847* 754,886 Other NAICS 4351 221,447 Totals 6177** 976,333 * Some plants are included in multiple ** Some plants are included in both the subtotal and other NAICS 3 18 3.2.4 Methodology for Identifying Disposed Management Quantities that Potentially May Be Recovered On Site A firm may decide to reclaim wastes previously disposed ( e. g., landfilled or energy recovery) because of favorable economics under the proposed regulation. Because of limited budget resources an analysis was conducted identifying the primary waste types being recovered in 1999. It is assumed that these waste types have a higher potential for recovery. Based on the waste types identified, a data set of these wastes types being disposed ( i. e., land disposed or thermally destroyed) was developed to limit the scope of the analysis. The facilities disposing these waste may potentially recover them on site post rule if economically feasible.

Given budget resource constraints, the identification of recoverable waste types was limited to those SIC codes that reported recovering more than 30,000 tons either on site or off site in 1999. Appendix D presents a memorandum of the initial analysis. Subsequent review of the information presented in Appendix D determined that some facilities were reporting characteristic by products ( e. g., lead slag and dross) as hazardous waste. Table 3 11 presents a listing of the waste types, industries ( SIC codes), and waste forms included in the analysis.

Table 3 11. List of Waste Types Analyzed for Potential On Site Recovery Waste Types SIC Codes Waste Forms Organic Liquids ( from Industrial Organic Chemicals, Paints and Allied Products, Pharmaceutical Preparations, and Plastics Materials and Resins Industries) 2869, 2851, 2834, 2821 Liquid Form Codes ( B101 B119, B201 B219)

Emission Control Dust ( from Steel Works Industry) 3312 Solid Form Codes ( B301 B319, B401 B409)

Sludge Form Codes ( B501 B519, B601 B609)

Metal Containing Liquids ( from Printed Circuit Board Industry) 3672 Liquid Form Codes ( B101 B119, B201 B219)

Electroplating Wastewater Treatment Sludges ( from Printed Circuit Board Industry) 3672 Solid Form Codes ( B301 B319, B401 B409)

Sludge Form Codes ( B501 B519, B601 B609)

Spent Carbon ( from Industrial Organic Chemicals and Petroleum Refining Industries) 2869, 2911 Solid Form Codes ( B301 B319, B401 B409)

Sludge Form Codes ( B501 B519, B601 B609)

Spent Catalyst ( from Petroleum Refining Industry) 2911 Solid Form Codes ( B301 B319, B401 B409)

Sludge Form Codes ( B501 B519, B601 B609)

Spent Aluminum Potliner ( from Aluminum Industry) 3334 Solid Form Codes ( B301 B319, B401 B409)

Sludge Form Codes ( B501 B519, B601 B609) 3 19 Spent Pickle Liquor ( from Steel Works Industry) 3312 Liquid Form Codes ( B101 B119, B201 B219)

Table 3 12 presents a summary of the disposed management quantities that potentially may be recovered, indicating step by step changes in the quantities as a QA/ QC analysis was conducted on the initial data sets. A summary of the QA/ QC steps is as follows:

1  Facilities reporting wastes in 1997 as recovered and 1999 as disposed were removed from the analysis to avoid double counting waste quantities included in the 1997 on site and off site recovery quantities in Table 3 9.

2  Facilities reporting wastes with Origin Code 4, " the hazardous waste was received from off site and was not recycled or treated on site," are not supposed to report the waste as generated ( i. e., zero quantity generated). This explains why the generation quantity total does not change when the records are removed. These records were removed because the generator did not generate the waste. Incremental costs for management of this waste are associated with the original generator.

3  Certain wastes reported with Origin Code 5, " the hazardous waste was a residual from the on site treatment, disposal, or recycling of a previously existing hazardous waste," were excluded because values from these wastes are not likely recoverable.

4  Wastes generated from processes ( e. g., those generated from remediation or one time activities) are not continuous waste streams that would supply a continuous feedstock for an on site recovery facility. Values from these wastes are not likely recoverable.

5  Waste descriptions were analyzed to ensure only the appropriate waste streams were being kept in the analysis for each set of data. Waste streams ( e. g., " debris") that did not meet the criteria for each data set were removed from the analysis.

6  Waste streams that were missing one or more of the following codes: SIC Code, Origin Code, Source Code, or Form Code, were analyzed to determine if, had they not been missing the codes, they may have been removed in previous QA/ QC steps. The additional analysis primarily involved the waste stream's EPA Hazardous Waste Codes.

7  Waste streams with unusually large quantities were evaluated to determine if they were wastewater and the waste quality was sufficient for recovery. 3 20 9  Any outliers ( waste streams with generation quantities greater than two standard deviations above the mean and an order of magnitude greater than the average) were removed as statistical outliers so they would not skew the results.

A break even cost analysis was conducted on this data set to determine which facilities may costeffectively construct on site recovery systems post rule. 3 21 Table 3 12. QA/ QC Of Disposed Quantities That Potentially May Be Recovered*

Organic Liquids from Industrial Organic Chemicals,

Paints & Allied Products, Pharmaceutical Preparations, &

Plastics Materials &

Resins Industries ( SICs 2869, 2851,

2834, 2821 and liquid form codes) K061  Emission Control Dust from Steel Works Industry ( SIC 3312 and solid & sludge form codes) Metal Containing Liquids from Printed Circuit Board Industry ( SIC 3672 and liquid form codes) F006  Electroplating Wastewater Treatment Sludges from Printed Circuit Board Industry ( SIC 3672 and solid & sludge form codes) Spent Carbon from Industrial Organic Chemicals and Petroleum Refining Industries ( SICs 2869, 2911 and solid & sludge form codes) K171 & K172

Spent Catalyst from Petroleum Refining Industry ( SIC 2911 and solid & sludge form codes) K088  Spent Aluminum Potliner from Aluminum Industry ( SIC 3334 and solid & sludge form codes) K062  Spent Pickle Liquor from Steel Works Industry ( SIC 3312 and liquid form codes)

QA/ QC Steps Number Waste Streams Quantity ( tons) Number Waste Streams Qty.

( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons)

Initial Query 6,063 6,214,217 52 406,080 779 3,189,148 193 9,305 185 23,813 118 20,254 47 76,591 50 5,609,212 Remove 97/ 99 EPA ID Matches [ 1] 6,045 6,213,453 52 406,080 779 3,189,148 193 9,305 182 23,804 118 20,254 47 76,591 50 5,609,212 Remove Origin Code 4 [ 2] 5,973 6,213,453 52 406,080 779 3,189,148 193 9,305 175 23,804 116 20,254 46 76,591 50 5,609,212 Remove Origin Code 5 [ 3]   50 364,374 773 3,188,220     116 20,254

Remove Non Process Wastes [ 4] 5,768 6,166,802 43 359,835 768 3,186,928 182 9,061 145 23,804 110 19,545 39 75,080 48 5,592,972 Remove " Odd Wastes"

[ 5] 5,712 6,166,457 36 359,569 768 3,186,928 158 8,944 132 3,227 107 19,543 34 74,178 48 5,592,972 Remove wastes with " Missing Code Issues"

[ 6]   33 359,546 768 3,186,928 158 8,944 132 3,227 107 19,543 31 74,081 48 5,592,972 Table 3 12. QA/ QC Of Disposed Quantities That Potentially May Be Recovered*

Organic Liquids from Industrial Organic Chemicals,

Paints & Allied Products, Pharmaceutical Preparations, &

Plastics Materials &

Resins Industries ( SICs 2869, 2851,

2834, 2821 and liquid form codes) K061  Emission Control Dust from Steel Works Industry ( SIC 3312 and solid & sludge form codes) Metal Containing Liquids from Printed Circuit Board Industry ( SIC 3672 and liquid form codes) F006  Electroplating Wastewater Treatment Sludges from Printed Circuit Board Industry ( SIC 3672 and solid & sludge form codes) Spent Carbon from Industrial Organic Chemicals and Petroleum Refining Industries ( SICs 2869, 2911 and solid & sludge form codes) K171 & K172

Spent Catalyst from Petroleum Refining Industry ( SIC 2911 and solid & sludge form codes) K088  Spent Aluminum Potliner from Aluminum Industry ( SIC 3334 and solid & sludge form codes) K062  Spent Pickle Liquor from Steel Works Industry ( SIC 3312 and liquid form codes)

QA/ QC Steps Number Waste Streams Quantity ( tons) Number Waste Streams Qty.

( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons)

3 22 Removal of large waste streams not of sufficient quality for recovery [ 7] 5,707 1,134,200 33 359,546 767 896,171 158 8,944 132 3,227 107 19,543 31 74,081 47 1,025,472 Remove deep well injection quantities for spent pickle liquors [ 8] 5,707 1,134,200 33 359,546 767 896,171 158 8,944 132 3,227 107 19,543 31 74,081 44 837,566 Remove statistical outliers [ 9] 4,839** 412,091 ** 31 347,767 *** 746 554,701 154 6,998 125 2,448 99 11,278 31 74,081 41 192,259 FINAL NUMBERS 4,839 412,091 31 347,767 746 554,701 154 6,998 125 2,448 99 11,278 31 74,081 41 192,259 Table 3 12. QA/ QC Of Disposed Quantities That Potentially May Be Recovered*

Organic Liquids from Industrial Organic Chemicals,

Paints & Allied Products, Pharmaceutical Preparations, &

Plastics Materials &

Resins Industries ( SICs 2869, 2851,

2834, 2821 and liquid form codes) K061  Emission Control Dust from Steel Works Industry ( SIC 3312 and solid & sludge form codes) Metal Containing Liquids from Printed Circuit Board Industry ( SIC 3672 and liquid form codes) F006  Electroplating Wastewater Treatment Sludges from Printed Circuit Board Industry ( SIC 3672 and solid & sludge form codes) Spent Carbon from Industrial Organic Chemicals and Petroleum Refining Industries ( SICs 2869, 2911 and solid & sludge form codes) K171 & K172

Spent Catalyst from Petroleum Refining Industry ( SIC 2911 and solid & sludge form codes) K088  Spent Aluminum Potliner from Aluminum Industry ( SIC 3334 and solid & sludge form codes) K062  Spent Pickle Liquor from Steel Works Industry ( SIC 3312 and liquid form codes)

QA/ QC Steps Number Waste Streams Quantity ( tons) Number Waste Streams Qty.

( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons) Number Waste Streams Quantity ( tons)

3 23 [ 1] Facilities reporting wastes in 1997 as recovered and 1999 as disposed were removed from the analysis to avoid double counting waste quantities included in the 1997 on site and off site recovery quantities in Table 3 9.

[ 2] Facilities reporting wastes with Origin Code 4, " the hazardous waste was received from off site and was not recycled or treated on site," are not supposed to report the waste as generated ( i. e., zero quantity generated). This explains why the generation quantity total does not change when the records are removed. These records were removed because the generator did not generate the waste. Incremental costs for management of this waste are associated with the original generator.

[ 3] Certain wastes reported with Origin Code 5, " the hazardous waste was a residual from the on site treatment, disposal, or recycling of a previously existing hazardous waste," were excluded because values from these wastes are not likely recoverable.

[ 4] Wastes generated from processes ( e. g., those generated from remediation or one time activities) are not continuous waste streams that would supply a continuous feedstock for an on site recovery facility. Values from these wastes are not likely recoverable.

[ 5] Waste descriptions were analyzed to ensure only the appropriate waste streams were being kept in the analysis for each set of data. Waste streams ( e. g., " debris") that did not meet the criteria for each data set were removed from the analysis.

[ 6] Waste streams that were missing one or more of the following codes: SIC Code, Origin Code, Source Code, or Form Code, were analyzed to determine if, had they not been missing the codes, they may have been removed in previous QA/ QC steps. The additional analysis primarily involved the waste stream's EPA Hazardous Waste Codes.

[ 7] Waste descriptions were analyzed for unusually large waste streams to ensure the waste quality is sufficient for recovery.

[ 9] Any outliers ( waste streams with generation quantities greater than two standard deviations above the mean and an order of magnitude greater than the average) were removed as statistical outliers so they would not skew the results.

* Quantities reflect generation quantities and not management quantities. Quantities presented in Chapter 4 are management quantities.

** Onsite disposal quantities were removed from this analysis. Onsite disposal of organic liquids is incineration, which requires a large capital expenditure. For the purposes of this analysis, it is assumed facilities disposing onsite will not change to a recovery process.

*** Only offsite quantities were considered in this analysis. 9 Borst, Paul A., U. S. EPA, Office of Solid Waste, Economic, Methods and Risk Analysis Division, " Recycling of Wastewater Treatment Sludges from Electroplating Operations," F006, 18th AESF/ EPA Pollution Prevention and Control Conference, January 27 29, 1997, p. 179.

10 Lamancusa, James P., P. E., CEF, " Strategies at a Decorative Chromium Electroplating Facility: On line vs. Offline Recycling," Plating and Surface Finishing, April 1995, p. 48.

3 24 3.3 Limitations of Analysis This analysis does not capture all of the variables that may affect a generator's decision to reclaim or landfill these types of wastes. A generator's decision also may be affected by factors such as the presence of multiple metals, solvents, or other waste types in one waste stream; total content of metal, solvent and other values; technical feasibility of recovering available metals, solvents, etc.. Limitations of the analysis include the following:

° The presence of multiple metals or other values in a waste may impact both the marketability and feasibility of reclamation. While the waste may contain recoverable levels of each metal/ value present, within industry off site reclaimers tend to prefer co mingled wastes to be segregated to avoid having to separate the metals ( values) again into a mono metal or bi metal sludge. 9 In certain instances, within industry off site reclaimers face higher costs to handle impurities ( metals/ values considered not to be of value by the within industry off site reclaimer) in excess of a specified concentration. 10 ° The type and percent concentration of metals or other values present in the waste may impact the cost for within industry off site reclaimers to manage the waste. The cost of reclamation is influenced by the market price the recyclers can obtain for the values they recover. Variations in future prices for recovered values are not evaluated in the analysis.

° The proximity of businesses to a landfill is likely to continue to heavily influence off site transfers within the same Industry Group due to the savings associated with the reduced transportation costs.

° The cost estimates for landfill management are overstated, particularly for smaller generators, because other forms of hazardous waste are generated in facility operations. These wastes may be shipped with the reclaimable waste to the landfill in the same truck if the wastes are compatible, resulting in lower per unit transportation costs due to a generator's ability to take advantage of economies of scale and avoid incurring the minimum landfill charge on multiple loads.

° Reclamation costs are overstated, particularly for small generators, because transporters may stop at two or more facilities creating fuller loads, thereby reducing per unit transportation costs. Economies of scale may be achieved that exceed the minimum recycling processing charge. 3 25 ° There may exist instances where facilities improve the quality of their waste streams with potential recoverable values to improve the quality of the waste for reclamation and allow them to accumulate more economic quantities for reclamation. This study does not address these possible benefits. 4 1 4.0 BASELINE METAL, SOLVENT AND OTHER RECOVERY MANAGEMENT 4.1 On site Recovery Quantity in 1999 A total of 818,

3314, nonferrous metal ( except aluminum) production and processing, recovered on site recovery quantity. Nearly all of this quantity was managed by other recovery ( acid regeneration).

The last eight NAICS codes listed in Table 4 1 recover more than 10,000 tons onsite in 1999. The remaining NAICS codes that each recover less than 10,000 tons on site in 1999 account for 72,000 tons ( 8.8 percent) of the total on site recovery quantity.

No SIC codes ( that could be mapped 4 2 TABLE 4 1 1999 ONSITE RECOVERY MANAGEMENT BY NAICS CODE ( TONS)

NAI CS METALS RECOVERY Total Metals SOLVENTS RECOVERY Total Solvents OTHER RECOVERY Total Other TOTALS Code M011 M012 M013 M014 M01 9 Recovery M021 M022 M023 M024 M029 Recovery M031 M032 M039 Recovery Quantity % Cumul. %

3251 1,336 853 70,699 643 73,531 25,967 16 1,273 27,257 76,856 21,984 98,840 199,627 24.394 24.394 3314 9 114,864 374 51 115,297 0 338 338 115,636 14.130 38.524 3312 0 94 94 47,132 47,132 47,226 5.771 44.295 3254 0 31,337 4,241 4 35,583 0 35,583 4.348 48.643 3255 0 9,296 9,297 11,851 11,020 17 700 16 23,604 38 38 32,939 4.025 52.668 3211 0 0 32,273 99 32,373 32,373 3.956 56.624 3344 24,767 4 24,771 441 441 2 2 25,214 3.081 59.705 3252 158 755 913 1,897 437 13 72 2,420 10,731 10,014 20,744 24,077 2.942 62.647 3328 557 557 2,657 1,168 1 3,826 96 15,111 15,207 19,591 2.394 65.041 3399 9,265 242 9,506 383 96 22 502 3,401 3,401 13,409 1.639 66.680 3253 0 0 1,209 8,913 10,122 10,122 1.237 67.917 Others 355 6 653 9,091 4,372 14,477 27,143 4,071 7,725 2,228 754 41,922 5,281 10,448 261 15,989 72,387 8.846 76.762 No Code 160,662 304 160,965 21,423 1,430 182 1,435 1 24,472 551 1,548 2,627 4,727 190,164 23.238 100.000 TOTAL 1,858 859 115,516 285,466 5,615 409,315 123,194 18,126 12,292 5,735 771 160,119 68,403 155,501 25,010 248,914 818,348 100.000 C Metals Recovery Solvents Recovery Other Recovery M011 High temperature metals recovery M021 Fractionation/ distillation M031 Acid regeneration M012 Retorting M022 Thin film evaporation M032 Other recovery: e. g., waste oil recovery,

nonsolvent organics recovery M013 Secondary smelting M023 Solvent extraction M039 Other recovery  type unknown M014 Other metals recovery for reuse: e. g., ion exchange, reverse osmosis, acid leaching M024 Other solvent recovery M019 Metals recovery  type unknown M029 Solvents recovery  type unknown 4 3 4.2 Off site Recovery Quantity Transferred Within Same Industry Group ( 4 Digit NAICS Code) in 1999 The proposed regulation will allow an exclusion from RCRA Subtitle C jurisdiction if the hazardous wastes shipped off site for recovery are transferred within the same industry group. The Biennial Report data were analyzed for off site shipments within the same 4 digit NAICS codes. These off site recovery quantities are a subset of the total quantity of hazardous waste shipped off site for recovery.

A total of 59,000 tons of hazardous waste were recovered off site in 1999 within the same industry group by 249 plants within 30 NAICS codes. Nine NAICS codes recovered greater than 300 tons each ( 0.5% of the total off site recovery quantity) in off site recovery practices within the 3251, basic chemical manufacturing, recovered 13,700 tons ( 23.1 percent) of the total off site recovery quantity. Most of this quantity was managed by solvents recovery.

NAICS 5419, other professional, scientific, and technical services, recovered 10,600 tons ( 17.9 percent) of the total off site recovery quantity.

NAICS 3314, nonferrous metal ( except aluminum) production and processing, recovered 7,700 tons ( 13.0 percent) of the total off site recovery quantity. Nearly all of this quantity was managed by metals recovery.

NAICS 3312, steel product manufacturing from purchased steel, recovered 6,700 tons ( 11.3 percent) of the total off site recovery quantity. All of this quantity was managed by metals recovery.

NAICS 3252, resin, 4 4 TABLE 4 2 1999 OFFSITE RECOVERY WITHIN SAME INDUSTRY GROUP ( 4 DIGIT NAICS CODE) ( TONS)

NAICS METALS RECOVERY Total Metals SOLVENTS RECOVERY Total Solvents OTHER RECOVERY Total Other TOTALS Code M011 M012 M013 M014 M019 Recovery M021 M022 M023 M024 M029 Recovery M031 M032 M039 Recovery Quantity % Cumul. %

3254 65 16 6 87 14,467 1 14,468 0 14,555 24.489 24.489 3251 43 235 2,095 273 2,646 8,690 2 0 20 8,713 2,243 129 2,372 13,731 23.101 47.590 5419 0 2 2 7,212 3,410 10,622 0 10,625 17.875 65.466 3314 41 163 7,267 18 246 7,735 2 2 0 0 7,737 13.018 78.483 3312 6,734 6,734 0 0 6,734 11.330 89.813 3252 0 0 2,429 2,429 2,429 4.087 93.900 3363 0 0 688 688 0 688 1.157 95.058 6113 16 398 414 1 1 0 0 415 0.699 95.756 3241 0 0 312 312 312 0.525 96.281 3326 210 87 297 0 0 297 0.499 96.780 3344 8 5 225 31 270 1 1 0 271 0.456 97.237 8129 35 144 180 0 0 180 0.302 97.539 3359 158 0 158 0 0 158 0.266 97.805 4219 91 0 6 97 0 0 97 0.163 97.968 5622 1 1 5 5 90 0 90 96 0.162 98.130 3372 0 0 29 3 32 0 32 0.053 98.184 3255 1 0 0 1 15 7 22 0 24 0.040 98.223 4226 0 15 15 0 15 0.025 98.248 3328 2 0 2 7 11 0 0 11 0.018 98.267 3231 1 9 10 0 0 0 10 0.018 98.284 9241 0 0 1 1 1 1 2 0.004 98.288 TABLE 4 2 1999 OFFSITE RECOVERY WITHIN SAME INDUSTRY GROUP ( 4 DIGIT NAICS CODE) ( TONS)

NAICS METALS RECOVERY Total Metals SOLVENTS RECOVERY Total Solvents OTHER RECOVERY Total Other TOTALS Code M011 M012 M013 M014 M019 Recovery M021 M022 M023 M024 M029 Recovery M031 M032 M039 Recovery Quantity % Cumul. %

4 5 3321 0 2 2 0 2 0.003 98.291 9281 1 1 2 0 0 2 0.003 98.294 5414 0 1 1 0 1 0.001 98.295 3333 1 1 0 0 1 0.001 98.296 3259 0 0 0 0 0 0.001 98.296 3399 0 0 0 0 0 0.001 98.297 3222 0 0 0 0 0 0.000 98.297 3325 0 0 0 0 0 0.000 98.298 2122 0 0 0 0 0 0.000 98.298 No Code 0 1,012 1,012 0 1,012 1.702 100.000 TOTALS 7,106 491 7,431 2,408 1,212 18,647 31,112 4,442 2 0 29 35,585 2,430 2,645 129 5,205 59,436 100.000   SYSTEM TYPE CODES:

Metals Recovery Solvents Recovery Other Recovery M011 High temperature metals recovery M021 Fractionation/ distillation M031 Acid regeneration M012 Retorting M022 Thin film evaporation M032 Other recovery: e. g., waste oil recovery,

nonsolvent organics recovery M013 Secondary smelting M023 Solvent extraction M039 Other recovery  type unknown M014 Other metals recovery for reuse: e. g., ion exchange, reverse osmosis, acid leaching M024 Other solvent recovery M019 Metals recovery  type unknown M029 Solvents recovery  type unknown 4 6 4.3 Export Recovery Quantity in 1999 A total of 125,000 tons of hazardous waste generated by 80 plants were recovered off site in 1999 in a foreign country. NAICS code data were unavailable to determine if the transfers ( exports) occurred within the same industry groups ( 4 digit NAICS) and subject to the exclusion of the proposed regulation. Mexico received 90,000 tons, Canada 11,000 tons, and Germany, France, Korea, Belgium and Sweden less than 1,000 tons ( Table 4 3). For approximately 21,000 tons recovered outside the United States, the foreign country is not specified.

NAICS 3312, steel product manufacturing and purchased steel, recovered approximately 91,000 tons of the total export recovery quantity. All of this quantity was managed by metals recovery. 4 7 TABLE 4 3 1999 EXPORTS BY NAICS CODE ( TONS)

NAICS METALS RECOVERY Total Metals SOLVENTS RECOVERY Total Solvents OTHER RECOVERY Total Other TOTALS Code M011 M012 M013 M014 M019 Recovery M021 M022 M023 M024 M029 Recovery M031 M032 M039 Recovery Quantity % Cumulative % # Plants CANADA 3359 3,363 5 3,368 0 0 3,368 29.362 29.362 2 3333 1,936 1,936 179 179 0 2,115 18.438 47.800 2 5622 1,865 1,865 0 0 1,865 16.262 64.062 1 3315 887 134 1,020 0 0 1,020 8.896 72.957 2 5419 0 0 949 949 949 8.273 81.230 1 3254 0 720 720 0 720 6.278 87.508 1 3314 576 576 0 0 576 5.022 92.530 3 3251 70 70 316 316 0 386 3.365 95.895 3 3222 0 147 147 0 147 1.284 97.180 1 3241 0 0 70 72 143 143 1.243 98.423 2 4226 79 79 0 0 79 0.688 99.111 1 3321 61 61 0 0 61 0.530 99.641 1 3351 0 16 16 0 16 0.138 99.779 1 9281 0 11 11 0 0 11 0.098 99.877 6 4219 9 9 0 0 9 0.077 99.954 1 3255 0 4 4 0 4 0.034 99.988 1 no code 0 0 0 0 0 0 0 0 1 1 1 0.012 100.000 9 9999 0 0 0 0 0 0.000 100.000 1 Subtotal 70 0 8,697 139 90 8,996 1,231 147 4 0 0 1,383 0 1,020 72 1,092 11,471 100.000  39 BELGIUM 5622 62 62 0 0 62 100.000 100.000 1 TABLE 4 3 1999 EXPORTS BY NAICS CODE ( TONS)

NAICS METALS RECOVERY Total Metals SOLVENTS RECOVERY Total Solvents OTHER RECOVERY Total Other TOTALS Code M011 M012 M013 M014 M019 Recovery M021 M022 M023 M024 M029 Recovery M031 M032 M039 Recovery Quantity % Cumulative % # Plants 4 8 FRANCE 4219 622 622 0 0 622 90.187 90.187 1 5419 68 68 0 0 68 9.813 100.000 1 Subtotal 0 0 622 0 68 689 0 0 0 0 0 0 0 0 0 0 689 100.000  2 TABLE 4 3 1999 EXPORTS BY NAICS CODE ( TONS)

NAICS METALS RECOVERY Total Metals SOLVENTS RECOVERY Total Solvents OTHER RECOVERY Total Other TOTALS Code M011 M012 M013 M014 M019 Recovery M021 M022 M023 M024 M029 Recovery M031 M032 M039 Recovery Quantity % Cumulative % # Plants 4 9 GERMANY 3314 820 820 0 0 820 100.000 100.000 1 KOREA 4219 102 102 0 0 102 100.000 100.000 1 MEXICO 3312 77,935 77,935 0 0 77,935 86.164 86.164 10 no code 10,825 10,825 0 0 10,825 11.968 98.132 2 2211 0 0 1,690 1,690 1,690 1.868 100.000 1 Subtotal 88,760 0 0 0 0 88,760 0 0 0 0 0 0 0 0 1,690 1,690 90,450 100.000  13 SWEDEN 3359 41 41 41 100.000 100.000 1 OTHER FOREIGN COUNTRIES ( COUNTRY UNSPECIFIED)

3312 13,016 0 0 0 13,016 60.671 60.671 2 3399 0 0 5,352 5,352 5,352 24.946 85.618 1 3344 674 676 1,350 0 0 1,350 6.291 91.909 3 9281 549 549 0 0 549 2.559 94.468 1 3254 0 544 544 0 544 2.536 97.004 1 4883 0 0 0 212 212 212 0.986 97.990 1 3314 191 191 0 0 191 0.892 98.882 1 3328 1 18 75 94 0 0 94 0.440 99.322 4 3359 76 76 0 0 76 0.355 99.677 2 3342 68 68 0 0 68 0.318 99.995 1 TABLE 4 3 1999 EXPORTS BY NAICS CODE ( TONS)

NAICS METALS RECOVERY Total Metals SOLVENTS RECOVERY Total Solvents OTHER RECOVERY Total Other TOTALS Code M011 M012 M013 M014 M019 Recovery M021 M022 M023 M024 M029 Recovery M031 M032 M039 Recovery Quantity % Cumulative % # Plants 4 10 3364 0 0 0 0 0 0.002 99.998 1 2211 0 0 0 0 0 0.001 99.999 2 5133 0 0 0 0 0 0.001 100.000 1 3333 0 0 0 0 0 0.000 100.000 1 Subtotal 13,759 0 753 210 624 15,346 0 0 0 0 544 544 0 0 5,564 5,564 21,453 100.000  22 TOTAL 103,450 0 10,235 348 782 114,815 1,231 147 4 0 544 1,927 0 1,020 7,326 8,346 125,088   80 SYSTEM TYPE CODES:

Metals Recovery Solvents Recovery Other Recovery M011 High temperature metals recovery M021 Fractionation/ distillation M031 Acid regeneration M012 Retorting M022 Thin film evaporation M032 Other recovery: e. g., waste oil recovery,

nonsolvent organics recovery M013 Secondary smelting M023 Solvent extraction M039 Other recovery  type unknown M014 Other metals recovery for reuse: e. g., ion exchange, reverse osmosis, acid leaching M024 Other solvent recovery M019 Metals recovery  type unknown M029 Solvents recovery  type unknown 4 11 4.4 Potential Additional Recovery Quantity from 1997 If hazardous wastes are excluded from RCRA Subtitle C jurisdiction if recovered, additional facilities may determine that recovering their waste is more economical than treatment or disposal. As a rough proxy of the additional hazardous waste quantity that may be recovered, the quantity of waste reported recovered in 1997 but not in 1999 was determined. 1997 Biennial Report data were used to identify the plants that recovered hazardous wastes in 1997. This list of plants was compared with the 1999 list of plants discussed above. If the EPA identification number was not found in the 1999 list it is assumed they now treat or dispose their waste. It is assumed these quantities again may be recovered under the proposed regulation. Some of the limitations with this assumption is that the plant may have closed, discontinued the process generating the waste, or modified the process such that the waste was no longer generated, or the waste was a one time generation event ( e. g., spill cleanup or remediation activity) in 1999.

3252, resin, synthetic rubber, and artificial synthetic fibers and filaments manufacturing, recovered 1,300 tons ( 4.7 percent) of the 1997 total on site recovery quantity. All of this quantity was managed by solvents recovery.

The remaining NAICS codes that recovered less than 1,300 tons on site in 1997 account for 9,700 tons ( 35.1 percent) of the 1997 total on site recovery quantity.

No SIC codes ( that could be mapped 4 12 Approximately 4,500 tons were recovered off site in 1997 but not in 1999 within the same 4 13 TABLE 4 4 WASTE QUANTITIES ASSUMED TO SHIFT TO ONSITE RECOVERY ( WASTES WERE RECOVERED ONSITE IN 1997 BUT NOT RECOVERED IN 199 NAICS METALS RECOVERY Total Metals SOLVENTS RECOVERY Total Solvents OTHER RECOVERY Total Other Code M011 M012 M013 M014 M019 Recovery M021 M022 M023 M024 M029 Recovery M031 M032 M039 Recovery Quant 3326 0 0 6,497 6,497 6,497 3211 0 0 2,585 3,168 5,753 5,753 3253 0 0 1,368 1,368 1,368 3252 0 1,181 124 1,305 0 1,305 3231 2 2 1,242 8 6 1,256 0 1,258 3344 279 60 340 274 422 696 14 14 1,050 3261 0 468 198 55 721 0 721 3222 0 530 36 105 671 0 671 3314 120 3 123 22 9 31 408 408 561 3255 0 347 121 3 34 505 0 505 3333 0 29 450 479 0 479 3312 318 318 0 63 63 381 3251 67 127 6 200 52 52 100 5 0 105 357 3372 0 177 177 172 172 349 3328 0 0 2 2 343 343 346 3133 0 251 5 257 0 257 3259 0 213 213 42 42 255 3351 0 0 245 245 245 3329 17 17 210 210 0 226 3363 0 194 194 0 194 4229 0 173 173 0 173 3399 0 0 163 163 2 2 165 TABLE 4 4 WASTE QUANTITIES ASSUMED TO SHIFT TO ONSITE RECOVERY ( WASTES WERE RECOVERED ONSITE IN 1997 BUT NOT RECOVERED IN 199 NAICS METALS RECOVERY Total Metals SOLVENTS RECOVERY Total Solvents OTHER RECOVERY Total Other Code M011 M012 M013 M014 M019 Recovery M021 M022 M023 M024 M029 Recovery M031 M032 M039 Recovery Quant 4 14 3339 0 133 1 134 0 134 3219 0 127 127 0 127 Others 0 1 66 86 61 215 705 159 22 4 1 890 0 82 16 98 1,203 No Code 13 1,551 1,564 191 191 29 1,180 1,208 2,964 TOTAL S 385 128 186 406 1,673 2,778 6,510 843 429 142 523 8,448 6,906 3,043 6,368 16,318 27,54 SYSTEM TYPE CODES:

Metals Recovery Solvents Recovery Other Recovery M011 High temperature metals recovery M021 Fractionation/ distillation M031 Acid regen M012 Retorting M022 Thin film evaporation M032 Other recov nonsolvent organics M013 Secondary smelting M023 Solvent extraction M039 Other recov M014 Other metals recovery for reuse: e. g., ion exchange, reverse osmosis, acid leaching M024 Other solvent recovery M019 Metals recovery  type unknown M029 Solvents recovery  type unknown 4 15 TABLE 4 5 WASTE QUANTITIES RECOVERED OFFSITE IN 1997 BUT NOT RECOVERED IN 1999  BY NAICS CODE ( TONS))

NAICS METALS RECOVERY Total Metals SOLVENTS RECOVERY Total Solvents OTHER RECOVERY Total Other Code M011 M012 M013 M014 M019 Recovery M021 M022 M023 M024 M029 Recovery M031 M032 M039 Recovery Q 5419 14 14 2,610 2,610 0 3251 2 18 95 0 116 1,233 15 1,248 1 134 135 5622 0 128 128 1 1 3312 0 0 94 94 3314 75 0 75 0 0 3259 0 46 46 0 5417 0 0 0 15 15 3231 13 13 0 0 4219 8 8 0 0 3328 2 2 0 0 3254 1 1 0 0 3342 0 0 0 0 3222 0 0 0 0 3371 0 0 0 0 9999 0 0 0 0 2122 0 0 0 0 3372 0 0 0 0 No Code 0 0 0 0 TOTALS 79 26 0 110 14 229 3,888 128 0 0 15 4,031 95 1 149 245 SYSTEM TYPE CODES: TABLE 4 5 WASTE QUANTITIES RECOVERED OFFSITE IN 1997 BUT NOT RECOVERED IN 1999  BY NAICS CODE ( TONS))

NAICS METALS RECOVERY Total Metals SOLVENTS RECOVERY Total Solvents OTHER RECOVERY Total Other Code M011 M012 M013 M014 M019 Recovery M021 M022 M023 M024 M029 Recovery M031 M032 M039 Recovery Q 4 16 Metals Recovery Solvents Recovery Other Recovery M011 High temperature metals recovery M021 Fractionation/ distillation M031 Acid r M012 Retorting M022 Thin film evaporation M032 Other nonsolvent org M013 Secondary smelting M023 Solvent extraction M039 Other M014 Other metals recovery for reuse: e. g., ion exchange, reverse osmosis, acid leaching M024 Other solvent recovery M019 Metals recovery  type unknown M029 Solvents recovery  type unknown 4 17 4.5 Off Site Recovery Quantity Transferred Outside Industry Group in 1999 ( Selected NAICS Codes) with On Site Recovery Potential The proposed regulation will allow an exclusion from RCRA Subtitle C jurisdiction if the hazardous wastes currently shipped off site for recovery are recovered on site. This regulation may induce facilities to construct on site recovery facilities to gain the exclusion. The regulation will eliminate the economic barrier of applying for a RCRA permit to store waste at the generating facility for longer than 90 days. The Biennial Report data were analyzed for off site shipments outside the same industry group ( i. e., not within the same 4 digit NAICS code). These off site recovery quantities are a subset of the total quantity of hazardous waste shipped off site for recovery.

A total of 755,000 tons of hazardous waste within eleven selected 4 digit NAICS codes were not transferred within the same industry group in 1999, and have the potential for onsite recovery. One NAICS code recovered greater than 470,000 tons ( 62% of the potential on site recovery quantity).

NAICS 3312, steel product manufacturing from purchased steel, recovered 470,000 tons ( 62.5 percent) of the potential on site recovery quantity. Most of this quantity was managed by metals recovery.

NAICS 3344, , recovered 57,000 tons ( 7.5 percent) of the potential on site recovery quantity. Most of this quantity was managed by metals recovery.

NAICS 3252, resin,

NAICS 3359, , recovered 33,000 tons ( 4.3 percent) of the potential on site recovery quantity. Nearly all of this quantity was managed by metals recovery.

The remaining seven NAICS codes that recovered less than 30,000 tons off site in 1999 account for 162,000 tons ( 21.4 percent) of the potential on site recovery quantity. 4 18 TABLE 4 6 1999 OFF SITE RECOVERY QUANTITY TRANSFERRED OUTSIDE INDUSTRY GROUP ( FOR SELECTED NAICS CODES) WITH ON SITE RECOVERY POTENTIAL ( TONS)

NAICS CODE METALS RECOVERY SOLVENTS RECOVERY OTHER RECOVERY TOTALS # Waste Streams Quantity ( tons) # Waste Streams Quantity ( tons) # Waste Streams Quantity ( tons) # Waste Streams* Quantity ( tons) % Cumul. %

3312 157 452,950 70 348 6 18,136 205 471,434 62.451 62.451 3344 980 48,639 138 2,159 143 5,792 1,151 56,589 7.496 69.947 3252 80 5,133 87 26,811 12 722 166 32,666 4.327 74.275 3359 163 32,333 38 139 11 72 195 32,543 4.311 78.586 3314 69 9,963 61 535 23 18,548 145 29,046 3.848 82.434 3241 127 8,540 54 284 130 19,723 287 28,547 3.782 86.215 3328 778 23,306 140 629 70 1,139 906 25,075 3.322 89.537 3255 58 94 167 22,764 19 66 227 22,924 3.037 92.574 3251 176 2,311 196 14,969 82 5,180 431 22,460 2.975 95.549 3362 40 54 107 17,883 11 130 145 18,067 2.393 97.942 3254 131 117 289 15,258 14 158 420 15,533 2.058 100.000 TOTALS 2,759 583,440 1,347 101,778 521 69,667 4,278 754,885 100.000   * The total number of waste streams is not equal to the sum of the number of waste streams for the three recovery types, since portions of each waste stream may be recovered by different method. The numbers in the total number of waste streams column represent the total number of unique waste streams. 4 19 4.6 Disposal Quantity in 1999 with On Site Recovery Potential ( Selected Waste Types and SIC Codes)

The proposed regulation will allow an exclusion from RCRA Subtitle C jurisdiction if the hazardous wastes currently land disposed are recovered on site. This regulation may induce facilities to construct on site recovery facilities to gain the exclusion. The regulation will eliminate the economic barrier of applying for a RCRA permit to operate the facility. The Biennial Report data were analyzed for disposal of eight selected waste types with a higher potential for recovery.

4.6.1 Off Site Disposal A total of 696,000 tons of hazardous waste within selected waste types and SIC codes, and with on site recovery potential, were disposed off site in 1999 by 1,758 plants ( 1,585 unique plants). Two waste types disposed greater than 210,000 tons each ( 30.2% of the total off site disposal quantity) in off site disposal practices. These two waste types account for 71 percent of the total disposal quantity with on site recovery potential. Incineration, energy recovery and fuel blending, aqueous inorganic treatment, aqueous organic and inorganic treatment, stabilization, and disposal are the primary disposal methods.

disposed 220,000 tons ( 31.6 percent) of the total off site disposal quantity. Most of this quantity was managed by incineration and energy recovery and fuel blending.

K061  Emission Control Dust from Steel Works Industry ( SIC 3312 and solid & sludge form codes) disposed 273,000 tons ( 39.2 percent) of the total off site disposal quantity. Over half of this quantity was managed by stabilization.

Metal Containing Liquids from Printed Circuit Board Industry ( SIC 3672 and liquid form codes) disposed 22,000 tons ( 3.1 percent) of the total off site disposal quantity. Most of this quantity was managed by aqueous inorganic treatment.

F006  Electroplating Wastewater Treatment Sludges from Printed Circuit Board Industry ( SIC 3672 and solid & sludge form codes) disposed 7,000 tons ( 1.0 percent) of the total off site disposal quantity. Most of this quantity was managed by sludge treatment, other treatment, and transfer facility storage. 4 20 Spent Carbon from Industrial Organic Chemicals and Petroleum Refining Industries ( SICs 2869, 2911 and solid & sludge form codes) disposed 2,000 tons ( 0.4 percent) of the total off site disposal quantity. Most of this quantity was managed by incineration and other treatment.

K171 & K172  Spent Catalyst from Petroleum Refining Industry ( SIC 2911 and solid & sludge form codes) disposed 11,000 tons ( 1.6 percent) of the total off site disposal quantity. Most of this quantity was managed by incineration, and other treatment.

K088  Spent Aluminum Potliner from Aluminum Industry ( SIC 3334 and solid & sludge form codes) disposed 73,000 tons ( 10.4 percent) of the total off site disposal quantity. Most of this quantity was managed by incineration, aqueous inorganic treatment, other treatment, and disposal.

K062  Spent Pickle Liquor from Steel Works Industry ( SIC 3312 and liquid form codes) disposed 88,000 tons ( 12.7 percent) of the total off site disposal quantity. Most of this quantity was managed by aqueous inorganic treatment and disposal.

4.6.2 On Site Disposal A total of 315,000 tons of hazardous waste within selected waste types and SIC codes, and with on site recovery potential, were disposed on site in 1999 by 86 plants. Two waste types account for 100 percent of the total disposal quantity with on site recovery potential. Aqueous inorganic treatment, other treatment, and disposal are the primary disposal methods. These disposal methods account for 35,000 tons, 88,000 tons, and 191,000 tons of the total, respectively. Table 4 8 presents the quantity of hazardous waste disposed on site by waste type and disposal management type for selected waste types and SIC codes.

Metal Containing Liquids from Printed Circuit Board Industry ( SIC 3672 and liquid form codes) disposed 134,000 tons ( 42.6 percent) of the total on site disposal quantity. Most of this quantity was managed by disposal.

K062  Spent Pickle Liquor from Steel Works Industry ( SIC 3312 and liquid form codes) disposed 181,000 tons ( 57.5 percent) of the total on site disposal quantity. Most of this quantity was managed by other treatment and disposal. 4 21 TABLE 4 7 1999 OFF SITE DISPOSAL QUANTITY WITH ON SITE RECOVERY POTENTIAL ( SELECTED WASTE TYPES AND Selected Waste Types and SIC Codes Incineration ( M041 M049) Energy Recovery and Fuel Blending ( M051 M061) Aqueous Inorganic Treatment ( M071 M079) Aqueous Organic Treatment ( M081 M089) Aqueous Organic and Inorganic Treatment ( M091 M099) Sludge Treatment ( M101 M109) Stabilization ( M111 M119) Other Treatment ( M121 M129) Disposal ( M131 M137) Transfer Facility Stor ( M141)

# Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Qua Organic Liquids from Industrial Organic Chemicals, Paints and Allied Products, Pharmaceutical Preparations, and Plastics Materials and Resins Industries ( SICs 2869, 2851,

2834, 2821 and liquid form codes) 1,681 44,221 2,481 158,048 3 19 14 2,350 12 834 1 2 17 430 241 1,882 29 2,210 1,331 9,6 K061  Emission Control Dust from Steel Works Industry ( SIC 3312 and solid & sludge form codes) 0 0 0 0 0 0 0 0 7 62,536 0 0 22 141,447 2 2,365 12 50,816 0 Metal Containing Liquids from Printed Circuit Board Industry ( SIC 3672 and liquid form codes) 17 106 13 290 183 14,808 1 23 9 1,911 2 19 23 1,446 44 815 4 24 189 2,3 F006  Electroplating Wastewater Treatment Sludges from Printed Circuit Board Industry ( SIC 3672 and solid & sludge form codes) 8 369 3 141 13 738 0 0 0 0 18 874 29 769 33 1,509 9 165 63 2,5 Spent Carbon from Industrial Organic Chemicals and Petroleum Refining Industries ( SICs 2869, 2911 and solid &

sludge form codes) 65 743 17 419 0 0 3 65 0 0 1 2 1 0 16 836 4 131 35 20 TABLE 4 7 1999 OFF SITE DISPOSAL QUANTITY WITH ON SITE RECOVERY POTENTIAL ( SELECTED WASTE TYPES AND SIC CODES)

Selected Waste Types and SIC Codes Incineration ( M041 M049) Energy Recovery and Fuel Blending ( M051 M061) Aqueous Inorganic Treatment ( M071 M079) Aqueous Organic Treatment ( M081 M089) Aqueous Organic and Inorganic Treatment ( M091 M099) Sludge Treatment ( M101 M109) Stabilization ( M111 M119) Other Treatment ( M121 M129) Disposal ( M131 M137) Transfer Facility Storage ( M141) No System Type Code TOTAL QUANTITY # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity 4 22 K171 & K172  Spent Catalyst from Petroleum Refining Industry ( SIC 2911 and solid & sludge form codes) 40 2,616 3 34 2 18 0 0 1 42 0 0 9 748 37 5,146 12 407 15 787 7 1,118 10,916 K088  Spent Aluminum Potliner from Aluminum Industry ( SIC 3334 and solid & sludge form codes) 9 18,222 0 0 2 9,873 0 0 3 1,934 0 0 5 4,957 2 9,024 16 25,369 1 3,168 0 0 72,547 K062  Spent Pickle Liquor from Steel Works Industry ( SIC 3312 and liquid form codes) 0 0 0 0 24 64,622 0 0 2 21 0 0 5 1,499 3 1,257 7 20,646 2 54 0 0 88,099 TOTALS 1,820 66,277 2,517 158,932 227 90,078 18 2,438 34 67,278 22 897 111 151,296 378 22,834 93 99,768 1,636 18,630 31 17,684 696,112 4 23 TABLE 4 8 1999 ON SITE DISPOSAL QUANTITY WITH ON SITE RECOVERY POTENTIAL ( SELECTED WASTE TYPES AND SIC CODES)

Selected Waste Types and SIC Codes Aqueous Inorganic Treatment ( M071 M079) Aqueous Organic Treatment ( M081 M089) Aqueous Organic and Inorganic Treatment ( M091 M099) Sludge Treatment ( M101 M109) Other Treatment ( M121 M129) Disposal ( M131 M137) TOTAL QUANTITY # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity # Waste Streams Quantity Metal Containing Liquids from Printed Circuit Board Industry ( SIC 3672 and liquid form codes) 187 23,918 7 28 2 304 1 334 23 3,081 95 105,846 133,511 K062  Spent Pickle Liquor from Steel Works Industry ( SIC 3312 and liquid form codes) 4 11,571 0 0 0 0 0 0 1 84,798 4 84,802 181,171 TOTALS 191 35,489 7 28 2 304 1 334 24 87,879 99 190,648 314,682 4 24 4.7 Summary of Management Data A total of 849 plants ( large quantity generators) recovered 818,000 tons of hazardous waste on site in on 1997 BRS data indicating the waste had been recovered previously, an additional In addition, if it is economically feasible to construct on site recovery facilities, part of a population of 6,177 plants recovering approximately 976,000 tons off site outside the same industry group may receive benefits from the proposed rule. A break even cost analysis was conducted on wastes recovered by eleven NAICS codes. These eleven NAICS codes comprise 1,847 plants and 755,000 tons of the above totals. Metal recovery, solvent recovery, and other recovery within the selected NAICS codes account for 583,000 tons, 102,000, and 70,000 tons, respectively. Based on a break even cost analysis, 142 of the 1,847 plants representing 257,000 of the 755,000 tons ( 168,695 tons for metals recovery, 72,040 tons for solvent recovery, and 15,952 tons for other recovery) may construct on site recovery facilities.

Finally, if it is economically feasible to construct on site recovery facilities, part of a population of 1,758 plants ( 1,585 unique plants) disposing approximately 696,000 tons off site may receive benefits from the proposed rule. A break even cost analysis was conducted on the eight waste 4 25 types from selected SIC codes included in the analysis ( results presented in Table 5 21). Based on the break even cost analysis, 681 of the 1,758 plants ( some plants are double counted because they disposed more than one of the eight waste types) representing 415,000 of the 696,000 tons may construct on site recovery facilities. Incineration, energy recovery and fuel blending, aqueous inorganic treatment, aqueous organic and inorganic treatment, stabilization, and disposal account for 81,000 tons, 305,000 tons, 171,000 tons, 67,000 tons, 161,000 tons, and 107,000 tons, respectively. In addition, part of a population of 86 plants disposing approximately 315,000 tons on site may receive benefits from the proposed rule. A break even cost analysis was conducted on the two waste types from selected SIC codes included in the analysis ( results presented in Table 5 22). Based on the break even cost analysis, 27 of the 86 plants representing 181,000 of the 315,000 tons may construct on site recovery facilities. Aqueous inorganic treatment, other treatment, and disposal account for 35,000 tons, 88,000 tons, and 191,000 tons, respectively.

For the wastes that already are being recovered or were being recovered in 1997 and five waste types being disposed with high recovery potential ( discussed in Section 5), the total number of plants affected is estimated to be 1,749. These plants recover approximately 1,570,000 tons either on site or within the same industry group and may benefit from the exclusion from RCRA jurisdiction. 5 1 5.0 COST IMPACT ANALYSIS 5.1 Types of Cost Savings The proposed rule will create cost savings. First, given an exclusion from the Definition of Solid Waste, the generator no longer needs to comply with manifest, pre transport, and recordkeeping and reporting requirements under 40 CFR Part 262 of RCRA for those wastes. Second, given that the excluded quantities are no longer considered hazardous if recovered, the generator status of the facility may switch from being a large quantity generator to a small or conditionally exempt small quantity generator. Small and conditionally exempt small quantity generators have fewer administrative requirements than large quantity generators under Part 262 of RCRA. Finally, if wastes are no longer listed as hazardous if recovered either on site or off site within the same industry group ( 4 digit NAICS), residuals from the recovery processes may no longer be hazardous under the " Derived from Rule." The management of these residuals may shift from Subtitle C to Subtitle D disposal if they do not test characteristically hazardous. In addition, with the wastes no longer being defined as hazardous waste if recovered, generators may no longer need to pay hazardous waste generation taxes and fees. Reductions in hazardous waste taxes and fees are not social cost savings, but, reductions in transfer costs. However, these reductions may influence a firms's decision to reclaim it's wastes.

5.2 Baseline Cost Components The baseline management practices for recovered wastes were identified using the 1999 Biennial Report. For facilities recovering wastes on site in 1999, the primary metals, solvents, and other recovery practices are high temperature metals recovery/ secondary smelting, fractionation/ distillation, and acid regeneration used to represent all " other recovery practices", respectively. Residuals from these recovery practices that are derived from a listed waste or have a hazardous characteristic are managed as hazardous. High temperature metals recovery/ secondary smelting, fractionation/ distillation, and acid regeneration residuals are assumed to be managed by hazardous waste landfill disposal with stabilization, energy recovery, and chemical precipitation with off site stabilization and landfill disposal of precipitates and sewer discharge of neutralized wastewater, respectively, in this economic assessment.